Digital Books Publishing House: Marketing Plan Marketing Plan

Pages: 8 (2708 words)  ·  Style: Harvard  ·  Bibliography Sources: 8  ·  Level: Doctoral  ·  Topic: Business  ·  Buy This Paper

SAMPLE EXCERPT:

[. . .] Parent Press can use it to its advantage by using high quality perfect marketing campaigns; filling the website with high quality content and making the e-retailers sell the famous books first (Tian and Martin, 2011). Also, some writers and publishers are unable to sell eBooks on their own. Parent Press can help them by giving them space on their own website.

What should their eBook pricing policy be?

Parent-Press Inc. should come up with a strategy for pricing which not only draws in regular buyers but also enhances the value of its eBook content. A pricing policy well aligned with the overall marketing strategy can create inroads into the digital publishing business and create new customers for Parent-Press Inc. And its writers and suppliers (Mithas et al., 2013). Studies have shown that customers will end up buying eBooks if they cost less than the traditional paperback version and if the eBook is backed up with additional high-tech features, like opening on their smart phones etc. However, Mithas et al., (2013) warns against offering eBooks at low costs and offering other free services as well. He writes,

"Digital business strategy often reflects competitive necessity as well as offering potential sources of competitive advantage. A firm may initially be disinclined to engage in a certain form of digital strategy such as offering a free online service, which can be costly. However, if other competitors are offering such a service, then following suit becomes a matter of survival (Pg: 516)."

Clearly, for Parent-pres Inc., its pricing strategy should be decided, keeping in mind the highly competitive environment, writer royalties, VATs, other legal formalities as well as the cost of the paperback version of the book. Too much discount or free services may end up hurting the business and lose out on valuable profits.

Which e-retailers should they use, what are their discounts, Terms & Conditions?

Parent Press Inc. needs to concentrate on one channel, retailer-based services whilst working on a broad channel of distribution services consisting of conversion, eBook selling and formatting services. Friedman (2012) in his review gives examples of both single as well as multiple-channel distribution services. In case of single channel distributor, he gives the example of Barnes & Noble's Nook Press, Apple iBookstore and Amazon's Kindle Direct Publishing. In case of multiple channel-based services, he gives the example of Smashwordss and BookBaby (Friedman, 2012).

The terms and conditions of a contract are basically segregated into exclusive and nonexclusive services. Friedman (2012) indicates that a publishing company with its exclusive rights can make use of their service in order to market a book while simultaneously allowing the author / publishers to sell the same eBook elsewhere. At present, there are two exclusions in digital publishing industry. The eBooks that are generated with the help of Apple's iBooks author tool (for the Apple users only) are liable to be sold if the company plans to. In case if it's sold free of cost, all the distributors can sell it freely beyond iBookstore boundaries. The next option is the Amazon Kindle Select one. Kindle Select makes these self-published eBooks for sale. In case the publishing company affiliates with the Kindle Select program then Amazon signs a three-month deal with them (eBook is made available to the Amazon Kindle readers). (Friedman, 2012).

Friedman (2012) continues that e-retailing companies have their own models of price and discount restrictions, but the main practice has been allowing the author to set his own price and deal with other issues related to it. But the e-book retailers have maintained that neither the writer nor the book publishing company can sell the book elsewhere for a lower price (from neither the retailer nor the writer's personal website). Amazon especially has very strict rules and regulations over pricing matters. It does decrease the eBook price if its rival is selling it at a discounted rate.

Can you recommend any new distribution channels?

Currently there are no new distribution channels popular enough to create higher penetration for the company.

4. Advice on updating their author contracts and royalty rates

What clauses should their contracts include?

At Parent-Press the writers must be requested to sign off a 2-3-year contract. This is necessary in case the eBooks are prepared, the book cover is designed and all arrangements are done, the writer decides to change the publisher to another company (Friedman, 2012). Parent Press needs to be aware of the fact that there are number of expenses to be endured before an eBook is published. Therefore, our opinion is the same as those of Friedman (2012) as he emphasizes that no publisher should seal a contract exceeding 3 years since the eBook market is volatile.

What royalty rate is fair?

Royalty Rates should be 40% for books priced under $2 and over $10 and they should be 60% for books priced between $2 and $10. These rates are based on current market prices and therefore in order to stay competitive, Parent Press needs to charge royalty based on current market conditions (Mithas et al., 2013). The table below illustrates the actual figures:

Royalty Rates

Cost of Books

40%

Less than $2 and more than $10

60%

Between $2 and $10

We believe these royalty rates are fair, competitive and transparent. For example, Friedman (2012) points out that that Barnes & Noble PubIt, Apple's iBookstore and Amazon Kindle are free of charge. Their earnings are generated from deducting their share from the book sales. For that to happen, the allow the author to earn between 60% - 70% of the list price (keeping the price of the book they indicate).

However, Friedman (2012) argues that Smashwords is free of cost and its services are open to every e-book retailer company apart from Amazon. Smashwords will pay 85% of the list price by its website on sales generated. It does deduct PayPal processing fees however. Hence they pay 60% of the list price on sales (deducting ten percent of their cut from the earnings after the retailer takes their cut).

Similarly, Friedman goes on that BookBaby is equipped with distribution and conversion services catering to all the major retailers. The price is $99 flat payment, adding on $19 each year onwards. One stands to gain 100% as BookBaby is commission free. Its only earning is the flat payment one makes and some other fees-based services it provides. Based on the position assumed by top firms in the industry, it is reasonable to believe that these royalty rates proposed by Parent-Press are fair, competitive and transparent.

References

Electric Book Works. (2014). Backlist conversions vs. frontlist plans. Retrieved from: http://electricbookworks.com/kb/digital-decisions-what-book-publishers-should-know-about-ebooks/product-decisions/backlist-conversions-vs.-frontlist-plans/

Friedman, J. (2012). 10 Questions to Ask Before Committing to Any E-Publishing Service. Retrieved from: http://janefriedman.com/2012/02/10/10-questions-epublishing/

Kenner, A. (2014). Designing Digital Infrastructure: Four Considerations for Scholarly Publishing Projects. Cultural Anthropology, Vol. 29(2), pp. 264 -- 287.

Khaledi, H. And Reisi-Nafchi, M. (2013). Dynamic production planning model: a dynamic programming approach. Int J. Adv Manuf Technol, 67:1675 -- 1681

Lipton, J.D. (2014). Copyright, Plagiarism, and Emerging: Norms in Digital Publishing. VAND. J. Ent. & Tech. L. Vol. 16:3:585.

Mithas, S et… [END OF PREVIEW]

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