Getting ready : Relationship M arketing and Library 2.0

1. Getting ready: Relationship Marketing and Library 2.0 Aira Lepik Institute of Information Studies Tallinn University, Estonia

2. I. Library 2.0 as social context

3. Background • “Who knows … that a day may not come when the dissemination ofknowledge, which is the vital function of libraries, will be realised bylibraries even by means other than those of the printed book?” S. R. Ranganathan, The Five Laws of Library Science, 1931

4. 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

5. Huvila 2008 Project “Library 2.0. A new Participatory Context”

6. Library 2.0

7. Casey & Savastinuk (2007) L2 isa 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).

8. 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…”

9. 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/

10. Librarian 2.0 • Librarian 2.0 = (services 'n stuff + persons + trust earned) x interaction http://www.flickr.com/photos/commissaresse/2437989143/

11. 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)

12. Library 2.0

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

14. II. Market orientation as concept for library

15. 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.

16. 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;

17. 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

18. 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)

19. The Marketing literature reviewed Adopting a market-oriented strategyis posited as a way of successfully managing the impact of changes in the librarydomain. • For library customers it could mean more appropriate services that bettermeet their needs. • For library staff it could mean a better understanding of their roles inachieving organizational and personal goals. • For libraries it could mean survival.

21. 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)

23. L. Stearns: Books in a Box • Lutie Stearns established hundreds of travelling libraries in Wisconsin between 1895 and 1914;

24. 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);

25. 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);

26. 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);

27. Application of marketing in libraries • Marketing strategies for digital library services (Henderson, Baker & Wallace) • Marketing library services to the Net Generation (Mi & Nesta)

28. Remark • The library literature shows a development fromgeneral discussion based mainlyon the functional aspects of marketing, to research in the form of case studies groundedin the management literature, more concerned with strategic issues. • There are no widereaching studies across sectors, no longitudinal studies, and no meta-analysis.

29. III. Relationship marketing

30. 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

31. 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)

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

33. Conceptual categories of relationshipmarketing (M. Harker) Primaryconstruct (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)

34. 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 torelationship marketing: towards a paradigmshift in marketing”, Management Decision,Vol. 32 No. 2, pp. 4-20.

35. Christian Grönroos • The framework of Relationship Marketing includes aninteraction process as the core, a planned communicationprocess as the marketing communications support throughdistinct communications media, and a customer value process asthe outcome of relationship marketing.

36. Key Processes of Relationship Marketing • Communication; • Interaction; • Value; • If the interaction andplanned communication processes are successfully integratedand geared towards customers’ value processes, a relationshipdialogue may merge.

37. Adrian Payne • The Six Markets Model (1991); • Relationship Marketing as Internal Marketing;

38. Adrian Payne • Relationship Marketing – Making the Customer Count (1994)

39. 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.

40. Relationship marketing in libraries • Besant & Sharp (2000) have created a practical model for visualizing relationship marketing in libraries. This model lists six relationships and partnerships 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.

41. Relationship marketing in libraries 2. 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.

42. Relationship marketing in libraries 4. 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.

43. 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.

44. Relationship marketing • If numbers less than 10 don't impress you, you can go for Evert Gummesson’s 30Rs of relationship marketing, from Relationship one ("the classic dyad: the relationship between supplier and customer") to Relationship 30 ("the owner and financier relationship"). • Relationship Marketing - It's About Them and Us – Together!

45. 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.

46. 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 marketingdescribes, analyzes and utilizesthe network properties of marketing. (Gummesson 2007)

47. Shared value – RM & L2 • Something Old, Something New, Something Borrowed, Something Blue and … a Silver Sixpence in Her Shoe

48. Thank you! • Questions? • Comments? Contact: E-mail: aira.lepik@tlu.ee Skype: airalepik