MARKETING

Marketing is form of communicating or promoting the value of a product, service or brand to the
consumers. The “by word of mouth” marketing may be the simplest, oldest, and most natural
way of marketing a service or a product of profit and non-purposes. Marketing for profit aims to
increase sales of products or services while marketing for nonprofit purposes aims to
communicate messages for social purposes, such as health and public safety information
disseminated by the government.
The American Marketing Association defines marketing as “the activity, set of institutions and
processes for creating, communicating, delivering and exchanging offerings that have value for
customers, clients, partners and society at large. The key to this definition is the word “value”.
Thus, marketing can be summarized as the creation communication and the delivery of value to
customers.
A science and a profession guided principally by the universal principles of ethics, corporate
citizenships and corporate social responsibility- Philippine Marketing Association.
Marketers must avoid offering products and services that may be harmful to one’s health and
well-being or promote violence and immorality. Products or services that serve no purpose or
contribution nothing to individual and societal well-being should not be marketed.
GOALS OF MARKETING
The goals of marketing can be summarize as follows:
1. Understand the market and its customers and satisfy their changing needs and wants
2. Introduce and innovate products and services that improve human condition and the
quality of life.
3. Design and implement effective customer-driven marketing strategies.
4. Develop marketing programs that deliver superior value to customers.
5. Build and maintain mutually beneficial and profitable customer relationships
6. Capture customer value to create profits.
7. Promote value transactions with full regard to society’s well-being.

THE MARKETING PROCESS

The marketing process can be illustrated in the following diagram:
 The SITUTATIONAL ANALYSIS MARKETING STRATEGY
Micro-environmental FORMULATION
Macro-environmental Market Segmentation
The Market Target Market Selection
Customers Value Proposition
Competition Product Positioning
SWOT

MARKETING MIX DECISIONS

IMPLEMENTATION AND CONTROL
Product
Implementation
Price
Monitoring
Place
Marketing Mix Adjustment
Promotion

MICROENVIROMENTAL- includes forces that are internal to the company or those that are
relevant to its operation. It is composed of the company itself, its suppliers, market
intermediaries, customers, competition, and its various publics. The consideration of these is
important as they effect the company ability to build and maintain sustainable relationships with
current and prospective customers. This includes identifying the Strengths and Weaknesses.
MACROENVIRONMENTAL- Includes factors that are external to the organization. Essentially,
these can neither be influenced nor altered by the company. However, they can affect a
company’s operational viability. They can be opportunities which a business organization can
take advantage of, or threats, which the company must avoid. Macro-environment refers to the
economic, politicolegal, sociocultural, demographic, technological and natural environments.
Economic factors are significant because they indicate the cost of doing business as well as
consumer buying power. E.g. inflation rate, foreign exchange rates, consumer spending shifts,
and consumer price index.
Politico-legal- a new administration may have different economic and monetary priorities and
may favor a divergent legislative agenda. Legal factors include laws passed recently, as well as
legislative bills that could be enacted into law.
Sociocultural- Culture is defined as the beliefs, customs, arts etc. of a particular society, group,
place or time.
Demographic Environment- These include population rates, gender, age, income composition
patterns, civil status and family size. Population increase rates can be particularly beneficial for
mass marketing efforts.
Technological- composed of current and impending technological change. This is sometimes
the single factor that can cause the rapid acceleration or bring the untimely demise of products,
services of companies.
Natural macro-environment- refers to natural resource inputs and environmental concerns. The
uncontrolled use of finite resources including fossil fuel in organizational activities has
heightened concern for the sustainability of the natural environment. Other equally pressing
issues are pollution, global warming and the rampant denudation of forest.
Identifying Opportunities and Threats.
TARGET MARKET
Whom is library attempting to reach with the advertising? People who already come to the
library or someone who has never been to the library? New immigrants, people who have just
oved to the community, or new students who have just enrolled at the university? Both the
intention of the message and the group it is aimed at will determine how the message should be
worded; that is, what the message should say, how to say it, when to say it, where to say it, and
who should say it (Andreasen & Kotler, 2008, p.304).
MARKET SEGMENTATION- It is the process of dividing the market into homogeneous parts or
groups.
There are 4 major variables used in market segmentation:
1. Geographic
2. Demographic
3. Psychographic- these are variables that represent the psychological profile of
consumers. This is one of the most effective segmentation variables in predicting
purchase behavior. E.g. lifestyle, personality, social class, user status, usage rate,
loyalty status, benefits sought.
4. Behaviographic- is the segmentation variable most indicative of purchase behavior.
Unfortunately, it is not available to all organizations as it depends on surigathe
meticulous maintenance and upkeep of internal databases. Retailer databases, for
example, can provide information such as customer listings, their home and email
addresses, and contact numbers.

In Information Services there are need markets, geographic markets, product markets and
demographic markets.

Need markets- consists of individuals or groups who have a common need.

Geographic markets
Product markets- determined by a demand for a particular product or service. A product
market may be those people who have a demand for access to electronic information
services from their desktop. This market could be further segmented according to
specific scientific or technical information requirements.
Demographic markets. May be identified by age, nationality, or physical needs such as
large computer screens or ramp access.
MARKET TARGETING
Market target involves the evaluation, selection and concentration on specific market
segments. There are three strategies for doing this: undifferentiated marketing, differentiated
marketing and concentrated marketing.
Undifferentiated marketing or mass marketing the information service focuses upon the needs
that are common to all people.
Differentiated Marketing- an information services decided to operate in at least two segments
of a market and designs separate services and programmes for each. The aim of this approach
is to provide services catering for specific needs that strengthen the information service’s overall
identity within the organization and increase its use.
Concentrated Marketing or niche marketing occurs when the information service concentrates
upon a small number of submarkets. Instead of spreading itself thinly, being all things to all
people, the information service provides in-depth services in a few areas, serving a small
percentage of the market-place. It purposefully determines a small number of target markets
and sets out to concentrate on these. As a result, it achieves a strong market position through
its detailed knowledge of its market segments’ needs and its subsequent reputation.

TARGET- it is defined as its most probable and most logical consumers, and may likewise be its
heaviest consumers.
SPUS population = 5,000
By gender: By marital status:
Male 45% Single-35%
Female 55% Married-35%
Separated/ Widow/Widower-30%
By income class: By age:
Class AB-25% Below 15- 34%
Class C27% 16 to 25-16%
Class D-23% 26-35-28%
Class E-25% 36-45-22%

VALUE PROPOSITION- marketing statement that a company uses to summarize why a

customer should buy a product or use a service. This statement convinces a potential consumer
that one particular product or service will add more value or better solve a problem than other
similar offerings.
POSITIONING- the process of communicating the image of a brand into the minds of
consumers. The objective is to make the brand stand out in comparison to its competitors.
Why should a brand have an image or a brand position? The first reason is recall. Customers
have difficulty using a typical high school student attending a reunion of his elementary
graduating class.
Elements of Good Brand Position
Unique- a brand must select a position that is not currently occupied by another brand.
Beneficial- the selected position must be perceived by its customers as beneficial. Customer
always ask when considering a product or service “what’s in it for me?”
Credible- once a brand position is selected, it must ensure it performs and fulfills the promise of
its position.
DEVELOPING THE MARKETING MIX
Marketing Mix- refers to the set of actions, or tactics, that a company uses to promote its brand
or product in the market. The 4ps make up a typical marketing mix-price, product, promotion
and place. However, nowadays the marketing mix increasingly includes several other Ps like
packaging, positioning, people and even politics as vital mix elements.
4Ps (Product, Price, Place and Promotion)
PRODUCT- For the library it is the library services and its programming.
The first element in the marketing mix. After identifying a need in the market, a company may
already have a product that is capable of satisfying the need. Packaging serves to contain and
protect and sometimes, identify and promote the product. A product’s packaging is different
from its label. Product packaging has several purpose:

 It protects the product en route to the consumer

 It makes product storage and display more practical and effective
 It preserves the product for further customer use.
Labeling- is a display of information about a product on its container packaging or on the
product itself.
SERVICES AND PROGRAMMING-How Do Users Know?
Another consideration in communicating with the users or patrons is to ask them what they need
or want as far as programming and services. There is a small limitation to this approach. Asking
patrons what they want will only get to users who are currently using the library and will not
reach those who are not using the library. Still, of the users are asked and the library can afford
to do what the users are suggesting, the idea needs to be marketed.

PRICE- is the value that is put to a product or service and is the result of a complex set of
calculations, research and understanding and risk taking ability. A pricing strategy takes into
account segments, ability to pay, market conditions, competitor’s actions, trade margins and
input costs amongst others.- For the library it is the taxes.
PLACE- Its main aim is for good distribution or place strategy. For the library it is the Library
Building and Website.
PROMOTION- refers to all activities undertaken to make the products and services known to
users and trades. This can include advertising, word of mouth, press reports, incentives,
commissions and awards to the trade. Promotion or General Selling of the Library Program and
Services
Advertising- as any paid and public presentation of products, services, or ideas by an identified
sponsor a medium. The most common objectives of advertising are: to build, to inform, to
persuade, to remind.
Brand awareness- is the extent to which consumers are familiar with the distinctive qualities or
image or a particular brand of goods or services.
Advertising Campaigns:
Before launching advertising campaigns, companies go through the following steps:
1. Identifying the target market
2. Establishing advertising message
3. Determining advertising message
4. Selecting media
5. Managing and coordinating the marketing communication process/
TYPES OF MEDIA AND TECHNIQUES USED IN ADVERTISING
Traditional Media and techniques
Radio- a viable vehicle in the Philippines since 1922, radio is the most accessible media.
Print- the first magazine in the Philippines was printed in 1840s while the first English
newspaper was published and circulated in 1898.
Newspaper

Advantages Disadvantages
Credible Spillage
Pass-on readership Obsolescence
Target marketing possible Poor image quality

Magazine

Advantages Disadvantages
Good image quality Long lead time
Target marketing possible Difficult to time advertising
Pass-on readership
Not subject to obsolescence

Television

Advantages Disadvantages
Audio, video and movement Expensive
Target marketing possible Frequency necessary for effectiveness

Alternative Media and Techniques

Cinema
 Advantages Disadvantages
Audio, video, and movement Not cost efficient
Larger than life Limited to reminder advertising
Captive audience Short attention span
Relatively inexpensive

Billboard

Advantages Disadvantages
Relatively inexpensive Short messages only
Larger than life Reminder advertising only
Exposed to many potential customers May be damaged by elements
Legal restrictions

Websites

Advantages Disadvantages
Low cost Must be upgraded regularly
High level of detail Clutter
Customized
Interactive

Social networking sites.

Advantages Disadvantages
Low cost May be ignored
High level of detail
Well-segmented audience

Directory advertising –more commonly known as “yellow pages”

Advantages Disadvantages
Pinpointed advertising Accompanies declining technology
Timely

Product placement- an advertising technique used by companies to promote products subtly

through a nontraditional advertising e.g appearances on film, television, or other media. d

Advantages Disadvantages
Unique exposure Little stand-alone value
Well-segmented audience Sometimes used abusively

E-mail advertising

Advantages Disadvantages
No cost Clutter
 Highly targeted Messages sometimes classified as “spam”

Transit Advertising- buses and jeepneys in the Philippines ply the same route every day. An
advertising signage on the side or back of a bus, a jeepney spare tire cover, or perched atop a
taxicab can create good brand recall for the market.
Advantages Disadvantages
mobile Short messages only
Relatively inexpensive Reminder advertising only
Consistent daily audience May be damaged by the element

Online Ads- In the 2. Billion Internet users worldwide, 1.1 billion are from Asia. These figure
have led to the popularity of internet advertising, which permits target marketing through the use
of cookies generated by web page server.

Advantages Disadvantages
Well-segmented audience Easy to ignore
low cost

Direct Response Advertising – Used extensively on television during specific periods of the
day. Usually presented in telemarketing programs, direct response advertising mostly showcase
product not available through conventional retailers. Characteristics of direct marketing
messages are dramatization and the use of incentives to solicit early response. This type of
advertising, however, suffers from poor image as customers complain of products not being
faithful to how they were represented in the advertisement.

Advantages Disadvantages
High information content clutter
measurable Poor image

Point-of-Purchase, Signs, Poster, and Leaflets – These are relatively inexpensive ways to
advertise and promote a product. For example, point-of-purchase material, e.g. shelf talker, and
retailer floor signs, are effective in persuading a customer to prefer one brand of product over
another.

Advantages Disadvantages
Last ditch purchase reminder Short messages only
Close proximity to physical product Reminder advertising only

Promotion
Promotion are activities or a series of activities that are intended to boost the sales of a product
or service, usually short-term. These are action a company can take to stimulate customers to
buy immediately than later.
There are essentially two types of promotion;
1 Trade promotion – Trade promotion are intended for marketing intermediaries to increase
purchase, to stock a particular product, to accelerate or payment for purchases,
2. Consumer promotion – Consumer promotions, on the other hand, are intended for
consumer. Examples of consumer promotions include the distribution of product samples,
consumer contests
Personal Selling- occurs when individual salesperson sells a product, service or solution to a
client. Personal selling is necessary in the marketing mix when products/services are highly
technical, fairly complex, durable, expensive or not actively sought out by customers, especially
when its customers are institutional in nature.
Public Relations- is creating and maintaining goodwill of an organization’s various publics
(customers, employees, investors, suppliers, etc.) through publicity and other nonpaid forms of
communication. These efforts may also include the support of the arts, charitable causes,
education, sporting events, and other civic engagements.
Publicity- a communication written and produced by public relations professionals intended to
create a favorable public image for a client. Publicity usually takes the form of text, audio and
video news releases about an individual or organization. They are distributed to newspapers,
magazines, radio, and television stations, internet sites and other forms of media. Many regard
publicity as a more effective promotional tool compared to advertising. Publicity reaches a wider
audience, making it more cost-effective and may have a longer recall by the general public than
advertisements. Because publicity is often published or circulated by third party such as
magazines and newspapers. It has a higher level of credibility as compared to advertising.
MARKETING MANAGEMENT
It focuses on exchanges of information between organization and the consumers. Consumers in
the case of libraries can be called patrons, customers, or students and faculty. The ultimate
objective of marketing is to influence the behavior of the consumers in order to make choices.
Marketing uses jingles and branding in order to achieve a marketing mind-set. The concept of
marketing
1. Doesn’t educate
2. Doesn’t change behavior or values, but
3. May influence behavior.
The FOUR Cs
Schultz, Lauterborn, and Tannenbaum (1994) suggested that there are four corresponding Cs
that apply to customer service.

Four Ps Four Cs
Products Customer solutions
Price Customer cost
 Place Convenience
Promotion Communication

Backward Approach- the target audience mind-set starts with what the organization is and what
it wants to offer.
When Marketing products, most often marketing managers look at the features and benefits of
the service or product and determine how best to emphasize those with their messages. When
looking at libraries the first thing to determine is what type of library is it? Once that is
determined, how is it funded? IS the library funded through taxes or private funding like a
foundation, religious organization, or some other way?

STRATEGIC PLANS
Many times when an organization wants to implement a cohesive plan of marketing, it will write
a strategic marketing plan. This type of plan has a similar look and feel to a strategic plan
except that is totally focused on the marketing aspect of the business.
The strategic marketing plan addresses just marketing the organization. Like a regular strategic
plan, it starts with the mission statement of the organization. What is the mission statement?
The mission statement should shoe that the organization has opportunities, competence and
commitment (Drucker, 1990). Enabling marketing of all three for a service organization is a must
to prove there is an ultimate goal. The marketing plan will contain the following elements:
1. Executive summary
2. Mission statement
3. Analysis of the macro-environment
4. SWOT Analysis
5. Portfolio analysis
6. Objectives
7. Proposed marketing strategies
8. Evaluation methods
9. Timetable
10. Budget (adapted from the Saez,2002)
Executive Summary is an overview of the entire report in just a couple of pages. The
executive summary needs to give a good review of the situation where the library is
marketing-wise, where the management team wants to go, and how the team plans to
get there. It doesn’t need to be in-depth report of the history of the library. This is where
the management team sells the board, the provost, or whomever they report to on the
belief that marketing the library is what they need to do to move the library forward. The
key issues of the marketing plan need to be presented, not a long, wordy, windy
overview of everything.

TARGET AUDIENCES
Public Academic Library Private Academic Library Public Library
Administration Administration Children
 Congress Deans of Schools/colleges City council
Deans of schools/ colleges Donors Community
donors Faculty Congress
Donors Federal government Donors
Faculty Funding organization Friends of the library
Federal government Genera public Library board
Friends of the library Library staff Library staff
General public Mass media Mayor
Legislature Staff Patrons
Library staff State government P-12 schools
Mass media Students General public
Staff Volunteers State government
State government Taxpayers
Students Volunteers
Taxpayers
Volunteers

Portfolio Analysis- Portfolio analysis is a systematic way to analyze the products and services that
make up an association's business portfolio. Checking all aspects of their skills and weaknesses.
Read more: http://www.businessdictionary.com/definition/portfolio-analysis.html

In any type of library (academic, public, or special) there are various pieces and parts
called departments that offer different services and programming. These services and
programming can be at different levels of product lifecycle (recall the earlier example
about aging computers)There may or may not be a competitor for the services that the
library provides. In some rural areas, the public or academic library may be the only
place in town to find that special book or computer connection.

In a public library, for example, does not make sense for an hourly rate? Can the library
support personnel for something like that? Is this a pilot project or something for the long
term? These are all things to think about when putting a plan together.

All different types of libraries, when considering a portfolio analysis, need to be aware
that there may be other places that their services could be marketed. The hard questions
need to be asked before making the plan public or putting it forward with the board or
provost. Once they see a revenue-generating idea, the powers that be just may want to
move forward with it. Are the funds available to support additional services? Are the
personnel available? Can you hire more people to support each new service or
program?
OBJECTIVES
Marketing objectives are precise statements that outline what is to be accomplished by
the organization’s marketing activities (McDonald & Payne, 1996, p.119) Spefifific
objectives are quantifiable and usually include what the organization wants to improve
by a certain percentage. The chief aim is that it is measurable. A mission statement is
usually pretty vague. An objective will anwer a what, when, where, how and who
question and by how much. For instance, the children’s programming wants to improve
attendance to storytime y 10%. This is a measureable objective.

Another example. The undergraduate research services department wants to improve

reference appointments by 20%. Reference questions at the reerence desk need to be
responded to within five minutes. Both of these objectives are measurable.

Solid objectives can be easily measure, collected, and achieved. An objective that is not
achievable will just frustrate the staff and the people who have to manage the objectives.

MARKETING STRATEGIES
A marketing strategy describes how the marketing objective will be achieved (McDonald
& Payne, 199, p.119). What are the means by which the organization is going to achieve
the measurable objectives that have been set out by the management team? The
marketing strategies are the general content of how the organization intends to go about
informing the community about its programming and services. These can entail different
items. In government agency or nonprofit, sales is not the focus, but people coming in
the door is what management wants to have happen.

As with any management process, there will be policies and procedures governing how
the marketing will be organized, including the branding (if desired) of the programming
and services. How will the community know these items are available? The management
team will decide how to promote the events through the different types of media that
were discussed earlier in the chapter.

EVALUATION METHODS
Whenever an organization follows a new plan, the management team should assess and
evaluate whether or not it was effective. Were the results expected? Did the programs
and services pull in the expected people, or did they not pull in enough to justify the
costs associated with the program? For example, let’s say a local author was brought in
to promote a recent book and only 10 people showed up. The cost for the author was
500.00 pesos. It essentially cost the organization 50.00 pesos per person to bring in that
author plus whatever other costs were incurred for advertising, promotion, refreshments,
and personnel time. This is not a good or useful level of expenditure, but it would be
more than worth the overall money spent if 200 people showed up. Based just on the
money spent for the author, it would cost 2.50 per person, which is affordable.

Assessment and evaluation methods, like objectives, need to be measurable and

quantifiable. Evaluation should also take into consideration what was done right and
wrong. If something was not exactly perfect, what can be done in the future to make the
event or similar even better? The best way to find out this type of information is to ask
the people who attended the event. If t is a children’s or teen event ask the target group.
Kids, teen, and adults are willing to give feedback-just ask for it. Like the management
team, the patrons who spent time giving feedback have the same goal to make events,
programs, and services better for everyone.