"Public libraries must make strategic choices. Should they try to appeal to those who are curently non-users, or would it be better to increase the number of uses [visits] and involvement of present users."
"In any given culture there exist various 'consumption communities,' informal groups expressing shared needs, values, or lifestyles through distinctive consumption patterns." ~ Daniel Boorstin
Marketing involves selecting audiences or markets to serve. Although
we would like to be able to serve everyone in the community, typically
we lack the resources to do that. This means that we must be able to
identify particular segments in the community that will receive more
attention when adult services and collections are developed. Serving
the community as a whole is undifferentiated marketing or
focusing on what is common in customer wants and needs rather than what
is different.
Differentiated marketing looks at those attributes that
make one community segment different from others. The purpose is to
serve a segment where market share can or should be larger. A greater
return on investment is also possible. In library land, differentiated
marketing often focuses on segments that are otherwise unserved or
notably underserved. Libraries do not exclude any segment. Rather
collections and services for some segments receive more attention that
others. For example, hobby collections and services are typically aimed
at the beginner rather than the expert. From a political perspective,
some caution is in order since all tax payers contribute to library
services.
Segmentation is based upon considerable evidence that a single
marketing approach or formula will not work for all members of the
community to be served. Different segments need different approaches.
Larger markets are divided into smaller ones that can be addressed with
available resources.
Competitive advantage is a situation where the library is
able to offer greater value than the competition. Differentiation may
result from product features, quality, performance, and innovation or
the utility and quality of the service provided with that product.
Confused positioning leaves potential customers with a
confused sense of company, product, or brand.
Core strategy is matching the library's strengths and
market opportunities. It assumes that the library's services and
collections have a clear advantage and that customers can be reached
and persuaded.
General segmentation gathers information useful for learning about potential consumer interest in a variety of products.
Implausible positioning involves claims that are not
likely to be believed.
Market positioning is the process of creating and
placing a product with a clear, distinct position compared to competing
products.
Market segmentation is the diviision of the total market into relatively homogeneous, but distinct segments. It is used to identify target audiences.
Market targeting selects particular segments to receive
attention in developing services and collections.
Markets are populations of individuals, groups, or organizations that have some factor in common.
Mass marketing assumes a homogeneous market and uses the
same product and marketing plan for all potential and actual users.
Micro marketing focuses on a narrowly defined segment or
collection of segments.
Niche marketing focuses on a sub-segment, especially one
where there is little competititon [stamp collecting and collectors in
the hobby segment]
Over positioning is a too limited position for the
company, product, or brand.
Product specific segmentation focused on product specific questions instead of general items.
Psychographic analysis places individuals into groups based upon their attitudes, needs, opinions, values, and "mental postures." Consumer's measurable demographic characteristics are linked to attitudes, opinions, and interests. Consumers find products similar to their own attitudes and values attractive.
Segment marketing focuses on products that meet the
wants/needs of a particular segment.
Target marketing identifies and develops marketing plans
for
market segments or categories that have common attributes [birds of a
feather flock together] and can be reached with some efficiency.
Under positioning is the failure to position a company,
product, or brand.
Attributes of a segment must be measured in a way that is reliable
and valid. In addition, the segment must be accessible. It must also be
substantial enough to be worth consideration. Finally, the segment must
be actionable, i.e. it must be possible to create a program to attract
and serve that segment.
TARPARE, developed my Donovan in 1999, is a model to assist in selecting market segements. There are six elements:
Create an example using an adult segment of interest to a public library.
Segments may be based upon many different variables or factors. The
major variables used are:
Typically, market segmentation might be based upon:
The process of market segmentation divides a larger market, i.e. Knox County, into submarkets based upon consumer attributes. For example, an automobile dealer may focus on census tracts where income is high enough to make luxury car sales likely. A public library may that some branches need collections and services that focus on Latino wants/needs.
At the heart of any segmentation is the ability to create a profile
of a typical or representative customer. For example, what are the
attributes of a potential customer served by the Bearden branch of Knox
County Public Library? Many variables might be used, but those most
available [usually from Census data], are most likely to be used. Since
customer profiles are most useful to for-profit firms, detailed
profiles may be purchased. Since these are based upon Census data, they
may be less accurate in the years between a census. Few libraries use
these services because of cost. Community analysis or community surveys
may be used to gather customer data, but it is easier to use data
already publicly available.
A typical customer profile for a branch public library might include
these variables:
Which of these variables would be most important in your neighborhood?
Besides the usual demographic variables, market segmentation may also focus on benefit analysis. Here, the question is what benefits does the customer seek. Conveninece, quality, uniqueness, and low price are typical benefits. The library needs to increase customer awareness of the benefits of its collections and services. Benefits are appeal elements and are essential for successful services.
Here is a list of some benefit examples:
Which benefits of library use seem most important?
Need is an important variable. We can classify the market into different categories, but two broad themes are functional needs and social esteem needs. Here are some business examples"
Which needs are public libraries most likely to meet?
Use is another important variable. We can classify this segment into several classes:
If we follow the 80 - 20 principle, the heavy use segment might receive particular attention. A marketing plan would likely need different appeal elements for different user categories.
How important is it to reach out to nonusers?
Awareness is another key variable. We can classify this segment into several classes:
Increasing awareness of an existing service or of a new one is often a first step in creating a successful adult services program. How might you make the community more aware of library services and collections?
There are many other possibilities. For example, libraries have long responded to seasonal or time-related events such as holidays or tax deadlines.
Segmentation based on life style has become increasingly popular and useful for those in retail sales. Categories here may be few or many. Lifestyle includes attitudes, values, and consumer habits/preferences.
Claritas is one of the best known commercial providers of life style segmentation based upon zip codes [birds of a feather flock together]. Urban and suburban data if often available in block groups of 300 - 600 households. If you go to Claritas website [http://www.clusterbigip1.claritas.com/MyBestSegments/] you should find their ZIP Code Look-up feature. Look up your ZIP code and see what segments are revealed. Do these attributes seem valid and reliable? They are based upon U.S. Census data.
Dr. Bill lives in the 37803 ZIP code and its most common Claritas PRIZM NE segments are:
A good summary for each segment is provided, including the larger social group and lifestage group. Demographic and lifestyle attributes are summarized. Here is a brief summary of two of the segments for Maryville.
Big fish, small pond are "Older, upper-class, college-educated professionals" who are often "among the leading citizens of their small town...". Lifestyle traits include owning a second home [vacation], reading Southern Living, listening to classical radio, and driving a Cadillac.
In contrast, crossroads villagers are "middle aged, blue-collar couples and families. ... "Residents are high school educated with lower middle incomes and modest housing. About 25 percent live in mobile homes. Lifestyle traits include owning a handgun, reading Hot Rod, watching Country Music TV, and driving a Dodge Ram pickup truck.
There are many classification possibilities. Here is one classification scheme for consumers of a new retail product:
Considering your home town, on the average, which of these classes best matches the majority of adults?
Here is another segmentation by a government health agency concerned with changing eating and exercise habits:
The agency decided to adopt the status quo and info seeker groups for targets since they seemed most likely to respond to the campaign.
Here is a classification scheme used in the analysis of museum visits:
Results of a marketing study showed that educated liberals were the most likely to visit and the conservative quiet lifers were least likely.
How important is life style analysis for librarians?
Part of the market segmentation and community analysis process is to
learn more about the barriers that prevent segments from using the
library. Here are a few examples:
Every library should have at least one unique selling proposition. This is a unique benefit statement reflecting what is best and unique about library collections and services. For example, Target stores says "expect more and pay less." Walmart says "always low prices." BP Petroleum says "innovative, progressive, performance driven and green."
What would your selling proposition be?
Competition is also an important consideration in deciding upon
segment priorities. The thoughtful librarian will identify competitors
[their number, size, location, assets and liabilities]. In particular,
we look for a market segment that is not well served.
Who is your competition?
The library must establish a position for adult services in the
community -- a clear and persuasive image of unique, high quality
services and collections distinct from the competititon.
Successful positioning involves:
How would you position the public library?
Last major revision: September 2005.
