This document summarizes a presentation on adopting a market orientation approach in libraries. It defines key marketing concepts like the marketing concept and market orientation. It discusses models of market orientation and how market orientation has been studied and developed in the library context. The presentation explores how market orientation can benefit libraries by improving customer satisfaction, helping libraries adapt to changes, and enhancing competitiveness. A case study of Emory University restructuring its library approach along market segments is provided. Further research on developing scales to measure market orientation in libraries is recommended.

1. Adopting a New MO: Meeting Patron Needs and Transforming Libraries through Market OrientationMatthew P. CiszekPenn State University LibrariesALCOP Conference – October 9, 2011

2. Marketing Concept and Market OrientationCentral to the field of marketing is the marketing concept:“The marketing concept advocates starting with customer needs/wants, deciding which needs to meet, and involving the entire organization in the process of satisfying customers” (Cravens and Piercy, 2006)Market orientation is a measure of the adoption of the marketing concept by a firm or organizationNon-profit organizations must first develop a marketing culture – a set of shared values that support marketing activities – in order to ensure a market orientation

3. What is Market Orientation?“Gaining a sustainable competitive advantage by creating a consistently superior offering for customers” (Harrison and Shaw, 2004)“Achieving business value through a clear understanding of the customers, the organization, and the wider business environment” (Sen, 2006)“Adoption by an organization of a customer focus…starting with customer needs/wants, deciding which needs to meet, and involving the entire organization in the process of satisfying customers” (Parker, Kaufman-Scarborough, and Parker, 2007)

4. MO as defined in Library and Information StudiesNo universal definition of market orientation in the library literatureConfusion over the terms “market orientation” (strategic focus) and “marketing orientation” (promotional and activity based) in librarianshipLack of understanding and development of the marketing concept in library and information organizations

5. Marketing misconceptionsLibrary literature focuses heavily on the functional aspects of marketing – the howNo focus on marketing as a long-term strategic perspectiveOnly two of the “Four Ps” are exploredProduct (collections and services) and Promotion (how we communicate and advertise)Price (exchange of value) and Place (distribution)No value is exchanged because no money is exchangedSeen as an afterthought and not central to our core functions, collections, and services

6. Market Orientation ModelsKohli and Jaworski (1990):MO is measured by three sets of activities:Organization-wide generation of market intelligence pertaining to current and future customer needsDissemination of the intelligence across departmentsOrganization-wide responsiveness to the intelligenceActivity focus with an operational outlook

7. Market Orientation ModelsNarver and Slater (1990):Three components:Customer orientation: Sufficient understanding of customers to be able to create superior value continuously Competitor orientation: Understanding of the short-term strengths/weaknesses and long-tem capabilities/strategies of key competitorsInter-functional coordination: Coordinated utilization of resources in creating superior value for customersStrategic and cultural focus

8. Development of MO in LibrariesSavard (1996)Studied the market orientation of Quebec library managersImportance of marketing in libraries was highLibraries must move from a product-oriented focus to a customer-oriented oneHarrison and Shaw (2004)Library staff attitudes and how these support or resist the adoption of a marketing cultureMarketing needs to be more strategic and holistic with buy-in from entire organizationInvestigated public libraries in Australia

9. Development of MO in LibrariesEwers (2004)Case study of the Queensland University of Technology in AustraliaMO is more than “skin deep” – with a total focus on organization’s planning and operationsSen (2006)Two articles on health and arts libraries in the UKFamiliarity with MO and the value/relevance MO has as a strategic option for library managersLibrary professionals gravitate toward the Narver/Slater model of MOLibraries need to develop a focus on the competitive environment and dissemination of intelligence

10. Development of MO in LibrariesParker, Kaufman-Scarborough, and Parker (2007)Library staff attitudes toward MOLarge sample of respondents (623) from NJLALibrary managers must make marketing a priority for MO to take placeAharony (2009)Explored relationship between library staff attitudes toward marketing and MOSurvey of 156 Israeli librariansLink between personality traits and marketing, but all library staff should be exposed marketing concepts

11. Development of MO in LibrariesSingh (2009)Why are some libraries more market oriented than others?Finnish academic and research librariesMO of a library is a significant determinant of service performanceStronger MO results in higher customer satisfactionDeveloped a model of marketing approaches in different library cultures

12. Marketing Approaches of Different Library Cultures (Singh, 2009)ReactiveLibrary FocusedCustomer FocusedProactive

13. Marketing culture and Libraries(Singh, 2009)Slow WalkersMarketing = disseminating informationMarketing does not have much to do with librariesReactive measures used to meet customer needsBrisk RunnersMarketing = promotionBuilding relationships with customers is most importantSome proactive measures takenHigh FlyersMarketing = identifying and meeting customer needsCustomer is at the center of all activitiesHighly proactive and strategic organization

14. How can MObenefit libraries?An organization’s MO has been proven in the literature to have a positive effect on profitability and customer satisfactionMO can be used as a means to investigate and develop new resources and services to meet customer needsMO can also be used to compel libraries to monitor and respond to competition in the information services environmentLibraries with a higher degree of MO are better equipped at responding to environmental change

15. How can MObenefit libraries?Singh (2009) Found a positive relationship between MO in libraries and the level of customer satisfactionLibraries acquire the tools necessary for continuously improving library services and collections as a result of adopting a MOPositive connection exists between marketing attitudes and behaviorPositive marketing attitude of library leadership is key for market oriented behavior in the library

16. How can MObenefit libraries?Aharony (2009) reports that adopting a MO can assist libraries in remaining competitive in the changing world of information providersSen (2006) argues that libraries must focus on the competitive environment in order to stay relevantSen (2006) suggests that the dissemination of competitive intelligence can allow libraries to more effectively target users and manage appropriate services and resourcesHarrison and Shaw (2004) suggest that MO can compel library staff to perform routine marketing-related activities in order to gather intelligence on customer needs and competitors

17. Case Study – Emory University (Elder, Forrest, & Thomas, 2005)Organizational redesign of library into market councils, each focusing on a segment of users“The market councils are responsible for ensuring that the library’s functional units and processes are aligned with the needs of a particular subset of users, by paying attention to the relationship between the library and the user, and by promoting the services and resources of the library.”Library became more customer-driven as needs of users were being investigated and services and resources developedResulted in increased service to segment populations and better customer service

18. Future researchResearch on MO in library and information must be refined and replicated over time – much of the research at this time is exploratoryA scale to measure MO in libraries needs to be developed and applied replicating methodologies that have been used in other non-profit organizationsAdditional research is necessary to understand the barriers to adopting MO in libraries and address areas of weakness in strategy, marketing, and management of library services

19. Questions?

20. Thank You!Thank you for attending this presentation!Slides and references handout are available at http://www.slideshare.net/mciszekPresenter can be contacted at mpc16@psu.edu