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Case 24
SESAC
Case Objectives
1) To demonstrate the difference in effectiveness among various promotional techniques
used to promote services.
Problem Situation
PROs have existed in the United States since the early 20th century. The first PRO in America
was established in New York City on February 13, 1914 primarily to protect the copyrighted
musical compositions of Tin Pan Alley musicians. The American Society of Composers,
Authors, and Publishers (ASCAP), as it was called, counted Irving Berlin and John Philip Sousa
Teaching Suggestions
It is advisable to review various aspects of promotion used by channel members, and outline the
relative benefits of the promotional methods. In particular, review the costs/benefits of personal
selling and telemarketing.
Case Discussion
Artists must commit exclusively to one of the three PROs, but each PRO can sign as many
artists, publishers, and other copyright owners as it wishes. Royalties were generated by sales of
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tries to be non-confrontational with businesses in trying to obtain royalties, trying to avoid using
legal remedies to get businesses to join its organization.
After reviewing the essentials of the case as described above, it is important for students to note
the dilemma that SESAC is in, that of limiting the number of artists represented so that each
artist will receive sufficient royalties against having enough artists to convince organizations that
there is a benefit in paying royalties to SESAC. Convincing doubtful organizations to sign up
with SESAC is Lee’s primary task as the revenue collected from organizations that pay royalties
is its only source of SESAC revenue. Thus, the class discussion should shift from outlining the
facts of the case to thrashing out the best way to convert organizations to sign with SESAC.
What is the best path for SESAC? Perhaps a blend of the two methods may be best, especially
with the proven track record of the call center versus the relatively unknown benefits and costs of
an in-house sales force. An outline on the class board listing cost/benefits could be a good way