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 technologydriven 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 Marketing
Primitive Marketing Concepts
1876-1970
Non for Profit Marketing
1970ties
Services Marketing
1990ties
Relationship Marketing
2000ties
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 metaanalysis.
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 relationshiptype 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
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.
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.
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.
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 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!
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.ee
Skype: airalepik