Marketing_of_Information_Products_and_Services.ppt

McGraw-Hill/Irwin Copyright © 2013 by The McGraw-Hill Companies, Inc. All rights reserved.
Seminar
on
“Marketing of Information Products and Services”
By
CHANDRASHEKHARA N
2nd Year MSc.
Department of Studies and Research in Library and
Information Science,
Tumkur University, Tumakuru.

1-2
Overview
1. Introduction
2. Definitions
3. Marketing and Libraries
4. Need and Importance
5. Market Segmentation
• Benefits of Segmentation
6. Marketing Mix
9. Challenges of Marketing
10. Marketing Audit
• Characteristics of Marketing Audit
• Types of Marketing Audit
11. Role of libraries in marketing LIS
12. Conclusion

1-3
Introduction
 A society that consumes and generates the most knowledge and
information is the strongest society in present scenario.
 The information industry has grown dramatically in services,
revenue, and coherence over the last decade.
 The marketing of information product and services has a been
very popular content in the library profession.
 The library is traditionally a non-profit organization become
aware of the need of the market their products and services.

1-4
Introduction
 Library and information products/services are now being
recognised as saleable and there is a constant market for these.
 The rationale behind this shift-over is due to the fact that
librarians are not only facing the challenges of the information
overload but also rising costs of materials and services such as
internet and online services, demand for better services, staff
shortage and harsh budget cutbacks compounded by soaring
operating costs.

1-5
 According to American Marketing Association (AMA) defines,
Marketing is the performance of business activities that directs the
flow of goods and services from the producer to the consumer or user.
 According to Stanton (1981), “marketing is a total system of
interacting business activities to plan, price, promote and distribute
want satisfying products and services and present to the potential
customers”.
 According to the Philip Kotler (2007) “marketing means working with
markets to actualize potential exchanges for the purpose of satisfying
human need and wants”.
Definitions

1-6
Marketing and Libraries
 “Marketing is the link between the library users and its resources
and services; as a library marketer, you create that link.” - Canzoneri.
 The concept of marketing in library and information science receiver
lot of attention in the 1970s.
 The concept of marketing for non-profit organization was first
introduced by Kotler and Levy in 1969.
 According to them, a non-profit organization like libraries are
basically engaged in the production of services (eg. Information
transfer or dissemination services) rather than goods.

1-7
 These are services are distinct in nature primary due to
characteristics of being intangible, inseparable, variable and
perishable.
 Marketing of library services and products is about getting the
right services/product, to right user, in right way at right time
(Riyazuddin) and to do this,
 Identify the needs of the present and future user
 Decide what services and sources are going to be offer
 Ensure that these services can be delivered at right time
Marketing and Libraries Cont..

1-8
 Inform the user about the availability of those services and
sources
 Determine the usage and benefit of the user by those services.
 Library marketing is essential to keep users both active and
potential, aware and familiar about the resources and services that
meet their needs and interests.
 Effective marketing skills are required to increase awareness of the
library’s value and to expand the user base.
 In this information age, a vast amount of information is available
freely over the internet.

1-9
 A user can get several thousands of results over a single query
over popular search engines like Google.
 Thus, in this competitive environment as an information
provider, librarians need to prove themselves much more than
a housekeeper of traditional print books and need to change
that stereotype.
 Library marketing with the help of ICT and Web 2.0 tools,
reminder user that their library is still a great choice for
meeting their information needs in today’s world.

1-10
a)Create awareness: Inform the user about the availability of
information sources and services offered by the information
sector to create awareness among them about those sources and
services, so that they can use them according to their
requirements.
b)Understand user demand/user need: Marketing enables
librarian or information manager to understand the real need of
the user, which will in turn help in providing maximum
information services to users more efficiently and effectively.
Need and Importance

1-11
c) Information for planning and decision making: Marketing
provides information for future planning of the organization
again it also helps for taking good management decision.
Marketing provides information about latest demand, need and
interest of user; present market position; accurate value for
sources and services etc., which helps the organization to take
essential steps for future improvement of its services.
d)Increase usage of the product: With the help of the marketing
users are aware about the availability of the sources and services
offered by the information sector.
Need and Importance Cont…

1-12
c)Thus, they use those sources and services more frequently
according to their specific need. Thus, the overall usage of the
product increases.
d)For mass distribution purpose: Information sector create
product for distributing the masses, who are diverse in their
nature, characteristics, cast, gender, age, status, and
geographical location. For the purpose of distributing the
product in mass scale marketing is the primary and most
important technique.

1-13
e) Optimum utilization of resources: Library and other
information sector invest huge amount of funds for creating new
product or starting a new service. If the valuable resources and
services remain unused, the result is wastage of money.
Marketing help in promoting those resources to user community
and thus increase its usage.
f) Increase the importance of the product: As a result of
marketing, greater number of users use the product and get
benefited, this increases the importance of the product on user
community.

1-14
g) Attract non-user group to become a regular user: Marketing
create a greater visibility of the product to masses. It includes
curiosity among the non-user of the product and they tested it
for satisfying their demand.
h)Customer satisfaction: The success of any organization
depends on the satisfaction of its customer after using the
products and services provided by it, and if the rate of customer
satisfaction increases they become permanent user of the
organization.

1-15
i) Increases the status of the information centre and
information manager of librarian: Marketing help to increases
the status of the information centre and the information
manager among society by giving them an opportunity to serve
greater number of user and to show their ability.
j) Improvement of the product: Marketing provide information
about the user feedback and critics comment on a particular
product. This information helps the organization or information
sector to improve any mistake or fault of the product.

1-16
1. Books are for use: This law itself implies that all the reading
materials available in the library is for use. If these cannot be freely
accessible by the readers then it becomes a dead investment for the
library. Thus, it becomes the duty of the library professionals, to
actively market their products and services.
2. Every reader his book: In this law, implication of marketing strategy
lies in the fact that the staff must put much emphasis on collecting
and interpreting information, and satisfactorily help the readers in
getting the required information from the available source.
Marketing in relation to Five Laws of LIS

1-17
3. Every book its reader: Marketing philosophy according to this law
is that, the libraries should perform various activities to take the
information products and services to its readers. The activities that
can be performed are: publicizing the value and benefits,
promotional campaigns, advocacy, public relations, personal
communications, selective dissemination of information, social
networking tools etc.
4. Save the time of a reader: The implication of marketing in this law
enunciates that, the materials in the library should be re packaged in an
appropriate format where readers need and demands will be considered.
Marketing in relation to Five Laws of LIS Cont…

1-18
It should ensure that the library offers quality services for
maximum benefit of the users in a definite time.
5. Library is a growing organism: The implication of the fifth law
of marketing is making the library to be usable for both the
present and future days. Hence the resources should be
mobilized and new services and repackaged products should be
made available to the patrons.
Marketing in relation to Five Laws of LIS Cont…

1-19
How and What Libraries can market?
Libraries need to possess some basic skills and strategies to
promote the information products and library services among the users
in a sophisticated way.
Skills for Marketing
 Analytical Skills: A librarian should understand the need of a
particular users. For this purpose, a librarian should possess two
basic analytical skill. i.e. product analysis and market analysis.
 Planning skills: The librarian must possess various planning skills
like product development distribution, promotion, etc. to provide
best services with minimum time and cost.

1-20
 Organising Skills: The marketing of information products and
services should form an important part of the strategy of the
company. Marketing staff be professionally trained and qualified.
 Control skills: These types of skills require controlling the market
the librarian should keep himself/herself informed of the
behavioural responses to the ever-changing demands of the users.
 Promotion skills: Use promotional medium such as voice messages
with proper communication channel and deliver it to potential users.
Skills for Marketing Cont…

1-21
• Market segmentation is defined as "the process of taking the total,
heterogeneous market for a product and dividing it into several
submarkets or segments, each of which tends to be homogeneous in
all significance. The markets could be segmented in different ways.
• For instance, instead of mentioning a single market for 'shoes', it
may be segmented into several sub-markets, e.g., shoes for
executives, doctors college students etc. Geographical segmentation
on the very similar lines is also possible for certain products.
Market Segmentation

1-22
Benefits of segmentation
1. The manufacturer is in a better position to find out and
compare the marketing potentialities of his products. He is
able to judge product acceptance or to assess the resistance to
his product.
2. The result obtained from market segmentation is an indicator
to adjust the production, using man, materials and other
resources in the most profitable manner. In other words, the
organization can allocate and appropriate its efforts in a most
useful manner.

1-23
3. Change required may be studied and implemented without
losing markets. As such, as product line could be diversified or
even discontinued.
4. It helps in determining the kinds of promotional devices that
are more effective and also their results.
5. Appropriate timing for the introduction of new products,
advertising etc., could be easily determined.
Benefits of segmentation Cont..

1-24
Bases for Segmenting Consumer Markets
Geographic
Demographic
Age, gender,
family size and
life cycle, or income
Psychograph
ic
Social class, lifestyle,
or personality
Behavioral
Occasions, benefits,
Nations, states,
regions or cities

1-25
Bases for Segmenting Business Markets
Bases
for Segmenting
Business
Markets
Demographics
Personal
Characteristics
Situational
Factors
Operating
Characteristics
Purchasing
Approaches

1-26
• The 4Ps of a marketing is a model for enhancing the components of the
marketing mix. The way in which you take a new product or service to
market. It helps you to define your marketing option in terms of price,
product, promotion, and place so that your offering meets a specific
customer need or demand.
• It’s simple! you just need to create a product that a particular group of
people want, put it on sale some place that those same people visit
regularly, and price it at a level which matches the value they feel they
get out of it, and do all that at a time they went to buy.
Marketing Mix

1-27
• The marketing mix and the 4Ps of marketing are often used as
synonyms for one another. In fact, they are not necessarily the
same thing.
• Marketing mix is a general phrase used to describe the
different kinds of choice organizations have to make in the
whole process of bringing a product or service to market. The
4Ps is one way probably the best-known way-of defining the
marketing mix, and was first expressed in 1960 by E. J.
McCarthy.
Understanding the tool

1-28
The 4Ps are
 Product
 Place
 Price
 Promotion
The good way to understand the 4Ps is by the questions that you
need to ask to define your marketing mix. Here are some
questions that will help you understand and define each of the
four elements.

1-29
 Products
• Product decisions play an important role in value creation by making
an offer to the customers for satisfying their needs and want.
• A product can be a tangible in form of goods. A marketer has to make
a number of product related decisions which includes-product
assortment or variety, quality, design, features, brand name,
packaging, services, warranties and guaranties, returns, logo and
trademark and all related decisions.
• A marketer of a tourism organisation may have to take the following
product related decisions.

1-30
Products Cont…
a)Product assortment or variety: The foremost query for an
organisation is to decide on the type of product or service to
offer. A tour operator, for example, has to decide whether to
focus on inbound tourism, or outbound tourism, or both.
Further in case a tour operator decides to focus on inbound
tourism, whether they will focus on developing all types of
tourism activity or will they focus on special interest tourism.

1-31
Products Cont…
b) Product design and quality:
 Once a marketer decides the product assortment or variety to be
offered, the next decision that is to be taken is about the features and
quality of the product, as it is an important competitive issue.
• From a customer’s point of view, a product or a process which is
reliable and performs its intended function is perceived to be a quality
product. Marketer generally take customer-based approach to
understand quality.
• Higher quality of product means enhanced features better performance,
and other improvements that may lead to increased cost.

1-32
Products Cont…
c) Brand name:
 Marketers create brands for brands recognition by creating a unique
name, symbol or design which is exclusive for the product.
 Strong brand identity helps in differentiating a product from other
products and acts as a bridge between your products and the customer.
 Linked to brand strategy is the concept of building brand quality. Which
helps a company to build reputation and win customer trust and loyalty in
the long run.
 Brand building has to take place with long term vision and plans.
 A strong brand positioning helps to create a distinct image in the minds of
the consumer.

1-33
Products Cont…
d. Warranty and guarantee:
 Since most of the travel and hospitality products are under
the service category, customers look for assurance of the
service quality from the service provider.
 This is known as service guarantee and the benefits of
offering this is higher customer satisfaction by establishing
strong service standards and reducing the perceived
customer risk.

1-34
 Price
Price is considered as one of the
most important elements of
marketing mix as decisions related to
pricing can directly affect the
revenues of the organization. Pricing
has many components and it is not
just a tag on the product or service.

1-35
• Foremost, while calculating a tour cost, the tour operator
must consider the direct and indirect cost, fixed and variable
cost, make up profit margins, competitive pricing, special
offers and discounting strategies.
• Increase of international tourists, a travel agent has to
consider the fluctuations due to foreign exchange. Increased
competition and easy access of information among
consumers, have made pricing decisions challenging.
Price Cont..

1-36
 Place
As product decisions correspond to creating value, promotion
decisions correspond to communicating values; successful value
creation needs successful value delivery.
• Since travel experiences are highly dependent upon a network of
suppliers, organizations in this industry need to manage this
complex marketing/distribution channel system and value network.
• Place decisions are related to distribution channels where a set of
interdependent organizations come together to make a product or
service available to the tourists for consumption.

1-37
• A marketer plans the overall marketing strategy, yet the
distribution channel or supply chain management decisions
can significantly influence the marketing effectiveness.
• The primary objective of the distribution channels is not only
to serve the market, but they also have to play a significant
role in developing the market.
Place Cont..

1-38
 Promotion
As a marketing strategy in addition to creating value by
developing products and services, communicating value to the
potential customers is equally important.
 To effectively reach and influence the target markets, a tourism
marketer has to creatively develop integrated marketing
communications strategy.
 A marketer has to decide on what to communicate, how and
when to communicate so that there is synergistic effect of their
communication.

1-39
 Inadequate fund is one of the most important barriers towards the
marketing in LIS
 Lack of marketing policies in LIS
 Lack of facilities to market library services
 Lack of media access to marketing library services
 Poor access to information technology is another obstacle in this regard
 Many libraries professionals do not have the concept of marketing
resources
 Lack of training in marketing
 Lack of proper communication between libraries and users
 Lack of skilled staff in marketing
Challenges towards the Librarians in Marketing

1-40
A marketing audit is a comprehensive examination and analysis of your
marketing activities, goals and objectives.
- By implementing an audit, you’re able to take a look at the way your
marketing efforts are planned and managed, how they are performing
relative to the goals of your original marketing plan.
- Marketing audit is essentially a great way to assess your marketing
plan and ask yourself and your department what’s working and what’s
not. Then, you can adjust and corrections as necessary.
- A market audit is useful for getting back in touch with your brand,
products and services and re-focusing your marketing efforts.
Marketing Audit

1-41
- It can also be used to remind you of your initial goals and fine-tune
your current efforts to be certain they align with those original
objectives
Steps: How do you do a marketing audit?
 Identify your marketing channels/strategies/activities
 Identify your goals and objectives
 Gather data
 Make a comparison
 Identify issues and gaps
 Create an action plan
 Repeat
Marketing Audit Cont…

1-42
 The audit must be comprehensive, encompassing all the marketing
issues that the company is dealing with.
 The audit must be systematic, following a sequence of steps in
collecting and analysing data on the company’s external and internal
marketing environment and the marketing activities currently being
implemented.
 The results of the analysis will eventually lead to the crafting of an
action plan aimed at improving the markets and the company’s
position in it.
Characteristics of Marketing Audit

1-43
The audit must be independent, in the sense that the auditors
are able to demonstrate an acceptable level of independence
from the marketing department and this is to ensure their
objectivity.
The audit must be conducted on a periodic basis, marketing it
a regular business activity instead of a stop-gap measure to
clear with a crisis or troubleshoot a problem only when it
arises.
Characteristics of Marketing Audit Cont..

1-44
1) External Environment:
a) Macro Environment Audit: This type of audit examines the
external factors that might affect the marketing performance of the
company, such as demographic factors, economic factors, cultural
factors, environmental factors, and political factors. For the most part,
these are factors that influence the consumer market their beliefs,
hobbies, or any social trends that could affect the company’s
marketing performance.
Types of Marketing Audit

1-45
b) Task Environment Audit:
• This type of audit also focuses on factors outside of the company,
but still closely associated with marketing activities and
operations while it does take some factors of the consumer
market into account, it is slightly different then a macro
environment audit.
• A task environment audit will assess the size of the industry the
company belongs to identify competitors and examines the
company’s relationship with distributors and retailers.
Types of Marketing Audit Cont..

1-46
2) Internal Environment:
a) Marketing Organization Audit: This audit is performed by evaluating
the staff or the labor force of the company at their various levels of
hierarchy.
b) Marketing Function Audit: This type of audit will evaluate the core
competencies of the company. It will examine the company’s product,
pricing, distribution, marketing communication and the sales force. It will
also compare price points for the company’s product with those of the
competition.
c) Marketing Systems Audit: This type of audit will look at the marketing
systems currently in use, such as the marketing information system,
marketing control system, and even a new product development system.

1-47
• Librarians play a crucial role in promoting library services and
ensuring that users are aware of the vast array of resources
available to them.
• They act as intermediaries between the library’s collections
and its patrons, helping users find the information they need
and navigate the ever-changing landscape of information
sources.
• Here are some of the specific ways in which librarians promote
library services.
Role of Librarians in Marketing LIS

1-48
1. Developing and implementing marketing and outreach strategies:
librarians create and execute marketing campaigns to raise awareness
of library services and attract new users, they may use a variety of
channels to reach their target audience, such as social media, email
marketing and print and online advertising.
2. Providing customer service and support: Librarians are the front
line of customer service in libraries. They answer questions, help with
research and troubleshoot technical problems. They also offer
guidance on how to use library resources effectively.
Role of Librarians in Marketing LIS Cont..

1-49
3. Teaching information literacy skills: Librarians teach users
how to find, evaluate, and use information effectively. They may
offer workshops classes and online tutorials on a variety of topics
such as conducting research using online databases and avoiding
plagiarism.
4.Curating and promoting library collections: Librarians select
and organize materials for the library’s collections. They also
promote these collections through displays, book clubs, and other
events.

1-50
5. Buildings relationships with the community: librarians
engage with the community by participating in local events,
partnering with schools and business and serving on
community boards. They also work to make the library a
welcoming and inclusive space for all.
6. Advocating for library funding: Librarians advocate for library
funding by speaking to elected officials, writing letters to the
editor, and participating in public hearings. They also educate
the public about the value of libraries.

1-51
7. Keeping with emerging technologies: Librarians stay up-to-
date on the latest technologies and trends in order to provide
users with the best possible service. They may experiment with
new technologies and offer training to users on how to use
them.
8.Promoting open access: Librarians support open access
initiatives, which make scholarly and other research freely
available to the public. They may create and manage institutional
repositories and advocate for open access policies.

1-52
9. Copyright education: Librarians teach users about copyright law and
how to use copyrighted materials legally. They also help users
navigate the complex world of copyright permissions.
10.Promoting digital literacy: Librarians teach users how to use digital
tools effectively and safely, they may offer workshops on topics such as
online privacy, social media etiquette and cyber security
By carrying out these activities, librarians play a vital role in
promoting Library services and ensuring that users have access to the
information and resources need to succeed in their academics
personal and professional lives.

1-53
Marketing theories in Library and Information Services
1876-1970 1970 1990 2000 Future
Internet Marketing
Relationship
Marketing
Services Marketing
Not for Profit Marketing
Primitive Marketing Concepts
Library
and
Information
Marketing

1-54
 These new theories have changed the nature and broadened the scope
of LIS marketing.
 Although the concept of marketing of non-profit marketing, services
marketing and relationships marketing is gradually developed in
marketing literature. But, various marketing theories have different
impacts according to their specialty and bases.
 These theories helped LIS marketing to develop into an academic
discipline in different time frame; the following are the basic tenets of
such new marketing concepts that have bearing on library and
information services;

1-55
Non-for-profit
Marketing
Services Marketing Relationship
Marketing
Internet
Marketing
Marketing is equally
important for libraries
Adoption of practices
from other sectors
Exchange
relationships
Free services
4Ps concepts
Segmentation,
targeting, positioning
Internal marketing
Service Quality
User Empowerment
Moments of truth
Life value to the
customers
One-to-one marketing
Customer orientation
Customized
Products/services
Long term transactions
Customer loyalty
High customer service
emphasis
Quality is concern for all
Network marketing
Interactive
marketing
Self-service
Round the clock
service
Database
Smart cards

1-56
In conclusion, the marketing of information products and services
represents a dynamic and essential aspect of the modern information
landscape.
 As technological advancements continue to reshape the way
information is accessed and consumed, a strategic marketing
approach becomes increasingly crucial for effectively connecting
products and services with the diverse needs of users.
 The 4Psof marketing produce, price, place and promotion from the
foundation of a successful marketing strategy for information
products and services.
Conclusion:

1-57
 Crafting relevant and valuable of firings pricing them
appropriately, ensuring accessibility through various channels and
promoting them effectively are all integral to meeting the
demands of a rapidly evolving user base.
 The role of librarians in this process is paramount. Librarians not
only curate and manage information resources but also play a vital
role in promoting these resources to the target audience they
serve as educators, advocates and guides bridging the gap
between users and wealth of information available.
Cont..

Marketing_of_Information_Products_and_Services.ppt

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