Kfagan Thesis 071118
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A HISTORICAL PERSPECTIVE ON LP MARKETING AND PAYOLA IN 1962: THE CASE OF ROBBY AND THE TROUBADOURS by Kalman Sheppard Fagan A Thesis Submitted to the Faculty of The Colleges of Business In Partial Fulfillment of the Requirement for the Degree of Master of Science Florida Atlantic University Boca Raton, FL August 2018 Copyright 2018 by Kalman Sheppard Fagan ii ACKNOWLEDGEMENTS I wish to thank my thesis committee beginning with my Chair, Dr. Marc Rhorer, for his guidance and patience as I complete this leg of my academic journey. I also wish to thank Dr. Allan Whiteman and Dr. Peter Ricci for their generous support and flexibility. Thank you also to Dr. Rivka Felsher, my editor, for helping me reach this goal and offering advice and support along the way. It’s important to look back in gratitude to those who brought me to this point: the members of Robby and the Troubadours, some who have passed on; press agent, the late Larry Leverett; my former wife, Carole Rini; and many others, too numerous to list here, to whom I will always be grateful. iv ABSTRACT Author Kalman Sheppard Fagan Title: A Historical Perspective on LP Marketing and Payola in 1962: The Case of Robby and the Troubadours Institution: Florida Atlantic University Thesis Advisor: Dr. Marc Rhorer Degree Master of Science Year 2018 The music industry in 1962 reflected the political turmoil of the times. Dinner and dancing was a popular pastime. The music Americans heard and enjoyed over the airways was limited, however, by payola. Program directors adhered to criteria that supported the corporate fiscal model of their radio stations. Songs needed to attract listeners and major advertisers. Payola typically involved direct payments from major record labels to disc jockeys and the rewards were lucrative. Record labels fed them songs to play and disc jockeys became loyal to the payments. Thus, payola became a bottleneck to broader distribution of other artists, which hurt musicians, small record labels, and the public, and increased the price of music. Entertainment managers were ambitious band managers who took on additional roles due to the high costs of producing and promoting songs. The case of Robby and the Troubadours is shared through a historical simulated marketing plan. v DEDICATION This thesis is dedicated to late Robby and the Troubadours band members: Bob “Robby” Vidone, singer/dancer and lead performer; “Fast” Eddie Hoh, drummer; Butchie Garfolla, organ and sax player; and Carmine Riale, guitar player. You are missed. A HISTORICAL PERSPECTIVE ON LP MARKETING AND PAYOLA IN 1962: THE CASE OF ROBBY AND THE TROUBADOURS Tables ............................................................................................................................. x Figure ............................................................................................................................. xi Chapter 1. The Music Industry in 1962 ............................................................................ 1 Introduction ......................................................................................................... 1 Historical Climate of the United States in 1962 .................................................... 6 Politics ..................................................................................................... 6 Economics................................................................................................ 7 Culture ..................................................................................................... 9 Musical Tastes ......................................................................................... 9 The Music Industry Market in 1962 ................................................................... 10 Product ................................................................................................... 11 Format (45 RPM album, 33 RPM LP album) .............................. 11 Genres ........................................................................................ 12 Pricing ........................................................................................ 12 What was Popular? ................................................................................. 13 Chapter 2. Getting Airplay in 1962 ................................................................................ 14 Promotional Strategies ....................................................................................... 14 Payola .................................................................................................... 16 Definition ................................................................................... 16 vii Players ........................................................................................ 17 Rewards ...................................................................................... 18 Violations ................................................................................... 18 Consequences ............................................................................. 19 Work-Arounds ............................................................................ 21 Effect on the Music Industry ....................................................... 21 Entertainment Managers .................................................................................... 23 Chapter 3. Marketing Plan: Robby and the Troubadours LP, 1962 ................................. 27 Executive Summary ........................................................................................... 27 Mission Statement .................................................................................. 27 Goals ...................................................................................................... 28 Strategies ............................................................................................... 28 Budget Requirements ............................................................................. 29 Measuring Success ................................................................................. 29 Business Overview ............................................................................................ 29 Product Description ................................................................................ 29 Competitive Positioning ......................................................................... 31 SWOT Analysis ..................................................................................... 32 Competing Businesses ................................................................ 32 Target Market......................................................................................... 34 Marketing Goals ..................................................................................... 35 Marketing Strategies .............................................................................. 35 Product Strategy ......................................................................... 35 viii Pricing Strategy .......................................................................... 36 Place/Location Strategy .............................................................. 36 Promotional Strategy .................................................................. 37 Positioning Strategy .................................................................... 39 Implementation Activities (Action Plan) ............................................................ 40 Budget and Sales Forecasts ................................................................................ 42 Evaluation of Results ......................................................................................... 44 Conclusion (Epilogue) ....................................................................................... 45 Appendices.................................................................................................................... 50 Appendix A. Robby and the Troubadours .......................................................... 51 Appendix B. Robby and the Troubadours 1963 Stage Sign ................................ 52 Appendix C. Robby and the Troubadours With Sandra Dee, Chicago, 1962 ....... 53 Appendix D. Press Kit Biography Mock-up, 1962 ............................................. 54 Appendix E. Movie Audition Referrals for Carmine Riale and Robby Vidone, 1962 ................................................................................. 55 Appendix F. Press Kit Introduction Letter From the William Morris Agency, 1962 ................................................................................ 56 Appendix G. A Moderate Sales Potential Rating for “The Lemon Twist” (Billboard, 1962, p. 38) .................................................................. 57 Appendix H. The Accidental Hit Record, “The Lemon Twist,” in Chicago, 1962 ............................................................................................. 58 References ..................................................................................................................... 59 ix TABLES Table 1. Action Plan for Implementation of Marketing Strategy ................................... 41 Table 2. Expense Budget 1962-1964 ............................................................................ 43 x FIGURE Figure 1. SWOT Analysis of Direct and Indirect Competition ...................................... 33 xi CHAPTER 1. THE MUSIC INDUSTRY IN 1962 Introduction The music industry in 1962 reflected the political