Can You Judge a Book by Its E-Cover

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Table of Contents

Introduction
Discussion
Segment methods
Buying Decision
Marketing Mix
Conclusion
References

Introduction

The emergence of mobile phones as a content platform dovetails properly with the current explosion of interest in e-books. In the past decade, the publishing industry has been revolutionized by the digital world. It is now evident that books are being read on pocket-sized devices called e-books. In addition, books have been the last medium to be transformed by the high revolution in the digital community.

The number of e-book readers has consistently increased. On the other hand manufacturers of e-readers have linked with retailers and publishers to provide these books (Holifield, 2009.p.2). E-book retailers like Waterstones and Amazon are currently competing with other suppliers to take control of the market. Initially, Waterstones was not operating in the UK market but in 2008 it formed a link with Sony to launch its own e-reader.

This revolution has enabled users to buy books and borrow titles from libraries. In the long run, buyers are able to buy books from a variety of sources to read on their digital devices. In partnership, Sony’s e-readers were sold via the Waterstones website and high street stores. The company knows pretty well that more e-readers will be added to the market.

This is the reason why it has been supporting the industry’s standard format for e-books-ePub. Through proper utilization of e-Pub customers will be given the freedom to choose the devices that they can use to read their content with. In the long run publishers will be given a better forum to reach this wide and rapidly expanding market. Currently Waterstones website has ended up being the sole source for the UK consumers to download different e-books for their Sony readers.

Discussion

Environment

Waterstones currently sells an e-book in every two minutes. In addition, it also stocks 15,000 titles (Jones. 2009, p.4). Online selling has turned out to be tricky as other publishers have also shown their interest in the digital age. This has renewed their push into the mobile arena that was dominated by other companies. For instance Penguin publishers have plans to ensure that iPhone users are able to download their entire digital catalogue. This has complicated matters for the marketing of Waterstones e-books due to the renewed interest from the publishers who are supposed to partner with the company.

Currently there is a high penetration of mobile phones that have been accompanied by high network speeds. This has in the long run become a driving factor behind the mobile push (Keynotes book publishing, 2009, p.5). Though this is a big opportunity for Waterstones to reach a wider market it has been tricky. It has created a group of customers, who are very sensitive and in the process made the company to rethink its marketing strategies. The interest in mobile phones has come from the young people whom the book publishers have been loosing in droves. This group seems to be highly sophisticated.

As the market has continued to grow it has come with a lot of problems like piracy. This affects the marketing environment that Waterstones operates in. Piracy has given rise to illegal and illicit book sharing sites. In the process a large number of users in the market have been tempted to join them. In addition, the publishing industry is being threatened by a high tide of pirated electronic blockbusters that can be downloaded free of charge. On the other hand 7267 different pirated books are uploaded and posted on the internet.

This environment is likely to undermine the publishing industry just in the same way free online music killed the record industry. The market is also demanding digital rights management systems. This system uses digital watermarking and secure distribution. A water mark is embedded in the digital content that the file will travel with. This has created predetermined business rules which have controlled the number of copies that are made and distributed.

Copyright laws vary in different countries. The copyright holder has to give permission so that a book can be put online. Further more the UK government has recommended changes to the copyright laws so that remedies can be developed for further methods that will deal with the copying of content (Neil, 2008a, p. 2).

The EU market has agreed to impose VAT on items like e-books, games and music. This means that EU based e-commerce sites will not be in a position to levy any VAT when selling these products. Currently the EU market does not levy any VAT on books but does so for digital books. These will ultimately affect the marketing of the company as it dictates the way operations will be done.

As earlier said that the digital revolution led to the demise of music stores these can also be said of the way it has affected traditional high street outlets. Since Waterstones is still operating traditional high street stores it needs to review the way it markets them in the face of high digital revolution.

Segment methods

The UK market is believed to be recession proof. On the other hand the current market presents problems that may have a negative impact on the book trade. More than 70% of the market is taken care for by consumer sales. The rest of the sales are accounted for by the education sector.

From the available statistics it is evident that more adults are buying books (either hardbacks or paperbacks). As this trend is expected to increase significantly in the coming years it will be good if Waterstones capitalizes on this segment and addressees its problems (Neil, 2008b, p.2). Using these as a method of approaching the market will pay off because the number of adult readers has been on an upward trend.

Most consumers are currently buying on impulse while browsing. They normally act on recommendation from their friends and families. The design and cover of the book influences the choice that the consumers settle on and this is a good criterion that can be used to settle at the right segment. Ultimately there are those who do not feel the impact of design and cover. In the long the company can target those who like browsing as they are likely to buy books as gifts.

The functional aspects of books and reading are mostly noticed by women than men. Most of these women read for leisure and relaxation whereby they do it regularly or occasionally. They also wish that they had more time to read. In addition to these majority of them are commuting to work while engaging in leisure journeys. This implies that the company can use these criteria to tap the market segment.

Third agers are more committed readers than those who have retired. In this group the readers are likely to be males (more than the females), slightly younger and residing in the down-market. These heavy book buyers are buying more paperbacks with a slight increase in males. This seems to be a good market segment that Waterstones can seize to its advantage and expand its market share in the highly competitive market.

In addition the independent books sector is said to account for 20% of the market. Waterstones seems to be ahead in this sector than the other competitors like Amazon and WH Smith. It was brought about by pricing and inability to compete in bulk buying. This segment that was initially covered by these bookshops is still open. Therefore it implies that the existing gap can still be filled.

Buying Decision

The consumer buying decision has been changing over the recent years as Waterstones has shifted its presence from high street retail outlets to the web. Most of the consumers tend to buy on impulse while browsing than they initially did, where their physical presence was to be felt in retail outlets. Off course the internet is influencing the way that consumers buy books.

Familiarity of the author and the design of the book have contributed to a books look. This has influenced the decisions that buyers make on whether to buy a book in a retail outlet or on the web. They have in most occasions strived to familiarize themselves with a book before they can buy it. In addition, those who browse in bookshops are likely to end up buying books as gifts (Neilan, 2009a, p. 4).

When people read good books they are likely to recommend them to others. This has influenced the decision making of those who use the web. While browsing they have sought to know more about the book that a friend or family member had recommended to them and in the long run ended up buying the books. These recommendations have shaped the consumer buying trends that buyers have exhibited.

Celebrity books have also played a large role in the current publishing boom. This is because in the countdown to Christmas there has been an explosion in the market. New books from brand authors have helped to grab the attention of potential buyers thereby influencing their buying decision.

In bookshops (retail outlets), the display of books has influenced the decision that buyers make. If their eyes are drawn to a good display they are likely to stop and look at the books. In the process they will make a decision to purchase the book. This might not work well for web shoppers’ who might not experience a physical touch. Through seeing one will be able to make a proper and precise decision of buying the book. Books that are put in front of the store are likely to be purchased on merit.

Marketing Mix

The marketing mix combines the four Ps of marketing. This includes the price, product, place and promotion. There have been good and bad aspects of the British bookselling and publishing sector after the Net Book Agreement ended in 1997 (Neilan, 2009b, p.8). This led to the folding out of publishers and bookshops. The long term effect has been a significant increase in the price of books.

Later the book sellers and the publishers made an agreement to set market prices of the books. Waterstone has strengthened its market position by reducing book prices. This explains the rationale behind the prices that the company has continued to charge for its books. Waterstone has had to slash the price of Dan Browns new book by almost 50%. The prices being charged in the market can be explained from the pressure that publishers have faced to cut down their prices.

The diversity of books has been contracting over the recent years. Free content on the internet has become more expensive for consumers. Books have been part of the customers’ attraction and they have depended on music and DVD sales. Waterstones has used smart stationery where it has a flagship branch in London. In providing the books it has specialist floors that concentrate on fiction, children books and academic genres. On offer are gift stationery’s, best sellers, cards and maps etc.

Waterstones has been able to diversify its product line (books) by opening individual branches like the purely academic book specialist branch in London. This has given it a wide presence in the U.K and Europe. In the process it has been able to promote the books on offer. The company has been able to become a super bookstore by adding branches. This has been through characterizing of the books and making then viable high street products.

After selling some of the bookstores to WH Smith the company was compelled to stock a narrow range of books with a bias for best sellers and brand names (Ockerbloom, 2009, p.9). Since it has a wide presence it has ensured that its bookshops are distinct. For enhanced promotion the company has focused on helping shoppers to choose books.

This is after it was discovered that most shoppers needed help in selecting books. Customers can also buy books online direct from the chain after reading the recommendations. The site has 3 million titles with exclusive content which gives customers choice. After discovering that there were many users Waterstones embarked on using Email services to support seasonal activities and test special offers.

Because e-books and E-readers have continued to grow in popularity the company has been forced to offer downloadable titles. It has offered romance, crime and fiction as some of the genres for diversity. Traditionally publishers used their own warehouses and stores to reach customers. However this is not the case in the current market which has forced Waterstone to invest in its supply chain so that the customers can get the books efficiently and on time.

Conclusion

There are good prospects in the market, where the company expects to handle 150,000 titles online. In cases where books are returned they will have to be sorted. Orders will also be picked according to the genres such as academic works, children’s books, crime and fiction.

The number of e-book readers has increased consistently. On the other hand manufacturers of e-readers have linked with retailers and publishers to provide the books. E-book retailers like Waterstones and Amazon are currently competing with other suppliers to take control of the market that was seen to be beyond their reach.

References

Holifield, C. 2009. Inside Publishing. Web.

Jones, P. 2009. Dan Brown price slashed by 50%. Web.

KeyNotes Book publishing. 2009. Book Publishing Market Report. Web.

Neill, G. 2008a. Waterston’s staff gets selling. Web.

Neill, G. 2008b. New routes to retailers. Web.

Neilan, C. 2009a. Online petition against Digital Economy Bill gains ground. Web.

Neilan C., 2009b. Waterstones.com relaunches. Web.

Ockerbloom, M. 2009. Online bookspage. Web.

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