Annals of Library Science and Documentation 42, 2; 1995; 61-66.

MARKETING PERSPECTIVE FOR INFORMATION SERVICES AND PRODUCTSIN INDIAN PETROLEUM INDUSTRY

A.K. SRIVASTAVAKDMIPE LibraryOil & Natural Gas CommissionDehradun

Discusses the importance of marketing approachin petroleum industry information services andproducts. Identifies information user groups, theirneeds and suggests few services and productsalong with pricing policies.

INTRODUCTION

Marketing approach to petroleum information ser-vices and products is distinctfrom many other in-formation services and products because of· seJ

cretive, cost intensive and authoritative nature ofinformation. Marketing of information services ofthis industry, in principle and practice, needs im-mense care and judicious approach based on useroriented service.

Information marketing spans entire spectrum ofprivate and public setting where the informationservice is provided [2]. Sweeping privatisation ofglobal petroleum industry under present politico-economic philosophy has propelled all its constitu-ent segments/ units to be economically viable anduseful for their existence. Multidimensional role ofinformation in petroleum industry's decision mak-ing demands effective marketing approach [1].Targetted to put knowledge into work, library andinformation units (L&I) attached with the industrymust now transform price free services to pricebased client oriented economic activity with all itsimplications. This implies active marketing of in-formation products and. services both within theparent organisation and outside which calls for

i) cultural change i.e. internal publicizing theidea of marketing;

ii) information market analysis and research foridentifying petroleum information users' needs

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and wants;iii) planning the marketing program;iv) total customer focus on services and product

design and development;v) continuous improvement/modification in ex-

isting products and services and starting newones;

vi) achieving competitive edge over othersthrough world class value-addedproducts andservices:

vli)" integration of market planning with self sus-tained economic resource generation for theindustry.

However, the L&I units dealing with intangible com-modity of information available in various techno-physical forms are faced with some common busi-ness realities such as, infrastructural obsoles-cence, antagony towards pricing ot erstwhilecharge free services and products, users' apathyto pay for information for keeping updated, unpre-dictable customer needs/wants for information re-quired, lack of trained marketing professional andretraining, and acquiring new brand of library pro-fessionals to ensure competence with appropriatemarketing/selling skills.

This paper discusses how the information servicedelivery units of petroleum industry may endeavourto initiate implementation of information servicemarketing process and achieve results targeted toprofit generation in the context of LIS promotionalparadigm shift .

..MARKETING VIS-A-VIS PROMOTION

Information marketing is the management processresponsible for identifying the customers, commu-

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nicating with customers, satisfying customers tomeet the stated objectives and should have suit-able policy to retain and expand the market withcontinuous advantages over the competitors. Pro-motion of Library and Information Services (US) isa complex management process of creating andmaintaining awareness [3], provoking a desire forand the practice of satisfying the library readers'wants destined to attract users and increasing theuse of services and products. Profit desired out ofpromotional activities of these services was so longeducative only which had neither been put to mea-surement nor was possible to measure as in casesof other tangible commodities. Cost of these in-tangible services is paid by the parentorganisationfrom budget overhead. The means that are usedto promote library services are

i) personal efforts of librarians and informationprofessionals working in the library and infor-mation units: and

ii) through activities performed in various otherforms such as, brochures illustrating what thelibrary and information unit can do for the us-ers, direct mailing of new services to special-ists, display and exhibition of services andproducts to draw the attention of the users, in-terpersonal communication with users aboutthe library activities and so on.

Marketing circumscribes promotion and revealsstrong conviction from user for better and highquality service when offered under the marketingsetup [4). It is tinged with business colour involv-ing financial activities and stretches beyond thepatronizing organization to invite more users. Suc-cessful marketing boosts the profile of the practic-ing unit in the eyes of management.

PETROLEUM INDUSTRY: INFORMATIONUSER GROUPS

The users of information market segment in pe-troleum industry can be grouped under two broadcategories-upstream companies workforce anddownstream companies workforce which can fur-ther be grouped as

i) primary user groups who are already using theinformation products and services but needregular monitoring of their needs and wants to

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provide them better services viz, Oil & NaturalGas Commission (ONGC), Indian Oil Corpo-ration (IOl) and various other private ownedexploration companies;

ii) potential user groups whose information needsare directly related with the products and ser-vices but are neither receiving nor are awareof these services. Examples are mining, re-fining, marketing, pipeline, transportation, pet-rochemical groups and institutes for petroleumanalysis and product development etc.; and

iii) prospective user groups whose informationneeds are in some way or other related to in-formation products and services of petroleumbased industries but are not aware of it. Ex-amples are geoscience departments in theuniversities, petroleum engineering depart-ments, societies & associations, geologicalinstitutes etc. Such user groups need be ex-plored for extending the information market.

These market segments/user groups are involvedin varieties of activities such as,

i) Exploration and production of petroleum andnatural gas;

ii) Refining and crude processing;iii) Natural gas processing, compression and

transportation;iv) Marketing and transportation: import and in-

digenous marketing of crude oil and petro-leum; ,

v) Pipelines;vi) Petrochemicals;vii) Engineering and oil field equipment manage-

ment;viii) Alternate energy sources;ix) Safety and environment management; andx) Petroleum legislation and policy.

MARKETING PLAN OF INFORMATION PROD-UCTS/SERVICES IN PETROLEUM INDUSTRY

Marketing plan involves - product design, costingand pricing, place and mode of delivery, and prod-uct promotion. Development of proper market planrequires analysis of information needs and infor-mation seeking behaviour and availability of prod-ucts and services. Precisely, it ensures what is tobe done in each area of product life cycle [51.

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MARKETING PERSPECTIVE FOR INFORMATION SERVICES AND PRODUCTS

Information Needs and Information SeekingBehaviour in Petroleum Industry

Information seeking behaviour is in response tovariable stimulus-goal directed activities blockedby insufficient knowledge about information prob-lem. Insufficient knowledge stimulates a person toexpress his information requirement. Information'seeking behaviour in petroleum industry varies withthe strata of work group.

Top management and corporate petroleum plan-ners concentrate more on personal interaction withexperts from giant petroleum companies, handouts,national and international seminars, conferences,discussion with visitors from different companiesand consultants/advisors. Primary informationsources in.various forms and channels of commu-nications form yet another important media of in-formation access, besides the reports compiled andproduced by the special group of experts attachedlocally.

Middle level managers have interaction with boththe strata, above and below this group. Part of in-formation is obtained from top strata and a part.from the experimentallfield work performed by thebottom strata. Besides, the library and informationunit is'consulted for various primary and second-ary information sources. Bottom line fully dependson the previous works, guidance from seniors andsupervisors, varieties of retrieval tools etc.

Information needs of petroleum industry workforcefall in two major categories i.e. Lab/operation dataand off lab available publicity data or fact. Labora-tory/operations information comprises of basin geo-science; field/structure; well (exploratory, wildcat.dry, producing, and abandoned); geographic infor-mation; surveys/seismic prospecting (gravity, mag-netic); geochemical prospecting; prospect evalua-tion; geological laboratory analysis/lithostraiti-graphy; reservoir and production; drilling equip-mentsltechnology and engineering aspects appliedto various drilling production operations; petroleumengineering/geology - refining, lube extraction, pet-rochemicals, natural gas processing etc.

Library/intprmation database comprising of geo-10gical/gE(ophysical/geochemical information, for-eign basin information, drilling information, reser-voir and production information, management and

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finance information, safety and environment infor-mation, refining, marketing, pipeline, transportationand petrochemicals information are normally usedto meet the information requirement.

Information Services and Products

Petroleum industry library and information unitsprovide information service to specialized groupsof users. The structuring of these services may becategorisedas function based, objective based,personalized client based, and form "of materialbased structures. A set of services and productsare devised and existing packages of informationare repackaged to suite the specific requirementsof existing and prospective users. Examples ofsome of the services which are/may be generatedare

i) Retrospective Search Service (RSS) frominhouse databases, CD-ROM and on-line in-formation systems, for different outside orga-nizations or in-house demands on price ba-sis;

ii) Current Awareness Service (CAS) of the newarrivals of reading materials segmented andpackaged specifically for work force of differ-ent up stream and down stream sectors ofthe industry;

iii) Automated Selective Dissemination of Infor-mation Service (ASDIS) personalised tomeet specific need of the user community bymaintaining a user profile and subject profileof all the sectors of the industry and runningthis profile biomonthly against on-line search.It can provide information from world's lead-ing databases;

iv) Document Delivery Service (DDS/CAPPS)providing photocopies of the contents pagesand author abstracts of the selected core titlesof reference from the list of acquired journalson petroleum science and applied geo-sciences. The full papers from core journalsselected by libraries may be provided onprices basis. The DDS may include supplyof photocopies of research papers and refer-ences from CAS, RSS etc. on suitable pricebasis. Such services do not exist in petroleumindustry and abounds strong marketing po-tential;

v) CD-ROM Based Information Service (CDIS)for providing information service to petroleum

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0'1~ ~~

~~~~~

Exploration!ExploitationSegment

Natural GasSegment

MarketingSegment

RefiningSegment

PetrochemicalSegment

Safety/EnvlronmenVManagementSegment

PipelineSegment

EngineeringApplicationsSegment

I~eInformation Seeking Beh~viour Information Needs

Corporate petroleum planning;Managerial economics;Discrete real time events on petroleum around the globe;Strategy and policy on petroleum;Operation and process;Geopolitics-global;Foreign based potentiallventures.

Personal/group interactionInternal reports/recordsMeeting: formallinformalMass media/attached TSG and MSGVisitors/experts agency advisorsProduct cataloguelhandouts/bulletins

of petroleum related companies

External information

Corporate level

Technology; Technique etc.Technical know-how;Geoscientific discoverieslinnovations;Drilling operations/processes;Petroleum technology/science and engineering;Refining process;Marketing/transportation of petrochemical/natural gas;Geoexploration information;Financial/Manpower Information .

Lab reports/records/Meeting/seminars/conferencePolicy instructionsOn-line searchesInformation services/products

Middle

management

.Equipmentllab related information;Material related information;Field work/operation site related information;Administrative procedures, rights and suites etc.

Bottom lineInstruction manualsSupervisory instructionsIn-house trainingVendor's documentation on tools/equipmentsLib.linformation services

Internal information

>Sl'c;:(/)D.

Fig. Information needs and information seeking behaviour in petroleum industry

og

MARKETING PERSPECTIVE FOR INFORMA TlON SERVICES AND PRODUCTS

industry as a whole by creating a subset ofwider database available in CD-ROM. Thismay be basically a customized service ben-eficial to other segments of the industry; and

vi) On-line Alert Service (OAS) exploiting the on-line databases to provide alert service accord-ing to the requirements of different segmentsand directly mailing the information to the us-ers. This service would be a great ecnomizerbecause the receiving end does not need anyinfrastructural backup. This may also bepriced accordingly.

Information products can be designed from avail-able data and information by a group of specialistssuch as, geo-scientists, petroleum technologistsand information scientists by regularly monitoringthe real information needs arising from technicaljobs. Periodicity, mode of transmission and typeof products are important factors. Product oncedeveloped needs constant feedback for modifica-tion requiring unpackaging, packaging and repack-aging to match the concurrent needs.

tntorrnation needs and information seekingbehaviour illustrated in the fig. with various inter-play of each give rise to specific information prod-ucts for petroleum industry. Such products maybe abstracts/indexes/bibliographies on different as-pects of petroleum exploration, production, refin-ing, petrochemicals, transportation, marketing,geo- scineces, chemical physics, sedimentary ba-sins, petroleum engineering and so on; electroni-cally published inhouse publications with new fea-tures like industry focus, news and views, calend-ers and meetings, product briefs etc.; petroleuminformation on Afro-Asian regions; cumulative in-dex of in house publication.

Pricing is about how to of charging for services [6].Libraries/lnformation units must charge in order tooffset the cost of acquisition, packaging and dis-semination of information, various overhead costs-fixed and variable.

Many Indian institutions and government agenciese.g. Indian National Scientific Documentation Cen-tre, Indian Institute of Science have already startedpricing their information products and services.INSDOC generated more than Rupees one crorefrom external sources during the financial year1993-94 by marketing its information services and

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products [7]. Institutions in different developedcountries have also started charging for servicesand products. Of course, pricing mechanism var-ies from institution to institution. Many institutionsbelieve in charging out-of-pocket expenses whilemany others set their prices with a profit motive.The Petroleum Abstracts Inc., University of Tulsacharges different rates of Petroleum Abstracts fromdifferent petroleum companies depending upon theassets of the company. Pricing mechanism for dif-ferent products/services offered by library groupof petroleum industry is similar to special librarieswho charge for their products and service in differ-ent ways, such as,

i) charging back within the institution account;ii) charging out to customers who are buying

institute's products and services, free so far,to offset the cost incurred. This refers to ILLof articles, retrospective searches, issues ofbulletins;

iii) selling directly to customers. This relates tosoftware packages, information packages onoptical discs, micrographic media for the outside customers; and

iv) head counting [8] for library consultation anduse by the outside organizations and individu-als retired from the services of the industry.

Charging mechanism and formula for informationproducts and services can be decided based onthe cost of various resources input in generatingthe products and services and the profit target fixedup which need not necessarily be adopted on thepattern of other institutions. Initial rates may beloose and tentative subject to revision on actualfeedback and demand of the product in the mar-ket. The pricing mechanism must also consider thecompetitive edges and demand of the product orservice.

INFORMATION MARKETING IMPLEMENTA-TION PROCESS

To obtain necessary support for marketing programlibrarylinformation units of the industry need to sellfirst to the industry the benefits of informationservices and products.

Beginning with middle level executives from dif-ferent segments visiting library, conducting one toone personal informal meeting to present the idea

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and geting their views are of immense importancein marketing. Discussions with middle level ex-ecutives percolate up and down to bottom line em-ployees and serve as a spontaneous mechanismfor the personnel to accept the marketing conceptwith less resistance. During these meetings con-cept of marketing system and pricing mechanismmay be talked about. After setting the initial viewabout resource generation for the industry facingresource crunch, the discussion may be relegatedtowards pricing from outside sister concerns andthen, a cursory touch regarding paying back outof pocket expenses from within the organizationcan be put forth. Views of the discussion groupregarding nature of changes in the present set upin relation to the effectiveness of existing serviceslproducts and ways to improve upon can give realpicture about their requirement and the way theyneed it.

Petroleum industry libraries possess strong mar-keting potential. It has information stock on shelf,convertible to information stock on trade. Motivat-ing and attracting more and more users by trans-formation of traditional professional activities intoeconomic activity by structuring (packaging,unpackaglng and repackaging into customized for-mats) and delivering the products to customers(erstwhile users) are the essence of marketing. Itmust ensure sustaining the present client, gener-ate more demand from the existing clients and at-tract new clients by creating the benefits notionfrom the services and products.

CONCLUSION

Marketing is a complex process wherein entireorganization's involvement is essential for its suc-cessful implementation. Customer centered petro-leum information services and products need everincreasing attempts for innovative techniques andexploit advantages of information technology forexhaustive and personalized need based approachin designing, developing, delivery mechanism andcommunication channels. Constant monitoring,and feedback from users could provide the basisfor paCkaging and repaCkaging the information.

Libraries and information units so far have onlybeen spending but not making any earning for the

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organization to whom these are attached with. Theexisting information products and services needto be reformed and repackaged in tune with theneed and marketed to sister concerns and also tooutside organizations of similar nature in Asian andAfro Asian region. All the promotional activitiesshould be looked into with the profit motive for theorganization. Librarians and information workersin petroleum industry have to give a relook to theirpresent day activities and bring in professionalismin their attitude with a blend of marketing approach.Libraries must strive to generate resources for theirsustenance and contribute to the organizationstreasure through marketing of its services and prod-ucts.

REFERENCES1. GHOSH (S B). Marketing of information ser-

vices and products and its components. Work-shop on marketing of information services andproducts, Calcutta, Feb 28-March 11, 1994.IASLlC; Calcutta. p1.

2. Op cit.

3. MACARTHY (Grace).Promoting the inhouselibrary. Aslib Proc. 44, 7/8; 1992; 290.

4. COOTE (Helen). Marketing matters to you,your staff and your customer. Aslib Proc. 45;1993; 9.

5. GHOSH (S B). Planninq the marketing pro-gram. Workshop on marketing of informationservices and products, Calcutta, Feb. 28 -March 11, 1994. IASLlC; Calcutta. p 4.

6. WARNER (Alice Sizer). Making money: feefor information service. Spec. Lib. 789, 4; 1987;279.

7. VISWANATHAN (T). Valedictory address atworkshop on marketing of information servicesand products. Calcutta, Feb. 28-Mar. 11, 1994.IASLlC; Calcutta.

8. BRINDLEY (L J). Information service and In-formation product pricing. Aslib Proc. 45, 11-12; 1993; 297-305.

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