Old CEOs can learn a few new tricks from Lady Gaga

2011-05-27 00:00

AMERICAN singer Lady Gaga may be recognised by most people for her provocative outfits and wild shows, but she can school corporations in strategic innovation, a German business researcher said on Wednesday.

Lady Gaga, whose second album, Born This Way, was released on Monday, is widely expected to produce strong sales, and land atop the music charts, regardless of critical reception. A result that is largely due to her ability to vary how consumers relate to her brand, said Martin Kupp, a professor at the European School of Management and Technology in Berlin.

“Lady Gaga blurs the industry boundaries and it’s not really clear if she’s a musician, artist or fashion designer,” said Kupp, an author of a recent book on business lessons from artists such as singer Madonna and Renaissance painter Titian.

“I think there may be people out there who associate her much more with fashion or with other sorts of entertainment than music,” Krupp said of the 25-year-old whose attention-getting attire has included a raw-meat dress.

Billboard estimated that 450 000 to 750 000 copies of her record released by Universal Music Group’s Interscope Records could be sold in the first week alone.

High demand for a special 99-cent download of the album caused the servers of online retailer Amazon to crash.

Kupp and his colleagues, in a recent case study, credit the singer’s social-media strategy as a way for businesses to learn new methods to shake up an established industry.

By using social network Facebook and micro-blogging site Twitter, Lady Gaga has developed an army of fans through virtual interaction and not by pushing traditional­ marketing principles of promotion, product and price onto consumers, Kupp said.

“Social media is not a one-way communication and I think Lady Gaga understands that,” Kupp said. “It’s more about emotions, engagement and interactivity, so she’s very advanced.”

Lady Gaga refers to herself as “mother monster” and her fans as “little monsters”, Kupp said, adding that such a bond is not lost on consumers.

“That’s what you’re looking for in social media,” he said. “It’s to create much more intimacy than what you created with traditional marketing instruments.”

Kupp said Lady Gaga’s business strategy has been able to breathe life into the music industry, which has struggled to adapt its business model with the technological change to Internet downloads and online piracy.

“She’s a role model to show that it’s not only about music, but also about concerts, merchandising, art, fashion, media and daily life,” Kupp said, adding that her record label profits on all of her other activities, too. — Reuters.

Join the conversation!

24.com encourages commentary submitted via MyNews24. Contributions of 200 words or more will be considered for publication.

We reserve editorial discretion to decide what will be published.
Read our comments policy for guidelines on contributions.

24.com publishes all comments posted on articles provided that they adhere to our Comments Policy. Should you wish to report a comment for editorial review, please do so by clicking the 'Report Comment' button to the right of each comment.

Comment on this story
0 comments
Comments have been closed for this article.

Inside News24

 
/Sport

Book flights

Compare, Book, Fly

Traffic Alerts
There are new stories on the homepage. Click here to see them.
 
English
Afrikaans
isiZulu

Hello 

Create Profile

Creating your profile will enable you to submit photos and stories to get published on News24.


Please provide a username for your profile page:

This username must be unique, cannot be edited and will be used in the URL to your profile page across the entire 24.com network.

Settings

Location Settings

News24 allows you to edit the display of certain components based on a location. If you wish to personalise the page based on your preferences, please select a location for each component and click "Submit" in order for the changes to take affect.




Facebook Sign-In

Hi News addict,

Join the News24 Community to be involved in breaking the news.

Log in with Facebook to comment and personalise news, weather and listings.