Marketing Books From GrecoT He_Book_Publishing_Industry

7/27/2019 Marketing Books From GrecoT He_Book_Publishing_Industry

1/31

CH PTER SEVEN

MarketingBooks

Howare books marketed? How are sales, marketing, and promotions departmentsstructured? How is the sales force organized? In essence, how are books placed intochannels ofdistribution and how successfulare these efforts?Ascouldbe expected, every bookfirmhandles marketing in a slightly differentwaybecauseofinternalandexternal exigencies.Aparadigmwasconstructed basedonorganizational andmarketing configurations employedbymanyof thelargestU.S.book publishers.Most large book publishers utilizeamultifaceted organizational structure withapresidentofmarketingandsalesand individual vicepresidentswho handle, respectively, retail, wholesale, jobber, and other sales.Fig. 7.1 outlines this organizational structure.RET IL S LESOPER TIONSAdult consumer book sale patterns changed dramatically between 1972and2002.Theproliferation ofsuperstores, aswellas theemergenceof nonbookstore establishments (notably supermarkets, specialty stores, warehouse or discount clubs,etc.), triggered a deep, debilitating decline in the role independent bookstoresplayed in the retail sector.In 1972, the chains accounted for 11% of all book sales, and independent storesheld acommanding58% share. Only31% went through nontraditional channels.By 1983the total shareof themarket heldby chains grew to 18%; independents,onthe other hand, dipped to 44%, still a formidable presence; the nontraditionalsector helda 38% market share.In 1994 retailing patterns changed again. The chains burgeoned to 27%; independents slumpedto19%. Nontraditional retail establishments heldacommanding54% market share.In2001, the chainsdeclinedsomewhatto a 23% market share, while the independents sustained yet another dramatic decline, ending up with only a 15% share.As for therestof themarket: book clubs,20% share; wholesale-price clubs,7%;

177


2/31

178 CHAPTER7

FIG.7.1 Organizational chart ofsalesand m arketing.

mass merchandisers, 6 ; mail order, 3 ; food and drug stores, 3 ;discountstores,3 ;used bookstores, 3 ; theInternet,8 ; and allother, 10%.1This meant that chains surgedfrom 11 to 23 between 1972and2001, independentssufferedthroughadebilitating declinefromacommanding58 shareto apaltry 15%,and theprognosis through 2006 wasequally depressingfor theindependents.Becauseofthis massiveshiftin themarketplace, book companiesadjustedtheirsalesandmarketing strategiestotake advantageof theopportunitiesofferedby thesuperstores (farfewerbook buyerstocall on).Inaddition,farmore attentionwaspaidtonontraditional channelsofdistribution.Theorganizational chartinFig.7.2illustratestheretail salesandmarketingoperation of a typical large publisher. Retail operations aredivided intotwomaincomponents: retail operationsin theeastern, western,andcentral regions;and nationalsales'sectors:frontlist;backlist;andspecial sales.The ales Representative andIndependent ookstoresTheretail sales operationsforce(i.e.,fieldsales representativesor reps )traditionallysoldfrontlistbookstoAmerica's independent bookstores. Withtheemergenceofsuperstores, someof thelarge book publishers assigned backlist dutiestoretailsalespersons because they were alreadyin thefieldand hadcloseaccesstoindependentbookstores. Someof thevery largest publishers escheweda frontlistbackliststrategyinfavorofusing repstosell specificimprints.Theitinerant sales representative coversageographical districtassmallas NewYorkCity's Manhattan sales district between Wall Streetand59th Street,anentirestate(Florida),orseveral states.Onelarge company assigned Kentucky, Indiana,Michigan, Minnesota,andwestern Ontarioto arep.

BookIndustryStudy Group, Inc.,The 2001 Consumer ResearchStudy on Book Purchasing(NewYork:Book Industry Study Group, Inc.2002),pp.2028.Also seeVictorAguirregabiria, The Dynamic MarkupsandInventoriesinRetailingFirms, ReviewofEconomic Studies 66 2(April1999):pp.275-308;DavidA.Aaker, Measuring Brand Equity Across ProductsandMarkets, California Man-agement Review 38 2(1996):pp.102120;JohnF.Baker, Publishers ConcernedbySuperstore-IndieStruggle, PublishersWeekly 18September 1995, pp. 1011,19;RobertA.Carter (Ed.),TradeBookMarketing: APracticalGuide(New York:R. R.Bowker,1983),pp. 9-23.


3/31

179ARKETINGBOOKS

FIG.7.2 Organizationalchartofretailsales.

The rep has amyriadofduties,all ofwhicharecarriedoutusingthetrunkof hisor her car and spare space in an apartment or home. Regional sales officesare almost nonexistent.Reps receiveafreecar(all costs associated with gas, insurance,andrepairsarepaidfor by thecompany),acomputer withamodemfore-mailfromthehomeoffice,aprinter,a FAXmachine,and anexpense accountforentertaining customers,travel,telephone costs, and so on. The typical rep (officially known as a districtsales manager inmanyof the largestcompanies) reportsto aregionalsalesmanager. M ost companies are divided into at least three regions (generally eastern, central, and western), although a variety of configurations exist. The rep is thepublisher'sfrontlinesales and marketing contact with retail booksellers, generallyindependents or small chains.Inthepast, sales reps handledall of thepublisher's titleoutput.By2004, somelarge book publishers (generally those ranked in the top 5 or 10) split these diverseresponsibilitiesintoatleast twodisparate areas,adult andchildren's. Some repsworking for the very largest publishers handle only adult hardcover or tradewhereas other reps concentrate solely on mass-market paperbacks.A representative's total compensation package is impressive. By2004,base salaries generally started in the$40,000range (although the large trade houses frequently paid higher salaries), plus a commission (which can vary ratherdramatically from one house to another) and a sales bonus. In addition, a pensionplan plusmedicalanddental(butironicallynotvisioncareforemployeesworkingin a reading-intensive profession) are provided by the publisher, as is a termlifeinsurance policy. Some small houses have a probationary period, generally lasting 3months, andbenefitsare not provided to probationary employees, although thispractice hasfallenout offavoramongthelargest trade houses.Arep'swork dutiesarediverse. He or shebeginspreparing for a newsalesseasonand the 2 or 3annualnational sales conferences. Somefirmsprepare sales videos. Each tape is generally 2 to 3 hours in length and narrated by key sales andmarketing personnel and editors who handled the titles; most segments run between3 and 10 minutes. On occasion, an author might discuss his or her book to provideinsight intoand excitement about the themes orissues raised in thetitle. Often,companies usetelevision footage, especiallyif theauthor appearedon one of the


4/31

180 CHAPTER7national morning showsor anafternoontalk show,ornews footage(if aprominentpersonalityoreventiscoveredin thebook). Somefirmsuseaudiotapes; someof thelargest houses moved toward large group video presentations at the publisher'shomeoffice tominimize expenses.Thepurposeof thevideois toprovidethe repwithabriefbutconcise overview of the title's content and importance to the company. Large publishersmightreleasemore than 100 new titles every month, so it is impossible for thetypicalrep toread throug hall thetitles.Thevideo primesthepump andallowstherepresen tativetounderstandthesalient sellingandeditorial issues relatedtoevery title. Someof thelargest trade houses alsouseteleconferencing withor insteadofvideos.Inaddition, the rep receives a binderfilledwith titleinformation sheets (oftencalled a tip sheet)oneverynewtitle.The tipsheet contains practical salesand marketing data compressed into workable units . A typical tip sheet lists thefollowing:

1. imprint;2. publication date;3. format (e.g.,adult trade paperback);4. title; subtitle; ISBN number;5. author;6. subject category (important information becausethe repwantsthebookplaced in the correct section of the bookstore);7. the title's history ( originally published in hardcover in July 2004 at$29.95with 189,717 copies sold );8. suggested retail priceinUnited StatesandCanada;9. page count; trim size; spine size;10.carton pack (usually24copiespercarton);11.author's residence (useful forplanningalocal author tour);

12. a brief description and some keynote points ( This author won twomajorbook prizes in2004; a superb analysisof economic theories related toglobalization; special emphasis onAfrica and Latin America );13. key selling points (hardcover book was a national bestseller onThe NewYork Times and The Wall StreetJournal went through 12printings;webought paperback rights; author will appear on various U.S. news shows.This book is considered superior to Brown's book on the same topic);14. the publisher's marketing plans (major national print advertising campaign planned; college lecture tour in New York City, Boston, Chicago,Florida, Alabama, and Texas);15. marketing goals;16. recent information abouttheauthor;17.comparativetitlesinsamebookcategory;18. names and telephone, FAX, and e-mail addresses of thebook's editor,publicist, andmarketing contact.


5/31

181ARKETINGBOOKSThe representative then attends the national sales conference, generally held every4months often inApril, August,andDecember). Most conferences lastbetween3 and 5days, with Augustin the 4- to5-day range.The sales meeting is all business. Asidefrom fieldsales and marketing personnel,thehouse traditionally sendsalarge numberof keycorporate executives from

sales, marketing, promotion, and editorial (generally on the vice presidentdirectorlevelsandoftenlower downtheorganizational chart),aswellascorporate officers(presidents, group vice presidents, etc.). If the company is owned by another corporation, either domestic orforeign, representativesfrom themother company frequentlyattend. Prominent authors are also invited to talk about their upcomingbooks. However,theactual numberofindividuals attending varies somewhat:Augustattracts the largest contingent; April and December tend to have smaller turnouts. If any ofthese meetingsareheldin ornearthecorporateoffice, manyfirmssend junior-level employeestoattend(i.e.,editorial assistants,assistanteditors,assistantsin the sales and promotion departments, etc.).Everysales conference has a strong revivalcamp atmosphere. Therealpurposeis tospark interestin newfrontlistbooks.Premiumpresentsareoften giventothose attending, including corporate buttons, tee-shirts, gym bags, baseball caps,canvas tote bags (this industry literally drowns in a sea of canvas tote bags), and soon.Thereareathleticevents, especially tennisandgolf (the linkthatbinds ),although younger employees tend to play racquetball and basketball; there are aplethoraofsocial eventstogalvanizethe employees.

The localesoftenchange, with a midwestern city (perhaps Chicago or St. Louis)inDecember, a warm-weather location (Dallas, Florida, or Arizona) in April, and acountry-clubstyle retreat inAugust (Westchester outsideNewYork City).Some publishers hold one (or perhaps all of these meetings) at the company's

headquarters.Atypical sales conference agenda opens withabreakfast, followedby ageneralstateof the company presentation made by the firm's president (perhaps 30 min

utesingood years; somewhat longerindisappointing ones). This presidentialaddressinformseveryone aboutthelast quarterorfiscalyear's goals regarding unitanddollar sales, bestsellers, and total performance, including some mention ofprofits or losses.Thesepreliminary eventsarefollowedbyactual businesssessions: closed and

rather candid divisional meetings (e.g., retail, jobbers, telemarketing, special markets);onlythose workingin aspecific divisioncanattend. Quiteoften theeditors,sales, andpromotion specialistsdiscuss aspecific imprint'sprogress orproblems.Additional divisional meetings are then held, allowing sales reps to discuss bookcampaigns and covers that worked last season and those that failed to live up to expectations.They also converse (if notsermonize)aboutthenextseason's titleoutput;jeremiads areoftenheard atthese meetings. Lunch follows;often anauthorwilltalkorentertain those present.After lunch another imprint is evaluated, followed by another divisional meeting.The traditional hospitality suitewillbe open before cocktails and dinner. Customarily,amajor topic or concern (sales quotas, commissions, and the impact of


6/31

182 CHAPTER7superstoresontheir independent customers) dominates discoursein and out ofdivisional meetings. This pattern is followed for 3 or 4 days, interspersed with tennis ,golf,basketball,andnumerous sidebar discussions aboutthecompany, book publishing, and general business conditions.Another important part of the sales conference is the job interview. Up-and-coming employees are identified for new jobs , and the appropriate sales, editorial,orcorporate people interview them.Maxwell Perkins (the great editor of Fitzgerald and Hemingway)followed asomewhat different tactic at Scribner's. He called the half dozen or so travelingsalesreps intohisoffice, and healone informed them,inrather candid tones, aboutthe nextseason'slist; nofancyvideos, luncheons, or motivational speeches permeated his approach. Of course, it helped that Scribner's published some of the greatestauthorsof histime.The rep re turns to his or her sales district rejuvenated and excited about the companyand itsnext lineofbooks.Somehow this convoluted, antediluvian process,fraughtwith distractions, seemstowork,and therepresentativehas abetter graspofthebookshe or shewill present tobooksellers.Thenextmajorassignments dealwithplanningfor thetrade bookselling season.He or she compiles all of the pertinent sales material (including the publisher's catalog and sample covers) into ausefulkit. Sales visits are scheduled, and the criticallyimportant business review of each store's past performance occurs. This allows therep toascertainwhattitles succeededandfailedin aspecific storeandwhattypesofpromotions (author's signing; advance reading copies, etc.) should be considered.The rep then calls on the independent bookstore's book buyer(oftenthe owneror co-owner) andtriestosellthe list. He or she also outlines any advertising andpromotion techniques that should be considered, what author's requests (forsignings or readings) the store has, various point of sale (the ubiqu itous sales bins,called dumps )and merchandising and marketing techniques that might beuseful,andideas regarding space allocation of titles (hopefully on a well-lit table near thefront door) and display materials (banners, signs, or bookmarks inserted into abook).Stripped books and returns are discussed. A stripped book is a paperbackwhose cover has been removed. The cover (and not the entire paperback) is returnedto the publisher as a return forfullcredit.The cost to print a paperback is quite small(actualcostsvarydependingon theprint run,use ofillustrations,paper, etc.; thetypical mass-market paperback with a +100,000press run could cost as little as 500to 700 to fabricate), so it isjustnot economical to return paperback books. The remainingportion of the paperback book is supposed to be destroyed by the bookseller,although strippedcopiesfrequentlyappear for sale by sidewalk vendors. Theentire hardcover book is returned for a completecredit(hopefully resold or placedintoa remaindered or sale channel of distribution by the publisher), assum ing ofcourse thatall of thepublisher's termsandconditionsare fulfilled.Mass-market selling differs somewhat from trade book practices. Generally asales call is made every 3 months to discuss backlist specials, any television orfilmtie-ins,and anyrecenttrade additions. Repsor thecorporate office often prepare


7/31

183ARKETINGBOOKSquick delivery lists. These lists contain information about ISBN numbers, titles,authors, selling prices, package-carton min imums,andcomments ( available 8-15,NYTimes #11, CBS This Morning July 28th ). Inaddition, inventoriesarediscussed because the rep often does a physical inventory of his or her publisher'sbooks instockat thebookstore.The paperw ork associated with all of these activities is prodigious. Special mailingsabout new titles are prepared and mailed;oftena rep prepares a newsletter forhisor her accounts to highlight new releases. In addition, a galley will be droppedoff for abookseller toread.Agalleyis anexceptionally durablebutdull-looking paperback copyof thecomplete book. Heavy cardboard stockisused; standard colorsareblue, red, green,andyellow.Agalley isissued about3months beforeabook'sofficialrelease date. Theyare sent to book reviewers, and, quiteoften,they areoftengiven to bookstore personnel. In addition, copies of chapters of a new book and advanced reading copies(ARCs) are also dispensed to bookstore salespeople. Although similar to a galley, anadvanced reading copy has an attractive cover,oftenthe same as the real book. Briefeditorial flap copyisalways included.Thefollowingis anexampleofcopy:

A gripping noveloflove, revenge, and redemption spanning three generationsandthree continents,Truth ies Slowlyis aworkofstunningintensityand rivetingsuspense. With this novel, Angelica Hersey w ill be recognized as amajorwriter and anexciting newnameincontemporary fiction.Sales and marketing data can also befoundon the back cover:A Simon & Schuster hardcover; 100,000 copy first printing; $100,000 marketingcampaign; national consumer advertising; point-of-sale materials; eligibleforco-opadvertising;free freight;publication date: October 1,2004.Yetthis is a critical ly important part of an elaborate sales, marketing, and promo

tion network. The vastmajorityof sales reps areoftenrecruitedfrombookstores because they worked in and know that part of the business. Interestingly enough,manysalesandmarketing people in thehomeofficeneverworkedas arep,sotheirunderstanding ofthis typeofmarketing is sketchy.Of course pirating reps fromcompetitorsis anold, trusted tradition inbook publishing.Anexcep tionally small number of trade houses select repsfromthe ranks of thecorporation's salesandmarketing staff.Theseindividualsareidentifiedaspotentialmanagers and publishers, yet they need some seasoning andfieldexperience. Theyaresentto thefieldfor atleast2 to 4years before they returnto the company, normallyto assume a leadership position in amajor operation or department.TheSales Representative Na tiona l AccountsEverymajorbook company maintains a national sales force. This group servicesthelargenational orregional superstores, chainbookstores,companies supplyingbooks to warehouse-price clubs, etc. Superstores emerged in the late 1980sas a


8/31

184 CHAPTER7powerful retailingforum.Themajority ofsuperstoresarelargeandwellstockedwithtitles. Forexample, atypical Barnes&Nobleor Borders superstoreis in a60,000-to 70,000-square-foot freestanding building.Offeringmore than150,000titles(often reaching the160,000range) plus access toBarnes&Noble's orBorders massive title network, consumers browse through over 74 departments (rangingfromtaxes to pets), a large electronic and audio book collection, acafe(servinga variety ofcoffeesand beverages andfooditems), and a sizable music and videodepartment.Anabundant inventoryofmagazines, newspapers, maps,andsidelinesroundout the store's inventory. Some superstores also house a used book annex(generally about 7,500 squarefeet).Most superstoresoffer20 discountsoneveryhardcover book andcurrentNew York Times ook Review paperback bestsellersevery day; hardcover bestsellers areoften sold at a 30 discount.Chain stores (Barnes & Noble's B. Dalton stores or Borders' Waldenbooksstores) are located primarily in well-established shopping malls or in strip (small,stand-alone) malls. Chainsaresmallerinsizeandofferforsaleareduced numberofavailable titles. Barnes & Noble and Borders are in the process of closingunprofitable chain stores.The national sales force calls on the superstore or chain book buyers, located atthecompany's corporate office, to discuss an upcoming list and make recommendationson the number of copies the superstore could take.

The publishers utilize a highly trained sales force to sell frontlistand backlistbooksandspecial titles.They follow manyof thesame procedures utilizedbysalesreps in thefield.However, buyers for the superstores and chains are specialists inspecificcategories (e.g., cooking or juvenile). Barnes & Noble's adult tradefictionbuyer is considered one of the best in the business. In addition, these buyers havecomputer data outliningingreat detailhow aspecific titleorbook category performedin a specific store at precise times; information about sales in clearly defined geographical regions also exists.Inreality, these buyers have accessto thebestsalesandmarketingdataset i.e.,detailedcashregisteroutput)in theindustry,and they guard this data as if it were golden (because it really is).In2000,Nielsen's Book Scan, the equivalent of Sound Scan (Nielsen developedboth sales data analysis systems), was launched. Initially, many book publishers(including some of the largest ones) wereindifferentto Book Scan, deciding not toparticipate in the program. Some publishers argued the mid-six-figurefees weretoo high (this is an industry,afterall, that has never spent much m oney on appliedconsumerresearch).Others insisted thenumberofbookstoresreporting sales datato Book Scan was too small to bemeaningfulin certain book categories (especiallyasbooksonhome improvement,crafts,andsuch wereoftensoldinhome improvement centers, hardware stores, etc.notsurveyedbyBook Scan). Still others wereconcerned that Book Scan tracked only about10,000titles when the nation hadabout3.5million titlesinprint.The bottom line is that superstore book buyers dictate how many copies they willbuyforcertain storesbasedontheir exceptionally reliabledatasets,andtheseindividualsare exceptionally important participants (and perhaps the most important ones)inthe entire bookselling value chain. Their decision can make or break a book.


9/31

85ARKETING BOOKSCASESTUDY:SELLINGTEXTBOOKS

The ollegeSales RepresentativeSales repsin acollege textbook division performdifferenttasks. They calloninstructors(or insome instances departmental textbook review boards)tomarketnewproducts.Inadditionto the standard textbook, publishers activein the large adoptionacademic areas (e.g., freshman English composition, psychology, sociology, accounting,management, nursing, etc.) also provide instructors with free collateraldocuments andservices, namelyanannotated versionof thetext, instructor's manual,atest booklet, transparencies, accountingorchemistryormathematicsorstatistics problemsor readings on a computer disk, or a videocassette.Competition in2002wasintense;netpublishers'revenuesinthis markettoppedthe$3.9 billion mark that year. BISG estimates this dollar volume will reach about$5.6 billionby2007.2

Soeach houseisforcedtodistribute massive numbersoffreecopiesoftextbookstocollegeinstructors, although some publisherstry tomaintainanillusory 30-dayexaminationpolicy. Many houses bill professorsifpaymentis notreceivedor unless atleast 10copiesof the textare not ordered forclass use. This policy wasadopted because some professors built sizable personal libraries withfreecopies;others sold them backtocollege bookstores, used bookstores, ordirectly tostudents. Some very large publishersnowissue specially stampedorprinted copies( Thisis afreebook;not forresale )toprofessorstominimize their salestobookstores,butsome used textbookfirmsremove these coversandreplace them withnewones devoidofwarning labels. Some professorsare antitext andrefuseto orderthem evenif adepartment insistsallstudents purchase themfor asection.

Asroughasthese problemsmay be,they pale when comparedto theultimatethreat undermining the entirecollegetextbook industry in the United States: theusedtextbook market among college students.

Generally, textbook publishers and acquisition editors and marketers use a904510 ratio when they do aprofitand loss statement. If the real market demandfor a newmarketing textbookon advertisingmanagement isprojectedto be15,000copies annually (theoretically totaling45,000over the three-yearlifeof thetextbook),it isquite common to run a P & Lusingthefollowing:

1. potential first-year salesof 15,000; projected first-yearsalesof 13,500(90%of 15,000);

2. potential second-year sales of 15,000; projected second-year salesof6,750 (45%of15,000); and

3. potentialthird-yearsalesof15,000;projected second-yearsalesof 1,500(10 of15,000).

2Book Industry StudyGroup, Inc. ook Industry Trends 2 3(NewYork:Book Industry StudyGroup, Inc.2003),p. 32.


10/31

186 CH PTER7Textbook marketers assume thatin the firstyear, 10% of thepotentialmarket

(i.e., students) willnot purchase the book. Some students will not buy the book andhope to pass the course; a group of students (perhaps 3 or 4) will buy and share 1copy of the book or make copies of the chapters and share the copies. Textbook executives also assume that the used textbook market for this book will materializeimmediatelyafterthe first semester the book is introduced into the market. In someinstances, used books are available in the first semester the book is available because some professors sellthecopies they receivedfromasalesreppriorto theoffi-cial publication date of the text.

So the potential market of45,000units over a 3-year period of time is in realityanactual market of21,750units.

Whatis theadvantageofbuyingaused textbook?In2004,a newcopyofKotler'srketing anagementhas a suggested retail price of 105.00, a steep price formanycollege students. Used copies are available anywherefrom 60.00to 82.00at

college bookstores orfromon-line book-selling sites. This used price compels somestudents to purchase the used book and save between 23.00and 45.00,sizablesumsespecially if this student has to buy 5 textbooks in a single semester.

At the end ofeach semesterin the firstyear,alarge numberofstudentswillsellthe Kotler text back to the college bookstore, a firm visiting the college, or a largecommercial bookstore specializing in textbooks. The student might be paid20.00- 30.00for this textbook. If the college bookstore purchases the book, itcouldberesoldtoanother studentatthatcollege;perhapsone of thenationalfirmsspecializingin theused textbook market will purchaseitfromthebook store, inventory and warehouse it, and then sell it to a college looking for usedcopiesof thattextbook.

Eventually, this used book appears somewhere in the distribution channel, mostoftenat the college bookstore for a vastly reducedprice.Students are happy because they saved money; the college bookstore also profits because used bookssatisfythewantsandneedsof thecustomerandgeneratedahigherprofitmargin thannewtextbooks. According to data released by the National Association of CollegeStores (NACS;thecollegebookstore association),theaverageprofitmarginon anewtextbookis25%;theaverage profit marginfor aused textbookis33%.Everyone is satisfied and happy.

Everyone, that is, except the publisher, the salesrep,and the author because theyreceive nothing in theseresaletransactions. The sale of used texts cuts deeply intounitanddollar salesfor thepublisher(asthey know unit sales will decline, theyarecompelled to absorb their extensive and expensive developmental-productionscostsupfrontin the firstyear), royaltiesto theauthor,andsales commissionsto therep. By the start of the third year, new sales of this textbook are at best marginal, andeveryone on the publisher side is looking forward to a new editionfromthe author,whichtriggersthe repetition of this chain of events.

Ironically, astudentwho purchases this text in the second year is rarely able tosellthebook backto thecollegebookstore becausethesupplyofthese booksnowexceeds thedemand,and a newedition willbe on themarket withinayear. Usedtextbookcompanies monitor forthcoming book lists to ascertain when a newedi


11/31

187ARKETINGBOOKStionwillbereleased. Thisis one of the fewinstances where economic laws(inthiscase the law of supply and demand) actually work.Inspiteof thejeremiads em anatingfromtextbook publishingfirms, itappearsunlikely that publishers canmakeanyinroads intotheused text system unlessanew,revised text were issuedannually.Some textbook marketers developed elaborate scenarios to issue new editions annually;still others posited that print-on-demandtechnologies couldcutintotheused textbook m arketas thebook couldbeeasily updated.Sofar, these strategies have failed. Printingandsellingnewtextbooks annuallywasimpractical,andauthors balkedathavingtorewrite their bookseveryyear. Some textbook leaders investigated sellingordistributing textsviaelec-tronicpublishing platforms,but thecomputer-literatestudentmarketwas not yetreadytoread long textson acomputer screen.Ofcourse, many publishers worriedprivatelythat electronic copies couldsuffer thesamefateasrecorded music whenNapsterization (i.e.,filesharing) undermined salesandprofits.Inaddition, photocopiesand theshareduse oftexts wou ldnotdisappear,andstudentindifferencetoward purchasing books would almost certainly undermine even sophisticatedstrategicplans directed toward this phenomenon. Studen tsarepretty smart; soonerorlater, they will developa way tobeatthesystem.The lh i Sales epresentativeElementaryandsecondary school (Elhi) textbook repsconfront other challenges,including local boards (comprisedof theprincipal and a fewteachers or,quiteoften,mem bersof theboardofeducation) that select texts.Insome instances, stateboards reviewandrecommend textbooks. Approximately21states followthestateadoptionprocess (including Alabam a, Florida, T exas, California, North Carolina,andIndiana);all of thelocal school boardsinthat state mustselecttitlesonlyfromtheapproved listifthey wanttoreceive stateaid topurchase textbooksandsupplemental materials.Netpublishers' revenues reached 4.1 billionin2002. BISG estimates this totalwill reach 5.2 billionby2007.3The 21adoption states accountforslightly halfofthattotal,sotheyare aform idable forcein theElhi adoption business, pacedby thebigthree: California, Texas,andFlorida.Thedevelopmental costs associated with launch inga newElhi seriesarequitehigh, runn ing intothemillionsofdollarsto puttogetherasocialstudies textbookseries, which generally includesthe teacher's edition,the test booklet (often on acomputer disk), overhead transparencies or Power Point materials, andotherrelatedsupport services.Allbook reps wanderthelandscape making contactsatannual national associationmeetings, regional meetings,and incollegesandschools.It is anexceptionallydifficultjobwith some sizable rewardsforthosewhosucceed.Forthosewhofail,forpublisherswhosank millions into developingaseries thatis notselectedas an

3Ibid p 32.


12/31

188 CHAPTER 7approvedseriesinCalifornia, Texas,andFlorida,theoutcomeis atbest unpleasan t:red ink and books that have to be peddled in the nonadoption states,(often calledopen adoption states) who will question why none of the big three adopted them.WHOLES LEOPER TIONSThe termwholes lerefers specifically to the channel of distribution made up of regional orlocal companies (i.e.,merchant wholesalers, brokers andagents, manufacturers' andretailers'branches andoffices,and miscellaneous wholesalers) whosell to other businesses rather than directly to the consumer. Although someofthesefunctionsappearto besimilartotasks performedbyjobbers,inbookpublishing wholesalers generally distribute other products, including newspapers, periodicals,and so on.

Wholesale salesoperationsare an important linchpin in theentire marketingstrategy ofbook firms. Thevice president of wholesale operations deals withalarge number of essentially small firms called independent distributors (I.D.s)servicing literally tensofthousandsofretail establishments. This typeofoperation requiresastaffabletorespond quicklyto newretail marketing trendsand establish and maintain good working relations with a diverse number of smallentrepreneurs. Many of the wholesalers have developed rather large distribu-tion-warehousing operations,especiallythoseservicing major urban and/or suburban regions (i.e., New York City and northern New Jersey, Chicago, LosAngeles,etc.).Theorganizational chartinFig.7.3illustrateshowwholesalingishandledby book publishers.This distribution process emerged initially because manymanufacturing companies lacked the physical merchandising network, warehousing, distribution,transportation,andgeneralrisk-bearingobligations necessarytopenetrateandservice the tens of thousands of retail establishments interested in selling specificproducts. Wholesalers developed intricate contacts with small retail establishmentsandtheabilityandresources tohandle this complexbutlucrative task.In thebook industry, wholesalers operateas rackjobbers, literally distributingbooks by inserting them into bookracks, onto shelves, or into display cases orstands. Thefightfor rack space between publishers can become fierce because aprominent position on arackcanhelp spark sales.

FIG 7.3 Organizational chartofwholesale sales.


13/31

189ARKETING BOOKSWholesalersbuy books at a steepdiscount, distribute them, undertake inventories,refill the racks w hen necessary, reorder popular titles, and withdraw from circulationbooksthat fail to find a niche(books that do not sellcan be removed from

thischannel rather quickly, often within 2 to 4 weeks).In essence they deliver, shelve, monitor, finance the inventory, and service theircustomers,the storeowners. They do not get involved in promotions or advertisingbecause this is the job of the publisher. Customarily, they handle high-volume salesoutlets at airports, bus and train terminals, and subway stations. In addition theysupplybooks to small, independent, and often obscure newsstands, grocery stores,drugstores, and convenience stores.This is an exceptionally large market, and the wholesaler division generates asizable numberof unit and dollarsales for book publishers, as long as publisherscontinueto provide the type of titles the public wants. This is a supply-and-demandoperation sensitive to customers needs and interests, and many sophisticatedwholesalers use handheld computer to monitor inventories (and in essence sales),therebyenabling them to oversee their stock and keep pace with new trends. Themodern book publisher cannot afford to have his or her titles or backlist dropped bya major wholesaler because of lackluster sales or strained business relations.JO ERS

Thebook publisher s jobber unit is also a highly significant component of the marketing strategy. They service large national and regional book distributorswhostock and maintain warehouses filled with books (some companies have inventories that exceed 200,000 titles and 1 000 000copies). The organizational chart inFig.7.4 (which lists the representative types of distributors) outlines how the jobberfunction is handled within the typical large book house.Many distributors sell books directly to libraries. They provide generous discounts, critically important collection development advice and services, and oneconsolidatedbillto the library covering all of its services an especially attractiveservicefor hard-pressed librarians working with slim staffs. In addition, they pro-

FIG. 7.4 Organizational chart ofjobbers.


14/31

190 CHAPTER7vide independent bookstores, someof thesmallertomedium-size chains, otherretail stores, and Internet bookselling sites with frontlist and backlist titles.Successfuldistributors created fast efficient cost-effectivedelivery services (using their ownfleetor land or air package services); they can provide a needed titlewithin 1 to 2 days. Somefirmspromise same-day delivery. Book publishers,oftenplagued withineffectual warehousinganddistribution systems,inspiteofinvesting countless millions of dollars in computer systems,offerbetter discounts thanjobbers;buttheycantakeup to 7 to 10daystodeliverthesame title. Some publishers established dollar minimums for orders, forcingmany stores to consolidate ordersor use theservicesofjobbers.Thelawsofsupplyanddemand indicate thatdistributorswill continue toexistandprofit handsomely from some publishers'inabilitytoimprove their delivery servicesandrigid ordering procedures.

Priceclubs emerged as apowerful forcein the U.S. bookindustryin the early-to-mid 1990s.These clubs generally charge membersanannual fee, which allowsmembers topurchase itemsatrock-bottom prices. Although their inventoriesaresubstantial, they generally do notofferthe enormous variety of a giant supermarketor ahome improvement center.

Theyfollowthe same strategy regarding books. A limited number of titles are offeredfor sale, but what they have are delivered in the hundreds (if not the thousands)on skids. Titles are stacked on tables, the floor or, occasionally, on delivery skids.Purchasedat asteep discountfromthepublisher, booksareofferedattremendouslyreduced prices, oftenonly pennies above their wholesale cost. This retailing strategyseemstowork becausethebookispositionedas acommodity, alongwithbulkpurchasesofpeanut butter, cereals, andautomobile oil. Some independent bookstore owners can purchase books at a price club cheaper than they can get them fromthe publisher or distributor (afactthat became rather public in June2003whencertain independents, unable to obtain copies of thefifthHarry Potter book, shopped atprice clubs). These clubs offerreading for the millions, and they sell tremendousnumbers of units annually. However, the titles they stock are almost always in thebestsellerorblockbuster categories, alongwithcookbooks, children's books,mapbooks,and inexpensive reference books.

In thelate1990s,manyof themajorchildren'stoy storechains opened bookcenters. Thesestores provide effective convenient one-stop shoppingforpeoplelooking for toys, baby supplies, swing sets, and other products. Theirbookoperations provedto beimmensely successful,somuchsothat many independent bookstores (and even some of the national book superstores) worried about salessiphonedoff by the toy stores.

Asretailing continuestochange dramatically inthis nation,as newsourcesofbook outlets open,it iseasytospeculate thatthebookselling pie isgetting biggerwithasharp increaseinretail outlets selling books, convincing more peopletoread.It is also easy to imagine that independents (and some chains) will come under tremendous economic pressure, compelling manyofthemtodiscount, broaden theirinventories (which is usually not easy to do in a small store), orconfrontwhat someindustryexperts see is theinevitable, slow deathofindependent bookstore operations in this nation.


15/31

9ARKETINGBOOKS

OTHERS LESOPER TIONS

Bookcompanies also operate a variety of other units involved in sales and marketing.This is the one area where unique business patterns determine a specific organizationalstructure. Fig. 7.5 is a composite illustration outlining thesefunctionsinatypically large house.E & L (the educational, library, and institutional segment of the sales effort)servicesschools(massive consumersofbooks: $4.6billionin2002;17.57%of allsales), libraries and institutions (collectively they purchase approximately 8.69%of allbooks in 2002; $2.3 billion), and other institutions.4This operating unitworksunder ratherrigidconstraints becausemanyschool districtsareslowtopay,select booksfromapproved lists, andoftenare subject to local political pressure regardingsensitive issues.Inaddition, competitioniskeeninthis niche,and it cantakea long period of time before a new text or a series is accepted or adopted.

Special saleshandles bulk salesfor avarietyofcustomers, including mail-ordersales (e.g., to a catalog com pany); books used for in-house or proprietary m anagement training programs; special sales (i.e., to gift, gourmet, or sporting goods

FIG.7.5 Organizational chartof other sales.

4Ibid pp.32,212.


16/31

192 CHAPTER7stores); premium salestoorganizations (e.g.,abiographyor theautobiographyof ahoteltycoon mightbepurchasedby thehotel chainandgiven awayfreetoindividuals whostayinthese hotels, placedinevery nightstandinevery hotel roomin thechain,etc.);orprofessional trade associations (atitleonprinting mightbepurchasedat asteep discountandthen resoldby anational graphic arts associationtoitsmembers,etc.).

Customer service operations handle inboundandoutbound telemarketing func-tions. Most of the large publishers maintain 800 lines, fax, and e-mail addressesforthis purpose.At thelarger housesand atmanyof thesmalltomediumfirms, it isnotcost-efficienttohaveasalesrepcallon orservice small, independent bookstores ordering books under a specified dollar amount. These accounts are asked torely on an 800 line, fax,ande-mailtoplace their orders directly withaninboundtelemarketer.Other firms draw on outbound telemarketers to replace field reps. These salespeoplehave theirownbookstore accounts oftenin the250350range), providingapersonaltouch whenanorderisplaced, negatingtheneedforsales reps.Thesetelephonereps sendoutgalleys, ARCs,andnewsletters. Theyoftenattend regionalbooksellerassociation meetings,andsome large trade housesusethisfunctiontotrain individuals whowillbetransferred into other sales positions.Thishighlyefficient,profitableoperation providesavaluable serviceandturnsaprofitfor thepublisher.

Bookstores equipped with electronic data interchange (EDI) equipmentcan ordertitles electronically,aninnovation that also savesthepublisher money.One ofthemoresuccessfulonline customer self-service systemsis PubEasy. By2003,PubEasyhadover10,000firmsparticipating(it isfreeforbooksellers). Firmscanplace orders, check prices, and determine the availability of titles, improving service while removing inefficienciesin thesupply chain.

Another important component of the other sales operation is foreign sales. In1996, exports stoodat$1.45 billionandrepresented 7.20%of all net publishers'revenues.By2002, theexport total grew 24.14% from 1996to$1.8 billion (butdroppingto6.9%of netpublishers' revenues).TheBISG projects export talliestoreach the $2.2 billion plateau in2007(+20.96% since 2001, inching up slightly to7.06%of allrevenues).5

Booksare apositive balanceoftrade product. More booksareexported than foreign titlesareimported into this nation, thereby helpingthesagging balanceoftrade.OTHER M RKETING SERVICES BOOKSHOWS

Allof themajorbook publishers operate corporate marketingandpromotiondepartments servicingavarietyofneeds. Their businessis tocreate buzz for abook,not aneasy taskin anyhouse.Themarketing department generally handlesall aspectsof theindustry's annual Promethean (andoften ostentatious) Book ExpoAmerica aswellasmanyregionaltradeshows.

5lbid p.212.


17/31

93RKETINGBOOKSBook xpoAmericaFormerly knownas the ABAshow (American Booksellers Association;the ABAranthis operationfordecades),it is nowcalled Book Expo America(orBEA).Inthe United States book community, this event has a mythic reputation: over300,000square feetofexhibits; 2,000ormore exhibitors; sidelines; multimedia(music,videos, DVDs, etc.);anextensive educational program;arights centerexclusivelyfocusingon thebusinessofrights;andnumerous special events.

Publishers vie for thebiggestandbest boothinprime locations, sponsor elaborate parties(in the late 1990s, costs for these one-night extravaganzas exceeded400,000,although they were toned down somewhatby2004),premium gifts (theubiquitouscanvas tote bags), literally stacksoffreebooks(in2004most book publishers refusedtoallow bookstore personneltoloadupshopping cartsoffreebooksatBEA),andother educationalandsocial events highlight BEA. AlthoughNewYorkCityis thelogical placeforthis event,BEAeschewed this locationforover10years. Finally realizing their error, BEA rotates between New York City, Los Angeles, and Chicago between 2004 and 2010.

Traditionally,thelarge publishers brought hundredsofeditors, salespersonnel,marketers,andpromotion peopletoBEA; startingin thelate 1990s, manyfirms cutbackontheir entouragestotrim costs and,in a fewinstances,todeflect criticismabouttheir ostentatious spendingat theBEA.Asmall numberoflarge consumerpublishers do nothaveanypresenceatBEA.

Theovert purposeof BEA is toreachbookstorepersonnelwho arethere ostensiblytolook overthenext season's listoftitles.Is itworththetimeandmoneytomountthese lavish booths?BEA is thelargest, most important book showin theUnitedStates;tosome individualsitsurpassestheFrankfurtBook Fair.Regional Shows

Inaddition, regional booksellers' meetingsareheld throughouttheUnited States,andthey areplannedandstaffedby themarketing department.Inmany ways these meetings tend to be moreusefulthan BEA. They are smaller insizeandscope,allowingsales reps more timetodiscuss rationallythemeritsof a newtitle with bookstore representativeswhowanttotalk aboutand buybooks. These shows also allow marketersanopportunitytoferretoutdataon thestateofbusiness conditionsin aspecificregion, tocatchup onstore openingsandclosings,and togaugethepulseofbookstoreowners aboutnewtrends.Theseshows havelessglitzand farmore substance.

Usuallyheldin theFalland onweekends,themore prominent ones includetheMid-SouthBooksellers Association Trade Show,theUpper Midwest BooksellersAssociation Trade Show,the Pacific Northwest Booksellers Association TradeShows,theSoutheastern Booksellers Association Trade Show,theMountainsandPlainsBooksellersAssociation Trade Show,theNorthern California BooksellersAssociationTrade Show,the NewEngland Booksellers Association Trade Show,andthe NewYork/New JerseyBooksellersAssociationTrade Show.


18/31

194 CHAPTER7One of thebest regional showsis theannual Upper Midwest Booksellers Associ-

ation Trade Show (UMBA). UMBA's focused program addresses the immediateconcerns of independent booksellers in the upper Midwest region. Talks generallyfocus on Your Store's Financial Health, Promoting Children's Books inYourCommunity, TakingChargeofChangeinYourBookstore, Solving Customers'Nightmares' and Soothing Nightmare Customers, and How to KnowYourCus-tomers Better and Persuade Them to Buy More Books from You. A children'sbookandauthor breakfast always occurs,andprominent authors attendtheBookandAuthor Dinner to speak and sign copies of their books. Bookstore tours are ar-ranged oftensponsored by a publisher, perhaps Random House), and a large bookexhibitionismounted (again with authors signing booksforbooksellers).

The fee toattendisreasonable forUMBA members, talk centersonbooks,andsales are made. This forum promotes books and creates buzz for forthcoming titles,apromotion manager's dream.Other Marketing OpportunitiesandProjectsDuringthespanof ayear, marketing will also handlespecialbookprojects.Theseinclude Banned BookWeek and New York Is Book Country in September,National Book Week in January, Black History Month in February, andWomen'sHistory Month inMarch. These special months allowapublisherto

encourage people to read books about a specific topic and,hopefully,tofinda mar-ket for backlist titles. Some industry critics insist that these events are not publi-cizedenoughbypublishers.Marketing departments also handle liaison effortswith literacy organizations

(e.g., Reading is Fundamental or the American Library Association) or other indus-tryassociations. These activities do not generate sales revenues, but they are an in-valuablefunctionthat mustbemaintained.

Other promotions include campaigns with corporate sponsors ( Buy a packageof'X' andreceivea$4.00rebateoffof 'Y'book ).Notenoughofthese promotionshavebeen undertaken to ascertain their effectiveness in selling books, althoughtheygenerally tend to generate attention in the popular and trade press.THEPROMOTIONDEP RTMENTAlthoughthepromotion department handles high profile events,thescopeof itsactivi-tiesisrarely knownorunderstood outside book houses. Their goalissimple: createbuzz (called the information cascade by economists) for an author's new book.Sendinganauthorout on theroadtosign booksandtalkonradioandtelevision showsis costly and time consuming, yet everyone in the industry recognizes the overarchingimportanceofthese endeavors.It isnot, clearly,avacationfor theauthor.TheAuthor Tour ReadingsandSigningsThis department arranges all aspects of an author's tour. Although the author is notpaid to go on tour, a fact many authors constantly bemoan, all of his or her expenses


19/31

195ARKETING BOOKS(airfare, hotel,food,transportation, etc.) are arranged for and paid by the company.The purpose is to have the author meet and talk with consumers, generatingfavorable publicity for the author and his or her book, and it works.

For example, Janet Evanovich went on the road in July2003to publicize her latestnovelTo The Nines ShevisitedAustralia, NewZealand, the United Kingdom,andCommonwealth territories. She returned to the United States for amajortour,with stops inVirginia,NewJersey,NewYork City, Indiana, Illinois, Minnesota,Texas,California,and NewHampshire.She hasground rulesforbooksignings. Evanovich will signallbooks boughtatthe signing; all hardcover books; and one paperbackfromhome. She will personalize abook for special occasions (birthdays, anniversaries, graduations,etc.).Sheurges everyone to bring a camera and take pictures; and Remember, you must havefun. Evanovichhas animmense followingofreaders, and,asidefromsignings, shealso did some readings fromher new book in NewYorkCity and in Minnesota.The local sales rep made sure all of the needed preparations were made to insurea pleasant experience for the author, the bookstore personnel, and those attendingthereading orsigning. Onesignificant taskis tomake sure enoughcopiesof theauthor's book are available in every store the author visits. This is unquestionably aonce-in-a lifetime opportunity for small, independent bookstores and their patrons,and it sells books.TheBarnes &Noble and Borders superstores emerged asprimeexponentsofthistype of activity. All of their superstores sponsor events designed to bring peopleintothe store:cafemusic sessions (e.g., contemporaryfolkrock, new age and classical guitar, good old tunes, etc.); featured events ( Sign up for your local librarycard );artexhibits; sessions about securities andinvestments; anopen mike poetryandprose night ( Readfiveminutes of your original works or those of a favorite author ); how to write and produce your own newsletter; singles events (sessions onunderstandingyour motivationsand aspirations;how to attract anyone, anytime,anyplace; thebimonthlysinglesgame night); book groups; story timesandspecialeventsdesignedforchildren (international Cinderella stories, booksinboth English and Spanish, back-to-school stories from around the world, a special balletclass, and stories from the Pacific Rim and Native Americans); join a new novel-writing g roup; and, of course, num erous author signings.TheAuthor Tour Radioand TelevisionInaddition,thepromotion department arrangesfor theauthor's radioandtelevisioninterviews.While radio is still influential, television has the power to make an authoralmost overnight. So this type of autho r's tour is a tested way to generate substantialbuzzabout a book.A promotion director constructs a highly structured tour (a prominent mass-marketfiction author might cover 8 cities in about 10 days) to minimize problemsand maximize the author's exposure to the media. In addition, great care is alsotakento manage thetour.Thegoalis to get theauthoron thebest radioortelevision showswithresponsive hosts, exposing the author to potential readers in key


20/31

196 CHAPTER7geographical regionsofthis nation.IfMurphywere correct, If it can gowrongitwill, a promotion manager in New York City can expect to hearfromthe authorabout uneven hotel accommodations, lateflightstodistant cities,andenchantedradio and television personalities eager to book her the next time she writes a newbook. Hope springs eternal.The following is a typical memo from the promotion department outlining thestart of an eight-city tour:

1. August 30: Leave JFK airport in NewYorkCityon the5:45 p.m.flight#213American Airlines. ArriveinPittsburghat7:09 p.m. Hotel reservationsat theWilliam Penn Hotel (530William Penn Way),hotel confirmation #147-895-3A. Local salesrep isMonica Durso (Cell telephone number:412-555-7100).2. August31: 8:30 a.m.Monica meetsyou in thelobbyof theWilliam Penn Hotel andpays thebill; take your suitcases withyousinceyouwillnotreturnto thehotel. Takecab;arrive at8:45 a.m.atradio station KDKA-AM(OneGatewayCenter; the number one radio station in Pittsburgh since November 1920);9:0010:00a.m.: live interviewon the MikePintek Show; radio contactis Dan Hurw itz (412-555-2300,ext.11); Pintek loves Gothic novels, westerns, and anything about ethnic minorities; Pintek will read your book andask leading question about plots and character development; but he will bevery supportiveand notpress you. Takecab totelevision station WPXI-TV (11Television Hill)for ataped

interview (11:00-11:30 a.m.)for Talking Pittsburgh with RalphMartino; TV contact is May Marshall (412-555-1189, ext. 27);Martinoreliesheavily on notes about books; they are prepared by his assistant;he rarely reads an entire book before the interview; he will read throughthe notes and a list of questions while you are talking; do not be distractedby this. Takecab at 11:45to radio station WLTJ-FM (7 Parkway Center, room#789)for a taped interview for Weekwatch with Laura Forbes; starts atNoon; 60 minutes; radio contact is Rich Lee (412-555-9290, ext.2);Forbes is an excellent interviewer; she reads books, prepares her ownnotes and questions; and is able to probe deeply into the heart of a book;shetendstotalka bit toomuch,oftenwandering off ; Forbes isveryinfluential in the Pittsburgh literary community; do not interrupther;if shelikes your book, she will praise it, and this generates sales.

continued,


21/31

197ARKETING BOOKS

Takecab at1:15 p.m.toradio station WDUQ-FM (cornerofForbes andPark)for ataped 30-minute interviewfor BetweentheLines with HarryBennack; radio station contactisKevin Murphy(412-555-6030,ext. 19);Bennack used to write book reviews for one of the local Pittsburgh newspapers; has an advanced degree in American literature; very interested inpoetry; Bennack willlet youdiscusskeyelements ofyour novel;but beprepared for detailed, probing questions; Bennack and Forbes are the twokeypeopleyouneed to impress. Lunch with Monica Durso between 2:153:30 p.m. Takecab at3:45toairport; American Airlineflight #518 departsat 6:05p.m.; arrives in Cleveland at 6:45 p.m.

Take cab to Cleveland Stouffer Tower Plaza Hotel (24 Public Square;216-555-5600;hotel reservation # 9950-214-51).Local salesrep is AnnTownsend(cell phone: 216-555-9585).Itstarts all over in Cleveland, followed by Detroit, Chicago, etc.

ookReviews

Thepromotion manager also sendsagalleyor anadvanced reading copy (ARC)anda carefully crafted letter to reviewers at themajorbook review outlets in theUnitedStates.Thesepowerfulpublications,whichcanmakeorbreakabook,includeThe New YorkTimes Book Review, Publishers Weekly,The New York Re-view of Books, The New Yorker, Time, Business Week, Newsweek, etc.Specialized publicationsarealso utilized: scholarly journa ls The Journal of Me-diaEconomics);journalsofopinion ForeignAffairs, TheNation, The New Re-pu lic and The National Review); and major newspapers (especially in NewYork, San Francisco, Chicago, Boston, Miami, etc.).Whereas most publications review books when theyarefirstpublished (forexample,The New York TimesBook Review), PublishersWeekly does only prepublication reviews(i.e.,they appear about2 to 3months beforetheofficial publicationdate), which makes these reviews rather influential to booksellers, librarians, anddistributors eagertofindoutwhat books willbe indemandin thecoming months.Getting reviewed is an arduous task. Title output is so expansive that only asmall portionof all newtitles will everbereviewed;PWreviews over5,000titlesannually;The NewYork Timesreviewsonebook eachday(fromM onday throughSaturday; only 313 annually ) plus a substantial num ber of reviews in the SundayTimesBook Review.Compounding theproblemis thedramatic cutbacksinbookreview pages atsome papersand thecancellation ofbook reviewsatother publications. Failureto getreviewed caneasily doom abook.Manyof these publications create and publicize bestsellerlists, and the mostimportantone isThe New York TimesBook Reviewbestseller lists; other publica


22/31

198 CHAPTER7tionswith significantbestsellerlistsincludePublishers Weekly, The Wall StreetJournal, USA Today, andBusiness Week.

How dotheydeterminewhatbooksaresellingenoughcopiesto maketheselists?Nosinglemethodologyisemployedbythesepublications, so making comparisons betweenthe number3-bestsellinghardboundfictionbooksonvariouslistsiscompletelyawasteoftime.The New York Times Book Review sbestsellerlistsuse thefollowingmethodology:

Rankingsreflect sales, for theweek ended [previous week],atalmost4,000bookstores plus wholesalers serving 60,000 other retailers (gift shops, departmentstores, newsstands, supermarkets), statistically weightedtorepresent allsuch outlets nation wide. An asterisk indicates that a book's sales are barely distinguishablefrom those of the book above. A dagger indicates that some bookstores report receivingbulk orders.6The Wall Street Journal s approachissomewhat different:The Wall Street Journal s [bestseller] list reflects nationwide sales ofhardcoverbooks during the week ended last Sa turday at more than 2,500 Barnes & Noble, B.Dalton, Bookland, Books-A-Million, Books&Co., Bookstar, Bookstop, Borders,Bren tano 's, Coles, Coopersmith, Doubleday, Scribner's, and Waldenbooks stores,aswellassalesfromonline retailers Amazon.comandbarnesandnoble.com.Asalesindex 100 isequivalentto themedian numberofcopiesof the No. 1 fictionbestselling titles sold each week during [the previous year]. The business sales index isadjusted to reflect median sales of [previous year's] No. 1fiction bestsellers,calculated using sales only from these booksellers (Barnes & Noble,Books-A-Million, Amazon.com and barnesandnoble.com) that contribute to thebusiness bestseller list.7Business Week s approachis a bitlessconvoluted:BusinessWeek sBest-Seller List is based on a survey of chain and Independent booksellers that carry a broad selection of books on economics, management, sales andmarketing, small business, investing, personal finance, and careers. Well over 1,000retail outlets nationwide are represented. Current rankings are based on a weightedanalysisofunit sales in [month].8Canbestsellerlists bemanipulated,especiallybybulksales?Thisquestion sur

facedin 1995 and again in2001-2002.Apparently,bulksales in 1995 perpetratedbyseveralauthors pushedtheirtitlesontoa fewbestsellerlists,includingThe NewYork Times. Thegoals weretostimulatesalesand tocreatereputationsfor the au-

The New York Times Book Review,8February2004,p. 26;alsoseeLynetteFelber, The BookReview:ScholarlyandEditorial Responsibility, TheJournal of Scholarly Publishing 33 ,3(April 2002):pp. 166172;Gerald Howard, 'The Cultural Ecology ofBookReviewing, Media Studies Journal6(Summer1992):pp.90110.7The Wall Street Journal, 6February2004,p. B8.8Business Week,9February 2004,p. 26.


23/31

199ARKETING BOOKSthors, allowing themtocharge higher feesfortheir consulting work.Similar allega-tionsappeared in 2001 and 2002.Allof the reputable publications maintainingbestsellerlists take extraordinarymeasurestoinsurefairandaccurate countingofunit sales.Itappears thata fewpeopledevised strategiestobeatthesystemin afew,andonlyafew,instances. Overall,the validity of themajorbestseller lists has never been questioned; and they are aninvaluablesourceofinformation about sales.C SESTUDY THEM RKETING OF ANUNKNOWNAUTHOR

Formostof hislife,John Grishamwas anobscure attorney,aformer state legislatorinMississippi,and ayouth baseball coach.How did hebecomethedarlingof thebook world with a series of immensely popular novels dealing with ordinary peopleconfrontingextraordinary events (in an Alfred Hitchcockian manner)? It did notjust happen; it was planned.In February 1991, Doubleday (then partofBantam Doubleday Delland nowpartofRandom House) released hardcover copiesofTheFirm.ThePelicanBriefappeared in February 1992; TheClientfollowed oneyear later. Delllater issuedthese booksinpaperbackin1992 The FirminFebruaryand ATimetoKillin July)and 1993 The PelicanBrief inFebruary).Fromthestart, Doubleday's strategywas tocreateastrong market demandforwhatwas then an unknow n author. They utilized the hand selling technique inprominent independent bookstores (sometimes referredto as the major nationalinfluential independents because of their influence and visibility). Hand sellinggenerally doesnotworkinchainsandsuperstores.Doubleday's sales representatives read andenjoyed Grisham, and they personallytalkedup thebook sthemes, plots,characters, andlocales with independentbookstore sales personnel at themajor stores (primarily in New York City, SanFrancisco, Chicago, Denver,LosAngeles, Boston, etc.). Bookstore personnel wereprovided with advance reading copies and reviews. Special attention was paid toeach book's coverbyDoubleday's production department,afactthat also seemedto please the booksellers.Thegoalw as to get thewordoutfrom the sales forcetobookstore clerks topotentialbuyers (who wouldbecomesatisfied customers)and totheir friends.This tactic worked, and a veritable groundswell of positive word-of-mouthemerged.Assoonas the chains andsuperstores realized a hot newpropertywasonthemarket, they ordered more copies andprovidedthebook w ith prominentpositions in their bookstores, that is, with the cover facing outward on bookshelves, in the win dow displays, and on tables near thefrontdoor. Their effortspropelled Grisham's sales into the millions in hard andsoftunits , and his reputation skyrocketed.Grishambecame known,and hisbooks caughttheattentionofHollywood producers, who optioned the books forpossible film use. The Firm, starring TomCruise,was a bigsuccess. This movie tie-in, witha newpaperback book cover with


24/31

200 CHAPTER7

Cruiseon it,soldasignificant numberofcopies. WhenThePelicanBrief andTheClientwere released (eachfilmhadmajorstars, Julia Roberts and Denzel Washingtonin the former and Susan Sarandon and Tommy Lee Jones in the latter), largepostersintheater lobbiesandadvertisements innewspapersandmagazines helpedto push sales ofthese twotitles intothe millions.John Grisham became a brand name, aloftystatus reserved only for the popularpantheonofKing,Steele,Clancy, Clark,and a fewothers.Yet thereal impetusbehind his rise was a committed force of sales reps who believed in Grisham as anauthor(they also liked his books). They made Grisham, afactthat he has not forgotten.How often does this happen?Inreality, thisis arare occurrence. Inspiteoftacti-calcampaigns,thesupportoffieldreps,andpositive wordofmouth,thevastmajorityof new authors remain as unknown as Grisham was in December 1990. There areclear limits to the influence even the largest, mostpowerfulpublishing houses canexert on the public, issues clearly raised by DeVanyand Walls and addressed inchapter 1. Book publishing is, at times, a bitter mystery.CRITICS OF THEBOOKM RKETINGSYSTEM

Are current marketing systems undermining the book industry in this nation? Areflimsy,intellectually empty books being sold aggressively to consumers while deserving titles wither and ultimately die on the vine because they lack the glitz andbuzz associated with bestsellers? Have books become commodities? Is thebestseller listadepressing collection ofthird-rateorfourth-rate products (manyofwhich are not even books ),while authors of serious literaryfictionand nonfictionareunableto gettheir works published?Some critics contend that publishing has been taken over by nonbook people uninterested (andinsome instances downright hostile)tobooks, reading,orculture.Inessence, barbarians with M.B.A.s pierced thesacred veil, breached theprotected gates, and are now in the boardrooms controlling what we read and think.One such group is the literary-industrial complex school, represented by TedSolotaroff,Thomas Whiteside, Jacob Weisberg,andMichael Norman.Ted Solotaroffcarefully staked out his theses in The Literary-Industrial Complex, which appeared inThe NewRepublic.9Heoutlinedhisearly yearsinbookpublishing, heavily seasoned w ith romanticism: I camefromthe world of letters, avague but real place that has given me my standards and shaped myskills. Hewrote abouttheworldof ideas, prized literary houses(Knopf, Scribner's, HarperBrothers, Farrar Straus, etc.), and the genteel, patrician atmosphere that seemed tosurroundthehousesand allthosewhotoiledin thevineyards. The 'houses' were,like the hom es of the gentry, distinctive, stable, guided by tradition or at least precedent, inner-directed intheir values. 10

9TedSolotaroff, The Literary-Industrial Complex, New Republic 8June 1987,p. 28.10 lbid. p. 28.


25/31

201ARKETING BOOKSThis world wasframed,according to Solotaroff, by the house's prized backlists (legacies supporting current endeavors), a commitment to literature, theknowntraditionandcharacter ofeachmajorhouse,thebehaviorof thepublish-

ers-owners (very few were public ly held corporations), afirmemphasis on goodreading for the millions (i.e., publishing serious highbrow works along sidecommercially appealing books),and thealmost religious commitment toexcellence at mendicant wages. It was a quaint but secure world where Alfred Knopfonce said, he did not care to publish any authorwhomhe would not w ant to inviteto dinner. 11Conglomerates purchased book housesin the1960sas ifbook publishing firmswerethe same as factories, restaurants, or military defense suppliers. These eventsshatteredhissenseoftraditionandtranquility.TedSolotaroffwasappalled becausethey worked likeapincer movementtonarrowthescopeandprospectsofliteraryandintellectual publishing.... [Publishing] has largely sold out its cultural purposetoits commercial one, thereby losing the vision and the energy and the realism thatguided and empowered publishers. 12Tosome, the end result was a disaster. In the 1970s and 1980s, the houses acquired by outsiders (i.e., media companies, newspaper firms, electronics corporations, etc.) were managed by what Solotaroff termed procurement executiveswho climbed themagic beanstalkofincreased operating capital, sharesofstock,andreassuring promises, onlyto end up in thelandof thehungrygiants. 13Solotaroff admitted that in the old days budgetary controls w ere almost nonexistent, costly retu rns existed,andcashflow wasalwaysamonum ental problem.Yet heseemedtopreferthese anemic conditionsthatthreatenedtoundermine operations to what the conglomerates w rough t, a proliferation of cookbooks and dieting books; physical, mental, and spiritual self-help books; fadandcelebrity books.... With few exceptions, the major houses today are virtuallyindistinguishable. 14Allof this, according to Solotaroff, lefta weakened and debilitated industry

populated with merchandising executives selling products (i.e., books), following strategic plans , utilizing the chains, and all the while sapping the blood andspiritout of the industry. The conglomerateer hasbred anatmosphere of fear,cynicism, rapaciousness, and ignorance that has been destructive to serious publish ing .... Its cost can be reckoned in the number of sagacious and dedicated publishers, editors,andmarketing executiveswho ...were drivenout or demoralizedorcorrupted. 15Where have these demoralized publishers gone? According to Solotaroff,theyescaped to small houses still clinging to standards and to university presses.The literary and intellectual culture is finding in the university presses a home

11Ibid p. 2812 Ibid p. 33.13Ibid p. 34.14 Ibid p. 38.15Ibid p. 45.


26/31

CHAPTER7awayfromhome.Thecampus-based publishers have been widely occupying territorythatthetrade houses have retreated from. 16Thomas Whiteside, in The Blockbuster Complex: Conglomerates ShowBusiness and Book Publishing argued that book publishing, as late as the1950s, wasbelieved to offer its practitionersarather select andgentlemanlywayoflife.It may nothave been considered aparticularly profitable business,or anotablyefficient one,but it was abusinessinwhich publishersandeditorscould feel sustainednotonlybytheir loveofbooksbu talsobytheir senseofprofessionalindependence.17Whiteside reviewed theimpacto fconglomerates onbook publishing, whichheinsisted wasdistastefuland debilitating, triggering afeelingofuneasiness intheliterary community.Herailed againsttheriseofchain stores(adevelopmentthat hasbeen paralleledby adeclineinprosperity,andeventhenumbers,ofindependent booksellers), agents,theHollywood mindset,the unacceptable influ-ence television talk shows have on the sale of books, and book tie-ins (thegruesome hype andpublicity encircling books that become films or televisionshows). 18All ofthese events, portrayedasmayhemanddisarraybyWhiteside, saw therise of managerial andbudgetary controls imposed onpublishingbytheirnewowners seeking tomaximize thereturnontheir investment while paring downsteep debt. One generaleffect ofsuch changeshasbeentopolarizethepeopleinthebusiness into groups that mightberoughly characterized as thecorporate en-trepreneursand thelitterateurs. 19Thisnewmanagerial elite soughttoreachoutinto theheartlandandsell more bookstomore people,and todrawontheir reservoirof modern merchandising, publicity,andmultimedia market saturation. 20The litterateurswere frustrated because theywere subjectedtounreasonablecost-accountingandcost-benefit calculations,on the onehand, and,on theother,to anominous emphasisoneditors' 'performance.' 21This malaise prompted manyeditorstomovefromcompanytocompanytoescapefromtheworst curseofall:theendofeditingand theriseofacquiring editors who do notedit. These noneditorsdevotefarless time than ever beforeto theactual literary,oreventhegrammatical,detailsoftheir author's manuscript. 22Other concerns that bothered Whitesidein-cluded thedemise of themidlist book (i.e., serious fiction and nonfiction bookswithlimited press runsandsales,oftenin the5,00015,000range),theriseof starauthors, stratospheric advances, the consolidation of book publishing into thehaves (mainlythe top 15 or sopublishers)and the have-nots (everybody else),

16Ibid. p. 45; foradditional materialon The Literary Campusand thePersonofLetters, see TedSolotaroff, A FewGood Voices in MyHead: Occasional Pieces on Writing Editing an dReading MyContemporaries (New York:Harper&Row, 1987),pp.241-256.17Thomas Whiteside, TheBlockbuster Complex: Conglomerates Show Business and Book Pub-lishing (Middletown,CT:Wesleyan UniversityPress, 1981),p. 1.18 Ibid.,p. 39.]9Ibid.,p. 93.20Ibid.,p. 93.

2llbid. p. 93.22Ibid.,p. 100.


27/31

MARKETING BOOKS 203andthepervasive influenceof show business ( thisappetiteforvulgarity whichseems limitless.... And if you are not in show business, you are really off-Broadway. 23

Jacob Weisberg, in Rough Trade, was also alarmed about the sad state of editing: Most editorsdon't domuchediting iftheycan help it. 24Hepositedthat editors were frustrated because their endeavors were not properly rewarded, asidefrom aheartfelt thanksfrom anauthoron hisacknowledgments page. 25

Torectify this inequality, line editors want to become acquiring editors becausethey have suchniftyperks:lunchat theFourSeasons,$200,000and upannualsalaries,andtripsto theWest Coast, London, Paris,andFrankfurt.Inreality theseacquisition editors migratefromhousetohouse,onestep aheadofshoddy books withbigadvances and no editorial direction.

Althoughseriousfiction continuesto bepublished, Weisberginsisted literatureplayssecondfiddletowhathetermed schlock, apatternfoundevenat themostprestigious houses:

Todayeven theseriousbooksthat RandomHouse produces are, like thoseof its in-terchangeable competitors,filled withungainlyand ungrammatical sentences,er-rorsofspelling,typography,andfact.They arebadlyorganized,longwinded,andrepetitiveto the point of unreadability.Like most booksfrom themajorpublishinghousesthese days,they areeditedhaphazardly, if atall.26The cause of this malaise is money and the rise of conglomerates in the book industry,according to Weisberg. The owners are more concerned, he alleges, withprofitandloss statements than with literary merit.The endresultisbooks rushed

tojudgment before theyareready,andWeisberg recountsalitanyofprominentauthorsandtheir booksfilledwithgaffes. Editors have largely abandonedthetaskoffinding theslim bookin theunwieldy manuscript,ofdiscoveringthesculptureinthe rawstone, 27

Weisberg also castigates authorsforallowing these practicestooccur;heinsiststhese writers are reluctant to discuss or criticize these instances for fear their careerswillbeunderminedbyeditorsorpublishers seeking revenge.

Another symptomis theinsistenceofmanyeditorstomark manuscripts manuallyrather than using computers; this practice adds insurmountable delays and reflects the publishers' heartfelt belief that markets for their products will alwaysexist and see no reason to waste money on bettering them....There'sno Japanesecompetition toforce American publishers tobeefuptheirquality control. 28

23Ibid. p.198.24Jacob Weisberg, Rough Trade:The SadDeclineofAmerican Publishing, The NewRepublic 17June1991,p. 16.25Ibid. p. 16.26Ibid. p. 17.27Ibid. p. 17.28Ibid. p. 21;alsosee BookPublishing:The Diseconomies ofScale, The Economist 7 April1990,p. 25;MaryCurtis, Planningand Budgeting inPublishing:TheLinkwithMarketing, BookResearchQuarterly 4(Summer 1988):pp. 3-9.


28/31

204 CHAPTER7Michael Norman tackled book marketingin atwo-part articleinThe New YorkTimesBook Review. A Book in Search of a Buzz: The Marketing of a First Noveland ReaderbyReaderandTownbyTown,A NewNovelist BuildsaFollowing.Norman,clearly influenced by Whiteside's ideas, studied the marketing of aspecificbook, Mark Richard'sfirstnovelFishboy.This work,asNorman described

it, is a story, a myth, really, about a young grotesque, looking for redemption, whogoes to sea on a trawler crewed by misfits and murderers. The plot is oblique, thecharacters bizarre, the language so rich it is sometimes impenetrable. Such a book isatough sell, and not just to a general readership. 29

Clearly, anyone who knows anything about the book industry realized thatFishboy anexceptionally complex experimentalfirstnovel,isdifficult toreadanddifficult to sell to book buyers at the superstores and the independents. It fallssquarely into the midlist category. Midlist books generate total sales in the range of5,000copies; tallies beyond7,500copies are a cause for jubilation.Normandescribedindetailthetirelessefforts of NanTalese (Richard's publisherwhoissuedthenovel underherimprintatDoubleday)andMarlyRusoff (Double-day's vice president and associate publisher). Talese prodded Richard to submit hismanuscript ontimeandprovidedhimwith sagacious editorial guidance.Rusoffcontacted book reviewers acrossthenationtomake sureFishboywasreviewed noeasytaskin amarketfloodedwithfirstfiction);shealso workedthemarketing channelstoplanauthor toursandappearancesonpublic radio. TaleseandRusoffdevised strategies to place this novel on the shelves of America's bookstores.

The endresultwas anovel with three printings,aninitial pressrun of8,000(highfora first novel), and two additional editions (each3,000);there were14,000copiesinprint. Total sales hoveredat12,700 (foranexceptionally modest return rateof1,300 copies; 9%). As Richard had a 3-book deal with Talese (in the $120,000range ) andgarnered positive reviews,his future as anovelist appeared bright.Infact, firstnovelists rarely achieve these successes, another factindustry expertsclearly understand.

YetNormanw asdeeply concerned aboutthestateofpublishing.Hecastigatedmarketing because salespeople,ofcourse, speakthelanguageofcommerce,notculture. 30Publishers were portrayedbyNormanasbean countersandanti-intel-lectual Babbitts.

Norman insisted that whereas American publishers maintain they support literaryfiction, their record suggests something else. Today the big conglomerates thathavespentthelast thirty years buyingupmostof thecountry's major publishinghouses wantbigbooks withbigsales tojustify their investments. 31Ifthis were true,Fishboywould never have been publishedbypublishing conglomerate Bantam Doubleday Dell (then owned by the international publisherBertelsmannAG and in2004partofRandom House);itnever would have received

29Michael Norman, ABookinSearchof a Buzz: TheMarketingof aFirstNovel, The New YorkTimesBook Review 30 January 1994,p. 3.30Ibid. p. 22.31Ibid. p. 22.


29/31

205ARKETING BOOKStheattentionofTaleseandRusoff;and itwouldnothave received asizable amountofcorporate support and financingfromDoubleday. Over$12,000was spent publicizing thisbook,in addition to Richard'sadvance.Onecould only wonder aboutDoubleday's other direct and indirect expenses (including the costs to print, warehouse, and distribute the book; the expenses associated with Bantam's accountsbillableandpayable departments, salesrepcommissions,etc.),items well knowntoindustry insiders familiar withP & Ls.Unfortunately,Norman glossed overorfailedtoaddress thesefacts.Instead,heconcentratedonRichard'sefforts, as if healonebuilthis ownfollowing. Norman'sfinalwordsexposehisnaivete about book publishing. Is he[Richard] stillasbold,as adventurous when turning out his sentences [of his second novel]? Or has a hardsummer hustling his book persuaded him to stick his nose in the wind before he sitsdowntowrite? 32Ifthe cold conglomerates Norman castigated were as greedy and anti-intellectualashe insisted, Richard would not have a three-book deal,$120,000in guaranteedmoney,and the opportunity to see his name in print; but he did. Either Norman failedtounderstand anything about publishing,thesales force onthis counthe wasinaccurate,if notmean-spirited),and theintricate authoreditorpublicist relationship, orelsehis use of theEnglish languagewasdreadfullyimprecise.Orperhapshemerelyselected the wrong book to prove his theses. In any case, this article and his arguments, although clearly stimulating,fallflat and do notmesh withthefactsorreality.

HoughtonMifflinpublished Leonard Shatzkin's In ColdType: OvercomingtheBookCrisis anintelligent critiqueof themarketinganddistributionofbooksin theUnitedStates. This book was so contentious it contained a disclaimer fromthe publisher, anexceptionallyrare event in the world of publishing; evenMein Kampf(also issued by HoughtonMifflin)does not contain a disclaimer fromthe publisher.Shatzkin's candid observations and allegations clearly arousedsignificantattentionwithinthe book publishing industry.He wasconcerned about whatheviewedas theuselessflood of newtitles eachyear that confused consumers. No other consumer industry produces20,000different,relatively low-priced products each year, each with its own personality, requiring individual recognition in the market. 33Inthe book industry, the retailer may buy some copies directly fromthe publisher and other copies of exactly the same titlefroma wholesaler. The publishersellsto thewholesalerandthen competes withhim(and,as weshall see, must compete with him),offering favorable discounts to entice the bookseller's business.34How does publishing survive with this archaic, redundant system? Shatzkin insisted that the constant churning of books within the system provided the illusion thatthesystemwasindeedfunctioningin anefficientmanner.Inrealitytheoppositewasthe case, according to Shatzkin, because of its acceptance of what he viewed as me-

Michael Norman, ReaderbyReaderandTownbyTown,A New NovelistBuildsaFollowing,TheNew York TimesBookReview 6February1994,p. 30.LeonardShatzkin,InColdType OvercomingtheBookCrisis Boston: HoughtonMifflin,1982),p. 3.34Ibid. p. 3.


30/31

206 CHAPTER7thodically created confusion. Publishers are so sensitive to the possibility of federalantitrustsuits that theygo toexaggerated lengthstoavoidanypossible accusationofcollusion in setting retail prices or establishing discount schedules or conditions ofsale....The result is a nightmarish obstacle course for theretailer. 35So how does a title become known in this sea ofconfusion?Shatzkin posits thatthisabundanceofbooks, witharemarkably short shelflife,underminesallattemptstoadvertise and publicize them, especially as there is no broad market or a hard-corebook buyer inthis nation. ThisfrustratedShatzkin,and he wasessentially pessimistic about prospects to reform a systemwithno driveshaft.Shatzkin also addressed theissue of the permanence of the book. He insisted that books would endure becausetheyare aconvenientway toreadandlearnand beentertained. Theyareportable,easy tostore, invitingtopickup for amomentor forhours.... Booksare themostpracticalway foranyonetocommunicatewithasmall group. 36Shatzkinadopted the classical viewofbook publishing as a sacred calling. The tinybook publishing industryislikeatrust heldbythosewhoprintandpublishandsellbooksforthosewholovebooks....Sobook publishingismorethanamatterofmakingmoney. It has averystrong elementofservice. 37Shatzkinwasdeeply concerned thatthistrusthas notalways been handledin aprudent manner,abelief that alarmed him.

As for thechannelsofdistribution, Shatzkinwastotally disenchantedand annoyed.Infact,heaccused editorsandpublishersoffailing themselves, authors,andthe reading public. Booksstill struggle under the burden of a costly andwastefuldistribution system made even more costly and morewastefulby the heightened demands madeon it by thegrowthofpublishing,thegreater discriminationof amoreaffluent andbetter educated public,and by thegrowthin thenumberofeagerandtalented writers pleadingto be published. 38

The bottom line was disheartening. Consumers looking for specific titles cannotfind them; so they exitfrombookstores dissatisfied. Authors are unable to reach potential readers; and the cost of new books is too expensive, even though publishersinsist pricesare toolow.

Is there any hope that book publishing will survive? Shatzkin ispessimistic,especiallybecauseof the growth of chains fueled,he posits, because of the steep discountsofferedby publishers). Publishers give the higher discounts, even thoughthese cut their margins severely, because the chains seem to provide relief fromthefrustrationofdealing withtheinefficient, recalcitrant, incomprehensible distribution network of independent stores.And dealing with chains seems so much simplerandless expensive. 39

AndreSchiffrin, in TheBusinessofBooks:How International ConglomeratesTookOver Publishingand Changedthe Way WeRead echoed manyof theideasde-veloped by Whiteside:

35Ibid. p. 4.35IbuL p.5.37Ibid. p. 6.38IbuL p. 7.39 Ibid. p. 7.


31/31

207ARKETINGBOOKSUntilquiterecently,publishinghouses werefor themost partfamilyownedandsmall,contentwithmodestprofits thatcamefrom abusinessthatstillsaw itselfaslinkedtointellectual andculturallife.Inrecentyears[the 1990s], publishers have beenput on aprocrustean bed andmadeto fitintoone of twopatterns:aspurveyorsofentertainment or ofhardinformation ...40ToSchiffrin entertainment prevailed at the expense of ideas, culture, and, ulti

mately,democracy. Caught up in this financial machinery, editors are percepti-blyand understandablyless willingtotakeagambleon achallengingbookor anew author. 41As for theimpact book conglomerateshaddemocracy,Schiffrinwasrather pointed. The resulting controlon thespreadofideasisstricter than anyonewouldhave thought possiblein afree society. 42

OBSERV TIONS

Certainfactsare known about the marketing function. Book houses spend an inordinate amount of time and money marketing books to a variety of channels. Yet itappears that marketers know verylittleabout book purchasing patterns; theireffortsareoftenhaphazardandundercapitalized,far toomany titlesareissued eachyear (stranglingthechance many good books havetobecome successful),andsalesreps are asked to count the number of angels on the head of a pin while touting thelatest experimental novel and romance novel, heady responsibilities for individualsworkingout of thetrunkof acar.

Althoughcritics of the existing marketing system raised important issues, onemustwonder about their highly romanticdepictionof the goodolddays ofbookpublishing.Oneshouldnotforget that this industry, duringthetime period theyfoundso endearing, was essentially a white male WASP province. African Americans, Hispanic Americans,andAsian Americans were rarely foundin thecorridorsofpower or in editorial or sales meetings; and the serious literature Solotaroff andothers lavishly praised concentratedprimarily ontheir white male world, whichwas not filled with multicultural or feminist themes and issues.

Perhaps the critics are right; perhaps their world was better, filled with individuals reading Camus, Proust, and Dickens; but perhaps their lost firmament was not sogrand. In any case, their universe hardly reflected modern American society; andtheideathat large corporations aresuffocating democracyis, atbest,difficultto accept sinceno one has yetprovided empirical datatosubstantiate this allegation.TheUnited Stateshas 3.5million booksinprint,and150,000newtitles werereleasedin2003,hardly indicators thatfreespeech, open discussions,and themarketplaceofideas wereinperil.

40AndreSchiffrin TheBusinessofBooks:How International ConglomeratesTookOverPublishingand Changed the Way We Read(Londonand NewYork: Verso, 2000), p. 7.4llbid. p. 107.

Documents

Marketing Books From GrecoT He_Book_Publishing_Industry