Marketing your library or information service CLLG Oct 1999


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A presentation on marketing your library or information service. Originally given to a training session run by CLLG in October 1999 but most of this is still relevant since it focuses on the more theoretical aspects of marketing

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  • welcome format present some of the theory of marketing, look specifically at problems of services marketing do not intend to give you a list of strategies which can vary from organisation to organisation but to give you the tools you need to create a marketing plan and devise your own strategies based on the elements of your plan group discussion throughout, ask questions at any time, break for refreshments group exercise involving whole marketing planning approach
  • Jot down your definition of marketing - read them out Marketing is not just about selling - it is both a function of management and an overall business philosophy A process of satisfying needs through product creation and exchange A philosophy that a successful company is only possible through identification and satisfaction of customer needs A management function identifying needs and wants and focusing the business to provide the products to satisy needs and wants and to turn these into demands
  • Must be customer driven - focus on needs and wants of marketplace Must strive to identify and satisfy customer needs Involves analysis, planning and control Is dynamic and operational requiring action as well as planning
  • another definition which concentrates less on profit which may be more appropriate for your service often libraries are not for profit but increased profit can also translate into increased funding for an academic institution or into increased support in a a law firm; without support your department can be axed
  • The planning process usually starts with the formulation of a mission Marketing strategic planning is just like any other like any other management model - sets direction, goals and objectives to provide a sense of purpose 1. must quantify eg. we want to increase use of enquiry service by 12% by 3Q 2000 2. must be acceptable and agreeable 3. must be realistic 4. must be consistent - measure success or failure - helps interaction with colleagues QUESTION - what possible goals might your service have - call out goals usually involve maximising consumption maximising consumer satisfaction (hard to measure and can be offset by dissatisfaction) maximising choice maximising life quality (again difficult to measure)
  • The next stage in the planning process is an environmental audit The internal factors must be examined to identify the strengths (what the library currently does well) and the weaknesses (what the library’s current problems are) of the unit a strong point might be that the unit is the only source of expertise in copyright law, or that it has a stable, dedicated staff or a weakness might be that the unit has no representation at management meetings or that it is in a building remote from its main users The external factors will show up the opportunities (forecast possibilities for the future) and threats (external pressures that could worsen in the future) that the external environment presents the new Competition Act gives the opportunity for the information unit to provide information on UK notifications Lawtel now offers end user access to customisable daily updates, some units might see this as competition detracting from their own current awareness offerings although what is a threat to one organisation may be an opportunity to another if they have been unable to offer any of their own current awareness and can be seen to be expanding their services Goals may be revisited following SWOT analysis
  • The process can be grouped into 4 main areas analyse marketing opportunities - identify select target markets - identify existing market - look at the segments which will give opportunity to achieve objectives - choose segment to enter - niche? targeting? develop marketing mix - different marketing tools used to achieve objectives manage marketing effort - planning, implementing, organising and controlling marketing programmes
  • Different market opportunities exist market penetration eg reach same people and encourage greater use of service ie. increased sales market development reach those not currently using service product development eg offer bill tracking service or current awareness bulletin to property group if not already offered to existing customers diversification eg become web site development experts to IT, marketing, personnel etc or undertake all Intranet content indexing for IT department if they are development experts Note: risk increases towards this corner of the matrix
  • benefits of segmenting more finely tuned to the needs of the market greater customer satisfaction focus on sub-markets with greater potential greater sales QUESTION how might the market be segmented in your organisation - call out
  • requirements for effective segmentation: measurability, substantiality, accessibility, actionability geographic segmentation lawyers in Paris office behaviour segmentation hostile users (spreading negative perceptions) non users potential users heavy users customer segmentation paralegals assistants associates LLB students postgraduate students IT staff
  • undifferentiated ignore market segments go after whole market with one offer gives cost economies differentiated segment market give a separate offer for each segment typically creates more total sales concentrated aim for a large share of one sub-market appealing if resources are limited Any questions so far before move on to marketing mix
  • Probably heard of the 4Ps of marketing product - the concept need product with features that carry both tangible and intangible benefits product is core product QUESTION what is buyer really buying when buying a quarter inch drill - a quarter inch hole actual product has features (built around core product) styling, brand, quality, packaging augmented product is built around the core product and the actual product and often gives added value such as after sales service or delivery QUESTION - what do you believe to be the core and peripheral services of a library
  • price question - does anyone charge marketing view of price, not an economists or an accountants view costs set the floor for price market and demand set the ceiling decide on objectives: survival, max profit, max revenue mark up - cost based, cost plus X% target pricing - cost based, determines point at which breakeven or target profit sought perceived value - buyer based, how much will buyer pay going rate - competitor based, how much does Law Society or IT department charge discounts - reward for certain customer responses discriminatory pricing - help manage demand eg use time pricing promotional pricing - temporarily below list price psychological pricing - high price usually associated with quality
  • place distribution moves product from production to consumption eg email, internet, memo, telephone, in person methods all remove restrictions that a building imposes such as opening hours or distance to customer or problems of disabled access environment impacts on service experience eg law firm reception old fashioned or high tech conveys different message
  • promotion can also be called communication marketing communication mix: advertising - any form of non-personal presentation, possibly to inform, persuade or remind public relations - deliberate, planned and sustained effort to establish and maintain mutual understanding between an organisation and its publics eg programme planning, create identity, writing and editing, event organisation, speaker (eg Knowledge Management Day) sales promotion - short term incentives to encourage purchase or sales of a service eg reduced price, competition personal selling direct mail about to leave product framework as it applies to services and look at problems unique to services marketing - any questions
  • Want to turn attention to services and explain why services are different from goods few pure goods or pure services exist is a continuum there exists goods with service support and services with goods support for example
  • nature of service - customer has little idea of what to expect and there is often uncertainty over what customer actually wants, problem that you cannot perceive service before and often during and after delivery (can lead to problems of justifying cost eg car service) higher level of customer involvement required in service provision - means that the provider often has to produce watched by customer therefore you must create an image appropriate to the service, when produced as consumed mistakes are harder to rectify or conceal, delivery can also be in real time, there are limits on how long customers will wait, can reduce impact by eg providing newspapers and journals for browsing variability -services are not homogenous, parties may not agree on what constitutes quality and quality depends on who, when and how service is provided (only machines can perform to a consistent standard) provider should seek to determine causes of variability and address them if possible eg poor training, lack of support, can introduce standardised procedures, customer is also a source of variability perishability - services cannot be stockpiled for later use and fluctuations in demand can cause problems, restaurants and cinemas for example often offer special rates for off-peak consumption
  • Major challenge of services marketing is to create tangibility promote the role of plant by providing support facilities to create product eg law firms provide a reception area with carpets and soft furnishings keep customer informed eg solicitors provide activity reports to clients customer feels less aggrieved if they know progress is being made develop relationship between provider and customer - relationships build trust and intimacy - give direct access to provider from customer eg have an enquiry desk or single telephone number, avoid passing customer about improve accessibility eg through using technology such as email and voicemail, extended opening hours if these can be staffed, range of delivery mechanisms for service Any questions
  • need to add 3 more Ps to marketing mix for services marketing people relates to service personnel provider (or deliverer) eg their appearance, attitudes and social skills and also to procurer (or party receiving) physical evidence - appearance, design and layout of service setting eg glasses in hotel rooms often enclosed in plastic gives physical evidence of cleanliness, paper seal on toilet indicates hygiene may wish to hide these eg in a hospital process from inputs to outputs, all steps involved in delivering a complete unit of service, will include policies, procedures and mechanisation, lays down a service blueprint covering the flow of activities, employee discretion and customer involvement
  • Consumers perceive services to be more risky than goods across several types of risk and to be more variable in nature perceived risk will vary between goods and services and according to consumer self-confidence (eg knowledge and experience) the degree of uncertainty and the importance and cost of the service Another major challenge to services marketers is to reduce risk Very little research has been done on perceived risk for services but have a framework written with products in mind performance risk - how well will product work physical risk - will the product harm the consumer financial risk - will the product be worth all the costs involved psychological risks - how will the purchase of the product affect the consumer's self-esteem or self-concept social risk - how will the consumer's image be affected after purchase time loss risk - the wasted time, convenience and effort of getting a product adjusted, repaired or replaced
  • determine consumer expectations before purchase and use - adjust expectations to more realistic levels and prepare the consumer for the outcome exercise care with promises made in promotional literature to avoid unrealistic expectations assist consumers in evaluating the service before during and after delivery pay attention to selection, training and supervision of customer-contact personnel who often characterise services encourage a trial of the service (not always possible) reduce customer anxiety by standardising much of the procedures and providing tangible pieces of evidence before, during and after the service to reduce the feeling of variability, eg hotels Holiday Inn often might not know what city in but can rely on consistent layout of hotel, restaurant and services
  • Finally and briefly look at managing quality in services by way of dimensions to service quality, many of these have come out of earlier discussion tangibles reliability responsiveness - to be willing to do extra, more than expected competence - proof of credentials, evidence of competence in manner courtesy - includes answering questions effectively credibility - service does what it says it will do security - eg confidentiality access - how easy is it to use the service, how readily available is service communications - are they in understandable terms understanding the customer - willingness to communicate with customer quality gives variables to measure service (these can vary) tangibles, reliability, responsiveness, competence, courtesy
  • Marketing your library or information service CLLG Oct 1999

    1. 1. Marketing your Library or Information Service Susan Mansfield Legal Services Information Manager Shell International Limited
    2. 2. Marketing • a process • a philosophy • a management function
    3. 3. Marketing “Marketing is the management process which identifies anticipates and supplies customer requirements efficiently and profitably” Chartered Institute of Marketing
    4. 4. Marketing “Marketing consists of individual and organisational activities that facilitate and expedite satisfying exchange relationships in a dynamic environment through the creation, distribution, promotion and pricing of goods, services and ideas”
    5. 5. Marketing Planning Process • mission • strategic planning • goals
    6. 6. Marketing Planning Process • internal audit → strengths and weaknesses • external audit → opportunities and threats
    7. 7. Marketing Planning Process • analyse marketing opportunities • select target markets • develop marketing mix • manage marketing effort
    8. 8. Marketing Ansoff’s Model Existing products New products Existing markets MARKET PENETRATION PRODUCT DEVELOPMENT New markets MARKET DEVELOPMENT DIVERSIFICATION
    9. 9. Marketing market segment “relatively homogenous group of customers who respond to the marketing mix in the same way”
    10. 10. Marketing Specific targets • geographic segmentation • behaviour segmentation • customer segmentation
    11. 11. Marketing Market coverage • undifferentiated • differentiated • concentrated
    12. 12. Marketing Marketing Mix • product  core product  actual product  augmented product
    13. 13. Marketing Marketing Mix • price  mark up  discounts  target pricing  discriminatory pricing  perceived value  promotional pricing  going rate  psychological pricing
    14. 14. Marketing Marketing Mix • place  location  environment
    15. 15. Marketing Marketing Mix • Promotion  advertising  public relations  sales promotion  personal selling  direct mail
    16. 16. Marketing Good • object • device • thing Service • deed • performance • effort
    17. 17. Marketing Why services are different from products • intangibility • inseparability • variability • perishability
    18. 18. Marketing Creating tangibility • promote the role of plant • keep customer informed • develop relationship between provider and customer • improve accessibility
    19. 19. Marketing Marketing Mix • people • physical evidence • process
    20. 20. Marketing Types of risk • performance risks • physical risks • financial risks • psychological risks • social risks • time loss risks
    21. 21. Marketing Reducing risk • determine expectations • exercise care with promises • assist consumers to evaluate service • pay attention to customer-contact personnel • encourage trials • reduce customer anxiety
    22. 22. Marketing • Tangibles • Reliability • Responsiveness • Competence • Courtesy • Credibility • Security • Access • Communications • Understanding the customer Dimensions to service quality