1. Adopting a New MO: Meeting Patron Needs and Transforming Libraries through Market Orientation Matthew P. CiszekPenn State University Libraries ALCOP Conference – October 9, 2011

2. Marketing Concept and Market Orientation Central to the field of marketing is the marketing concept: “The marketing concept advocates starting with customer needs/wants, deciding which needs to meet, and involving the entire organization in the process of satisfying customers” (Cravens and Piercy, 2006) Market orientation is a measure of the adoption of the marketing concept by a firm or organization Non-profit organizations must first develop a marketing culture – a set of shared values that support marketing activities – in order to ensure a market orientation

3. What is Market Orientation? “Gaining a sustainable competitive advantage by creating a consistently superior offering for customers” (Harrison and Shaw, 2004) “Achieving business value through a clear understanding of the customers, the organization, and the wider business environment” (Sen, 2006) “Adoption by an organization of a customer focus…starting with customer needs/wants, deciding which needs to meet, and involving the entire organization in the process of satisfying customers” (Parker, Kaufman-Scarborough, and Parker, 2007)

4. MO as defined in Library and Information Studies No universal definition of market orientation in the library literature Confusion over the terms “market orientation” (strategic focus) and “marketing orientation” (promotional and activity based) in librarianship Lack of understanding and development of the marketing concept in library and information organizations

5. Marketing misconceptions Library literature focuses heavily on the functional aspects of marketing – the how No focus on marketing as a long-term strategic perspective Only two of the “Four Ps” are explored Product (collections and services) and Promotion (how we communicate and advertise) Price (exchange of value) and Place (distribution) No value is exchanged because no money is exchanged Seen as an afterthought and not central to our core functions, collections, and services

6. Market Orientation Models Kohli and Jaworski (1990): MO is measured by three sets of activities: Organization-wide generation of market intelligence pertaining to current and future customer needs Dissemination of the intelligence across departments Organization-wide responsiveness to the intelligence Activity focus with an operational outlook

7. Market Orientation Models Narver and Slater (1990): Three components: Customer orientation: Sufficient understanding of customers to be able to create superior value continuously Competitor orientation: Understanding of the short-term strengths/weaknesses and long-tem capabilities/strategies of key competitors Inter-functional coordination: Coordinated utilization of resources in creating superior value for customers Strategic and cultural focus

8. Development of MO in Libraries Savard (1996) Studied the market orientation of Quebec library managers Importance of marketing in libraries was high Libraries must move from a product-oriented focus to a customer-oriented one Harrison and Shaw (2004) Library staff attitudes and how these support or resist the adoption of a marketing culture Marketing needs to be more strategic and holistic with buy-in from entire organization Investigated public libraries in Australia

9. Development of MO in Libraries Ewers (2004) Case study of the Queensland University of Technology in Australia MO is more than “skin deep” – with a total focus on organization’s planning and operations Sen (2006) Two articles on health and arts libraries in the UK Familiarity with MO and the value/relevance MO has as a strategic option for library managers Library professionals gravitate toward the Narver/Slater model of MO Libraries need to develop a focus on the competitive environment and dissemination of intelligence

10. Development of MO in Libraries Parker, Kaufman-Scarborough, and Parker (2007) Library staff attitudes toward MO Large sample of respondents (623) from NJLA Library managers must make marketing a priority for MO to take place Aharony (2009) Explored relationship between library staff attitudes toward marketing and MO Survey of 156 Israeli librarians Link between personality traits and marketing, but all library staff should be exposed marketing concepts

11. Development of MO in Libraries Singh (2009) Why are some libraries more market oriented than others? Finnish academic and research libraries MO of a library is a significant determinant of service performance Stronger MO results in higher customer satisfaction Developed a model of marketing approaches in different library cultures

12. Marketing Approaches of Different Library Cultures (Singh, 2009) Reactive Library Focused Customer Focused Proactive

13. Marketing culture and Libraries(Singh, 2009) Slow Walkers Marketing = disseminating information Marketing does not have much to do with libraries Reactive measures used to meet customer needs Brisk Runners Marketing = promotion Building relationships with customers is most important Some proactive measures taken High Flyers Marketing = identifying and meeting customer needs Customer is at the center of all activities Highly proactive and strategic organization

14. How can MObenefit libraries? An organization’s MO has been proven in the literature to have a positive effect on profitability and customer satisfaction MO can be used as a means to investigate and develop new resources and services to meet customer needs MO can also be used to compel libraries to monitor and respond to competition in the information services environment Libraries with a higher degree of MO are better equipped at responding to environmental change

15. How can MObenefit libraries? Singh (2009) Found a positive relationship between MO in libraries and the level of customer satisfaction Libraries acquire the tools necessary for continuously improving library services and collections as a result of adopting a MO Positive connection exists between marketing attitudes and behavior Positive marketing attitude of library leadership is key for market oriented behavior in the library

16. How can MObenefit libraries? Aharony (2009) reports that adopting a MO can assist libraries in remaining competitive in the changing world of information providers Sen (2006) argues that libraries must focus on the competitive environment in order to stay relevant Sen (2006) suggests that the dissemination of competitive intelligence can allow libraries to more effectively target users and manage appropriate services and resources Harrison and Shaw (2004) suggest that MO can compel library staff to perform routine marketing-related activities in order to gather intelligence on customer needs and competitors

17. Case Study – Emory University (Elder, Forrest, & Thomas, 2005) Organizational redesign of library into market councils, each focusing on a segment of users “The market councils are responsible for ensuring that the library’s functional units and processes are aligned with the needs of a particular subset of users, by paying attention to the relationship between the library and the user, and by promoting the services and resources of the library.” Library became more customer-driven as needs of users were being investigated and services and resources developed Resulted in increased service to segment populations and better customer service

18. Future research Research on MO in library and information must be refined and replicated over time – much of the research at this time is exploratory A scale to measure MO in libraries needs to be developed and applied replicating methodologies that have been used in other non-profit organizations Additional research is necessary to understand the barriers to adopting MO in libraries and address areas of weakness in strategy, marketing, and management of library services

19. Questions?

20. Thank You! Thank you for attending this presentation! Slides and references handout are available at http://www.slideshare.net/mciszek Presenter can be contacted at mpc16@psu.edu