General marketing concepts are often not relevant for SME, therefore, model adaptations are required. In this research paper we are examining the functioning and marketing orientation of Slovenian music record labels, which all fall into the category of small businesses. The research is qualitative. We use content analysis as well as the comparative method. Even defining the core functions of record labels, which had drastically changed with the digital revolution, is challenging. Label's main role nowadays seems to be music curation, and branding represents the key tactic for increasing their influence on the market. There is a misunderstanding of the core marketing concepts. Local record labels ascribe a great value to marketing, but feel opposition towards marketing expression and activity. Through the application of two models, adapted for evaluating marketing orientation in SME, music record labels in Slovenia show weak marketing orientation. There is little planning, which mostly takes place on the mental level. The reasons can be found in time, financial and human resources deprivation. They use reactive, implicit and simple marketing. The research emphasises the need for expansion of record label activities, more holistic and structured approach, stronger implementation of contemporary practices and trends, and increase in marketing orientation. Many see international focus as crucial for developing a stronger marketing awareness and a stable local music market.