1. ICOLC Meeting: Vancouver, BC -- Sept. 21, 2000 Direct-to-Consumer Distribution Strategy John Barnes SVP, Product Management

2. ICOLC Meeting: Vancouver, BC -- Sept. 21, 2000 Outline  Strategic Focus  Partnering Strategies & Guidelines  Examples of New Partnerships  Concluding Remarks

3. ICOLC Meeting: Vancouver, BC -- Sept. 21, 2000 Libraries are our Focus  Gale is a library information publisher  All of our Product Development & Marketing is aimed at libraries  98% of our sales are to libraries, <1% comes from e-consumers

4. ICOLC Meeting: Vancouver, BC -- Sept. 21, 2000 Supporting Libraries  Gale considers itself an advocate for and member of the library community  Event sponsorships -- national, regional and local  Library Awards  Library Leadership Forums  Discussion roundtables  Recently launched a new Library Marketing Support site: http://www.galegroup.com/freestuff

5. ICOLC Meeting: Vancouver, BC -- Sept. 21, 2000 Find Yourself in the Library

6. ICOLC Meeting: Vancouver, BC -- Sept. 21, 2000 A Changing World...

7. ICOLC Meeting: Vancouver, BC -- Sept. 21, 2000 Partnering Guidelines  Turn down those that sell “research” products directly to libraries or library users  Turn down those who are seeking to create a library-alternative  Seek partners that serve users we don’t reach directly -- e.g. small businesses & consumers  Seek partners that offer unique, non-library applications, where content is not the main focus

8. ICOLC Meeting: Vancouver, BC -- Sept. 21, 2000 Partnering Guidelines (cont’d)  Only provide select, publisher-approved, content.  Place clear restrictions on content use -- to protect library services and intellectual property rights.  Look to implement features that drive traffic back to libraries  Sign short-term contracts with easy termination

9. ICOLC Meeting: Vancouver, BC -- Sept. 21, 2000 Why Partner at All?  Commitment to publishers to broaden sales of their content -- keeps them in our programs.  We have good information for a wide range of people, some of which do not visit libraries.  Proceeds help fund our library programs.  Good revenue is good.

10. ICOLC Meeting: Vancouver, BC -- Sept. 21, 2000  Shares Gale’s commitment to editorial quality  Content from Gale: Small collection of consumer-oriented periodicals -- 385 titles, 2- year backfile  Purpose: Supplement web-search results with related articles.  Target user: Home consumer  High-use titles: PR Newswire, Variety, Travel Agent, Better Homes & Gardens, Motor Age, Off Road

11. ICOLC Meeting: Vancouver, BC -- Sept. 21, 2000  Content from Gale: Narrative biographies, company profiles and chronologies and a small collection of 250 periodicals  Products:  Study guides (KnowledgeNotes)  Knowledge Management tools  Target user: Students, Professors

12. ICOLC Meeting: Vancouver, BC -- Sept. 21, 2000 Closing Comments  Weeding out: Many of the newcomers have flawed business models and a lack of understanding of libraries and users. Many will fold.  Marketers Needed: The library community must actively promote the value they offer.  Evolve Products/Services:  Providing integrated, contextual solutions  Benchmarking against consumer websites  Anywhere access  User-level personalization  Moving beyond content to Community

13. ICOLC Meeting: Vancouver, BC -- Sept. 21, 2000 EXTRA

14. ICOLC Meeting: Vancouver, BC -- Sept. 21, 2000 End User Books & Magazines General Reference Info News Health Info Job Search Company/ Financial Info Self-help Etc. Local Public Library Awareness: Med/High Convenience: High Quality: Low/Med Awareness: Low/Med Convenience: Low/Med Quality: High

15. ICOLC Meeting: Vancouver, BC -- Sept. 21, 2000 Academic Library Disintermediation Academic/Scholarly Research Journals Primary Source Collections Statistics & Data Reference Works Research Reports Magazines & News Sources Lab/Experiments/Models Etc. Textbooks Course Packs Reserve Readings LibraryLecture Hall Direct From Content Sources Targeted Content Tools & Services Distance Learning Business Strategy 401 ê Distance learners are less reliant on the bricks-and-mortar library ê DistEd courses are coming prepackaged with the necessary content and tools ê Course-level content customization is increasingly required

16. ICOLC Meeting: Vancouver, BC -- Sept. 21, 2000 Today’s “Product Trap”  Media specialization:  periodicals, newspapers, reference, documents...  print, electronic, microfilm…  Electronic = replica of print/film predecessor  Titles race  Vendors benchmarking against each other  “Consortia effect” Result... Look-alike products, with little differentiation