Table Of ContentMarketing Revolution FB 9/12/05 11:01 am Page 1
The Radical New Approach
to Transforming the Business,
the Brand & the Bottom Line
MARKET NG
REVOLUT ON
Paul R Gamble, Alan Tapp,
Anthony Marsella & Merlin Stone
®
Marketing Revolution HP 9/12/05 10:58 am Page 1
MARKET NG
REVOLUT ON
DEDICATIONS
Paul R Gamble: To Jean, with love
Alan Tapp: For Mum who, like all mums, constantly reminds us to
‘count our blessings’
Anthony Marsella: To my wife Camille and children Clara, Laura
and William
Merlin Stone: To Kathryn, who has revolutionized my life
Marketing Revolution TP 9/12/05 10:58 am Page 1
MARKET NG
REVOLUT ON
The Radical New Approach
to Transforming the Business,
the Brand & the Bottom Line
Paul R Gamble, Alan Tapp,
Anthony Marsella & Merlin Stone
®
London and Sterling, VA
Publisher's note
Every possible effort has been made to ensure that the information contained in this
book is accurate at the time of going to press, and the publishers and authors cannot
accept responsibility for any errors or omissions, however caused. No responsibility
for loss or damage occasioned to any person acting, or refraining from action, as a
result of the material in this publication can be accepted by the editor, the publisher or
any of the authors.
First published in Great Britain and the United States in 2005 by Kogan Page Limited
Apart from any fair dealing for the purposes of research or private study, or criticism
or review, as permitted under the Copyright, Designs and Patents Act 1988, this
publication may only be reproduced, stored or transmitted, in any form or by any
means, with the prior permission in writing of the publishers, or in the case of repro-
graphic reproduction in accordance with the terms and licences issued by the CLA.
Enquiries concerning reproduction outside these terms should be sent to the
publishers at the undermentioned addresses:
120 Pentonville Road 22883 Quicksilver Drive
London N1 9JN Sterling VA 20166-2012
United Kingdom USA
www.kogan-page.co.uk
© Paul R Gamble, Alan Tapp, Anthony Marsella, Merlin Stone, 2005
The right of Paul R Gamble, Alan Tapp, Anthony Marsella, Merlin Stone to be iden-
tified as the authors of this work has been asserted by them in accordance with the
Copyright, Designs and Patents Act 1988.
The views expressed in this book are those of the individual authors and are not
necessarily the same as those of the Chartered Institute of Marketing.
British Library Cataloguing-in-Publication Data
A CIP record for this book is available from the British Library.
ISBN 0 7494 4385 5
Library of Congress Cataloging-in-Publication Data
Marketing revolution : the radical new approach to transforming the
business, the brand and the bottom line / Paul Gamble … [et al.].
p. cm.
ISBN 0-7494-4385-5
1. Marketing—Management. 2. Product management. I. Gamble,
Paul R.
HF5415. 13.M3584 2005
658.8—dc22
2005022212
Typeset by Saxon Graphics Ltd, Derby
Printed and bound in Great Britain by Creative Print and Design (Wales), Ebbw Vale
Contents
Acknowledgements ix
Foreword xi
Introduction 1
1 Why revolutionize marketing? 4
The rise of the new customer 4; What’s so different
about customers now? 5; The growth of choice 6; Is the
changed customer environment important? 7; Engaging
the new consumer 9; Pointing the way for marketing 13;
Reinventing marketing 13; The customer imperative 15;
An example of responding to the new customer: the
music industry 16; Marketing as a whole-company
entity 17; Spreading the marketing state of mind 19
2 What is marketing revolution? 25
Extreme competition 25; The end of the comfort zone 27;
Measuring marketing effectiveness 30; Let’s kill customer
satisfaction before it kills us 35; Sense and respond
marketing 38; Taking stock of marketing 41; Five steps to
aligning the marketing function with the corporate
agenda 43; Managing the customer journey 45;
v
Contents
The beginnings of marketing revolution 47;
Best practice at work 49
3 Customer insight 51
A new approach to insight 51; The customer experience 52;
Designing the customer experience 55; Building the
business halo 60; Customer retention and the customer
experience 62; The challenge of the new consumers 64;
Why are changing population demographics being
ignored by marketers? 66; So, why do marketers need
better customer insights? 70
4 Revolution through strategic planning 82
Enterprise as a movie studio 83; Managing
relationships 84; Strategic power issues at the
organizational level 85; How strategic planning adds
value 91; Strategic revolution through continuous
improvement 95; Summary: revolution as a journey 96
5 Revolution through segmentation 98
Why do companies find it hard to implement effective
segmentation? 99; The problems with traditional
segmentation 100; Being creative with segmentation 105;
Value-based segmentation and channel optimization 106;
Reaping the benefits of segmentation-based, multi-
channel management 110; Time-based segmentation 112;
The future of market segmentation: data fusion 118;
Opportunities from improved segmentation 118
6 Revolutionizing the company by living the brand 121
Where does branding start? 122; The brand unpicked 123;
The anatomy of a powerful brand 126; Brand
proposition 128; Brand personality 129; Brand
revolution 129; From brands as mirrors to brands as
windows 130; How the (brand) world has changed 131;
Customer-centric brands 135; Brands that attract post-
materialistic customers 137; How to revolutionize the
brand 138; Ensure employee commitment and buy-in 139;
Brand benefits for employee recruitment 140; The essence
of the brand 143
vi
Contents
7 Customer relationship management 146
Marketing at the heart of the new CRM agenda 146;
Definitions of customer relationship management
(CRM) 148; Elements of CRM 149; The underpinning
principles of CRM 151; The R in CRM: hype and
reality 155; The concerns: language not substance? 156;
How does CRM make money? 157; CRM can be
profitable 158; CRM is thriving 161; Revolutionizing the
business with CRM 163; If CRM is done right, it works 167;
Putting CRM revolution into practice 170; CRM and
corporate revolution 173
8 From customer insight to customer action 175
Is managing customers through marketing good for
business? 175; Marketing and customer management are
under the microscope 177; How to value the marketing
contribution? 178; Keys to success in using insight for
managing customers 179; The way forward: using
insight to action the marketing mix 182; Customer
insight data and marketing 183; How to turn customer
insights into action 194; Marketing revolution:
producing numbers that finance can accept 197
9 Creating the capability for operational analytics 199
The route to business solutions that add customer
value 199; Delivering value through mass-customized
marketing 201; Customer solutions 202; Implementing
solutions through operational analytics 206; Customer
equity and lifetime management (CELM)
techniques 221; Summary 222
10 From revolutionary thinking and planning to action 224
Future marketing technologies 224; Shifting
requirements 229; Developing or enhancing the technical
infrastructure 232; Data-mining methodology 239; From
bell curves to well curves 246; Dealing with complexity:
marketing resource management 249; Summary 256
11 Revolution through people 258
Are marketers smarter than frogs? 258; The pressure to
change 260; Tools and techniques 262; Diagnosing the
vii
Contents
organization: a structural analysis 265; Leading
revolutionary change: eight key steps 268; Lessons for
marketing revolution 281
12 Case studies 282
Case study 1: Loyalty management analytics and
optimization – the case of the airline frequent-flyer
programme (Finnair) 282; Case study 2: The Driver
Vehicle Licensing Agency – multichannel management
in the public sector 293; Case study 3: Tesco –
revolutionizing the business with segmentation 296
References 300
Index 304
Further reading 308
viii
Acknowledgements
Thanks go first of all to our many colleagues at IBM who have
contributed ideas to this book, especially Ralph Schuler, Rod Street,
Gavin Potter, Kevin Bishop, Paul Crick, Jennifer Love and Bryan Foss,
and to colleagues in many universities who have helped us by
exchanging ideas on the evolution of marketing, especially Clive
Nancarrow of Bristol Business School, Martin Evans of Cardiff
Business School, Malcolm McDonald and Hugh Wilson of Cranfield
Business School, Bob Shaw of City University Business School, Tim
Ambler and Paddy Barwise of London Business School, and Michael
Starkey and Len-Tiu Wright of Leicester Business School. Thanks to
IBM's many software partners for contributing ideas directly and indi-
rectly too, especially Matthew Banks at Siebel, Kevin O'Regan at
e.piphany and Mark Cerasale at SAP, and to the teams at QCi – partic-
ularly Neil Woodcock, David Williams and Paul Weston – and
OgilvyOne – particularly Nigel Howlett and Nick Orsman – with
whom IBM has worked closely to explore new developments in
managing customers. Most importantly of all, thanks to the many IBM
clients who have given us the opportunity to learn with and from them
about what revolutionizing marketing really means. Many thanks to
Malcolm Bennett of IBM for a detailed review of the manuscript.
Finally, and hopefully not too introvertedly, thanks also to Pauline
Goodwin at Kogan Page for putting up with our constantly shifting
ix
