SUMMER TRAINING PROJECT REPORT

ON

TO STUDY THE CHANGES IN THE PUBLISHING

INDUSTRY DUE TO DIGITALISATION :
COMPRISING OF PAST PRESENT AND FUTURE

Submitted in partial fulfillment of the requirement for the Award of Degree

Master of Business Administrative

Submitted To:
By: DEEPAK SINGH

Submitted

MBA
Roll No. 1150672027

Session- 2016-2017
SCHOOL OF MANAGEMENT

BABU BANARASI DAS UNIVERSITY, LUCKNOW

Sector I , Dr. Akhilesh Das nagar, Faizabad Road,Lucknow ( U.P.)
India

TABLE OF CONTENT
1.Introduction of the topic
2 Objectives
1.0 Publishing AND Digitalisation
2.0 Histrory of the Publishing Industry
2.1 Structure of the Industry
2.2 Marketing and Promotion
2.3 Trends
3.0 Publishing Industry in the Present
3.1 Industry Structure
3.2 Market Leaders
3.3 Current Trends
3.4 Technology
4.0 Future of the Publishing industry
4.1 Industry Overview
4.2 Technology
4.3 Future Trends
5.0 Conclusion
6.0 Appendices
7.0 Refences

DECLARATION

This is to declare that I, DEEPAK SINGH (MBA

Roll No.

1150672027) student of MBA, have personally worked on the

project entitled TO STUDY THE CHANGES IN THE
PUBLISHING

INDUSTRY

DUE

TO

DIGITALISATION:

COMPRISING OF PAST PRESENT AND FUTURE.

The data mentioned

in this report were obtained during

genuine work done and collected by me. The data obtained

from other sources have been duly acknowledged. The result
embodied in this project has not been submitted to any other
University

or

Institute

DEEPAK SINGH
(

Roll No. 1150672027

for

the

award

of

any

degree.

ACKNOWLEDGEMENT
Any fruitful work is in complete without a word of thanks to
those
involved directly or indirectly in its completion. With my sincere
gratitude I would like to thanks everyone who has supported
me in my project.
We are highly obliged to Mr. Atul Kumar Singh, Dean of
school
of management, Babu Banarasi Das University, for giving us
an
opportunity to study and enhance our management skills.
I would like to extend my sense of acknowledgement to
learning
Experience. The present work has taken its sharp largely to
their
wise counsels, concrete and constructive suggestions.
First of all, I would like to pay my heartiest thanks to entire
family
of KVR Infosys Pvt. Ltd. who provided me such a wonderful
opportunity to do Project Report and provided their valuable
suggestions in understanding the work of Project.
To understand the essentials of the research report, I would like
to thanks to my internal guide Mr. Rahul Singh, sales and

marketing manager at KVR Infosys Pvt. Ltd. and external guide

Mr.
for their guidance.

PREFACE
Practical and Theory are the two aspects of Management
education. The practical training in the domain of management
courses has received vital importance. It exposes to the
potential manager towards the actual work situation and gives a
student rich insight into what practically is going on inside the
industries. In fact it is the implementation of theory into
practices which is the life force of management.
Practical training is an obligatory requirement for the M.B.A. It
was of great advantage to receive practical training in TO
STUDY THE CHANGES IN THE PUBLISHING INDUSTRY
DUE

TO

DIGITALISATION:

COMPRISING

OF

PAST

PRESENT AND FUTURE

. The study was undertaken with a view to get insight into
study of the changes in the publishing industry due to
digitalization. The management of the company offered an
excellent learning situation.

EXECUTIVE SUMMARY
The whole journey from beginning to completion of our
research to find out the changes in the publication industry due
to digitalization comprising of past, present and future was
really full of experience and full of learning. And the journey
has taught us how to apply the principles of research
methodology in the practical situation. This project is the result
of what we have digested out of whole journey. To know what
this project brings to you, keep reading.
In our project, we have tried to know what the changes
occurred during the tenture of publishing industry because of
digitalisatrion and a deep study about the journey of publishing
industry through. All these aspects have beenneatly and
logically woven in our questionnaire.
In this research we interviewed 100 respondents, which include
all major areas and all classes of people of delhi. Having
completed this procedure, we arrived at a juncture where we
needed to give a right direction to our research by forming
research hypothesis very carefully.
With completion of the research, we find ourselves standing on
a very exciting but a very crucial stage of our research and that
is testing of hypothesis done through analyzing the data
presenting outcomes. We have presented the result of our
surveyin tabulated form accompanied by graphical analysis.
Lastly we have concluded on the basis of above evaluated and
provided some recommendations and also some limitation of
our report.

INTRODUCTION OF THE TOPIC

The main area of

the

study is to study the changes in

publishing industry due to digitalization comprising of past,

present and future. The sources of data collection used in
the study are both primary and secondary in nature. We are
going to conduct a survey

to

know

the changes in

publishing industry from past to present and what should be

the changes in future due to digitalization in publishing
industry which is part of primary data. We will collect the
data from different websites and books mentioned

in

references which are the part of secondary data.

In this report I have tried to analyze the present scenario
of Indian publishing industry. The Real aim of the project is to
study the changes and response towards publishing industry
provided by major players, but many sub objectives are also
included under this project so as to make it comprehensive
one.
In this project I have covered the Analysis of publishing
industry of India. In this analysis I have shown history and
present and future scenario of the publishing industry in
India. I have complemented this with the internal study of
companies.

The

project is based on changes in publishing industry

because of digitallisation so I have first explained about

publishing industry, its past,present and future. I have also
explained the structure,trend,process,technology and about
digitalization. I have analyzed the growth and development in
publishing industries.
Primary data has been collected in which focus group
study had been conducted to design the customer survey
questionnaire with a sample size of 100 respondents. This
survey has been conducted in delhi. Secondary data was
collected through websites, newspapers, magazines and
books. After the data collection, it has been compiled,
classified and tabulated manually and with help of computer.
Then the task of drawing inferences has been accomplished
with the help of percentage and graphic method.

OBJECTIVES

The main aim of research is to find out the truth

which is hidden and which has not been discovered
yet. Though yet each research study has its own
specific purpose thesis can be:1.

To gain familiarity with a phenomenon or to

achieve new insights into it (exploratory or
formative research).

2.

To portray accurately the characteristics of a

particular

individual

situation

or

group

with

which

(descriptive research).
3.

To

determine

the

frequency

something occurs or with which it is associated

with something else (diagnostic research).
4.

To test a hypothesis of a casual relationship

between

variables

(hypothesis-

research).

1. PUBLISHING

testing

Publishing is the dissemination of literature, music,

or informationthe activity of making information available to
the general public. In some cases, authors may be their own
publishers, meaning originators and developers of content also
provide media to deliver and display the content for the same.
Also, the word publisher can refer to the individual who leads a
publishing company or an imprint or to a person who
owns/heads a magazine.
Traditionally, the term refers to the distribution of printed works
such as books (the "book trade") and newspapers. With the
advent of digital information systems and the Internet, the
scope of publishing has expanded to include electronic
resources such as the electronic versions of books and
periodicals, as well as micropublishing, websites, blogs, video
game publishers, and the like.
Publishing includes the following stages of development:
acquisition, copy editing, production, printing (and its electronic
equivalents), and marketing and distribution.
Publication is also important as a legal concept:
1. As the process of giving formal notice to the world of a
significant intention, for example, to marry or
enter bankruptcy;
2. As the essential precondition of being able to
claim defamation; that is, the alleged libel must have been
published, and
3. For copyright purposes, where there is a difference in the
protection of published and unpublished works.
There are two categories of book publisher:
1. Non-paid publishers: A non-paid publisher is a publication
house that does not charge authors at all to publish their
books.

2. Paid publishers: The author has to meet with the total

expense to get the book published, and the author has full
right to set up marketing policies. This is also known as
vanity publishing.
The publishing industry has been completely revolutionized
over the past fifteen years and has moved in a completely new
direction from where it once began. The industry has adapted
with the digital age and brought publications to brand new
mediums, tablets and smartphones.

2. The History of the Publishing Industry

The industrial revolution of the late eighteenth century and
nineteenth century significantly influenced the methods of
Western papermaking and the characteristics of handmake
book paper. (Munn and Wallis et al., 1996, pp. 19-23) The
original publishing industries required large capital investments,
long print runs and large warehousing facilities. Increased
means of communication lead to an increase in book
production and thirst for personal development in the olden
days lead to increased readership. (Unwin, 2013)
The codex was the early form of what we know as a book--that
is, pages bound together (the term codex is Latin for "block of
wood.") The codex form became more refined as papermaking
and bookbinding and book case-making became more
sophisticated. In the past, books required a tremendous
amount of effort to produce. Each copy was transcribed by
hand and sometimes "illuminated" (that is, decorated with gold
and silver paint and illustrations) and it took months--or years-of labour to complete a single volume. (Valerie, 2014)

Structure Of the Industry

In the past, publishers added value to authors manuscripts by

employing editors, designers, layout artists, illustrators and

indexers to polish and package the books. The whole process

was used as a marketing tool to capture the attention of the
public and increase potential sales of their literature. Paper
manufacturers provided the materials and machinery which
would produce the finished books, where they were ready to
allow the product to be sold to the public. Distributors used to
act as intermediaries between the publisher and retailer, and
would deliver the books to trade wholesalers and retail
bookstores. (WIPO, 2014, pp.30-32).
In the past, publishers and companies would help one another
to facilitate shipments of bulk orders for events and corporate
training. Bulk orders are different than single copies, and the
service surrounding those types of orders can be complex with
intense deadlines. (Micah, 2013)
Literary agents were very important for book publishers in the
past, they make their earnings by charging percentages on the
amount of each book sold by writers. Literary agents are
probably the most knowledgeable of the industry as a whole as
they have the right contacts and often assist writers in
negotiating contracts. A good literary agent also assists the
publisher in arranging better dates for book tours, or fighting for
improved deals when needed. Formerly, a strong agent/author
relationship can be incredibly beneficial for a writer as it means
having someone whos always on your side, who is
enthusiastic about your writing, and whose desire for the best
deal is for both your benefits. (Downing, 2014)
The copyright law underwent considerable development in the
publishing industry. The United States first enacted copyright
legislation in 1790, France in 1793, and Germany in 1839. The
United States continued to protect its domestic printing industry
and joined the Universal Copyright Convention, UNESCO, in
1952. The customary term of copyright protection is the
authors lifetime plus 50 years. The copyright legislation serves
as a treaty between countries that recognize copyright.

Marketing and Promotion

Newspaper and periodical advertising is the publishers

principal means of reaching the public, and standards here
have also risen considerably since World War II. Broadcasting
and television services, too, can sometimes be interested in
books and their authors, and the resultant publicity may then be
extremely effective. For many books, a prospectus may be
issued, both for the use of booksellers and for direct mailing by
the publisher. The paperbacks were being found not only in
bookshops but also in drugstores, street kiosks, and
newsstands. The publishing industry had to market their books
to a variety of audiences, based on their age, demographic and
income. Marketing their books incorrectly could be detrimental
to the potential sales of the book.
Every publishing house has manufacturing, marketing, and
accounts departments, but the editorial department is the most
important. The editorial department is responsible for the
detailed preparation of the typescript before it is printed. Facts,
figures, and references are checked, and elegancies of style
are polished where necessary. The paperback publisher makes
an offer to buy the paperback rights from the publisher of the
hardcover edition, and the paperback royalties are shared
between the author and the hardcover publisher. During the
Golden Age, publishers and editors viewed their work as
intellectual work, they viewed authors as artists, and they were
willing to focus on the long-term social and financial benefits of
publishing valuable works, at least occasionally, rather than
obsessing over the instant gratification of a best-sellers.
(Tucker, 2013)
But the publishers efforts most of the time were limited to
the launch. Then the marketing team could move on. This was
not a way of doing business that was appealing to authors, but
it was consistent with the realities of the marketplace. The big
book chains wouldnt keep a title in stock if its sales appeal
wasnt evident at the cash register within 90 days. Without

copies of a title in the stores, there was no point to the

publisher pushing the sales. (Shatzkin, 2012)
According to Gene Taft, Vice President and Director of Publicity
for Public Affairs Books, the industry used to be run by bookish
people who liked to read. But there are not enough book people
who are good business people. Now, with the large
conglomerates having taken over so many houses, a different
kind of executive is involved in the industry (Hill and Power
2005, 54).
Editors who discuss literary issues with authors, who help them
develop their characters and resolve plot holes, were among
the inefficiencies that were greatly eliminated during the Age
of Acquisitions.

Trends

The 1920s also saw the establishment of book clubs as a new

way to market books. The Book-Of-The- Month-Club was the
first, started in 1926, and was followed by the Literary Guild in
1927. The nearly instant success of these mail-order ventures
surprised the publishing industry and alarmed the vested
interests. The book dividend offered by the Book-of-the-Month
Club caused some anxiety. Public libraries feared a decline in
circulation, the bookshops spoke of unfair competition;; but
publishers eventually came to appreciate and even count on
the rewards in residual rights. Public libraries have not gone out
of business as a results of the clubs.(Harlan, Robert D and
Johnson, Bruce L 1978)
Two other trends in the publishing scene since 1950 also had
their beginnings before the war: the microform and the
paperback. In the late 1930s, Eugene B. Powers of University
Microfilms initiated the first commercial program of microfilm
publication of original hardcover books. Unfortunately, the war
curtailed development of this medium for the publishing
industry. During this same period, the paperback book
reemerged.

Reprint publishing was ideally suited to the needs of the

expanding scholarly and educational fields in the 1960s. New
libraries were being created, and existing libraries were
growing. Both paperback and microform publishers took part of
the reprint market. (Harlan, Robert D and Johnson, Bruce L
1978)

3.0 Publishing Industry in the Present

Industry Structure

According to Michael Porter, industries are affected by a five

fundamental forces known more commonly as Porters Five
Forces. The forces are known as; the bargaining power of
buyers, the bargaining power of suppliers, the threat of new
entrants, the threat of substitute products or services and rivalry
amongst existing firms. (Renko and Sustic et al., 2011) These
forces have a major effect upon the publishing industry
currently and have impacted the industry significantly over time.
For example, if an industry has many companies selling more
or less the same product, competition between the companies
will be intense and the profit will be low. Related to the current
publishing industry, there are many small publishers across the
world that are competing for a market share. However, due to
the competitive nature of the industry, it is extremely difficult to
get the publicity and sales without the help of larger companies,
who are already established within this concentrated market.
For the modern day author, it is very important to have a
community surrounding your work in order to advertise and
network effectively . Through social media, authors can now
take advantage of the opportunities which are presented by the
internet interact with one another and their fan base, whilst also
promoting their work. (Petronzio, 2012), Authors can interact

and sustain a community by posting updates about the books

development status every week. This is an inexpensive way of
marketing books in order to attract sales: one that has largely
impacted the industry with a forceful injection of opportunities
provided by the internet.
The customer base surrounding the publishing industry has
drastically changed with the development of the internet
compared to the Nineteenth century. Authors and publishers
can now interact with readers from around the world, as well as
using the internet to keep up to date with trends amongst
customers, in order to gain competitive advantage. One threat
brought to individual publishers through the internet is its
accessibility meaning that competing authors and publishers
can survey the actions of each other, calling for an advanced
skill set surrounding the use of the internet and technology
which would not have been required in the publishing industry
before the introduction of the internet.
Features of the internet allow the user to personally review
books and suggest more books for fellow readership
(Goodreads, 2014) There are, however, negatives to the use of
online publications as there is are studies suggesting that
users often leave web pages in 10-20 seconds (Nielsen,
2011) Online publications can link to other articles offering
related content and strengthening their interest in your
publication. (Lutz, 2013)

Market Leaders

The publishing industry is a highly concentrated industry: for

instance in France there is an oligopolistic publishing market
with some fringe competition: 4.3% of French publishing firms
bring in 65.3% of the revenues, 12 publishers account for 80%
in Italy, the 5 largest groups are covering 63% of the total sales
(De Prato, 2013). Companies once described until recently as
media giants (e.g. Bertelsmann, Hachette), often critically

because of the concentration they brought are now competing

with the worlds largest market cap companies: Apple and
Google. Companies which have optimised early on the
introduction of the internet and have remained current with
trends and technologies (later developed throughout this report)
in the modern age, in order to gain an uphold their status as
media giants within the digital age.

Current Trends

''The fat years of printed word are over, says John

Sutherland, an academic and author of several books on the
history of publishing. Nowadays when books are very
affordable, yet readers are not motivated to buy them. The rise
of e-books is part of the reason readership has shifted from
printed to digital material. (Guardian, 2009).
The biggest trend within the publishing industry are
currently eBooks, the electronic versions of books introduced at
the beginning of the 21st century when the internet was
becoming more and more popular in households across the
world. The growth continues, due to the benefits of the internet.
Many companies, such as H.B. Fenn and Company have not
altered their business plans to adapt to the growing trend of
eBooks and modernisation of the industry which as a result,
has caused the companies to become bankrupt due to their
resistance in adapting to digitalization. (Medley, 2011)
Jeff Bezos, CEO of Amazon, says that the owners of
eReaders are purchasing more books now than ever before
due to the simplicity and accessibility of eBooks (Pressman,
2014). Amazon, who own the brand Kindle, have 90% of the ereader market share within the UK (BBC, 2013) and have one
of the largest selection of eBooks for their consumer,. In 2008,
eBook sales accounted for 1.1% of the US market, however in
2012, that figure rose to nearly 30% (Campbell, 2013). This
shows that there has been a huge growth in demand for the
product, within the past five years and that the publishing

industry has grown with eReaders and eBooks into the

technological age of the internet.
The past few years have seen a growth in the provision of
electronic resources in both academic and public libraries.
Many of the initial threats regarding the introduction of
ejournals, such as raising user awareness, bundling,
proliferation of passwords and consortia purchase (Ashcroft,
2002), have been resolved and they have become a firm
provision in academic libraries in many countries. However,
while there is much activity in the eBook market, the situation
regarding eBook provision is less stable. eBooks issues
regarding licensing, costs and platform continue to erupt. While
librarians identified some key attraction of eBooks, they also
voiced concern about the bewildering variety of licensing and
business models which is time-consuming and not geared to
user needs (Ashcroft, 2011).
The cost of eBooks have caused a lot of controversy within the
industry, due to their high prices when compared to hardback
copies of the same book. According to consumers, the prices of
eBooks should be significantly less than hardback copies as
there are no printing or distribution costs incurred to the
company. (Bentley, 2012) In some cases, it has been seen to
be more expensive to purchase an eBook than the printed
counterpart. (Hannah, 2013) Consumers also do not get the
same experience with the electronic versions as they do with
the paperbacks. For example, consumers prefer the smell and
feel of a new book, which they cannot get from their eReaders.
These changes within the industry have caused audiences to
make a conscious decision of whether they should stay with
their preferred medium instead of adapting and advancing with
the industry. This could be seen as a threat towards the
publishing industry as the customers preferences are what will
produce the final sales in the industry.

Technology

Two things have driven the explosion of activity on the internet

in the last couple of years: it allows existing activities to be
carried out at lower cost; and it creates new business
opportunities such as worldwide publication. The publishing
industry has not ignored these opportunities, the vast
technological development and advances from the early 19th
century to the fast paced production techniques of today have
contributed to the industries surge into the 21st century. The
need to maintain turnover and profit has meant that publishers
are being forced to seek revenue outside the traditional areas.
The main source of revenue currently being developed is
electronic commerce. This prediction made in 1999- over 10
years ago- demonstrates the development of the publishing
industry.
The development of computers and eBooks now allows the
author to edit and alter their published texts which could never
have been done without the use of the internet. Before,
authors had to edit, then re-publish their books and magazines
in order for the reader to receive the most up to date
information. For educational purposes, this is a brilliant new
way of having up to date textbooks for students without having
to spend more money for the newest editions. However, this
could cause a problem in the future with referencing texts in
academic work as the texts could simply be altered, removing
quotes that could already have been used and referenced.
According to a Bain survey (Bhar and Colombani et al., 2011,
p. 7), more than 42% of all book readers are reading more
eBooks than the traditional paperback. This vast increase
shows that the market is heading towards digital products.
There are currently three transmission technologies which are
and will continue to be of importance to the publishing industry:
Digital interactive TV (DITV) which make it possible to access
books, journals and magazine articles through television and
broadband, meaning that the publishing industry will be more

accessible to customers from the comfort of their home,

broadening the demographic, however this does not
necessarily mean profits for the publishing industry as book
prices in digital form are infamously lower than the price of the
old fashioned printed books.
Advanced telecoms such as ISDN. ISDN (Integrated Services
Digital Network) is a set of CCITT/ITU standards for digital
transmission over ordinary telephone copper wire as well as
over other media.
Interact mobile market. Companies who withhold from
developing their technologies, If publishers (and authors)
continue to take a wary stance, they will significantly hold back
the development of digital books, creating a real risk that major
international retailers will not actively target the Dutch market.

4. Future of the Publishing Industry

Industry Overview

The future of publishing and more specifically book publishing

is full of uncertainties. One of the biggest uncertainties lies in
the digitization of printed media and whether they will face the
same issues as the music industry piracy, alienating people
that are not tech-savvy, and whether people who read once in a
while will want to buy an eReader or will they only be
purchased by a small group of consumers that read a lot. One
thing is for sure, the digitization of printed media is like a train,
going down a track at top-speed whilst having no brakes.
This digitalization trend will also change the structure of the
whole industry. Predictions are that by 2020 50% of eBooks will
be published by indie (self-publishing) authors that are
sometimes better than the New Yorks best sellers. Is this the
end of publishing houses? Even with Todays technology you
can publish an eBook online and have it printed on demand for
people who like the feel and smell of a physical paper book. I
would imagine that as years go by this process will only
become easier, cheaper, and more convenient.

Technology

In the past, if you wanted to purchase and read any book you
had but one option go to the store and purchase a physical
book. Nowadays, you have Amazon and the internet where you
can purchase physical and digital books and pay electronically.

However, thats been so for a while now. What is the future of

publishing technology?
Near field communications or NFC for short. (Machaalani,
2013) With NFCs you can go to any physical store, browse
through their selection, and hold your phone or tablet over any
product to purchase it online and have it delivered to your
doorsteps the very next day. This allows you to see and feel the
actual product before you commit to purchasing it which is a
huge drawback of online shopping.
Nowadays almost everybody has a 2D printer in their homes.
However, the future of printing is in 3D. (Lumb, 2013). The
technology is there but it cannot currently print in fine
materials required for printing an actual physical book. Perhaps
one day well be able to purchase a book online and, shall we
chose a physical copy, print it in our homes on our 3D printers.

Future Trends

Traditional publishers know next to nothing about the

consumer. Their primary focus up till now has been to work with
the authors and, market and distribute books. In contrast,
Amazon knows everything about the consumer and even goes
as far as to inform their customer-base when a new book
comes out by their favorite author. Traditional publishers must
learn to build a bond with the modern consumer or parish and
give way to new technology.
As books go digital, authors can now tap into something called
"Networked Books". A Networked Book is a concept where
authors can choose to post part of the book, the whole book, or
a draft online and allow people to comment, challenge ideas,
correct facts, and lively and intelligently build a conversation
with the aim of creating a perfect final product. A digital book
can become a social network of itself where fans of the author
can gather and interact with one another. Not just this, say that
since the the publication of the book and the time its read

something important happens, why not add an new chapter to

the book or perhaps a new paragraph? It is all possible now
that changes can be made quickly and easily.
The new companies in the eBook publishing business are in
many ways similar to Spotify for music and Netflix for video.
They have leveraged the internet and provided the possibility
for unlimited streaming of both music and video through
utilizing modern technology such as cloud computing which
provides these services to the end consumer for a flat rate of
$10 per month. Similarly the publishing industry will utilise this
technology in the future to provide unlimited eBook streaming
for a fixed monthly subscription price.
The future of the subscription services with eBooks still
have to adapt in a way that is profitable to authors and their
publishing agents. Many of the NY bestselling publishers are
currently not willing to work together with subscription services
because of how much they are devaluing books. (Coker, 2014).
This is something that will eventually exist due to the success
of video and music streaming services.
Publishing as a business
Derided in the 1911 Encyclopdia Britannica as "a purely
commercial affair" that cared more about profits than about
literary quality,[3]publishing is fundamentally a business, with a
need for the expenses of creating, producing, and distributing a
book or other publication not to exceed the income derived
from its sale. Publishing is now a major industry with the largest
companies Reed Elsevier and Pearson PLChaving global
publishing operations.
The publisher usually controls the advertising and
other marketing tasks, but may subcontract various aspects of
the process to specialist publisher marketing agencies. In many

companies, editing, proofreading, layout, design and other

aspects of the production process are done by freelancers.[4][5]
Dedicated in-house salespeople are sometimes replaced by
companies who specialize in sales to bookshops, wholesalers
and chain stores for a fee. This trend is accelerating as retail
book chains and supermarkets have centralized their buying.
If the entire process up to the stage of printing is handled by an
outside company or individuals, and then sold to the publishing
company, it is known as book packaging. This is a common
strategy between smaller publishers in different territorial
markets where the company that first buys the intellectual
property rights then sells a package to other publishers and
gains an immediate return on capital invested. Indeed, the first
publisher will often print sufficient copies for all markets and
thereby get the maximum quantity efficiency on the print run for
all.
Some businesses maximize their profit margins through vertical
integration; book publishing is not one of them. Although
newspaper and magazine companies still often own printing
presses and binderies, book publishers rarely do. Similarly, the
trade usually sells the finished products through
a distributor who stores and distributes the publisher's wares for
a percentage fee or sells on a sale or return basis.
The advent of the Internet has provided the electronic way of
book distribution without the need of physical printing, physical
delivery and storage of books. This, therefore, poses an
interesting question that challenges publishers, distributors and
retailers. The question pertains to the role and importance the
publishing houses have in the overall publishing process. It is a
common practice that the author, the original creator of the
work, signs the contract awarding him or her only around 10%
of the proceeds of the book.[6] Such contract leaves 90% of the
book proceeds to the publishing houses, distribution
companies, marketers and retailers. One example (rearranged)
of the distribution of proceeds from the sale of a book was
given as follows:[7]

45% to the retailer

10% to the wholesaler

10.125% to the publisher for printing (this is usually

subcontracted out)

7.15% to the publisher for marketing

12.7% to the publisher for pre-production

15% to the author (royalties)

There is a common misconception that publishing houses make

large profits and that authors are the lowest paid in the
publishing chain. However, most publishers make little profit
from individual titles, with 75% of books not breaking even.
Approximately 80% of the cost of a book is taken up by the
expenses of preparing, distributing and printing (with printing
being one of the lowest costs of all). On successful titles,
publishing companies will usually make around 10% profit, with
the author(s) receiving 8-15% of the retail price. However, given
that authors are usually individuals, are often paid advances
irrespective of whether the book turns a profit and do not
normally have to split profits with others, it makes them the
highest paid individuals in the publishing process.
Within the electronic book path, the publishing house's role
remains almost identical. The process of preparing a book for
e-book publication is exactly the same as print publication, with
only minor variations in the process to account for the different
mediums of publishing. While some costs, such as the discount
given to retailers (normally around 45%)[7] are eliminated,
additional costs connected to ebooks apply (especially in the
conversion process), raising the production costs to a similar
level.
Print on demand is rapidly becoming an established alternative
to traditional publishing. In 2005, Amazon.com announced its
purchase of Booksurge and selfsanepublishing, a major "print

on demand" operation. This is probably intended as a

preliminary move towards establishing an Amazon .imprintoriginal
research?
CreateSpace is the Amazon subsidiary that facilitates
publishing by small presses and individual authors. Books
published via create space are sold on Amazon and other
outlets, with Amazon extracting a very high percentage of the
sales proceeds for the services of publishing. printing and
distributing. One of the largest bookseller chains, Barnes &
Noble, already runs its successful imprint with both new titles
and classics hardback editions of out-of-print former best
sellers. Similarly, Ingram Industries, the parent company of
Ingram Book Group (a leading US book wholesaler), now
includes its print-on-demand division called Lightning Source.
In 2013, Ingram launched a small press and self-publishing arm
called Ingram Spark.[8] Payment terms are much closer to those
of Amazon and less favorable than those they offer to more
established publishers via Lightning Source. Among
publishers, Simon & Schusterrecently announced that it will
start selling its backlist titles directly to consumers through its
website.[citation needed]
Book clubs are almost entirely direct-to-retail, and niche
publishers pursue a mixed strategy to sell through all available
outlets their output is insignificant to the major booksellers,
so lost revenue poses no threat to the traditional symbiotic
relationships between the four activities of printing, publishing,
distribution and retail.

MARKETING RESEARCH - AN INTRODUCTION

Marketing basically consist of spotting the need of customers and

meeting them in the best possible manner. Marketing Research plays key

role in this process. It helps the firm acquire a better understanding of the
consumer, the competition & The marketing environment. It also aids the
formulation of marketing Mix.
Today carrying out research relating to customers products and market
requires specialized skills sophisticated techniques

CLASSIFICATION OF MARKETING RESEARCH PROBLEM

The various marketing research problem can be classified based on the
subject matter of research as shown below:1. Research on Product
2. Research on Market
3. Research on consumer
4. Research on advertisement and Promotion
5. Research on distribution
6. Research on Price
7. Research on competition
8. Research on Sales method

Research

on

Products

includes

studies

on

the

competitive position of a product /brand : the level of

consumer acceptance of a products/ brands etc. consumer
research includes.

Studies

on

consumer

behavior.

Buyer

Motives,

consumer loyalty. Consumer resistance etc.

Research on market includes market share analysis
demand
market

analysis

determining

segmentation

studies

market
.

characteristics,

Analysis

of

market

territories etc.

Characteristics, market segmentation reveals trends in

competition, evaluates the marketing progress of majors
competitors. Shops their strengths and weakness and
analysis their vs. Performance.
Research

on

distribution

includes

studies

on

distribution policies transportation, warehousing etc.

Research on advertisement and promotion includes
studies on advertising effectiveness, studies on media and
their relative effectiveness and cost- benefits of sales
promotion etc.

MAIN STEPS INVOLVED IN MARKETING RESEARCH

1. Defining the marketing problem tom be tackled and

identifying the marketing research problem involved in the
task
2. Specifying the information requirement
3. Developing the research design & research procedure.
4. Gathering the information

5. Analyzing the Information & Interpreting it in terms of the

problem being tackled.
6. Preparing the Research report

TECHNIQUES OF MARKETING RESEARCH

Marketing Survey:Marketing survey is one of the most widely used M.R. Techniques
market survey is at times viewed as synonyms with market research. It is
just one method of collecting the marketing information required for
carrying out a given marketing research task.

STEPS IN MARKET SURVEY

PLANNING THE SURVEY
1. Problem definition
2. Selection of the survey method
3. Sampling
4. Questionnaire development
5. Pilot survey
FIELD WORKS
1. Selection and training of investigator
2. Collection of data
3. Supervision

ANALYSIS AND INTERPRETATION OF DATA

1. Editing
2. Tabulating, Processing & Interpreting data
3. Statistical analysis & Interpreting
REPORT MAKING
1. Summarizing findings & Recommendations
2. Report writing

RESEARCH METHODOLOGY
The research methodology that I undertook for the purpose of this study is enumerated below:
PRIMARY RESEARCH:
This consisted questionnaire and interaction from various people. A focus group study will be
conducted to design the customer survey questionnaire with a sample size of 100
respondents.
SECONDARY RESEARCH:
Sources of secondary data were primarily the Internet , journals , newspaper, annual report,
database available in the library, catalogues and presentations.

Research Design:
The research design is Descriptive studies. Descriptive studies are well structured, they tend
to be rigid and its approach cannot be changed every now and then.
Descriptive studies are undertaken in many circumstances:

1. When the researcher is interested in knowing the characteristics of certain groups such as
age , profession.
2. When the researcher is interested in knowing the proportion of people in given population
who have behaved in a particular manner, making projection of certain things.
The objective of this kind of study is to answer the why, who, what ,when and how of the
subject under consideration.
I have taken descriptive because my research includes the knowing the behavior of customer
towards advertisement. I have analyzed how people of various age group respond to different
advertising or their perception towards advertisement. Also my survey is related to companies
like Vodafone, Airtel, Reliance communications, BSNL and Idea cellular.

Types of questions:

OPEN ENDED:
They give the respondents complete freedom to decide the form , length and detail of the
answer. Open questions are preferred when the researchers is interested in knowing what is
upper most in the mind of respondents.

DICHOTOMOUS:
This type of questions have only two type of answer, yes or no. true or false etc.

MULTIPLE CHOICE QUESTIONS:

In the case of multiple choice question the respondents is offered two or more choices. The
researcher exhausts all the possible choices and the respondent has to indicate which one is
applicable in this case.

Research Process

Formulating the Research Problem

Extensive Literature Survey

Preparing the Research Design

Determining Sample Design

Collection the data

Analysis of Data

Preparation of Report

METHODS OF DATA COLLECTION

There are two types of data:

1.

Primary data

2.

Secondary data.

Primary Data:
The primary data are those which are collected a fresh and for the first
time and thus happen to be original in character.

Secondary Data:
In the case of secondary data the nature of data collection work is
merely that of complication.

Collection of Primary Data:

1. Observation Method.
2. Interview Method.
3. Through questionnaire.
4. Through schedules.

Collection of Secondary Data:

1. Various Publication of the Central, State and local government.
2.Technical and trade journals.
3.Book magazines and newspapers.

4.Report and publications of various associations connected with business

and industry, bank stock exchange etc.
5.

Reports prepared by research scholars, universities economists etc.

in different field.

Collection of My Primary Data

In my research study I used only primary data and I collected it

through the questionnaire methods, I collected these data from
Lucknow & around.

Limitation of Research Report

1.

The finding of this survey were made on the basis of the data
provided by the people.

2.

We have to collect the information according to the convenience of

the people hence the data may not be accurate.

5. Conclusion
The twenty first century is an exciting period to develop a
career in publishing. Publishing industries do not require hand
written books, printing, distributors nor literary agents which are
often used in the past. Internet and developed technologies
have made it possible for individuals to be at the core of
publishing and increase in sales of eBooks. These processes
have changed the whole process of publishing in terms of
storage, communication, demand and supply of books.
In the eighteenth and nineteenth century, newspapers and
periodical advertising is the publishers principal means of
reaching and promoting to the public. Publishers nowadays
follow few steps, due to the internet era which makes
publishing much more affordable. For example, in the
nineteenth century, the establishment of book clubs was used
as a way to market books. Authors now take the opportunities
offered by social media to promote and consequently sell their
books as the digital era has allowed published books sell
internationally.
The simplicity and ease of accessibility has led to readers
purchasing more eBooks. Consumers can now access eBooks
at the comfort of their home instead of going to the library by
the means of the internet. The innovation of computers,
technology and the internet now enables authors to edit and
update their published texts which could never have been done
without the use of internet.
The future of book publishing seems very bright for
consumers. Companies such as Scribd and Oyster provides
access to their library with thousands of downloadable eBooks
at a very affordable rate. Publishers can use these companies
such as Scribd to gain exposure to their millions of readers and
potential customers. The companies satisfy the customers
need for speed, instant availability and quick reads. With
todays technology, authors can publish an eBook online and
have it printed on demand for people who like the feel and

smell of a physical paper book. Digitalization has come to stay,

there is predictions that in five decades from now, 50% of
books would be published by individuals.
All in all, the publishing industry has improved
substantially due to the digitalisation of the industry. Publishing
has become more affordable for the authors and consumers.
Physical books might never disappear, however it might
become more common for books to be printed on demand in
the future. Publishers would prefer this practise as it will reduce
their storage costs.

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