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The internal system of a label is very complex whit a number of parts hat interacts and the organization model is functional to the specific characteristic of product and service offered. There are three fundamental company archetypes: Functional Structure, Divisional Structure and Matrix Structure. Any recording label may have slightly different organization structure, the archetype used by a music labels is a Functional Structure, in fact the work is divided in functional units that shares the same specialization and a predictable activities.
The recording labels have a separate departments, here are the major divisions of fully staffed record companies: Artist and Repertoire, Sales, Marketing, Promotion, Product Management, New Media, Production, Finance, Business Affair, International. The Artist and Repertoire department is the most fascinating and is very important for a success music label. “These are the people with “ears” who find and nurture new talent, and who work creatively with the artists” *!
The Music Label Marketing are based of four elements also referred to as the up’s of marketing: Product, Price, Place and Promotion. ; Product – what a music labels offer to a customer: Their CD physical attributes, how they differ from a competitors and what benefit they provide. Price – How price the product so that the price remains competitive but allows to make a good profit. ; Place – Where the music label sells its products and how it gets those products to customers. Promotion – The methods used by a music label to communicate the features and benefits of products to target customers. * (p. 178 of Donald S. Pajamas. ” Regenerators, 2009. ) All You Need to Know About the Music Business.