What business are you in?

A couple weeks ago, in an encore presentation of the CBC radio program “Under The Influence” Terry O’Reilly shared the following;

“One of the fundamental aspects of marketing is that a company has to know what business it's in.

That may sound like a laughable exercise. But it's not.

Apple is not in the computer business. It is in the empowerment business.

Nike is not in the sneakers business. It is in the personal goals business.

Molson is not in the beer business. It is in the party business.”

Apple is one of the most profitable companies in the world. Consumers aren’t attracted to Apple because of their products and gizmos. There are less expensive options out there. People are attracted to what Apple stands for. Their products empower their users.

People are attracted to Nike not because of the shoes, but because they are pulled to the philosophy of Just Do It - whether that pertains to getting fit, or popping the big question, or leaving a bad job or starting your own business. 80% of Nikes are not worn by people who work out.

I have spent a lot of time sitting down and helping musician learn the business side of what they are trying to do. When having these discussions I try and get a good sense of what the artists is trying to achieve, what their goals are and how they plan on going about reaching said goals. It’s different for every artist and that impacts how they conduct their business. That being said, one question I have never asked is if the artist knows what business they are in.

I think it is safe to say, if asked “What business are you in?’ most aspiring musicians will they are in the music business or music industry. According to Encyclopedia.com the music industry is:

“The music industry involves the production, distribution, and sale of music in a variety of forms as well as the promotion of live musical performance.” 

Does this definition say anything about the musician? Sure it mentions live musical performances, but not the performance itself. The music industry is about the promotion of said performances. The music industry revolves around a product. Whether it’s a song, and album or a concert…those are all products that the music industry is promoting. Musicians play an important role in the creation of those products but that wasn’t included in the definition of the what the music industry on Encyclopedia.com

A musician could say that they are in the song writing business, but that only represents a portion of what they do (or want to be doing) and even within that the level varies from one song writer to the next. Some musicians write songs which they perform themselves, while other musicians write songs that other people perform. Some musicians write songs for movies, televisions shows and other types of soundtracks while others write jingles for commercials. When it comes to song writing there are very distinct song writing roles and each one has its own business that is a part of another bigger business.

One could argue that musicians are in the Entertainment Business. The majority of the activities musicians are in, whether as a whole or contributing to another aspect within the music industry, they are all part of the Entertainment Business. Listening to music, going to concerts, watching music videos are all forms of entertainment that musicians provide for consumers to consume. The challenge with musicians saying they’re in the Entertainment Business is that it’s very vague. If someone was to ask you what type of business you were in and you said Entertainment, they don’t know if that means you’re a rock star or a clown that performs at children’s parties. Both roles are in the business of entertaining.

So as an aspiring musician, what kind of business are you in? To answer this question you have to ask “Why?”

Why do people buy Apple? Because their products are empowering. 

Why do people buy Nike? Because their shoes help empower people to reach their goals.

So...

Why do people listen to music?

Why do people go to concerts?

Why do people like music?

Why do people like YOUR music?

Music has the power to connect with people on an emotional level. Music connects people to feelings, places, people, and memories. Music inspires creativity, drives action and even connects us to each other. Every aspect of what an artist does has the ability to connect and stimulate an emotional reaction. Simply saying you are in the music industry doesn’t reflect what you as a musician are working at achieving. Song-writing, performing, even the various promotional activities to market music when done properly should stimulate an emotional reaction. That is the business we are in.

The business of connecting with and emotionally stimulating people through music!

So...if you're an artist and you agree with the above statement indicating what business you are in...what are you doing and how are you connecting with your target audience. Does what you are doing now align with the business you are in?