Future Music Copyright Issues

Most of us take music for granted and many of us use it in our work places. It is a good marketing tool. It attracts customers, relaxes staff and generally if used carefully, helps to define the style and ambience of our establishments.

But if you use music, be it on TV, radio, CD, tape or music played to callers over the telephone line, out side the private home, it is a performance ‘in public’.

It doesn’t matter whether it is a live presentation or recorded music, if you don’t have a licence you are breaking the law, and if you get caught the fines are huge.

The artist, the recording company and the publisher, owns the ‘copyright’ of an individual piece of music and they need to agree, for a fee, to allow you to use their music in public. Failure to reach an agreement will lead to legal action. Even when the artist dies, the material is still under copyright for a further 75 years and you will still be liable if you breach any part of the copyright law.

Basically you are breaking the law if, you play music in a public place, copy music off an original CD, tape, or off the internet, to play in a public place without a licence.

Using your favourite CD as background music on your home movies maybe OK as long as the video doesn’t leave your home. If it finds it way into a hall or a place were the public can go or ends up on some TV programme, you will be breaking the law, and could get caught.

So you need a licence for:

Music in your business

An event where music is used in a public place

Music on hold on your telephone system

For making, audio recordings of a song or other Musical works, advertising and importation of sound recordings

Pre-recorded production music for audio visual productions

Music for online applications

Music for educational purposes, theatre productions, eisteddfods, dance schools and print music.

Licences can be obtained through the Australian Performing Rights Association Ltd, APRA on (02) 9935 7900 or visit their web-site

Alternatively you can use AVP Copyright Free Music! weaver@pnc.com.au

Employer’s Workers Compensation

Obligations

In 1926 our NSW Parliament passed legislation to introduce a statutory scheme to compensate workers injured in the course of their employment, creating a liability on the part of employers’ to pay workers compensation. A major amendment to the Law was made in 1987 whereby the scheme was to be managed by the WorkCover Authority.

The scheme is compulsory for employers to take out insurance with heavy fines imposed if not undertaken.

Points to Note:

1. It is difficult at times to determine whether a person carrying out work is a worker within the meaning of the Legislation. Therefore care should be taken before entering into any contract for service with another person as that person could very well be deemed to be a worker and you would have an obligation to provide insurance for that person.

2. Benefits to injured workers can include a lump sum or weekly payments up until one year beyond the normal retirement age of that worker, with all reasonable treatment expenses paid for the remainder of their life.

3. Benefits extend to workers who are not only injured in the course of their employment but also on their way to and from work.

What to do when there is an injury!

1. You need to provide the worker with details of the Workers Compensation Insurer, the policy number and a claim form. Upon notification by the injured worker, the injury must be reported in a Register of Injuries kept by the employer. Fines and prosecution can be imposed if these are not complied with.

2. The employer must notify the Workers Compensation Insurer within 7 days of the injury. If you have any suspicion about the claim, you must notify the insurer at this time with all relevant information.

3. Do not make any payments to the worker until a decision has been made by the insurer as to any acceptance of liability. (Sickness benefits, leave entitlements etc can be paid in the interim and will be reimbursed).

4. If a worker is off for some time an Injury Management Plan. This means the employer providing suitable employment for a partially incapacitated worker. Failure to do so, the worker is deemed totally incapacitated resulting in additional payments to the injured worker.

5. An employer is only entitled to terminate a worker who is unfit for work due to his injuries if the worker has been absent from work for a period of 6 months. However, obligation of the claim does not stop if you terminate.

6. There is an obligation under the Workers Compensation Legislation to prominently display details of the Scheme.

What is Marketing?

Contrary to popular belief, marketing is not sales or advertising.

Marketing is aligning your business processes to produce maximum results. Before you can develop a marketing plan though, you must have already clearly defines ‘who is my business’ and ‘why am I in business’.

Then comes the following steps:

1. Plan: Know your competition strengths and weaknesses. Know who they are and what your customers want. From there, you can identify gaps in the market, which results in developing your market niche. Remember, the reason for your business is to make a profit, not turnover.

2. Benefits First: All your marketing should be directed at answer your customers No. 1 question, “What’s in it for me?”. Don’t focus on what your products can do (features). The focus should be on what needs can the product satisfy to the customer and the resultant benefits that the customer will gain from the product.

3. Market Niche: Having a niche business means that you have fewer

competitors. What can you offer that is a little bit different from your competitors.

As a small business, do not try to take on the whole market and every product.

Instead, find a niche and service it well.

4. Build a Framework: The main question to ask your self is “why should

a client/customer come to my business?” If you cannot list the reason clearly

and concisely you can be assured that neither can your potential customers.

So do an examination:

…your products and services – what you can offer;

…the customers, present or potential;

…the competition, price levels and performance;

…distribution;

…area – geographical

Now you have an outline/framework on which to structure your business

processes

5. SWOT Analysis: Ok, now’s the time to be honest. SWOT is an acronym

for Strengths, Weaknesses, Opportunities and Threats. Make a list under

each of those categories regarding your business.

6. Goals and Objectives: Once you are clear on where you are going, you

begin establishing your marketing objectives such as:

…I will make $1M in turnover during 200x – 200x;

…I will obtain a market share of Z;

…my margins will be X%;

…profi tability will be Y%;

…I will spend W% of sales on marketing.

It is useful to divide the objectives into those that are a must and those that are desirable.

page 2 marketing

The research and ideas stage is complete. Now let’s put it into action!

7. Marketing Mix: Write a Marketing Mix plan based on the previous steps:

…price strategy – decide on a pricing policy and stick to it;

…promotion strategy – read/purchase books on small business promotions and do it. It is mandatory that you set aside funds and resources to undertake promotional activities;

…product strategy – What products or service are you offering? Can your differential the products by offering additional functions or services.;

…distribution strategy – Consider: geography, method and cost;

8. Budget: All small businesses should work with their accountants and develop a cash flow budget. Marketing must be included in the budget.

9. Control: Regularly monitor your business performance. Take control on a monthly basis and ensure that you are on track to meet your business objectives.

10. Remember: Marketing is a continuous evolving function and requires constant research, monitoring and control of the activity to ensure long term success.

How To Overcome The Churn and Burn of Customer Loyalty

In today’s business market place, customer loyalty is vital. Companies must build and maintain effective, long-term relationships with existing customers by focusing resources on high value existing customers, not chasing less profitable ones.

The benefits of building customer loyalty include, increased revenues and market share, reduced costs, increased employee job satisfaction, customer positive word of mouth and customer referral.

Studies have also shown that a company could also improve profits from 25% to 85% by reducing customer defections by just 5%.

As well, there is a relationship between retention rates and average customer duration.

Tools to manage customer loyalty and overcome churn

Businesses must find and keep “the right customer”, based on “lifetime” value. Those to whom the best value can be delivered over a sustained period of time. Not all customers are equal and the right customers are not necessarily the easiest to attract or the most profitable in the short term.

Monitor and revise the “value proposition” that brought customers to your business in the first place. You should provide a range of services that conform with the customers evolving needs to maintain a “share of wallet”.

Companies with long time customers can financially outperform competitors who have low unit cost, high market share and who have high customer churn. Determine “when” a customer is likely to leave and the issues for leaving, prior to defection. By soliciting feedback from customers you can take corrective action and give customers fewer reasons to leave.

Service recovery strategies can also be implemented, i.e., maximise the channels that customers can vent their complaints and provide speedy redress of customer grievances.

Finally, customer loyalty is achieved by mobilising an organisation in pursuit of a common “zero defection” goal. They must understand the lifetime value of a customer. This could involve training in the area of spotting and managing potential defectors and incentives that are tied to defection rates. This reward creates a positive company atmosphere, positive customer/staff exchanges resulting in people who enjoy their work and customers who want to continue their relationship.

How Consumer Evaluation Processes Differ between Goods and Services.

It is harder for consumers to evaluate services than goods. This is because services are intangible and non-standardised and because consumption is so closely intertwined with production.

For a service provider to ensure their economic survival through satisfying customer needs, they need to understand how consumers choose and evaluate their offerings. Services have unique characteristics that necessitate different consumer evaluation processes from those used when assessing goods. Goods are easier to evaluate such as jewellery, furniture, houses due to their “search qualities”- attributes which a consumer can determine prior to purchase (i.e., colour, style, fit, feel, hardness, smell) and “experience qualities”- attributes such as vacations, haircuts, childcare, which can only be discerned after purchase or during consumption (i.e., taste, wearability, purchase satisfaction). There is one further category which pertains to services in particular, “credence qualities”- characteristics which the consumer may find impossible to evaluate even after purchase and consumption. For example car brake relining or an appendectomy- few of us have sufficient mechanical or medical skills to assess whether these services are necessary or performed properly.

Money Grows on Trees

Services are more difficult top evaluate than goods because their evaluation falls into “experience and/or credence qualities”. This forces consumers to rely on different cues and processes when evaluating services;

1. Information Search – Consumers rely to a greater extent on personal sources to evaluate a service. Friends or experts can provide “experienced” knowledge for a consumer to help gauge how good a service is i.e. “Dr Shaw is a fantastic plastic surgeon.”

2. Criteria for Evaluating Quality – Consumers use price and physical facilities as the major cues to service quality. Price is used as an indicator of quality if there are no other tangible cues (i.e. plumbing, housekeeping) or may evaluate tangible evidence, such as how professional looking is the reception area at the accountants, how well dressed are the staff, how many people are in the hairdressers.

3. Evoked Set – The consumers’ evoked set of alternatives is smaller with services. When you purchase goods, retail shops display competing products within close proximity (i.e. Homeware shopping centres). However, service establishments usually only offer one service, with only one or two stores providing that service. This makes it difficult to collect and evaluate experience qualities, with consumers selecting the first acceptable alternative.

4. Innovation Diffusion – Consumers adopt innovations in services more slowly than they adopt innovations in goods. This is due to the fact that they cannot be displayed or illustrated, tested or sampled.

5. Perceived Risk – Consumers perceive greater risks when buying services due to the fact that they cannot be evaluated until the service is over, or they may not have the knowledge to know how good a service is.

6. Brand Loyalty – Brand switching is less frequent with services than goods. Brand is a good cue to choosing a service, becoming a regular customer ensures the service provider knows you better, forms a relationship with the seller who is encouraged to provide better customer satisfaction.

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Marketing Implications

Marketing strategies may need to be changed due to the high levels of experience and credence qualities for services.

1. Information – Stimulate word of mouth by using testimonial advertising.

2. Quality Image – Put your price above competitors if you are high quality service providers and if this is the cue service providers use. As well make sure your physical surroundings match the image you want to portray.

3. Service Provider – Make sure your service provider is well trained in products and how to give excellent customer service.

4. Innovation Diffusion – To speed this up, offer free visits, dollars-off coupons.

5. Reduction of Risk – Use guarantees if possible, emphasise high quality of employee training.

6. Brand Loyalty – A big challenge. Can be overcome by directing communications and strategy to customers of competitors emphasising attributes and strengths of your firm which your competitor lacks.