How does information marketing work
Strategic information marketing Goals and strategies in strategic marketing and their implementation in operational marketing
1 Hans-Christoph Hobohm Strategic Information Marketing Goals and strategies in strategic marketing and their implementation in operational marketing 1 Strategy Strategy is one of the most frequently used terms in management.¹ Since Peter Drucker published his management practice in 1954, strategy is management closely linked.² His Management by Objectives (MBO), described in the numerous editions of his standard work, is still considered a central credo of general management literature. Henry Mintzberg defines strategy as: a pattern in a stream of decisions, in which he explicitly sees the decision as being linked to the commitment to action and resources.³ Therefore, the focus of strategic thinking in management is target orientation and the concrete commitment to implementation. The further development of the strategy discussion in management literature soon connects strategic thinking with the company's market positioning. Igor Ansoff, one of the fathers of the strategic concept in management, expanded the corpus of the strategic discourse in management to include the much discussed and further developed product-market matrix⁴ (see Fig. 1), which provides suggestions as to the conditions under which a company can market penetration and product development (with existing markets) or market development or even a (so-called) diversification (completely new products in new markets) of your own market presence should be pursued as a central strategy. 1 Cf. Corrall 2000, S Cf. Drucker Cf. Mintzberg 1978, S Cf. Ansoff 1980.
2 232 Hobohm Existing / current products New products Existing / current markets Market penetration Product development New markets Market development Diversification Fig. 1: Product-market matrix (according to Ansoff) ⁵ In view of the dynamic development of the current information markets and the not negligible decrease in the market penetration of traditional information facilities This standard model of strategy development alone provides important options: If you want to stick to the previous target groups (which information institutions often cannot decide against), the only thing left is the development of new products⁶. The development of new markets with the existing products or a complete product diversification (new products for new markets) is naturally correspondingly more difficult (the latter even calls into question the original order of an institution in the non-profit sector) two dimensions, products or services (such as information transfer or book lending) and markets (eg members of the local or institutional catchment area) obviously fall short of the mark. This was also discussed in the discussion about strategic management and led to decisive expansions of the instrument. In response to the self-posed question what is strategy? replies Michael Porter: Strategy is the creation of a unique and valuable market position including a number of different business activities. ⁸ Basically, strategy aims to find the USP (also USP = Unique Selling Proposition) through which the company can be successfully positioned in the market. 5 Cf. ibid. 6 This always refers to products and services, as e.g. even the cost accounting does not differentiate between the two and consistently speaks of products: e.g. the product information advice in libraries, which in some cases even includes the costs of simply visiting a library. 7 See Walton Porter 1997, p. 48.
3 Strategic Marketing 233 Barbara Sen points out that market orientation in non-profit institutions such as libraries is naturally not geared towards profit, but rather towards survival.⁹ In the general management discussion, market orientation is the general consensus as a fundamental strategy for companies in libraries and information institutions However, this approach is not yet widespread.¹⁰ Perhaps because the market for information products and services is often understood in a shortened way and is only related to the value chain in the narrow sense: External means of production (from suppliers) are provided with added value in the company and are passed on to customers (customers / User). This is the underlying idea behind many of the concepts of the documentation cycle, namely the creation of added value through development and communication.¹¹ However, the expansion of an under-reaching understanding of the market also characterizes the early strategy discussion in economics. Against this background, Porter developed his much-cited five-force model for industry structure analysis. ¹² The five forces of the market are: the specific competitors in their own industry who make up the core of economic activity, the suppliers and customers in the sense of the classic value chain as the two forces that are negotiable, that is, the relationship here is more in the hands of the company itself. However, there are also external forces as a threat to the closer value creation process, namely: potential new competitors and new products. According to Porter, an important part of strategic thinking by companies should be the identification and observation of these two external forces. In the further strategy discussion, it is increasingly pointed out that this model also falls short: For example, competition takes place. does not only take place in the narrow industry context, but is rather often a more general cross-industry competition for resources such as money, time or the attention of customers. In the strategy model of the value network by Nalebuff and Brandenburger, the five forces of Porter are therefore added the dimension of stakeholders and that of complementors.1³ Ansoff is also increasingly emphasizing the importance of the wider environment of a company for its chances of survival Expression determines the degree of failure of an organization.¹⁴ Strategy development then includes the assessment of the changeability and predictability of environmental conditions, their complexity, degree of novelty, speed of change and uncertainty about the future. 9 cf. Sen 2010, S cf. Sen 2010, S cf. Kuhlen cf. Porter 1980; Linde, Stock 2011, S cf. Linde, Stock 2011, p. 440 ff. 14 cf. Corrall 2000, p. 11 f.
4 234 Hobohm With reference to Mintzberg¹⁵ one can say that strategic thinking has become increasingly holistic, systemic and has moved more and more away from planning as a concrete instrument: strategy basically has a lot to do with creativity and lateral thinking.¹⁶ That is why spoken of strategic thinking rather than strategy. In view of the current changes in the information and education markets on which information institutions and libraries operate, they should not (only) rely on their traditional intuition and creativity, but should take the recommendations of strategic management and its instruments seriously. Elements from this could be: target orientation, market orientation, customer orientation, portfolio analysis, differentiation and competitive strategy, environmental observation, strengths and weaknesses analysis (SWOT analysis), market segmentation and strategic plan. 2 Information marketing The basic concepts and instruments of strategic management are basically the classic marketing tools. This congruence has often been pointed out.¹⁷ The special problem of the marketing of information products has already been dealt with elsewhere in this manual.¹⁸ Nevertheless, individual aspects should be pointed out again at this point in order to be able to embed the considerations in the following: Beside Due to the special features of the economic good information per se, the service aspect has to be taken into account in marketing, because most information products are at least partially services. But also in classic product marketing, the service aspect is becoming more and more important if attention is paid to experience and experience with the purchase and consumption of products. Helkkula even goes from a paradigm shift to the service dominant 15 cf. Mintzberg cf. Fodness cf. e. Corrall 2000, S See the articles Markets for Information by Linde and Implications of Marketing by Georgy and Schade in this manual.
5 Strategic Marketing 235 Logic in Management. ¹⁹ Werner Pepels defines services as follows: Services are marketable activities and willingness to perform on the external factor. They result cumulatively from the provision of internal performance potential, the implementation of customer-integrated performance processes and the offer of immaterial performance results.²⁰ An essential aspect of services is their immateriality or invisibility, which makes tangibilization necessary or, as Elisabeth Orna explains in her very clear textbook on management of information products recommends: make knowledge visible ²¹. However, customer integration into the service process (from consumer to prosumer), the non-storability of service based on the in-actu principle and the two-stage service production (pre- and final combination of production factors on the occasion of use) are particularly important factors for information marketing. In addition to the general market orientation, the comprehensive customer orientation for information products is a critical success factor. Service management research found out early on that customer perception and the current positive experience of a service are decisive for assessing the quality of the service (GAP model) ²², which determines the motivation to use it again. The most important thing is the difference between the expectations of the service and the actual experience of using it. This shows the central importance of the perception of the image of information products such as library offers: The expectations of the potential customers who receive them, e.g. associating with libraries are still very much focused on the printed book.²³ Samuel Adeyoyin points out that service marketing markets both performance and long-term relationships.²⁴ Customer loyalty and relationship marketing are therefore of particular importance in information marketing.²⁵ Especially In the non-profit or even in the public sector there are additional aspects, such as elements of involuntary unthinkable in the consumer market in conveying education and social values, the diversity of target groups to be addressed at the same time (sponsors / users), the difficulty of the success measurement 19 cf. Helkkula Pepels 2005, S cf. Orna cf. Parasuraman, Zeithaml, Berry cf. De Rosa et al See also the article Brand Development by Schade in this manual. 24 Cf. Adeyoyin 2005, p. See the article Customer Loyalty Strategies by Lison in this manual.
6 236 or the fact that information services are under public scrutiny with regard to their financing (by taxpayers or by departments competing for the resources of an organization) .²⁶ In addition to the classic marketing mix (see below), information marketing therefore requires other components such as internal ones Marketing or interactive marketing.²⁷ Internal customer relationships, for example with other departments or with the agency, but also the classic internal process customers, which require an overall corporate culture that promotes image, as well as increased activities in the area of customer loyalty are characteristic prerequisites for strategic information marketing. The relationship with the customer is the essential factor in strategic information marketing. It varies with regard to the selected marketing or competitive strategy according to Porter: price leadership, product leadership or focusing strategy. Paswan, Blankson and Guzman were able to demonstrate that the strategy of product leadership in particular supports those values in customer relationship management that are also central to non-profit marketing: reciprocity, role integrity and solidarity aggressive marketing strategies come into question that value high quality, innovative products that are advertised and sold in high quality.²⁹ Fundamental considerations of this kind should have far-reaching consequences for the marketing strategy of libraries and information facilities. In this regard, Seidler-de Alwis and Fühles-Ubach found out in empirical studies that the following procedures contribute to securing the future of libraries and information facilities in this order: ³⁰ Be visible and secure the appreciation of customers. Make your offer measurable / verifiable. Networks (cooperate) with other departments. Make your users independent and autonomous. Don't be an island, get involved.³¹ Change and expand the stock and the offers. Set the agenda. In other words: behave strategically in the sense outlined at the beginning. 26 See the article Implications of Marketing by Georgy and Schade in this guide. 27 See ibid., S See Paswan, Blankson, Guzman See ibid., P. 315 f. 30 See Seidler-de Alwis, Fühles-Ubach 2010, p. 187 (extended, own translation from English). 31 Therefore, e.g. the widespread American term of the embedded librarian, which is pro-actively involved in the production of knowledge, for example by research groups [note of the author], see Shumaker, Tyler 2007.
7 Strategic Marketing Marketing Mix To understand marketing, especially in the information sector, it is necessary to explain the classic marketing mix, also known as the four marketing Ps that go back to Jerome McCarthy. These are the instruments or adjusting screws to be used in marketing, which can vary depending on the industry, but are usually expressed in a list of at least four (see below) terms starting with the letter P. Above all, it becomes clear that the narrowing of the marketing term to advertising and sales promotion, which is often encountered in common parlance, is only one P among many, namely promotion. Rather, the core concepts are product, price and place (distribution) .³² 4Ps Product (product policy) with: substance, core benefit, extended product price (price policy) place (distribution policy) promotion (sales promotion , Marketing communication) 4Cs Customer solutions (customer problem solutions, needs and wishes) Costs (costs for the customer) Convenience (convenience, effortlessness for the customer) Communication (communication, information availability) Fig. 2: Marketing mix (based on Kotler, Keller, Bliemel) ³³ Sales promotion is certainly a task in marketing that should not be neglected. In Philip Kotler's standard work, this P is even given its own mix of: sales promotion, advertising, sales organization, public relations, direct mailing, tele and online marketing. But: Without the input variables product and price or the choice of distribution channels and locations, no advertising is possible. Only a good product can be advertised in a meaningful way. To illustrate the customer orientation in the marketing concept, the four Ps are occasionally juxtaposed with four Cs representing the customer perspective (see Fig. 2), which will be mentioned again and again in the article. 32 Cf. Kotler, Keller, Bliemel 2009, pp. 25 ff. 33 Cf. Kotler, Keller, Bliemel 2009, p. 27.
8 238 Hobohm 3.1 Product policy Philip Kotler differentiates between the substance of the product, its core benefit and the product environment.³⁴ Substance of the product Even if it is an intangible service, the substance of the service is quality, product properties, styling and brand name and make out the packaging³.. The aspect of quality refers to the broad field of quality management, which for the service sector, as mentioned in Section 2, addresses not only the actual fulfillment of the offer, for example information transfer, but also soft factors such as expectations and image of the service. how accessible, understandable or achievable a corresponding service is, or whether, for example, Long waiting times are to be accepted and whether the service can only be used online or also in personal consultation. The styling includes aspects such as the courtesy of employees or the ambience of the place where it is used, while the brand name, for example an educational forum or information service, also conveys the values practiced by the provider in so-called branding.³⁷ The packaging of a service is not always easy to distinguish from the other factors and refers e.g. to the distribution (place) close to the distribution to different locations for the use of the service (e.g. in branches, branches, district libraries; online vs. offline) or goes over to aspects of the equipment and the ambience. But the quality of stay, which is conveyed by the equipment and staff at the location of the information service, is an aspect of the packaging, as can easily be seen from successful examples in library construction. 34 See e.g. Kotler 1978, p. 164 ff.35 For example in the Sine von Orna 2005, which with Making Knowledge Visible also addresses the haptic features and points out that customers and maintenance providers only value information work if it is visible and materialized in the sense of the tangibility mentioned above. Kuhlen 1995 also argued in this direction. 36 See the article Quality Management from Vonhof in this manual. 37 Cf. Hariff, Rowley See also the article Brand Development by Schade in this manual.
9 Strategic Marketing Core Benefit of the Product While the substance makes up the perceptible properties of the product / service, so to speak, its core benefit is often not tangible at first and can only be identified through the process. This is the actual customer benefit that triggers the motivation for using the services or purchasing the product. The core benefit is comparable to the core question, known in the area of general business model development, about the value proposition of a provider for the customer: The value proposition is the reason why customers are more likely to turn to one company than the other. It solves a customer problem or fulfills a customer need.³⁸ The user of an information service is primarily not interested in how many or which references he has in his hands and whether these are structured in accordance with DIN, but whether he is doing his job (such as writing a scientific Article) can thus fulfill, or that he is thus serving his scientific career. An example from Kotler, which comes more from the product area, makes it more plastic: The woman who buys a lipstick does not buy any chemical or physical substances: she buys beauty ³⁹. This is one of the central problems of library and information marketing: The core of the service is not, as is often assumed as a makeshift in the cost-performance calculation, the media loan or the number of documents that are conveyed. It is certainly more about abstract customer benefits such as knowledge problem solving or educational success. However, the information industry shares the problem of operationalizing the core benefit with other, including product-oriented industries, as the example of lipstick shows. Product environment The product environment, often called an extended product, includes everything that the consumer can expect while he is allocating the substantial product tried to acquire ⁴⁰. This includes the five dimensions: durability, complexity, visibility, risk and familiarity. For example, with regard to product offers from the field of document delivery, access to a digital library regulated by a (time-limited) membership may not be particularly sustainable, 38 Osterwalder, Pigneur 2011, S Kotler 1978, p. 164 f. 40 Kotler 1978, p 165.
10 240 Hobohm may generate documents during a subito delivery that the user can use indefinitely. Delivering an e-book can be tricky if there are incompatible formats. There may also be insufficient familiarity with the customer here. Copyright or even DRM-protected documents contain a certain risk when they are used further. And finally, it is clear that digital document delivery brings with it the problem of low visibility unless e.g. special e-book readers are used, which allow the digital to materialize again at least partially. In a product that is reduced to personal contact, such as information advice or training, all five dimensions coincide in terms of the problematic aspects of the service as an asset mentioned above: A service is by definition complex, not durable, invisible, risky due to customer integration and requires a high level Familiarity.⁴¹ These deficiencies can be countered by special measures, such as: reducing the complexity and increasing the durability of the increase in knowledge through an explicit, target group-specific didactic and customer approach, increasing the visibility by making the information product tangible (e.g. script of the training ), the reduction of risk components through norms and standards of quality management and the increase of trust in the product / service through the establishment of long-term, personal customer relationships as well as through processes of branding and image Profiling the product line and product life cycle In the product area of marketing, strategic decisions have to be made about the product line (the portfolio) and the product life cycle. In addition to the fundamental consideration of market positioning with the Ansoff product-market matrix (see Fig. 1), the Boston Consulting Group (BCG) portfolio matrix or its further development by McKinsey is often used: ⁴² On the ordinate (y-axis ) the attractiveness of the market is shown and the abscissa (x-axis) shows the company's own competitive position (see Fig. 3). 41 See the article Implications of Marketing by Georgy and Schade in this guide. 42 For the following, see Meffert, Bruhn 2009, p. 196 ff.
11 Strategic Marketing 241 Market growth / customer needs (importance) high low Question Mark (I) / improve immediately Poor Dog (IV) / medium fr. improve Star (II) / not let up Cash Cow (III) / okay low high Relative market share / customer satisfaction Fig. 3: Overlaid portfolio models: according to BCG (bold) and McKinsey (italic) A product or business field that has an important market dominated, is a star. Until recently, the Citation Indices from ISI (now Thomson Reuters) served as an example of a star in the information sector: no other information service was able to provide indicators comparable to the Journal Impact Factor (JIF) for the scientific evaluation market. As is well known, ISI can also market this market position well. For public libraries, book and media lending in the reading and entertainment market was, until a few decades ago, the unquestionable cash cow. The increase in the purchase of books and open access digital offers (or black copies of MP3 files) significantly reduces the relative market share of this business area, whereas the use of new media such as e-book readers or the offer of computer games in libraries in the field of questions Marks sure requires a selection strategy. A typical poor dog in university libraries is the classic information exchange with its range of specialist information databases. In view of other sources of information such as Google, the market share has decreased significantly and due to political and financial decisions, traditional specialist information is no longer an important market in Germany. From a product-political point of view, the placement of a product or a business field in the Poor Dog field, e.g. a withdrawal strategy or an investment strategy as a star, a cash cow generates a skimming strategy and the unclear candidates in the Question Mark field require a strategic selection or an offensive strategy. The introduction of the so-called bestseller service in public libraries makes e.g. a successful skimming strategy in the business field of fiction reading clearly. The four quadrants also mark the corresponding phases in the product life cycle. One speaks here of the introductory phase (I), the growth phase (II), the maturity phase (III) and the saturation phase (IV). These are followed by the degeneration of a product or business area. Accordingly, it can be observed whether new products actually develop into stars, i.e. in the growth
12 242 Hobohm phase conquer a significant market share for the supplier, or whether mature products, such as e.g. the offer of training, but not already showing signs of saturation. The BCG model has been criticized for the rigidity of its analysis dimensions and their lack of operational feasibility. How can a market and its growth be clearly delimited? The expansion by McKinsey tries to take this into account by focusing on the customer instead of the competition. The dimensions can now be operationalized through specific customer surveys in the sense of the GAP model for service quality: Expectation of the service (customer needs) vs. experience with the service (customer satisfaction). The direction of strategy at the respective positions of the scales changes slightly as a result: If customers express dissatisfaction with an offer and at the same time emphasize that it is important to them, there are fewer design options in the sense of an absolute focus on the customer, which marketing sees itself as than an abstract forecast of market attractiveness. Decisions to be made here, for example with regard to the opening times of the library, which can often be found as a product on this side of the scale ends, require a more explicit embedding in the general strategic goal orientation of the institution, for example as a place of learning (see Sections 4 and 5). A differentiation according to target groups in the sense of market segmentation or in connection with the stages of the information process, for example in the sense of Ellis or Kuhlthau.⁴³ Every change in one's own market positioning or the product portfolio requires an innovation.⁴⁴ This can be radical or incremental, as an innovation in the market position in relation to specific target groups or as a paradigm innovation that brings about a fundamental change in the self-image of the information facility. Due to the current dynamics in the information market, corresponding changes in product policy must therefore be embedded in an innovation strategy.⁴⁵ 3.2 Price policy For information institutions, price and remuneration issues seem to play less of a role in the classic business sense, since they are often (rightly) the cost center of the organization be guided. Nonetheless, the same 43 Cf. Ellis 1989; Kuhlthau 2004; Foster, Ferguson-Boucher, Broady-Preston See the article Innovation Management by Georgy and Mumenthaler in this manual. 45 See Rowley 2011; Hobohm 2002c.
13 Strategic Marketing 243 different strategies can be used as in for-profit marketing. Flat-rate prices (e.g. annual fee) or individual prices (pay-per-view) or differentiations according to target group, media type or topicality (e.g. bestseller offers) can occur. The difference to commercial companies is that they aim to maximize profits, while the non-profit organization tries to fix a fair price ⁴⁶. At this point, a look at the four Cs as a complement to the actual marketing mix of the four Ps is revealing: The counterpart to the price on the customer's side are the costs that arise when using the service. And these don't always have to be of a monetary nature. The time required for use, complementary costs (such as parking fees) or other inconveniences (e.g. accessibility, usability) should also be taken into account. The customer as well as the provider himself will always at least implicitly carry out a general cost-benefit analysis as to whether the use of the information service actually solves his problem and whether the effort is worth it. The pricing can relate to profit maximization (which rarely occurs in the information sector) or to a certain degree of cost recovery. However, it can also be used from the point of view of demand control (stimulation, deterrence). It can be competition-oriented (Google is also free of charge) or demand-oriented, whereby the price elasticity of the customer and a number of subjective factors (image, social attitudes) play a role. Complementary offers of a library such as the café or the copy service have a high price elasticity (i.e. the customer would be willing to pay more because they have no other choice), but the price is usually rather fair. Overall, however, the design of this marketing factor depends on the goals and priorities (see Section 5) of the organization. In the area of public law, there is also the fact that a fee policy, if it is to be counted as a marketing instrument at all, is subject to special administrative regulations. 3.3 Distribution policy Basically, this includes the distribution channels, the location of the reference locations, the inventory and the goods logistics as well as the market penetration.⁴⁷ This element in the marketing mix is typically referred to in English as place. So it is not just about the classic sales policy in the sense of a logistical control of the sales channels, but very much 46 Kotler 1978, S cf. Kotler, Keller, Bliemel 2009, p. 27.
14 244 Hobohm also deals with the question of convenience or ease of use by customers. While the price policy tries to strategically control the costs for the user / customer, the distribution policy wants to shape the accessibility of the service from a fundamental point of view. This has a lot to do with location marketing, ⁴⁸ but also with often product-related, structural decisions. This includes questions about the number of branches or branches, about intermediaries (such as aggregators, cooperative digital libraries, etc.), but also about delivery services and on-site service, for example in the context of outreach, social library work, ⁴⁹ as well as the offers for digital remote use. Target group-oriented or media-specific forms such as the fractal library or the retail concept⁵⁰ can also be understood as distribution policy measures. As part of the distribution policy, the equipment policy is also understood, which controls how the different places where the information services are used are designed: In a large library, for example, the historical research reading room may look different from the business information center or different areas of the online -Information services. In connection with the evolving library function in the context of knowledge management, the embedded librarian has recently been increasingly found for special, but also for university libraries, who conducts visiting library work insofar as he seeks personal contact in projects and technical contexts of the organization in order to have a networking, mediating and inventory-building effect.⁵¹ 3.4 Sales promotion and marketing communication In addition to advertising, sales promotion measures or personal customer contact, sales promotion also includes aspects of public relations in general. or media advertising through to the creation of atmospheres, for example through events.⁵³ Often, special strategic concepts are also present here, such as communication with customers specific to target groups and along the distribution policy is implemented (planning of marketing measures). The fact that information offers often require explanation. 49 See the article Corporate Social Responsibility by Keite in this manual. 50 See the article Retail Marketing by Art and van Woerkom in this guide. 51 Cf. Shumaker, Tyler See the article on brand communication by Engelkenmeier in this manual. 53 Cf. Kotler 1978, pp. 201 f .; Nahl, Bilal 2007.
15 Strategic Marketing 245 products, makes marketing communication (as the promotion is also called), i.e. above all the information and communication with the customer, particularly important. In contrast to other types of products, marketing communication in the information sector has to focus strongly on the functional aspects and thus requires an attention span from the customer for information about the product, which is similar to training courses and often dispenses with emotional addressing. On the other hand, it is actually astonishing that under product-political considerations (Information is complicated) as little value is placed on the emotional component, even though the emotional aspect of library use and information work has recently been clearly emphasized in information behavior research.⁵⁵ Here, too, a more precise analysis of the customer and his behavior is certain as necessary in traditional marketing in order to achieve sales success. ⁵⁶ 3.5 Further Ps: Package, People, Physical Evidence, Physical Environment, Process, Payment In the very diverse marketing literature, the original model of the Ma rketing mix, especially for the service sector, has been enriched with additional Ps. With some it can be clearly stated that the four Ps have already been taken into account, such as the packaging of the product (Package) or the physical environment (Physical Environment) as atmospheres in distribution policy and in marketing communication. The process design (process) e.g. In terms of quality management, it is certainly an essential strategic component of services, while the selection of modern payment methods may not yet have the status of its own marketing component in the information area. Others deserve more emphasis for service marketing, especially the reference to the people involved in the service (people, personnel policy). These are then training measures and codes of conduct (e.g.Quality standards), which should help to optimally shape the contact with the customer at the moment the service is provided (see above all Meffert and Bruhn, who give this P special weight as an internal instrument in the marketing mix⁵⁷). The P for Physical Evidence is also a for informational 54 Cf. Baltes, Leibing Cf. et al. Kuhlthau 2004; Nahl, Bilal See the articles Marketing Research by Fühles-Ubach and Market Segmentation by Schade in this handbook. 57 See Meffert, Bruhn 2009, p. 358 ff.
16 246 Hobohm services particularly important aspect. The invisibility and intangibility of services and especially of information could be an indication that there is indeed an important marketing factor that must be specifically designed strategically. However, as mentioned under, it could also be understood as part of the product policy (package, packaging). 4 The strategic control cycle The pattern of decisions in the strategic procedure mentioned at the beginning and named by Mintzberg finds the first clues in the operational area in the so-called control cycle (see Fig. 4). Strategic business areas can be the product components placed in the portfolio such as: personal information advice, training, individual components of the media inventory, types of access to media and information inventory, the place of learning / knowledge processing by the user, integration into the work process (workflow) of the Users, etc. In a general sense, however, it can initially be about the entire information facility, since it is itself usually part of a higher-level organization (company, university, city). The core of the strategic approach is to find and formulate the goals of action. Their feasibility depends on a number of prerequisites that must be determined beforehand in the situation and potential analysis. The resulting objectives and their operationalization in specific plans and programs ultimately have a controlling effect on the general order and the overarching objectives Fig. 4: Strategic planning of the business unit / product
17 Strategic Marketing 247 of the organization, but also to every single step in the control cycle and the situation-specific differentiation of the strategic business areas. 4.1 Situation and potential analysis Kotler makes a clear distinction between the analysis of the environment and the analysis of performance. However, the acronym for the SWOT analysis, which is now frequently used, is often rendered in German as a strengths and weaknesses analysis, which means only one of the two analysis perspectives the internal one is addressed: as is well known, the acronym means: Strenghts (strengths) and weaknesses (weaknesses) as well as external ones: Opportunities (opportunities) and threats (dangers). However, both sides are at least as important and in times of dynamic change it may even be particularly important to monitor the environment. The Online Computer Library Center (OCLC) recognized this about ten years ago and has therefore been issuing annual reports on environmental scanning for its member organizations in libraries worldwide. That this first step in strategic marketing is not yet widespread in the German library system , the author of this article was able to prove.⁶⁰ The general rule of thumb for which aspects should be focused in the environment observation (opportunity and risk analysis) is made clear by the acronym PEST (or SEPT): Politics (politics), Economics ( Economy), Society and Technology. In the extension of the SEPTEMBER formula, five more elements are added: ⁶¹ 58 Cf. Kotler, Keller, Bliemel 2009, pp. 108 ff. 59 Cf. most recently De Rosa et al. 2011; Connaway, Radford cf. Hobohm cf. Corrall 2000, p. 27 ff.
18 248 Hobohm S ociety (Society): includes the observation of the socio-demographic developments of the population or the target group. E conomics (economy): the development of the gross national product, but also changes in salaries and wages, e.g. with an effect on the purchasing power of the target group. P olitics: As a determining factor, it affects not only education or science policy, but also the general basic ideas of the respective governing parties. T echnology (technology): Technological development is certainly a central determining factor in the information sector. Education: educational values and trends such as literacy rates, skills gaps or shifts in the education system. M arket: Products and market segments in their life cycle and in competition. B usiness (business environment): This includes market and industry analyzes such as the Monitoring Report on the information economy by TNS-Infratest. E thics: Do the norms in human interaction change, are there professional group-specific codes of conduct? R egulations: Are the laws in the information sector changing? When observing the environment (environmental scanning), it is important that this is carried out systematically and continuously, e.g. by being integrated into a marketing information system⁶² and using a variety of different sources of information (internal, external, people, documents, media, etc.) for its implementation. The aim is to discover marketing opportunities and to be made aware of the dangers of developments in the market at an early stage. If opportunities are identified, e.g. In the event of a change in science policy, these are mapped onto a matrix with the dimensions of attractiveness and probability of success in order to enable priorities to be set. The same applies to hazards, often also called risks, the assessment dimensions of which are hazard potential and probability of occurrence. As an example for the information area, Open Access specialist repositories could serve here, the risk potential of which for a document supplier is certainly high while the probability of realization is still rather moderate, at least at the moment. An empirical survey can also be used to determine the position of the identified hazards or opportunities, in which organization members, customers or stakeholders have to indicate scale values from 0 (not available) to 4 (high) for the respective dimensions. 62 See Kotler, Keller, Bliemel 2009, p. 152.
19 Strategic Marketing 249 Performance characteristics (own competence) Importance of success (customer value) Characteristic Large weakness / 0 Small weakness / 1 Average 0/2 Small strength + / 3 Large strength + + / 4 low medium high Awareness and reputation Relative market share Location advantage Financial flexibility Qualified employees IT know-how Fast and extensive delivery Innovative leadership Customer-oriented employees Flexibility Tab. 1: Analysis of strengths and weaknesses⁶³ The two numerical values, transferred to a matrix, result in a competence portfolio (see Fig. 5), not unlike the product portfolio in Fig. 3 is shown. If e.g. found that the IT know-how from the customer's perspective is rated as important, but rated as low in the facility, a decision can be made to outsource this or to intensify the efforts in this area internally. If, in the other case, the customer orientation criterion is rated highly in both dimensions, then it should be considered which product components come closest to this core competence. While the top left quadrant shows critical success factors that need to be questioned, the overrated ones are found at the bottom right. Similarly, all business units in the facility can be analyzed to draw conclusions about potential. Also in relation to departmental and divisional structures in information facilities and their work pro- 63 Amended extract from Kotler, Keller, Bliemel 2009, p. 112; see also Gausemeier, Plass, Wenzelmann 2009, p. 156 ff.
20 250 Hobohm processes, competence portfolios can be created, for example in the area of database / inventory structure with the following components: acquisition speed, pre-accession, partnerships, customer orientation or development. Customer value high low Competency gaps (increase efforts; selective outsourcing) Competency standards (improvements not urgent; outsourcing) Core competencies (continue to do good work; insourcing) Competency potential (be careful of excessive use) low Competency strength high Fig. 5: Competence- Portfolio⁶⁴ General statements on corporate culture and the values lived can also be determined using such survey instruments. For example A corporate culture profile can be created using the five-point scale from not available to exemplary, e.g. with the characteristics: customer orientation, employee orientation, performance orientation, innovation orientation, cost orientation, company orientation, technology orientation. These are ultimately necessary in connection with the goal setting strategy (see below) or provide general information about the strategy, innovation and change ability of an organization. 5 marketing goals In strategic management, a pyramid of objectives is usually assumed.⁶⁷ At the top are the mission (the mission statement) and a vision for the organization, both of which are based on corporate culture, possibly agreed basic values (see Fig. 6). 64 Cf. Gausemeier, Plass, Wenzelmann 2009, p. 162; Kotler, Keller, Bliemel 2009, S cf. Gausemeier, Plass, Wenzelmann 2009, S cf. Sherman, Rowley, Armandi cf. Hobohm 2002a; Corrall 2000, p. 77 ff.
21 Strategic Marketing 251 Fig. 6: Target hierarchy in strategic management In view of the existing service and product portfolio as well as the situation and potential analysis, it is now necessary to develop and operationalize the business area and, if necessary, organizational priorities. Broken down from the order (the mission) and the vision as well as the direction of development, decisions can then be made, e.g. Positioning the factors observed in the portfolios: If the library defines itself as a place of learning, also because it cultivates a particularly empathic corporate culture, its vision could be to be socially recognized as an important institution of informal education. The priority target directions each form the strategic business areas, which must be anchored in the target hierarchy, but are implemented differently in the marketing mix. A corresponding mission would have an impact on the design of the library location as well as e.g. their opening times in the product policy as well as strategic decisions with regard to the respective target group in the area of distribution policy. This setting of priorities would obviously also have an impact on personnel policy as a possible fifth P, since this self-image as an educational institution may also require pedagogical and empathic skills. In the strategic business areas, the related goals and target dimensions are each concretized in a separate sub-hierarchy and determine the strategic action.
22 252 Hobohm When developing goals in management, the rule of thumb is that they should be SMART: ⁶⁸ S pecific: result-oriented, responsibility-based. M easurable (measurable): quantitative or verifiable with evidence in the sense of evidence-based librarianship. A acceptable: ideally agreed with the stakeholders: sponsors, employees, customers, partners. R ealistic: related to the SWOT analysis and the necessary resources. Timebound (terminated): Defines a point in time at which the goal will be reached. In addition to the target dimension and the time dimension, the reference to the market segment is always important: For which target group is the strategic plan being planned here? Meffert and Bruhn propose a three-dimensional business area delimitation with the dimensions target groups, functions and technologies as target dimensions. differentiate accordingly between socio-demographically differentiated target groups, their needs in the stages of the information process or the knowledge problem solution as well as the actual characteristics of the information offered. Basically, the following goals can be defined: economic goals (e.g. cost recovery rate), profitability goals (ROI, outcome and value of libraries) , Market position goals (market penetration), financial goals (liquidity, financial leeway), psychological goals (customer loyalty, customer satisfaction), prestige goals (image, independence), social employee-oriented goals (employee satisfaction, employee loyalty), social, society-oriented goals (social mandate) and ecological goals. ⁷¹ Finally, Meffert and Bruhn also differentiate between company-, customer- and employee-oriented goals in order to do justice to the particularity of marketing in the service sector.⁷² In their target system of the service Marketing is customer loyalty and customer satisfaction (with the variables 68 cf. Corrall 2000, S cf. Meffert, Bruhn 2009, p. 148 ff. 70 cf. Foster, Ferguson-Boucher, Broady-Preston cf. Meffert, Bruhn 2009, S cf. Meffert, Bruhn 2009, p. 139.
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