Adrian Payne

In this article, the authors develop a conceptual framework for customer relationship management (CRM) that helps broaden the understanding of CRM and its role in enhancing customer value and, as a result, shareholder value. The authors explore definitional aspects of CRM, and they identify three alternative perspectives of CRM. The authors emphasize the need for a cross-functional, process-oriented approach that positions CRM at a strategic level. They identify five key cross-functional CRM processes: a strategy development process, a value creation process, a multichannel integration process, an information management process, and a performance assessment process. They develop a new conceptual framework based on these processes and explore the role and function of each element in the framework. The synthesis of the diverse concepts within the literature on CRM and relationship marketing into a single, process-based framework should provide deeper insight into achieving success with CRM strategy and implementation.

The traditional goods-dominant logic of marketing is under challenge and leading researchers are now emphasizing the new service-dominant logic [Vargo, S.L., Lusch, R.F., Evolving to a new dominant logic for marketing. J Mark 2004; 68 (1): 1–17.]. One of the key foundational propositions of this logic is the customer as “always being a co-creator of value” where “the brand becomes the experience” [Prahalad, C.K., The co-creation of value. J Mark 2004; 68 (1): 23.]. In this paper, the authors examine the concept of brand relationship experience in the context of co-creation and service-dominant logic and outline a conceptual model for designing and managing the customer experience. Case study research illustrates how this model helps in the design and management of the brand relationship experience for an innovative new product.

The concept of value and, more specifically, customer value is of increasing interest to both academics and practitioners. This paper undertakes a substantial review of past and current literature on value and categorizes this considerable body of research into nine streams of literature. Building on the emerging relationship marketing paradigm, it then proposes a framework for relationship value management. Nine core streams of value literature are identified and discussed: consumer values and consumer value; the augmented product concept; customer satisfaction and service quality; the value chain; creating and delivering superior customer value; the customer's value to the firm; customer‐perceived value; customer value and shareholder value; and relationship value. To date, the core focus of most of this literature has been on the nature of value from the perspective of the organization and its customers – the customer–supplier relationship. However, it is argued that the emergence of the relationship marketing paradigm has emphasized the role of other stakeholders in building relationships. An existing multiple stakeholder model of relationship marketing, the six markets model, is introduced and is integrated with key concepts from the value literature to produce a conceptual framework for relationship value management.

This study uses data from a unique survey of the retirement planning behaviors of late middle-aged individuals living in New York State, to test hypotheses regarding the role of earlier life experiences on the demand for long-term care insurance. Our primary focus is on previous provision of informal long-term care, which some studies have found to be correlated with demand for long-term care insurance. We add to the literature by providing a test for causal relationships between previous care-giving and insurance demand, and by exploring the more generally the mechanisms through which previous life experiences are linked to insurance demand. Results are robust to a variety of empirical specifications and estimation methods, including consideration of current care-giving roles and endogenous selection into previous care-giving, and strongly support a causal relationship between previous long-term care-giving and demand for insurance. Our estimates also provide evidence that lifetime health trajectories and family relationships are associated with long-term care insurance demand, and suggest that both emotional and informational forces influence demand.

The aim of this article is to examine the concept and functioning of value propositions, seen through a service-dominant logic (S-D) lens. The variety of perspectives used to understand value propositions are examined, from unidirectional communication of value to reciprocal promises of value. The concept of reciprocal value propositions is examined in the light of S-D logic's fundamental premises. Examples are included to show how reciprocal value propositions can be used to initiate and guide resource integration activities between initiators and participants across a range of stakeholders of the firm. Some ‘taken for granted’ assumptions about market exchange are examined which act as a constraint on innovation in developing reciprocal value propositions, and more generally, stand in the way of innovative marketing practice. We also argue that reciprocal value propositions reveal opportunities for focal firm engagement with suppliers, customers, and other beneficiaries beyond sale/purchase transactions, as part of a platform for communicative interaction. In summary, we position reciprocal value propositions as a communication practice that brings exchange activities, relationship development, and knowledge renewal closer together.

Co‐creation offers firms and their network of actors significant opportunities for innovation, as each actor offers access to new resources through a process of resource integration. However, despite the significant advantages that co‐creation can offer, there is surprisingly little research providing a strategic approach for identifying the most advantageous co‐creation opportunities, especially when many possible options are available. Recently, scholars have called for research that develops tools and processes related to co‐creation. This study addresses these priorities, making two contributions. First, in contrast to previous work considering co‐creation more generally, or focusing on one specific form only, e.g. co‐production, this paper offers a detailed and granular approach to co‐creation design. A co‐creation design framework is developed, which incorporates multiple design dimensions and categories that can reveal new co‐creation opportunities. Second, the research extends the application of a design approach, specifically within the context of co‐creative activities. The authors use field‐based research with senior executives to develop a framework that includes key co‐creation design elements. A morphological approach is used to explore how a lead firm can identify attractive co‐creation opportunities. An innovation solution in one organization provides an illustration of how the co‐creation design framework can be applied.

This paper reviews the strategic role of multichannel integration in customer relationship management (CRM) with the objective proposing a structured approach to the development of an integrated multichannel strategy. Alternative perspectives of CRM are reviewed and it is concluded that adoption of a strategic perspective is essential for success. Multichannel integration is posited as one of the key cross-functional processes in CRM strategy development. The nature of industry channel structure and channel participants, channel options, and alternative channel strategies are reviewed. The customer experience is explored both within and across channels. Analytical tools, such as market structure maps, the customer relationship life cycle, and demand chain analysis, are described. Key steps in building an integrated multichannel strategy are examined. Major challenges faced by enterprises in their adoption of an integrated multichannel approach and areas for future research are discussed.

Purpose The value proposition concept and the stakeholder perspective have received relatively little attention within Service‐Dominant (S‐D) logic. This paper sets out to explore value propositions in the context of S‐D logic, within the multiple stakeholder domains that form part of a marketing system. Its purpose is to identify how use of the value proposition concept, in this broader context, provides new insight into value creation within a value network. Design/methodology/approach This paper explores the development of value propositions in key stakeholder market domains. A five‐step process is developed for identifying key stakeholders and co‐creating value propositions for them within a marketing system. Findings Value propositions have a key role in co‐creation of value between stakeholders. The development of value propositions in multiple stakeholder domains can provide an important mechanism for aligning value within a marketing system. Practical implications Stakeholder value propositions provide enhanced opportunities for value co‐creation and can assist managers in aligning value and stabilizing relationships within an organization's value network. Originality/value This paper considers a broader view of value through creation of value propositions for key stakeholders. An iterative framework is proposed that couples the stakeholder concept and value co‐creation.

Co-creation is described as a resource integration process involving actors that are linked within a service ecosystem. This process occurs when value propositions attract actors to share their resources during collaborative activities and interactions, termed co-creation practices. The purpose of this paper is three-fold: (1) to develop a typology of co-creation practices that shape a dynamic health care service ecosystem, identifying those practices that have positive effects, those that have negative effects, and those that can have either positive or negative effects on the service ecosystem; (2) to provide indicative measures of co-creation practices; and (3) to offer a compelling research agenda. Actors assess their resources and seek to address resource gaps, engaging in co-creation practices that offer access to valued resources. As such, we argue that co-creation practices play a central role in shaping the service ecosystem, influencing which resources are available, when they are employed, and how they are integrated. We develop a typology consisting of eight co-creation practices, illustrating these in the context of a health care ecosystem. We provide a set of indicative measures, identifying how co-creation practices can impact the well-being of the ecosystem, and develop a research agenda calling for further studies in this important area.

Abstract This article examines Customer Relationship Management, or CRM, from the perspective of strategy formulation and implementation. We commence by reviewing the origins and role of CRM and highlighting the importance of adopting a cross-functional approach to CRM strategy formulation. We examine alternative approaches to CRM strategy development and, using an 'interaction research' approach, propose a model that addresses both CRM strategy and implementation. We identify four critical implementation components of a successful CRM programme and examine these in the context of five key cross-functional CRM processes. The model structure is used to help identify a research agenda Keywords: CRMCUSTOMER RELATIONSHIP MANAGEMENTCRM IMPLEMENTATIONCRM STRATEGYRELATIONSHIPMARKETING

Despite significant interest in value propositions, there is limited agreement about their nature and role. Moreover, there is little understanding of their application to today’s increasingly interconnected and networked world. The purpose of this article is to explore the nature of value propositions, extending prior conceptualisations by taking a service ecosystem perspective. Following a critical review of the extant literature in service science on value propositions, value co-creation, service-dominant logic and networks and drawing on six metaphors that provide insights into the nature of value propositions, we develop a new conceptualisation. The role of value propositions is then explored in terms of resource offerings between actors within micro, meso and macro levels of service ecosystems. We illustrate these perspectives with two real-world exemplars. We describe the role of value propositions in an ecosystem as a shaper of resource offerings. Finally, we provide five key premises and outline a research agenda.

Creating and communicating customer value is the basis of business-to-business marketing. In recent years, our understanding of the value construct and the communication of customer value propositions has undergone a fundamental change in perspective. This conceptual review article traces back the roots of the value concept to the early economic literature that distinguishes between two complementary perspectives on customer value: value in exchange and value in use. Building on this important distinction, we argue that the value literature has evolved from a focus on resource exchange and value in exchange to an emphasis on resource integration and value in use. Seen through this lens, we identify distinct stages of conceptualizing customer value and articulating customer value propositions and argue that a deep understanding of how value is created in a customer's idiosyncratic use situation is gaining importance in today's competitive market places.

Relationship marketing is concerned with how organizations manage and improve their relationships with customers for long-term profitability. Customer relationship management (CRM), which is becoming a topic of increasing importance in marketing, is concerned with using information technology (IT) in implementing relationship marketing strategies. This paper reports on a study of the adoption and use of CRM in the financial services sector. In particular, the key elements of CRM are examined in these organizations and executives' perceptions of the main IT components that enable responsive CRM are explored. CRM is classified into five stages of sophistication and a framework for CRM adoption is developed.

Relationship Marketing: Creating Stakeholder Value extends the analysis of the change in the marketing rationale from a crude concern for increased market share to a strategy aimed at creating long-term profitable relationships with targeted customers. Offering a cutting edge vision of relationship marketing, Relationship Marketing: Creating Stakeholder Value is a seminal text for all students and managers in the field. With new up-to-date case materials and examples of best practice, the book covers all the stakeholder markets - employees, suppliers, influencers, customers and consumers - for which the relationship approach is critical. It also provides crucial advice on how to develop, integrate and implement the various strands of a successful relationship strategy.

Purpose The purpose of this paper is to examine the development, extension and use of the “six markets” model and to outline a framework for analysing stakeholder relationships and planning stakeholder strategy. Design/methodology/approach The “six markets” stakeholder model is examined. Refinement of the model and improved understanding as a result of field‐based research is described. A stakeholder relationship planning framework is proposed. Findings The paper examines the use of the “six markets” model in a wide range of organisational contexts utilizing a range of research approaches. A stakeholder relationship planning model is developed consisting of four inter‐related elements, i.e. stakeholder value propositions, value delivery design, stakeholder relationship marketing plans, and measurement and feedback. Research limitations/implications The article suggests a number of areas for future research, including the development of planning approaches for different classes of stakeholders and more detailed testing of the stakeholder model and planning framework in specific market sectors. Practical implications The research suggests that managers find that the development and implementation of relationship plans for the key stakeholder markets generates valuable new knowledge and insights into stakeholder conditions, constraints and opportunities. Originality/value This article contributes to knowledge in the relationship marketing and stakeholder theory areas through the development, refinement and use of a planning model that addresses the complexity of stakeholder relationships and networks. The stakeholder planning approach that is developed represents a means by which managers can achieve greater transparency of stakeholders' interests and improved rigour in planning relationships with stakeholders.

The nature of services marketing developing mission statements the service marketing mix market segmentation production and institutional positioning communication strategies pricing and logistics strategies marketing planning for the service firm integrated services marketing.

Relationship Marketing: Creating Stakeholder Value extends the analysis of the change in the marketing rationale from a crude concern for increased market share to a strategy aimed at creating long-term profitable relationships with targeted customers.Offering a cutting edge vision of relationship marketing, Relationship Marketing: Creating Stakeholder Value is a seminal text for all students and managers in the field. With new up-to-date case materials and examples of best practice, the book covers all the stakeholder markets - employees, suppliers, influencers, customers and consumers - for which the relationship approach is critical. It also provides crucial advice on how to develop, integrate and implement the various strands of a successful relationship strategy.

Purpose The paper aims to consider the neglected area of customer relationship management (CRM) and customer management's “dark side”; and identify the key types of dark side behaviours of service providers as well as integrated approaches to CRM that will assist in overcoming dark side behaviour. Design/methodology/approach Based on an extensive literature review, supplemented by insights drawn from an on‐going longitudinal study of CRM, the authors develop a classification of dark side behaviour types. Findings The paper identifies ten forms of dark side behaviour that may be grouped into three broad categories based on means used and target. It illustrates how different types of dark side behaviours may be linked to the key strategic CRM processes. Practical implications The paper examines how these dark side practices may be addressed by adoption of a more enlightened approach to CRM. Originality/value The dysfunctional forms of CRM and customer management have been neglected as an area of research in marketing. The paper identifies and classifies service provider dark side practices and outlines how adoption of a more strategic approach to CRM can address dark side behaviours and move towards more enlightened marketing practices.

Purpose This paper aims to review the growth and development of the field of relationship marketing and, through a consideration of this body of work, identifies key research priorities for the future of relationship marketing. The paper also delineates the frequently confused associated concepts of customer relationship management and customer management and considers how they fit within the broader concept of relationship marketing. Design/methodology/approach This paper undertakes a review of the relationship marketing literature, supplemented by the authors’ on-going interactive research with managers. Findings The paper reviews alternative approaches to relationship marketing, reflects on the development of the field of relationship marketing and identifies three critical priorities for future research in relationship marketing. Practical implications The research priorities that are identified in this paper represent important priorities for scholars, managers, regulators and policy makers. Originality/value Although there is now a substantial body of research on relationship, marketing, much of this work focuses on the customer-firm dyad, with a smaller body of work focusing on a broader range of stakeholders. This paper argues for the broadening of the role of relationship marketing to consider ecosystems; the need for firms to shift from a value-in-exchange to a value-in-use perspective when addressing customer relationships; and the critical need to address “dark side” behaviour and dysfunctional processes in relationship marketing.

Purpose – Scholars identify the value proposition as representing the essence of strategy and the firm's single most important organizing principle. However, research suggests less than 10 per cent of companies formally develop value propositions. The purpose of this paper is to undertake case study research investigating the process by which leading companies develop their value propositions. Design/methodology/approach – The research identifies that the financial services and telecommunications vertical markets are viewed as the highly sophisticated industry sectors in terms of customer management. These industry sectors are selected for investigation. The paper develops case studies of two companies’ approaches to developing value propositions in the business-to-business (B2B) and business-to-consumer (B2C) sectors within these vertical markets. Findings – This paper contributes to the marketing literature by examining how two large and complex service enterprises have adopted structured processes for developing innovative value proposition within the B2B and B2C sectors. The authors argue that innovation in value proposition development represents a substantive opportunity for marketing to reassert its influence in the boardroom. Practical implications – This case study research provides guidelines of the processes by which enterprises can successfully develop innovative value propositions. Originality/value – This research is considered to be the first case-based academic exploration of the formal processes by which large organizations develop value propositions.

Purpose This paper aims to conceptualize and characterize service ecosystems, addressing calls for research on this important and under-researched topic. Design/methodology/approach The authors draw on four meta-theoretical foundations of S-D logic – resource integration, resource density, practices and institutions – providing a new integrated conceptual framework of ecosystem well-being. They then apply this conceptualization in the context of a complex healthcare setting, exploring the characteristics of ecosystem well-being at the meso level. Findings This study provides an integrated conceptual framework to explicate the nature and structure of well-being in a complex service ecosystem; identifies six key characteristics of ecosystem well-being; illustrates service ecosystem well-being in a specific healthcare context, zooming in on the meso level of the ecosystem and noting the importance of embedding a shared worldview; provides practical guidance for managers and policy makers about how to manage complex service ecosystems in their quest for improving service outcomes; and offers an insightful research agenda. Research limitations/implications This research focuses on service ecosystems with an illustration in one healthcare context, suggesting additional studies that explore other industry contexts. Practical implications Practically, the study indicates the imperative for managing across mutually adapting levels of the ecosystem, identifying specific new practices that can improve service outcomes. Social implications Examining well-being in the context of a complex service ecosystem is critical for policymakers charged with difficult decisions about balancing the demands of different levels and actors in a systemic world. Originality/value The study is the first to conceptualize and characterize well-being in a service ecosystem, providing unique insights and identifying six specific characteristics of well-being.

Enthusiastic customer endorsements can significantly influence buying decisions and drive sales. In service contexts, advocates are especially important because the specific and complex characteristics of services make personal recommendations very effective. Customer advocacy communications differ from other positive word of mouth (PWOM), though literature on advocacy is surprisingly sparse and inconsistent. Notably, advocacy is strong, passionate, explicit, and ongoing, with an explicit goal of positively influencing others’ views. As its central theoretical contributions, this article defines advocacy; identifies advocacy as a distinctive form of PWOM; conceptualizes advocacy according to a hierarchy of behaviors, which increase in intensity and effort; and develops a robust, reliable advocacy scale. By investigating positive behavioral outcomes of different levels of advocacy, this study also reveals the importance of identifying strong advocates, rather than just those who give PWOM, as well as salient drivers of advocacy. Accordingly, this article establishes a platform for further investigations of the importance of advocates, as well as recommendations to help managers identify these potentially valuable advocates.

Service ecosystems provide a valuable perspective for exploring value co-creation, as they offer a relevant context to study dynamic resource integration processes. Although recent literature considers service ecosystem dynamics, little research concurrently addresses two key drivers of it: emergence and phase transitions. These two phenomena are often confused and frequently co-exist, with phase transitions necessarily involving emergence. Drawing on meta-theoretical foundations of service-dominant logic and systems theory, this conceptual paper synthesizes and extends knowledge of emergence and phase transitions in service ecosystems, including proposed new definitions. To achieve these aims, first the conditions where phase transitions and emergence exist or co-exist are identified, and second, key features, triggers, processes and outcomes are compared and contrasted. A conceptual framework illustrates how emergence and phase transition, together and separately, impact service ecosystem dynamics. In addition to the theoretical contribution, our work can assist managers discern, navigate and harness these phenomena by adopting non-predictive approaches such as effectuation and environmental scanning. Promising future research topics are also proposed.

Section 1 - Relationship Marketing - The Six Markets Framework Section 2 - Customer Markets The Nestle Buitoni Case Study Carlton Electronics Tesco Mini Case Rover Cars: The Catalyst and Conquest '91 Direct Line RSPB Section 3 - Supplier/Alliance Markets Supply Relationships at Trico Cafe Direct Global Canadian Metals Inc. Section 4 - Ratners Fisons The Body Shop Section 5 - Recruitment and Internal Markets Club Med B Nordstrom Digital Equipment Corporation Euro Disney: The First 100 Days Section 6 - Integrating the Six Markets Laura Ashley British Airways.

Many organizations today recognize their need to be more responsive in the markets in which they operate, but do little to actually change their orientation. The author examines what is needed to successfully develop a marketing orientation.

Introduction The development of relationship marketing Establishing a customer-oriented culture for relationship marketing Implementing relationship marketing Index.

A Strategic Framework for CRM The Strategy Development Process The Value Creation Process The Multi-Channel Integration Process The Information Management Process The CRM Performance Assessment Process Organising for CRM Implementation Chapter references CRM reading list

The authors argue that there are trends currently present in industry and management which require human resource (HR) managers to have much higher levels of competence and skills. Concepts and techniques from marketing can provide means by which HR managers can be more effective. It is also pointed out that Chief Executive Officers have failed to recognize the importance of HR managers in their organizations — a weakness for which HR managers must also carry some blame.

Purpose – The aim of this chapter is to investigate how a focal market actor may design or redesign business models for improved value co-creation.Findings – We posit that value is co-created in use as actors integrate resources in practices, which makes practices a fundamental unit of value creation. Greater density of resources, relevant to a specific practice and to the goals or mission of the actor, corresponds to greater value. The role of a provider is to support other actors in their value-creation processes by providing resources that 'fit' into their practices.We identify 12 categories of business model design elements that need to be defined and developed in parallel. We conclude that a focal actor needs to strive for both intra-actor and inter-actor (meso-level) configurational fit of business model elements in order to enable purposeful co-creation in specific practices.Finally, we propose that meso-level configurations develop in a three-phase process of origination, mobilization and stabilization. A focal actor wishing to improve co-creation in a network needs to develop value propositions not only for customers but also for other actor domains. Overall, the performative power of a market actor is dependent on its network position, the relative strength of its business model and the actor's ability to author compelling meanings.Originality – The research contributes to the discussion on value co-creation by identifying three shifts in the unit of analysis: (1) we argue that use-value is co-created as actors integrate resources in practices, rendering practices a fundamental unit of analysis, (2) as practices are outcomes of business models, we identified business model design as a key unit of analysis for the improvement of value co-creation and (3) our view on business models is network-centric and we focus on how to introduce new business model elements in a specific actor network.Practical implications – The realization of the fact that value creation occurs in networks of interdependent actors pinpoints the need for increased transparency both between functional silos and between actors. The business model framework identifies 12 design elements, which can act as a 'checklist' for managers wanting to engage in co-creative business models.

Forward-looking firms are increasingly viewing markets as malleable and plastic systems that can be influenced. Hence, they are engaging in market-shaping to proactively augment existing business opportunities or to create new ones. One of the recurring themes in the emerging market-shaping literature is the importance of value propositions. Consequently, the purpose of this paper is to identify configurations of value proposition characteristics that are effective for focal firms engaging in market-shaping strategies. In our empirical study, we analyze market-shaping actions carried out by 21 case firms using fuzzy-set qualitative comparative analysis. We identify four characteristics of market-shaping value propositions: (1) enhanced resource integration and related support as the core content of market-shaping value propositions, and (2) collaborative value proposing process, (3) systemic and verified value promise, and (4) new representations used in communication as the design characteristics of market-shaping value propositions. Further, we show that even though value propositions can shape markets without displaying all four of these characteristics, none of these characteristics alone can create all the expected outcomes. Hence, we identify distinct configurations of value proposition characteristics that are successful in either changing the elements comprising the market system or inducing an overall system-level market change.

Value propositions (VPs) can play a major role for the strategy development and implementation process in B2B markets. While being recognized as one of the firm's most important organizing principles, the VP concept is still poorly understood and executed in many B2B firms and scholarly research provides limited guidance on how to develop and implement VPs in B2B markets. This article re-assesses the VP in the context of both strategy and implementation. It undertakes a review of extant conceptual frameworks and identifies key elements that are overlooked and/or not addressed. A new conceptual framework for addressing VP design and development is offered, which incorporates five key interrelated phases of implementation that need to be comprehensively addressed. This research provides a theoretically sound and practically applicable VP development framework, integrating the firm's strategic considerations, ensuring a fit between its business model and customers' needs, and reflecting the nature of B2B markets through its dynamic perspective. In addressing key implementation issues, the article provides firms with a robust approach to addressing the dynamic competitive environment, as well as taking into account changing customer needs.

The creation and delivery of value to customers is of increasing interest to researchers and practitioners. This paper identifies and reviews nine core streams of literature that have been influential on current research in the field of customer value. It argues that while much of the literature has focused on value creation for the customer, the relationship-marketing paradigm demands a broader view that includes other stakeholders. Two new perspectives that fit this broader view, customer value and shareholder value and relationship value are investigated and the implications of integrating a value orientation with a relationship marketing approach are discussed.

Value as a theme in the relationship marketing literature is gaining increasing attention. In particular, the synthesis of value concepts with a multi-stakeholder approach to relationship marketing has been the subject of recent interest. Building on earlier work, this article explores how key elements of relationship value can be integrated through a focus on three key stakeholder groups: employees, customers and shareholders. The linkages between employee value, customer value and shareholder value, including the research on the service-profit chain, are explored. The paper also explores the extent to which linkage models or enterprise performance models, which integrate these components of value, have been adopted by organisations. Two case studies are used to illustrate the practical application by organisations seeking to develop enterprise performance models.

The evolution of relationship marketing managing the six markets customer retention and loyalty integrating quality, customer service and marketing future directions in relationship marketing.

In recent years we have seen a radical shift in management thinking. Interest in service quality improvement, which had some early and superficial expression as customer care, is being refuelled by a number of problem‐solving techniques (with origins in total quality management) and broad‐based staff involvement with those techniques (with origins in participative management). These practices are not new but they are now often fused together in one integrated service quality programme. Every industry is now potentially a “service” industry. Every company has the opportunity to design and market its own unique set of service quality solutions to meet customer requirements. This demands practical approaches to monitoring service quality and diagnostic approaches to problem‐solving on an on‐going relationship marketing basis. This article puts a new emphasis on the meaning of internal marketing and brings to the fore and examines the linkages between services marketing and quality management, especially service (re)design, which is the critical link often ignored by marketers.

The key to success in service business now lies with concentrating on, and retaining, existing customers. Marketing therefore must be seen as a total approach with the customer firmly at the centre. Describes the relationship marketing ladder as the progression from conversion of a prospect into a customer, then into a client, from client to supporter, to advocate and, finally, to partner. Outlines the economic benefits of retaining customers. Emphasizes the link between quality, client retention and profitability.

Relationship marketing has taken off over the past 10 years with a burst of vigour. Were relationships staring marketers in the face and were we too preoccupied to see them? We begin with a short historical perspective on the origins of relationship marketing. A discussion on future directions and theory development based around the concept of value exchange follows. A `view from the edge' of chaos is then offered. We conclude that marketing as a discipline is forever changed.

Purpose – Research into the identification and development of value propositions has recently been identified as a key research priority by the Marketing Science Institute. The purpose of this article is to identify and develop a process for value proposition deconstruction that can help organizations transform their value propositions in order to gain an improvement in their competitive position. Design/methodology/approach – A case study of an exemplar organization in the health care sector is used to develop an approach for value proposition deconstruction. Using the business system concept as a theoretical framework, the key value-adding elements that comprise this organization's value proposition are identified. A leading financial services firm is used to demonstrate how this learning approach can be successfully applied in developing a new and innovative value proposition. Findings – Using the business system framework, a structured process for deconstructing value propositions is developed. This framework is extended to explicitly acknowledge the value-in-use that results from different encounters, to incorporate learning processes and to recognize its interactive and recursive nature. Practical implications – The authors provide practitioners with insight into how to formulate new or improved value propositions. Originality/value – This work addresses two important and previously unaddressed research questions: how can the process of deconstruction of an exemplar organization's value proposition provide a more comprehensive understanding of the elements that comprise a superior value offering; and how can this process be applied to other organizations seeking to improve their value proposition?

Purpose This paper aims to develop a conceptual framework based on the identification and examination of the mechanisms (termed “viability mechanisms”) under which market-shaping activities yield the emergence of a viable market: one able to adapt to the changing environment over time while remaining stable enough for actors to benefit from it. Design/methodology/approach This paper uses extant literature to build a conceptual framework identifying viability mechanisms for market shaping and a case illustration examining how a viable market for Finnish timber high-rise buildings was created. The case exemplifies how the identified viability mechanisms are practically manifested through proactive market shaping. Findings The proposed conceptual framework incorporates four viability mechanisms identified in the extant literature: presence of dissipative structures, consonance among system elements, resonance among system elements and reinforcing and balancing feedback loops. It illustrates how these mechanisms are manifested in a contemporary case setting resulting in a viable market. Practical implications First, firms and other market-shaping organizations should look for, or themselves foster, viability mechanisms within their market-shaping strategies. Second, as failure rates in innovation are extremely high, managers should seek to identify or influence viability mechanisms to avoid premature commercialization of innovations. Originality/value This study identifies how these viability mechanisms permit markets to emerge and survive over time. Further, it illuminates the workings of the non-linear relationship between actor-level market-shaping actions and system-level market changes. As such, it provides a “missing link” to the scholarly and managerial discourse on market-shaping strategies. Unlike much extant market-shaping literature, this study draws substantively on the systems literature.

Customer Relationship Management is a holistic strategic approach to managing customer relationships to increase shareholder value, and this major Handbook of CRM gives complete coverage of the key concepts in this vital field. It is about achieving a total understanding of the concepts that underlie successful CRM rather than the plethora of systems that can be used to implement it.Based on recent knowledge, it is underpinned by:* Clear and comprehensive explanations of the key concepts in the field* Vignettes and full cases from major businesses internationally* Definitive references and notes to further sources of information on every aspect of CRM* Templates and audit advice for assessing your own CRM needs and targetsThe most lucid, comprehensive and important overview of the subject and an invaluable tool in enabling the connection of the major principles to the real world of business.

Part I. Introduction: 1. Strategic customer management Part II. Relationship Marketing: 2. Relationship marketing: development and key concepts Case study 2.1. Myspace - the rise and fall Case study 2.2. Placemakers - success factors in the building supplies sector 3. Customer value creation Case study 3.1. BT (British Telecommunications) - creating new customer value propositions Case study 3.2. Zurich Financial Services - building value propositions 4. Building relationships with multiple stakeholders Case study 4.1. AirAsia spreads its wings Case study 4.2. The City Car Club, Helsinki - driving sustainable car use 5. Relationships and technology: digital marketing and social media Case study 5.1. Hippo in India - using Twitter to manage the supply chain Case study 5.2. Blendtec - the 'will it blend' viral marketing initiative Part III. Customer Relationship Management: Key Processes: 6. Strategy development Case study 6.1. Tesco - the relationship strategy superstar Case study 6.2. Samsung - from low-cost producer to product leadership 7. Enterprise value creation Case study 7.1. Coca-Cola in China - bringing fizz to the Chinese beverages market Case study 7.2. Sydney Opera House - exploring value creation strategies 8. Multi-channel integration Case study 8.1. TNT - creating the perfect customer experience Case study 8.2. Guinness - delivering the 'Perfect Pint' 9. Information and technology management Case study 9.1. Royal Bank of Canada - building client service commitment Case study 9.2. The DVLA - innovating with CRM in the public sector 10. Performance assessment Case study 10.1. Sears - the service profit chain and the Kmart merger Case study 10.2. The Multinational Software Company - driving results with a metrics dashboard Part IV. Strategic Customer Management Implementation: 11. Organising for implementation Annex: the comprehensive CRM audit Case study 11.1. Nationwide Building Society fulfilling a CRM vision Case study 11.2. Mercedes-Benz - building strategic customer management capability Index.

Relationship marketing and customer relationship management (CRM) can be jointly utilised to provide a clear roadmap to excellence in customer management: this is the first textbook to demonstrate how it can be done. Written by two acclaimed experts in the field, it shows how an holistic approach to managing relationships with customers and other key stakeholders leads to increased shareholder value. Taking a practical, step-by-step approach, the authors explain the principles of relationship marketing, apply them to the development of a CRM strategy and discuss key implementation issues. Its up-to-date coverage includes the latest developments in digital marketing and the use of social media. Topical examples and case studies from around the world connect theory with global practice, making this an ideal text for both students and practitioners keen to keep abreast of changes in this fast-moving field.

The concept of value in relationship marketing is a theme of increasing interest. This paper examines the concepts of employee value, customer value and shareholder value and the linkages between them. It reviews research on the service‐profit chain framework and other related models and then discusses the extent to which linkage models or enterprise performance models, which integrate these components of value, have been adopted by organisations. An example is used to illustrate the adoption and use of an enterprise performance model. Implications for the retail financial services sector are considered.

CRM - Top of the management agenda A strategic framework for CRM The strategy development process The value creation process The channel and media integration process The information management process The performance assessment process CRM investments and shareholder value The future of CRM - What opinion leaders think.

Abstract Given today's concerns about the impact of globalisation on the developing world, companies must demonstrate that they are operating responsibly, and work to become more accountable to stakeholders. At the same time there is continuing debate as to the proper role and responsibilities of companies in relation to that of governments when it comes to sustainable development. A cornerstone of British American Tobacco's corporate social responsibility strategy is the initiation of partnerships with non‐governmental organisations (NGOs) to address issues of mutual concern that impact on sustainable development. This paper describes in detail two such partnerships, one focused on preserving biodiversity, the other on trying to eliminate child labour in tobacco growing. it is argued that business‐NGO partnerships such as these can add an extra dimension to the contribution that companies can make themselves in terms of helping the communities and countries in which they operate meet their sustainable development needs. Copyright © 2006 John Wiley & Sons, Ltd.

Strategy consultants have much to offer a top executive in terms of improving the bottom line. Yet little is known about the strategy consulting industry, because the firms and their clients are often reluctant to disclose details of their activities. This article surveys the leading strategy consulting firms and explores trends affecting the future of the industry.

Customer Relationship Management presents a ground-breaking strategic framework for successful CRM policy. Built around Professor Payne's five key processes, the book demonstrates a systematic management progression that will guarantee the maximum impact and efficiency of a CRM programme.The book backs up these five processes - strategy development, value creation, channel and media integration, information management and performance assessment - with 16 best practice case studies which set the universal theory in a specific practical context. These feature a range of companies, including Orange, Brittania, Homebase, Canada Life, Sun Microsystems, Natwest, Sears, Roebuck & Co., Nortel Networks and Siemens. The book concludes with interviews from four thought leaders, offering a 'futures' vision forum for CRM.Customer Relationship Management is a vital instrument for anyone who needs to know how to develop and measure effective CRM within an organization. It includes overviews and key learning points preceding each case study, and a summary chapter to draw out the most salient lessons from CRM best practices. For practitioner or academic alike, this is essential reading.

Many benchmarking initiatives are driven by an academic or government desire to understand the position of industry sectors relative to each other or to those of other nations. In contrast, for managers striving to compete and drive their businesses forward, this generalised approach is secondary to their need for tools which are applicable in their own company and which give them direct benefits. Observing that benchmarking has proved very powerful in manufacturing, the Chartered Institute of Marketing (CIM) invested in research to establish a similar approach in marketing. Benchmarking was defined as a system which incorporates three essential elements: measurement, processes, and a defined, measured, aspirational 'benchmark'. This paper describes a unique benchmarking tool designed specifically for marketing processes (CIMBA), developed by the CIM. It enables both marketers and senior executives in non-marketing functions to identify the role of marketing in their organisation and to measure the proces...

The hypothesis was tested that broadly-defined managerial functions can be sub-divided on the basis of their members' internal and external task orientations, and that the resulting subfunctions are, respectively, predominantly “adaptive” or “innovative” in terms derived from Kirton's adaption-innovation theory. Data from samples of British (N = 115) and Australian (N = 123) mid-career managers undertaking MBA programs who completed the Kirton Adaption-Innovation Inventory (KAI) and provided employment histories displayed the expected patterns of task orientation and cognitive style. Implications for adaption-innovation theory and the management of organizational change are briefly discussed.

Marketing and services Marketing planning for services - the process and the problems Marketing planning phase one - the strategic context Marketing planning phase two - the situation review Marketing planning phase three - marketing strategy formulation Marketing planning phase four - resource allocation, monitoring and detailed planning Organising for marketing planning A step-by-step marketing planning system of services Examples of marketing plans Glossary of marketing planning terms

A novel series of benzodiazepine derivatives have been discovered as inhibitors of PDE4 enzymes. We have found that our compounds are selective versus other PDE enzymes, and that the activity can be modulated by specific structural modifications. One compound exhibited a strong eosinophilic infiltration inhibiting action on sensitized Brown-Norway rats (compound 9, 5.1 mg/kg p.o.), moreover this compound is not emetic at 3 mg/kg i.v.

The use of management consultants to assist the process of strategy development has been the topic of much interest in recent years. In particular, the strategy consulting firms have received much attention through their development of, and association with, strategic frameworks and concepts. Despite this, relatively little is known about the management consulting industry and even less about the practices of those consultants operating at the strategic levels in organizations. This paper provides an analysis of the strategy consulting industry in the United Kingdom. It surveys the management consultants involved in strategy consulting and identifies their size and the extent of their activities in such work. It reviews the type of strategy assignments currently being undertaken and discusses some CEO's assessment of the consultant's work. Guidelines are provided for managers considering the use of management consultants for strategy work.

Arranged in 6 sections, this title gives marketing practitioners and students critical examples of best practice from a variety of companies. Alongside 'Relationship Marketing: bringing quality, customer service and marketing together' and 'Relationship Marketing for Competitive Advantage: winning and keeping customers' this new title provides readers with insights into marketing in the 21st century.

AbstractSince the publication of Levitt’s (1980) ‘total product concept’, there has been an increasing recognition that additional supplementary elements, beyond the core product, can have a profound impact on customer value. Lovelock’s (1995) supplementary services model further develops this concept by providing more specific guidelines regarding where to seek value enhancement. However, there is little empirical validation of his theoretical model across the services sector. Our paper addresses this gap in three ways. First, we assess the soundness of Lovelock’s model across different service businesses by adopting a form of interaction research. Second, drawing upon findings from this process, we then develop a revised model of supplementary services. Finally, we propose an implementation framework for our revised model of supplementary services.Keywords: supplementary servicesproduct augmentationdifferentiationflower of service AcknowledgementsThe authors wish to thank the executives participating in this study.Additional informationNotes on contributorsPennie FrowPennie Frow is Associate Professor in Marketing in the Discipline of Marketing at the University of Sydney Business School, Australia. Previously she was Visiting Fellow at Cranfield School of Management, Cranfield University, UK, and a Senior Consultant at the Cranfield Marketing Planning Centre. Before joining academia, she was Chief Marketing Officer of a major British charity and Managing Director of a US distribution company. Her main research interests are managing customer relationships, employee commitment, customer retention, developing a customer-oriented culture and internal marketing. She serves on the review board of a number of international journals. Her publications have appeared in a range of academic publications, including the Journal of Marketing, Industrial Marketing Management, the Journal of the Academy of Marketing Science, the Journal of Business Research, the Journal of Marketing Management and the Journal of Services Marketing.E pennie.frow@sydney.edu.auLiem Viet NgoLiem Viet Ngo is a Senior Lecturer in Marketing at the School of Marketing, University of New South Wales, Australia, where he is also Director of the Master of Commerce in Marketing. His research has been published in the Journal of Product Innovation Management, the Journal of Marketing Management, the British Journal of Management, Industrial Marketing Management, the European Journal of Marketing, the Journal of Business Research, and the European Business Review, among others.E liem.ngo@unsw.edu.auAdrian PayneAdrian Payne is Professor of Marketing at the Australian School of Business, University of New South Wales, Australia and Visiting Professor at Cranfield School of Management, Cranfield University, UK. His main research interests are CRM, service marketing and relationship marketing. His publications have appeared in the Journal of Marketing, the Journal of the Academy of Marketing Science, the Journal of Business Research, Industrial Marketing Management, the Journal of International Business Studies, the European Marketing Journal, Long Range Planning, and Human Relations and Marketing Theory. His books include: The Handbook of CRM: Excellence in Customer Management; Relationship Marketing: Creating Stakeholder Value; and Creating a Company for Customers. He serves on the review board of a number of international journals.

Preface vii The structure of this book and how to use it ix List of figures xi 1 Marketing and services 1 2 The nature of services marketing 23 3 Marketing planning for services: the process 49 4 Marketing planning for services: the problems 63 5 Marketing planning Phase One: the strategic context 79 6 Marketing planning Phase Two: the situation review (Part 1) 107 7 Marketing planning Phase Two: the situation review (Part 2) 141 8 Marketing planning Phase Three: marketing strategy formulation 183 9 Marketing planning Phase Four: resource allocation, monitoring and detailed planning (Part 1: the budget, the service product plan and the communications plan) 213 10 Marketing planning Phase Four: resource allocation, monitoring and detailed planning (Part 2: price, place, people, processes and customer service) 267 11 Organizing for marketing planning 307 12 Measuring the effectiveness of marketing plans for service businesses 347 13 A step-by-step marketing planning system for service businesses 373 Examples of marketing plans 411 Glossary of marketing planning terms 469 References 477 Index 485

The hypothesis that broadly defined managerial functions can be subdivided on the basis of their members′ internal and external task orientations, and that the resulting subfunctions are, respectively, predominantly “adaptive” or “innovative” in terms of Kirton′s adaption‐innovation theory, was tested. Data from samples of British (N = 115), Australian (N = 123) and American (N = 131) mid‐career managers undertaking MBA programmes who completed the Kirton Adaption‐Innovation Inventory (KAI) and provided employment histories displayed the expected patterns of task orientation and cognitive style. Implications for adaption‐innovation theory and the management of organisational change are briefly discussed.

Relationship marketing is concerned with how organizations manage and improve their relationships with customers for long-term profitability. Customer relationship management (CRM), which is becoming a topic of increasing importance in marketing, is concerned with using information technology (IT) in implementing relationship marketing strategies. This paper reports on a study of the adoption and use of CRM in the financial services sector. In particular, the key elements of CRM are examined in these organizations and executives' perceptions of the main IT components that enable responsive CRM are explored. CRM is classified into five stages of sophistication and a framework for CRM adoption is developed.

This paper describes an empirical investigation of Australian midcareer managers which was suggested by Kirton's (1976) theory of adaptive-innovative cognitive style. Two hypotheses were tested: (a) that broadly defined managerial functions can be subdivided on the basis of their internal or external task orientations, and (b) that the cognitive styles of members of the resultant subfunctions will be either predominantly adaptive or predominantly innovative. Data were obtained from a sample of Australian midcareer managers on Master of Business Administration programs (N = 123) who completed the Kirton Adaption-Innovation Inventory (KAI) and provided detailed career histories. Expected patterns of task orientation and cognitive style were found. Managerial leadership should be sensitive to the preferences, abilities, and aspirations of those managers whose characteristic style is marked by stability and continuity as well as those whose contribution naturally takes the form of pathbreaking change.

Supplier firms are increasingly seeking new ways to personalize their offers and differentiate their products, especially in contested digital markets. One approach that shows promise involves encouraging customers to participate in pricing decisions using schemes such as “pay-what-you-want” where the customer has an input into determining the price. These approaches can benefit both the customer in terms of paying a reasonable price and reducing risk, and the supplier in terms of increasing sales and generating deep customer insights that can assist in relationship development. However, extant research shows limitations associated with these pricing approaches and, despite some qualified successes, there has not been widespread adoption in businesses. This study extends consideration of existing participative pricing schemes and proposes a new conceptual framework, termed FairPay. This framework overcomes many of the limitations of previous approaches, while addressing important challenges, especially those faced by many digital product suppliers. The framework offers an attractive pricing solution for both customers and suppliers, ensuring an equitable exchange that is based on value-in-use. We discuss the application of this framework in the context of digital products, where the approach has special promise.

Customer value propositions have experienced a growing interest among marketing scholars and managers in recent years. Despite its frequent mention in the business and academic press, the value proposition concept remains poorly understood and executed. This article introduces the reader to the special issue of Industrial Marketing Management on understanding and managing customer value propositions. The special issue combines five original research articles with four commentaries by though‑leading scholars and practitioners that together shed light on the origins and current use of the value proposition concept and also identify future research directions for improving our conceptual understanding and practical use of this pivotal concept in business markets.

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The spectacular growth in marketing and service businesses in the last few decades in all developed economies has been largely due to the favorable business environment which prevailed over this period. Today, the business environment is more competitive and this calls for a more analytical and strategic approach that only thorough and detailed marketing planning can provide. This chapter presents a broad-ranging review of marketing and services. It also outlines a detail map of marketing which highlights the point that marketing is a professional function needing high-level skills. This map of marketing addresses four key related activities: define market and deliver value; determine the service value proposition; deliver the service value proposition; and monitor value.

Using co-pricing as a means for gaining deep customer insights offers much potential, ultimately expanding profitability and markets. Models of co-pricing could provide new basis for segmenting customers, based on their perceptions of value. Involvement in co-pricing decisions can also offer opportunities for enhancing relationships, building trust, fairness and commitment between a supplier and customer. A firm can develop value propositions and use them as part of a dynamic learning process that occurs between customer and supplier. Customer segments can be determined based on value perceptions, with each requiring discrete value propositions that are designed around relationship goals. Breakthrough opportunities relating to the special challenges of digital services are highlighted.

This article proposes a cross-situational specialization framework for what, at its introduction, was a newer generation personal computer (PC) device (a tablet computer). With use as the basis for continuance adoption as the theoretical lens, this article explores how the tablet coexists as a substitute- and a complement-in-use with incumbent PC(s). To test a model consisting of cross-situational use patterns, determinants, and outcomes, this article develops and analyzes the results of a survey of tablet computer use in a learning and education context. The results show a stronger coexistence between the tablet and the incumbent devices when the devices perform the same tasks in different, compared to the same, situations. Additionally, use of the PC devices as distinct units depends more on the situational sophistication of their features for use than sophistication of the devices <italic xmlns:mml="http://www.w3.org/1998/Math/MathML" xmlns:xlink="http://www.w3.org/1999/xlink">per se</i> . Further, user perception of the tablet's in-use impact depends on its performance in situations where the incumbent devices have limited sophistication, while user perception of the tablet as an essential device depends on its extension of the uses of the incumbent devices to different situations. This article implies that when a newer generation personal mobile device is an imperfect substitute for incumbent PC devices, individual adoption of such a mobile device may facilitate a partial reversal of information technology adoption in organizations.

Purpose The purpose of this study is to examine how servicescapes impact well-being and satisfaction of both hospital customers (patients) and health care professional service providers. Design/methodology/approach The study investigates how a hospital servicescape impacts two critical outcomes – well-being and satisfaction – of both hospital patients (customers) and health care professionals, who are immersed in that environment. Findings The hospital servicescape had a greater impact on physical, psychological and existential well-being for professionals than for patients. However, the reverse was true for satisfaction. The new servicescape enhanced the satisfaction and physical and psychological well-being of professionals but only the satisfaction of customers. Research limitations/implications The study implications for health care policy suggest that investment in health care-built environments should balance the needs of health care professionals with those of customers to benefit their collective well-being and satisfaction. Practical implications Based on the findings, the authors propose that servicescape investments should focus on satisfying the physical needs of patients while also placing emphasis on the psychological needs of professionals. Social implications Health care spending on physical facilities should incorporate careful cost-benefit analysis, ensuring that beneficial features for both user groups are included in new hospital designs, omitting features that are less supportive of well-being. Originality/value To the best of the authors’ knowledge, this study is the first to compare the impact of the same real-life servicescape on the satisfaction of both customers and service providers (professionals) and considers the critical health outcome of well-being.

Managers are increasingly using external consultants for the provision of a wide range of professional management services. The article discusses the structure of the consulting industry, addresses the question of whether consultants “add value” for their clients, and describes how to identify, select and use relevant consultants.

Management Consultants have become widely involved in every functional activity across all aspects of organizational management. They are called on by companies, industry bodies, government departments, statutory corporations and nations to advise them on their problems. However, despite considerable growth in the size of the profession and the extent of their influence, little has been written about their activities in Europe. This article examines the development of the management consulting industry within Europe, and in particular the U.K., and examines its future prospects.

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Introduction by Stoyan TanevValue proposition (VP) development has become the subject of growing research interest in the last 20 years. The number of research studies has grown especially in the last 5 years, including several recent review papers summarizing key developments and identifying directions of future research (Goldring, 2017; Eggert et al., 2018; Bailetti et al.,

This White Paper sets out to offer practical guidance by suggesting that companies approach CRM in two stages: determine the business’s CRM strategy and select and combine the appropriate technology options

The purpose of this chapter is to explain how this customer relationship management (CRM) paradigm using knowledge and learning approaches might be adapted to the needs of firms adopting CRM. By employing experiential learning theory, the chapter aims to explain an approach to overcome the dark side of CRM, with the concept of learning behaviour arising from failure, in order to improve firms CRM performance. It explains the CRM dark side from the management perspective and explores how organisations can overcome the dark side of CRM by linking varying CRM aspects with the concept of learning behaviour from failure. This chapter incorporates an additional construct learning behaviour from failure to explore the opportunities for the CRM strategy so as to learn how to recover and exploit unique knowledge. The chapter also propose that managers working with CRM need to emphasise understanding failure as felt by the individuals who are able to deal with failure.