Getting ready: Relationship Marketing and Library 2.0

Aira Lepik

Institute of Information Studies

Tallinn University, Estonia

I. Library 2.0 as social context

Background

“Who knows … that a day may not come when the dissemination of knowledge, which is the vital function of libraries, will be realised by libraries even by means other than those of the printed book?”

S. R. Ranganathan, The Five Laws of Library Science, 1931

Current working definition

Library 2.0 is a change in interaction between users and libraries in a new culture of participation catalysed by social web technologies

Project “Library 2.0. A new Participatory Context” (Åbo Akademi, Finland): Holmberg, Huvila, Gronquist-Berg & Widén-Wulff

Project “Library 2.0. A new Participatory Context”

Huvila 2008

Library 2.0

Casey & Savastinuk (2007)

L2 is a service philosophy built upon - a willingness to change and try new things; a willingness to constantly re-evaluate our

service offerings; and finally, a willingness to look outside our own world

for solutions, be they technology-driven or not (this is where Web 2.0 fits in).

Web 2.0: Where it will take libraries?...To a temporary place in time...(W. Schultz) Library 1.0: Commodity Library 2.0: Product Library 3.0—Web 3D to Library 3D: Service Library 4.0, the neo-library: Experience“Library 4.0 will add a new mode, knowledge spa: 

meditation, relaxation, immersion in a luxury of ideas and thought…”

Darlene Fichter Web 2.0, Library 2.0 and Radical Trust: A First Take (2006)

Library 2.0 = (books 'n stuff + people + radical trust) x participation

http://www.flickr.com/photos/65735987@N00/114899622/

Librarian 2.0

Librarian 2.0 = (services 'n stuff + persons + trust earned) x interaction

http://www.flickr.com/photos/commissaresse/2437989143/

Library 2.0

It`s user-centred;It provides a multi-media experience;It`s socially rich;It`s communally innovative;

… user-centered virtual community (Maness 2006)

Library 2.0

Online communities

http://strangemaps.files.wordpress.com/2007/05/online_communities1.png

II. Market orientation as concept for library

Background

Philip Kotler: Marketing is human activity directed at satisfying needs and wants through exchange processes.

Christian Grönroos: Marketing is to establish, maintain and enhance long-term customer relationships at a profit, so that the objectives of the parties involved are met. This is done by mutual exchange and fulfilment of promises.

Core Marketing Concepts

Products – this includes; goods, services, experiences, people, places and ideas;

Value, satisfaction and quality;Exchange, transactions and relationships;Markets and market segments;Needs, wants and demands;

The Philosophy Marketing and the Marketing Concept

This customer focused philosophy is known as the 'marketing concept'. The marketing concept is a philosophy, not a system of marketing or an organizational structure.

It is founded on the belief that profitable sales and satisfactory returns on investment can only be achieved by identifying, anticipating and satisfying customer needs and desires.

Barwell

What is Marketing?

Marketing is an organizational function and a set of processes for creating, communicating and

delivering value to customers and

for managing customer relationships in ways that benefit the organization and its stakeholders (AMA, 2004)

The Marketing literature reviewed

Adopting a market-oriented strategy is posited as a way of successfully managing the impact of changes in the library domain.

For library customers it could mean more appropriate services that better meet their needs.

For library staff it could mean a better understanding of their roles in achieving organizational and personal goals.

For libraries it could mean survival.

Library and Information MarketingLibrary and Information Marketing

Primitive Marketing Concepts 1876-1970

Primitive Marketing Concepts 1876-1970

Non for Profit Marketing1970ties

Non for Profit Marketing1970ties

Services Marketing1990ties

Services Marketing1990ties

Relationship Marketing2000ties

Relationship Marketing2000ties

Internet Maketing, Cyberm@rketing, Wired Marketing etc

Internet Maketing, Cyberm@rketing, Wired Marketing etc

Library Marketing: Beginning

Greta Renborg: Marketing library services. How it all began?

“The history of marketing library services begins long before the concept was born.” (1997)

L. Stearns: Books in a Box

Lutie Stearns established hundreds of travelling libraries in Wisconsin between 1895 and 1914;

Application of marketing in libraries

1970ties … 1980ties: marketing and its application were new in the

LIS field – texts theoretical and descriptive rather than evaluative (Yorke, Dragon, Gwynn, Jennings, Cronin);

one aspect of marketing, mostly promotion, public relations (Butler, Howie, Hall, Stern);

public and university libraries (Oldman, Rzasa & Norman, Whatley, Yorke);

Application of marketing in libraries

1980ties … 1990ties: market research and segmentation (Kinnel

& MacDougall, Stueart & Moran);customer focus (Johnson, Rowley, Lozano)marketing planning (Cronin, Morgan & Noble,

Weingand, Wood); marketing audit (Cram, Coote & Bachelor,

Dworkin);

Application of marketing in libraries

Since 2000 ~: relationship marketing (Lozano, Rowley,

Besant & Sharp, Broady-Preston & Felice);marketing planning (Kassel, Dodsworth);marketing & quality (Hernon & Nitecki,

Rowley, Poll, Brophy);market orientation as a strategic option

for libraries (Singh, Sen, Gupta & Jambhekar, Harrison & Shaw, Sáez);

Application of marketing in libraries

Marketing strategies for digital library services (Henderson, Baker & Wallace)

Marketing library services to the Net Generation (Mi & Nesta)

Remark

The library literature shows a development from general discussion based mainly on the functional aspects of marketing, to research in the form of case studies grounded in the management literature, more concerned with strategic issues.

There are no wide reaching studies across sectors, no longitudinal studies, and no meta-analysis.

III. Relationship marketing

Philip Kotler

"Today's smart marketers don't sell products; they sell benefit packages. They don't sell purchase value only; they sell use value."          - Philip Kotler in Kotler on Marketing

Relationship Marketing

Relationship marketing has emerged as a dominant paradigm with consequences for marketing and management of a relationship-type marketing strategy.

Relationship marketing refers to all activities directed to establishing, developing, and maintaining successful long-term relationships (Berry, 1995; Morgan & Hunt, 1994)

Term Relationship Marketing

Term Relationship Marketing was first time defined by Leonard Berry in 1983: Relationship marketing is attracting, maintaining and – in multi-service organisations – enhancing customer relationships.

Conceptual categories of relationship marketing (M. Harker)Primary construct (Other common constructs) Creation (Attracting, establish, getting) Development (Enhancing, strengthening,

enhance) Maintenance (Sustaining, stable, keeping) Interactive (Exchange, mutually, co-operative) Long term (Lasting, permanent, retaining) Emotional content (Commitment, trust, promises) Output (Profitable, rewarding, efficiency)

Definitions of RM

Relationship marketing is to identify and establish, maintain and enhance and when necessary also to terminate relationships with customers and other stakeholders, at a profit, so that the objectives of all parties are met, and that this is done by a mutual exchange and fulfillment of promises.

Grönroos, C. (1994), “From marketing mix to relationship marketing: towards a paradigm shift in marketing”,

Management Decision, Vol. 32 No. 2, pp. 4-20.

Christian Grönroos

The framework of Relationship Marketing includes an interaction process as the core, a planned communication process as the marketing communications support through distinct communications media, and a customer value process as the outcome of relationship marketing.

Key Processes of Relationship Marketing Communication; Interaction;Value; If the interaction and planned communication

processes are successfully integrated and geared towards customers’ value processes, a relationship dialogue may merge.

Adrian Payne

The Six Markets Model (1991);

Relationship Marketing as Internal Marketing;

Adrian Payne

Relationship Marketing – Making the Customer Count (1994)

The Six Markets Model

Adrian Payne (1991) identifies six markets which he claims are central to relationship marketing.

They are:

internal markets, supplier markets, recruitment markets, referral markets, influence markets,

and customer markets.

Relationship marketing in libraries

Besant & Sharp (2000) have created a practical model for visualizing relationship marketing in libraries. This model lists six relationships and six relationships and partnershipspartnerships librarians should consider librarians should consider:

1. Customer markets include not only new customers but also the loyal, long-term customers who are at the heart of every service encounter. A loyal and strong relationship with customers will assist with fighting budget cuts and with expanding services.

Relationship marketing in libraries2. Internal markets are the employees and

departments within the library or the organization who are both internal customers and internal suppliers. Good internal working relationships enhance external relationships.

3. Supplier and alliance markets include publishers, system vendors, and booksellers who provide raw materials and basic equipment. Collaboration and alliances resulting in new approaches and new ways of rewarding these relationships are critical.

Relationship marketing in libraries4. Referral markets are groups that do marketing

for the library such as satisfied customers, personal and social networks, and mass media. Referral markets can be fast-acting via the Internet and either supportive of or damaging to marketing efforts.

5. Recruitment markets are the new people we attract to the profession. Getting and retaining the best people to work in the profession by creating an appealing image is necessary for sustainability.

Relationship marketing in libraries

6. Influence markets include any person or group who can benefit the library such as trustees, corporate executives, government officials, and friends groups. Proactive instead of passive relationship-building is key for these markets.

Besant, L., Sharp, D. Libraries need Relationship Marketing. Information Outlook, March, 2000,17-22.

Relationship marketing

If numbers less than 10 don't impress you, you can go for Evert Gummesson’s 30Rs of relationship marketing, from Relationship onefrom Relationship one ("the classic dyad: the relationship between supplier and customer") to Relationship 30to Relationship 30 ("the owner and financier relationship").

Relationship Marketing - It's About Them and Us – Together!

Evert Gummesson

Its core is the identification of 30 tangible relationships that exist in business and other organizations (see Gummesson, 1994, 1995, 1996) and their consequences.

Many-to-Many Marketing

It is not a single customer meeting a single supplier, it is a customer network meeting a supplier network.

Many-to-many marketing describes, analyzes and utilizes the network properties of marketing.

(Gummesson 2007)

Shared value – RM & L2

Something Old, Something New, Something Borrowed, Something Blue and … a Silver Sixpence in Her Shoe

Thank you!

Questions? Comments?

Contact: E-mail: aira.lepik@tlu.eeSkype: airalepik