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    CHAPTERfourMarketing and the economics of

    publishing

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    Chapter 4 Marketing and the economics of publishing

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    After completing this lesson, the student will be able to

    Understand the principles and techniques of book marketing

    Identify the customer needs

    Describe the issues of book promotions

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    Introduction

    a) Marketing refers to all activities concerned

    with the flow of goods and services from theproducer to the consumer.

    b) It includes the various physical movements

    of the product including the pricing,

    wholesaling, transporting, and retailing the

    product. Also involves packaging, design

    and advertising.

    c) Marketing may be said to include everything

    that has to do with how the products

    including in publishing industry are sold.

    The Concept of Marketing

    Concept 1:

    Selling focuses on the needs of the seller; marketing; on the needs of the buyer.

    Selling is preoccupied with the sellers need to convert the product into cash;

    marketing, with the idea of satisfying the needs of the customer by means of the

    product and the whole cluster of things associated with creating, delivering, and

    finally consuming it.

    Concept 2:

    Social marketing which suggests that nonprofit organizations need to understand that

    marketing is not about selling, and not about promotion, but about service and adding

    value, and that to be successful non-profit organizations must understand

    marketings fundamental principles.

    Source : taken from Google image

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    Kotler, an authority on marketing, defines market ing as concerned with the effective

    management by an organization of its exchange relationship with its various markets and

    publics.

    Marketing is an attitude, a philosophy which influences the style of management itself. Kotler

    goes on to define marketing management further as the analysis, planning,

    implementation, and control of programmes designed to bring about desired exchanges for

    the purpose of personal or mutual gain. It relies heavily on the adaption and co-ordination of

    product, price, promotion and place for achieving an effective response.

    Kotlers definition of marketing concept states that the societal marketing concept is

    customer-oriented backed by integrated marketing aimed at generating customersatisfaction and long-term consumer welfare as the key to organizational goals.

    There is a need for the promotion of books and reading in society, and for those concerned

    to adopt a marketing approach that will ultimately reach target markets segmented according

    to prevalent characteristics. Two important issues to be borne in mind in developing a

    reading society, and in improving book publishing and sales are that:

    1) marketing is matching product with customer, and2) products should be in harmony with the other Ps in the marketing mix.

    The book (product), their customers accessibility (or lack of it) to where products are sold

    (place), the price they will be willing to pay, and how to persuade the potential customers to

    purchase books (promotion) are all crucial in successful book marketing. Matching books

    with customers calls for a shift from the present-day product and production conceptual

    approaches to publishing to the market orientation approach.

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    Book marketing

    Book marketing means the management, the distribution and all the related activities

    of profit-making organizations in market which is related with books.

    Marketing and promot ion of e-book s in academic l ibraries

    E-books are viewed as having the potential to be even more significant for libraries

    and learners than e-journals, because of the longstanding centrality of textbooks to

    learning in higher education (Armstrong et al., 2006; Rowlands et al., 2007). Indeed,the digital format offers many opportunities for books to be developed as interactive

    learning resources, and in some cases substituting for locally designed learning

    resources and experiences. However, at this point in time, many academic libraries

    are only in a position to make a limited list of e-books available, and are highly

    dependent on publishers decisions concerning the availability of and licensing

    arrangements for e-books.

    For example, in a recent large-scale study Newman and Bui (2009) found that

    amongst 138 librarians from 13 countries, 44% of the participants indicated that their

    libraries currently own or subscribe to 10,000 or fewer e-books. However, they

    predict a significant growth in their e-book budgets in the next five years. Hence, as

    Anson and Connell (2009) suggest libraries need to be better prepared for a future in

    which e-books may be as important, or more important, than print books.

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    4.1 The principles and techniques marketing

    Advance Information Sheet

    the promotion assistant prepares the books advance information sheet (AIS)

    which contains bibliographic information, synopsis, blurb, contents, main

    selling points, market profile, author biography.

    It is then mailed three to nine months ahead of publication to all the people

    who help sell the book

    They need the information to enter the title in their catalogues to secure

    advance orders.

    You have now reached the stage where you should be able to discuss the content of the

    topic with your group.

    Identify the basic principles and techniques in marketing.

    4.2 Study of consumer needs

    Around manuscript delivery, the author completes a questionnaire.

    The author will supplies personal information, a biography, a advertisement, a

    short synopsis, the books main selling points and intended readership or

    applicability courses, lists of print and broadcast media that might review or

    publicize the book.

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    4.3 Display, promotions, book fairs, book reviews

    a) Display

    The books or other publication materials can be displayed on various

    formats of book display shelves, for example display wall shelves,

    glass display shelves, etc.

    b) Promotions

    Free publicity and public relations

    Engineering free publicity in the print and broadcast media is more

    important in consumer book publishing than in any other effort.

    Publishers should make a contact with press and magazine editors,

    journalist, radio and television producers.

    At the manuscript stage, the publicist targets the market and

    formulates a publicity plan.

    The key part is identifying the appropriate media that would be

    interested and helping them making decision.

    Coverage is gained from features, author promotions, press releases,

    parties etc.

    Other publicity involves informing the trade press about the firm,

    distributing bound proof copies to influential people, entering titles for

    literary prizes, helping to plan and attend exhibitions, maintaining

    contact with the publishers association etc.

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    c) Book Fairs

    There are many other book fairs in various countries; and many

    specialised fairs as well.

    Examples of book fair at international level are Frankfurt Book Fair,

    London Book Fair, Singapore Book Fair, and Kuala Lumpur

    International Book Fair.

    At national level, examples are: KLCC Book Fair, Popular Book Fair

    Malaysia, KL Book Festival.

    Book fairs have existed as meetings for trade since books were

    invented.

    Originally they were places where merchants could buy and sell

    manuscripts; they have always had an international element, and even

    the earliest book fairs were patronised by dealers from various

    countries.

    Book fairs can now be divided into two main categories:

    Rights fairs, where publishers sell rights in books to publishers from

    other countries, and also meet agents and representatives; and

    Selling fairs where books can be sold to the visitors from the stands.

    d) Book Reviews

    Once bound copies are received, a review list is prepared, tailor-made

    for the title, taking account of the authors ideas and contacts.

    The review copies are sent out with a review slip which details the

    title, author, price, binding, ISBN and publication date and request a

    review.

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    You have now reached the stage where you should be able to discuss the content of the

    topic with your group.

    Discuss on how to promote book publications.

    4.4 Royalties

    Royalty is a payment made by one party and another for ongoing use of an

    asset or intellectual property

    All book publication royalties are paid by the publishers

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    4.5 International markets, E-commerce applications

    It would have been perverse to focus our attention away from the processes

    that actually create the value for the majority of publishing businesses that is

    the value chain leading to the printed product. But we have remained aware

    that e-publishing has huge potential for publishers, particularly in reducing the

    massive costs involved in physical distribution, opening up hitherto

    uneconomic geographical markets, and in creating new revenue streams via

    innovative products and services. It also has unpredictable consequences for

    the value chain, perhaps leading to the elimination of some players, the entry

    of new competitors and the creation of new intermediaries.

    This potential threat and opportunity has been repeatedly examined in the last

    few years, not to mention being the subject of a great deal of hyperbole.

    Rather than adding to this by speculating about what might happen, we have

    tried to focus on the observable effects in the whole value chain of e-

    publishing at the user interface.

    There is a strong awareness of the efficiencies to be gained by using ICT in

    both the transaction process and the production process. According to our

    survey, the emphasis until now has been on supporting transactions with

    customers rather than with suppliers, although advertisers are in a sense both

    customers and suppliers and there are similar issues of definition in other

    sectors, eg journals.

    Publishers in general plan to increase their investment in e-commerce and

    ICT to enhance their competitiveness. While most of publishers were most or

    quite likely to enhance their e-commerce and e-business activities in the next

    three years, assuming general economic growth.

    The publishing industry shows very strong awareness of the potential for e-

    commerce and e-business technologies in optimising editorial and production

    processes and sales and marketing and ordering processes. The potential for

    creating new products and services is mainly seen as a more long-term

    objective (looking 10 years out) with the exception of journals and books.

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    4.6 Factors Affect the Market

    Reading habit

    Language

    Economy

    Publication concept

    Education level Source : taken from Google image

    Existence of new author

    4.7 How to Increase Market

    Translation

    ICT technology

    Variety

    Special program

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    At this point you should be able to:

    Understand the principles and techniques of book marketing

    Identify the customer needs

    Describe the issues of book promotions

    a) Briefly explain the concept of marketing

    b) Briefly explain the element of royalties in publishing.

    c) Briefly explain the differences of these concepts:

    Display

    Promotions

    book fair

    book review