This book provides a clear practical introduction to shareholder value analysis for the marketing professional. It gives them the tools to develop the marketing strategies that will create the most value for business. For top management and CFOs the book explains how marketing generates shareholder value.

Preface ix About the Author xiii PART I Principles of Value Creation 1 Marketing and Shareholder Value 3 Introduction and objectives Managing in the twenty-first century Measuring success: shareholder value Marketing’s lost influence Marketing’s new opportunity The shareholder value principle Challenges to shareholder value Accounting-based performance measures The changing role of marketing Summary 2 The Shareholder Value Approach 36 Introduction and objectives Principles of valuation Shareholder value Economic value added Financial value drivers Marketing value drivers Organisational value drivers Marketing applications of shareholder value Limitations of shareholder value analysis Summary 3 The Marketing Value Driver 73 Introduction and objectives A new definition of marketing Creating customer value Building the differential advantage Building relationships with customers Implementing relationship marketing Organisational requirements The customer-focused organisation Summary 4 The Growth Imperative 105 Introduction and objectives Marketing, growth and shareholder value Pathways to growth Developing a growth strategy Summary PART II Developing High-Value Strategies 5 Strategic Position Assessment 151 Introduction and objectives An overview Assessing the current position Explaining the current position Projecting the future of the business Implications of the strategic position assessment The value-based plan Strategic objectives Summary 6 Value-Based Marketing Strategy 189 Introduction and objectives Why strategic marketing plans? Corporate level planning Business unit planning The planning process Summary PART III Implementing High-Value Strategies 7 Building Brands 227 Introduction and objectives The role of intangible assets The role of the brand Brands and shareholder value How to build brands Issues in branding Organising the brand portfolio Valuing the brand Summary 8 Pricing for Value 262 Introduction and objectives Price and shareholder value Pricing principles Setting the price Adapting prices to customers and products Changing the price Price management Summary 9 Value-Based Communications 300 Introduction and objectives Communications and shareholder value Communications and customers Developing a communications strategy Allocating across communications channels Valuing communications strategies Summary 10 Value-Based Marketing in the Digital Age 325 Introduction and objectives The growth and development of the Internet Drivers of change in the new economy Creating value through the web Implications for marketing strategy Building the brand on the Internet Future perspectives Summary Glossary 350 The Advisory Board 351 Index 355

This is the second edition of Value-Based Marketing. As with the first edition, it makes a powerful case for marketing’s role in an organisation’s success by establishing it on a sound intellectual basis. It answers critics of marketing who claim that it has not had the impact on management that its importance merits because of unclear objectives and weak intellectual foundations. This book emphasis marketing’s contribution to long-term shareholder value creation, which is the governing objective of management today. It explores, at both the strategic and tactical level, how this affects marketing planning, decisions about brands, pricing, communications and distributions. For marketing professionals, the book provides a clear practical introduction to shareholder value analysis. It gives them the tools to develop the marketing strategies that will create the most value for the business. For top management and CFOs, the book explains how marketing generates shareholder value. It shows how top management should evaluate strategies and stimulate more effective and relevant marketing in their companies. Where relevant, case studies and illustrations have been updated. An essential text for MBAs.