Relationship Marketing The Chartered Institute of Marketing/Butterworth-Heinemann Marketing Series is the most comprehensive, widely used and important collection of books in marketing and sales currently available worldwide As the CIM’s official publisher, Butterworth-Heinemann develops, produces and publishes the complete series in association with the CIM We aim to provide definitive marketing books for students and practitioners that promote excellence in marketing education and practice The series titles are written by CIM senior examiners and leading marketing educators for professionals, students and those studying the CIM’s Certificate, Advanced Certificate and Postgraduate Diploma courses Now firmly established, these titles provide practical study support to CIM and other marketing students and to practitioners at all levels Formed in 1911, The Chartered Institute of Marketing is now the largest professional marketing management body in the world with over 60,000 members located worldwide Its primary objectives are focused on the development of awareness and understanding of marketing throughout UK industry and commerce and in the raising of standards of professionalism in the education, training and practice of this key business discipline Books in the series Below-the-line Promotion, John Wilmshurst The CIM Handbook of Export Marketing, Chris Noonan The CIM Handbook of Selling and Sales Strategy, David Jobber The CIM Handbook of Strategic Marketing, Colin Egan and Michael J Thomas CIM Marketing Dictionary (fifth edition), Norman A Hart Copywriting, Moi Ali Creating Powerful Brands (second edition), Leslie de Chernatony and Malcolm McDonald The Creative Marketer, Simon Majaro The Customer Service Planner, Martin Christopher Cybermarketing, Pauline Bickerton, Matthew Bickerton and Upkar Pardesi The Effective Advertiser, Tom Brannan Integrated Marketing Communications, Ian Linton and Kevin Morley Key Account Management, Malcolm McDonald and Beth Rogers Market-led Strategic Change (second edition), Nigel Piercy The Marketing Book (third edition), Michael J Baker Marketing Logistics, Martin Christopher Marketing Research for Managers (second edition), Sunny Crouch and Matthew Housden The Marketing Manual, Michael J Baker The Marketing Planner, Malcolm McDonald Marketing Planning for Services, Malcolm McDonald and Adrian Payne Marketing Plans (third edition), Malcolm McDonald Marketing Strategy (second edition), Paul Fifield Practice of Advertising (fourth edition), Norman A Hart Practice of Public Relations (fourth edition), Sam Black Profitable Product Management, Richard Collier Relationship Marketing, Martin Christopher, Adrian Payne and David Ballantyne Relationship Marketing for Competitive Advantage, Adrian Payne, Martin Christopher, Moira Clark and Helen Peck Retail Marketing Plans, Malcolm McDonald and Christopher Tideman Royal Mail Guide to Direct Mail for Small Businesses, Brian Thomas Sales Management, Chris Noonan Trade Marketing Strategies, Geoffrey Randall The Fundamentals of Corporate Communication, Richard R Dolphin Relationship Marketing Strategy and implementation Helen Peck, Adrian Payne, Martin Christopher, Moira Clark Published in association with The Chartered Institute of Marketing OXFORD AUCKLAND BOSTON JOHANNESBURG MELBOURNE NEW DELHI Butterworth-Heinemann Linacre House, Jordan Hill, Oxford OX2 8DP 225 Wildwood Avenue, Woburn, MA 01801-2041 A division of Reed Educational and Professional Publishing Ltd A member of the Reed Elsevier plc group First published 1999 © Helen Peck, Adrian Payne, Martin Christopher and Moira Clark 1999 All rights reserved No part of this publication may be reproduced in any material form (including photocopying or storing in any medium by electronic means and whether or not transiently or incidentally to some other use of this publication) without the written permission of the copyright holder except in accordance with the provisions of the Copyright, Designs and Patents Act 1988 or under the terms of a licence issued by the Copyright Licensing Agency Ltd, 90 Tottenham Court Road, London, England W1P 9HE Applications for the copyright holder’s written permission to reproduce any part of this publication should be addressed to the publishers British Library Cataloguing in Publication Data A catalogue record for this book is available from the British Library ISBN 7506 3626 Typeset by Avocet Typeset, Brill, Aylesbury, Bucks Printed and bound in Great Britain by Biddles Ltd, Guildford and King’s Lynn Contents Foreword Acknowledgements Biographies Relationship marketing: The six markets framework Introduction The Six Markets model Further perspectives The Six Markets model revised More questions of priority and structure Experience in using the Six Markets model Summary References ix xi xiii 1 11 22 23 26 28 28 The customer market domain: Managing relationships with buyers, intermediaries and consumers 33 Introduction 33 Buyers, intermediaries and consumers 34 Segmentation and analysis of the customer market domain 37 The decision-making unit 42 Customer acquisition and customer retention 43 Summary 51 References 52 Chapter case studies 53 Case 2.1 Nestlé Buitoni: The house that mamma built 64 Case 2.2 Carlton Electronics 75 Case 2.3 Does Tesco hold all the cards? 79 Case 2.4 Rover Cars: The Catalyst and Conquest ’91 direct marketing programmes 97 Case 2.5 Direct Line Insurance Plc 111 vi Contents Case 2.6 Relationship marketing: The RSPB – a bird in the hand 127 The supplier and alliance market domain Strategic outsourcing Supplier development Supply chain management Creating win–win relationships in the supply chain Creating successful alliances References Chapter case studies Case 3.1 Supplier relationships at Trico Case 3.2 Cafédirect™: The building of a unique coffee brand Case 3.3 Transvaal Nickel Mines 161 165 166 168 171 173 177 178 182 The referral and influence market domains Introduction The referral market domain The influence market domain Summary References Chapter case studies Case 4.1 Ratners: A case of corporate reputation Case 4.2 Fisons: The fall from grace Case 4.3 The Body Shop International: The most honest cosmetic company in the world 220 221 222 235 246 246 247 253 268 The recruitment and internal market domains Introduction The recruitment market domain The internal market domain References Chapter case studies Case 5.1 Club Med Case 5.2 Euro Disney: The first 100 days Case 5.3 Nordstrom Inc Case 5.4 Digital Equipment Corporation: Counting the real cost of employee turnover 301 302 304 312 325 328 335 351 375 196 208 288 402 Contents Creating and implementing relationship marketing strategies Introduction People Processes Proactive/personalized service What sort of relationships with what sort of customers? Developing a six market strategy The relationship marketing plan The relationship management chain Defining the value proposition Identifying appropriate customer value segments Designing value delivery systems Managing and maintaining delivered satisfaction Organizational issues Making it happen References Chapter case studies Case 6.1 Relationship marketing: Lessons from Laura Ashley Case 6.2 Creating success through relationship marketing at British Airways Index vii 406 407 408 408 409 410 416 418 419 421 421 421 422 423 424 428 429 432 454 501 This Page Intentionally Left Blank Foreword This book completes a trilogy that began in 1991 with Relationship Marketing, which was one of the first attempts to define the newly emerging concept from which the book took its name Following this in 1995 the current team of authors produced a companion volume of selected readings, Relationship Marketing for Competitive Advantage These readings were chosen to provide a broad, multifaceted view of the by now rapidly developing arena of Relationship Marketing Such has been the interest amongst teachers and students of Relationship Marketing that we felt it appropriate to augment these first two volumes with a third, this time constructed around a number of case studies and case histories The framework used within this book is a modified version of the ‘Six Markets’ model, first advanced in the original Relationship Marketing This simple but practical framework suggests that there are a number of market domains as well as the final marketplace that must be addressed if long-term profitability is to be assured Since the development of the original Six Markets model, the authors, their colleagues and students have used this framework as the basis for assessing the extent to which true, pan-company relationship marketing strategies are applied in the world of business It has proven to be a powerful diagnostic tool, capable of aiding the development of successful relationship marketing strategies by highlighting potential weaknesses in one or more of the market domains and the stumbling blocks that may arise as a result of such neglect The Six Markets model, though continually evolving, has been used by the authors and their students in over 50 real world applications During this time the framework has demonstrated its merits through the insights it provides, establishing its worth as a practical analytical tool to explain and predict success or failure in the marketplace 496 Relationship Marketing Table 6.2.9 (continued) Airlines judged to provide the best in-flight service† (%) International members: 10 Swissair Lufthansa Singapore Airlines British Airways KLM-Royal Dutch Airlines Cathay Pacific SAS-Scandinavian Airlines Air France Thai Airways International British Caledonian UK members: 37.9 25.0 25.0 18.9 17.2 16.1 15.4 10.6 10.6 10.5 British Airways Swissair British Caledonian Singapore Airlines Cathay Pacific Airways 38.4 28.3 26.4 20.2 17.3 Airlines judged to provide the best ground service† (%) International members: 10 Swissair Lufthansa KLM-Royal Dutch Airlines British Airways Singapore Airlines SAS-Scandinavian Airlines Cathay Pacific Airways British Caledonian Airways TWA Pan Am UK members: 32.7 25.3 19.5 18.2 17.0 13.4 9.4 8.0 7.9 7.2 British Airways Swissair British Caledonian Airways KLM-Royal Dutch Airlines Lufthansa 37.7 21.0 20.3 19.3 16.2 Creating and implementing relationship marketing strategies 497 Table 6.2.9 (continued) Factors judged to be most important when choosing an airline** Under hours (%) (Rank) Convenient schedule Frequency of flights On-time performance Past experience Low fares Safety record Attitude of personnel Quality of in-flight service Aircraft type Availability of Business Class Quality of ground service National flag carrier Quality of food and drinks Frequent Flyers Programme Others *The 67.8 33.8 30.7 27.8 18.0 17.1 16.8 15.7 10.4 7.8 6.8 6.6 6.5 3.2 1.0 10 11 12 13 14 15 (%) 2-5 Hours (Rank) 59.9 13.3 22.0 28.4 19.1 18.7 21.4 29.5 14.2 14.1 5.8 4.9 15.1 3.8 0.9 11 10 12 13 14 15 Over hours (%) (Rank) 44.2 6.5 16.1 29.5 22.0 22.3 23.6 38.5 21.1 16.2 4.8 5.3 20.5 4.3 1.1 11 10 13 12 14 15 International Airline Passengers Association (IAPA) is an independent body representing frequent travellers.The data are from its 1985 survey and based on 19,000 replies †Members could nominate up to four airlines **Members could nominate up to three factors 498 Relationship Marketing Table 6.2.10 Airline performance ratings – 1995 business traveller survey Overall: Business class travel: 10 =3 =3 10 British Airways (1) Singapore Airlines Swissair (3) Virgin Atlantic (4) Cathay Pacific (%) Qantas (6) KLM (7) Thai International (9) Emirates (–) American Airlines (8) Virgin Atlantic British Airways Singapore Airlines Qantas Swissair Emirates KLM Air Canada Thai International Cathay Pacific Short-haul flights: Long-haul flights: 10 10 British Airways (1) Swissair (2) British Midland (3) Air UK (6) Crossair (–) KLM (5) SAS (4) Lufthansa (5) Singapore Airlines (7) Thai International (–) Note: 1994 position in brackets ( ) Singapore Airlines (1) British Airways (3) Virgin Atlantic (2) Qantas (4) Cathay Pacific (5) Swissair (7) Thai International (5) KLM (9) Malaysia Airlines Lufthansa (–) Creating and implementing relationship marketing strategies 499 Appendix Abbreviations, definitions and specialist terms ABBREVIATIONS AND DEFINITIONS AEA: Association of European Airlines BAA: BAA plc and its subsidiary undertakings, the successors to the former British Airports Authority BOAC: The former British Overseas Airways Corporation BEA: The former British European Airways Corporation CAA: Civil Aviation Authority IATA: International Air Transport Association ICAO: International Civil Aviation Organization vly Variation compared with last year SPECIALIST TERMS Capacity measurements Available seat kilometres (ASKs): Available tonne kilometres (ATKs): The number of seats made available for sale multiplied by the distance flown The number of tonnes of capacity available for the carriage of revenue load (passengers and cargo) multiplied by the distance flown Volume measurements Revenue passenger kilometres (RPKs): The number of revenue passengers carried multiplied by the distance flown Freight tonne kilometres (FTKs): The number of revenue tonnes of freight carried multiplied by the distance flown Cargo tonne kilometres (CTKs): The number of revenue tonnes of cargo (freight plus mail) carried multiplied by the distance flown Revenue tonne kilometres (RTKs): The revenue load (passengers and cargo) in tonnes multiplied by the distance flown Load factors Passenger load factor: RPKs expressed as a percentage of ASKs Overall load factor: RTKs expressed as a percentage of ATKs Break-even load factor: The load factor required to equate total traffic revenue with operating costs Yield measurements Revenue per RPK: Passenger revenue from scheduled operations divided by scheduled RPKs Revenue per ASK: Passenger revenue from scheduled operations divided by scheduled ASKs Revenue per RTK: Revenue from total traffic divided by RTKs Revenue per ATK: Revenue from total traffic divided by ATKs 500 Financial definitions Operating ratio: Scheduled traffic revenue: Relationship Marketing Operating revenue divided by operating expenditure Revenue generated from passengers and their excess baggage, and freight and mail on scheduled services Index Advocacy referrals, 224–7 Xerox example, 224 Air Europe, legal writ against BA, 486 Air France, 482, 486 Airbus Industries: aeroplane suppliers, 481, 489 use of alliances, 174 Airlines: comparative financial performance, 493 comparative statistics, 494–8 global alliances, 482 specialist terms list, 499–500 Alliance market domain, 22, 25, 162 bases for success, 175–6 horizontal relationships, 164, 173–4 organizational changes, 176 Animal charities, 136–7 see also Royal Society for the Protection of Birds Asda, loyalty schemes, 92, 93–4 Austin Rover, supplier relationships, 162 Automobile Association, car insurance, 118 B & Q, peat sales ban, 249, 277 Balanced Scorecard indicators, 427 Banking services, customer retention, 49 Benchmarking, 187, 189 BhS (retailer), preferred suppliers, 162 BOC, project management services, 173 Body Shop International: advocacy referrals, 226 media relationships, Body Shop International (case study 4.3), 251–2, 288–90 advertising, 296–8 background, 290–3 colour cosmetics, 298 community projects, 295–6 franchise system, 293 philosophy, 293–5 toiletries industry, 298–300 Boeing, as British Airways suppliers, 481 Branson, Richard, see Virgin Atlantic British Airways (case study 6.2), 430–1 acquisitions, 482, 487 advertising, 456–7 awards won, 470 CARESS imaging system, 484 challenges, 485–6 competition, 460–61, 486 corporate customers, 479 corporate identity, 456–7 cost cutting, 456 customer loyalty, 480 customer service, 460, 464, 465, 469, 483–4 developing brand image, 464–5, 467–8 effect of Gulf War, 466, 469, 471 effect of Tripoli bombing, 462 engine suppliers, 481 equipment purchases, 481 Executive Club, 480 future plans, 491 global view, 482, 487–90 history, 454–6 privatization, 456, 463–4 purchasing/supplier strategy, 486, 489 502 Putting People First, 458–60 recruitment problems, 461–2 relationship marketing programme, 482–5 Saatchi & Saatchi advertising campaigns, 456–7, 489 sustaining success, 471, 477–81 union influence, 487 Virgin Atlantic libel case, 485–6 British Caledonian, BA competitor, 461 Buyer, definition, 34 Cafédirect (case study 3.2): brand launch, 201–204 building consumer value, 200–201 company development, 179–80, 196–9 identifying consumer value, 199–200 launch postscript, 206 Safeway as market entry selection, 205 supermarket distribution, 204–206 Car manufacturers: building consumer relationships, 41 decision-making units, 43 sales market, 97–9 CARESS (customer analysis and retention system), British Airways, 484 Carlton Electronics (case study 2.2): background, 75–6 customer service survey, 76–8 trade markets differing demands, 55–6 Catalyst programme see Rover Group (case study 2.4) Charities Aid Foundation, 144 Charity Associations Fund (CAF), 142 Index Charity Commission of England and Wales, 142 Charity industry: competition, 135–45 donations levels, 143–5 donor fatigue, 159 effect of Lottery, 144 fund-raising, 144–5 legal requirements, 142–3 overview, 135–7 political activity, 143 Churchill Insurance, direct marketing, 115 Cisco Systems, recruitment process, 308 Civil Aviation Authority (CAA), 460–61 Club Med (case study 5.1), 328–9, 335–6 American zone office, 343–4 background, 337 history of American zone, 337–40 recruiting for American zone, 344–8 recruiting improvement options, 348–50 village organization, 340–3 Club-type approach to customers, 54 Clubcard see Tesco (case study 2.3) Co-branding, Tesco Clubcard Plus, 90 Co-Managed Inventory (CMI), 172 Coffee production, 196, 197 Company base development, 227 Company-initiated customer referrals, 227–8 Competitive advantage, 165 Competitor influence markets, 242 Competitor/firms alliances, 16 Consumer: definition, 34–5 marketing approach, 16 Index Consumer market domain, 25 Continuous Improvement Benchmarking, 187 Core firm and network partners approach, 14–15 Core processes, 408–409 Cost of quality, 167 Customer: acquisition, 43–4 company-initiated referrals, 227 defection study, 49 definition, 34 group categories, 16 intimacy, 418 loyalty, 20 profitability, 411–12 retention, 8, 17, 20, 44, 46–9 satisfaction, 7, 422–3 service to, 409–10 value segmentation, 421 Customer base development, 227–8 Customer groups identification, 15–16 Customer markets domain, 6–7, 22 building relationships, 40–1 key action steps, 50 market analysis, 39 Customization, for added value, 412–13 Daewoo, building consumer relationships, 41 Daimler-Benz, use of alliances, 174 Decision-making unit (DMU), 34, 42–3 Delivered satisfaction, 422 Dell Computers, internet selling, 37 Digital Equipment Corporation (case study 5.4), 333–4 employee turnover, 8, 402–405 Direct Line Insurance (case study 2.5): approach to insurance, 120–1 company history, 111–15 503 company organization, 125 development, 36, 60–1, 115–17 efficiency aim, 123 major products, 123–4 personal service, 7, 36, 121–3 prospects, 125–6 Disney theme parks, 352–6 Euro Disney, 363–5 service delivery, 356–7 Disney University, 330, 356, 366 Distribution options, 36 Donor pyramid concept, 150–52 Electricity supplier, customer retention strategies, 48–9 Electronic Data Interchange (EDI), shared information, 173, 417 Employee satisfaction see Job satisfaction and performance Employee turnover, Digital Equipment Corporation, 402–5 Employees: categories, 315 retention, selection, 306–10 training and development, 310–11 use of surveys, 318 Empowerment of staff, internal marketing, 322–3 Environmental influence markets, 241 Equal Exchange (partner in Cafédirect), 197 Ernest Jones (jewellers), 257–8 Euro Disney (case study 5.2), 330–1, 351–2 change decisions, 369–71 overview, 359–63 service delivery, 356–7 start-up process, 365–7 theme park design, 363–5 visitor reactions, 367–9 504 see also Disney theme parks European Operations Gatwick (EOG), 487 Extended enterprise model, 164 Fairtrade Foundation, 204, 206 Financial and investor influence markets, 239–41 First Direct: customer referrals, 225 customer satisfaction, employee training, 311 Fisons (case study 4.2), 249–51, 268 attitude to influence groups, 10 background, 268–70 disagreements with FDA, 273, 279–80, 282, 284 financial results, 277–9 management performance, 270–2 peat business, 274–7 post-Kerridge era, 281–6 Food and Drugs Administration (FDA), US, 273, 278, 279–80, 282, 284 Franchise system, Body Shop, 293 General Electric (GE) Appliance Division, Answer Centre, 40–1 Global competition, need for relationships, 12 Government/firms alliances, 16 Greenpeace, profile, 140 Guardian Royal Insurance, marketing network, 36 H Samuels (jewellers), acquired by Ratners, 257 Hedging, in nickel market, 213 Heinz, building consumer relationships, 41 Honda, collaboration with Rover, 10–11, 163–4 Index Horizontal partnerships, 164 House of Lean Production framework, 189, 191 Household insurance market, UK, 119 Human resource management, and marketing, 319 Influence markets domain, 9–10, 221, 235–7 competitor organizations, 242 developing relationships, 244–5 environmental organizations, 241 financial and investor organizations, 239–41 major categories, 237–9 political and regulatory groups, 242–3 strategic credibility, 243–4 Innovation, supplier-led, 166 Insurance, see Household insurance market, UK; Motor insurance market Insurance brokers, 115, 117 Intermediary, definition, 34 Intermediary market domain, 25 Internal customer concept, 315–16 Internal market: application of traditional concepts, 317–18 culture, 313–16 developing relationships, 323–5 empowerment of staff, 322–3, 408 importance, 408 management competencies, 321 and organizational design, 318–21 scope, 316 service quality, 316 Internal market domain, 8, 15, 302–3, 312–13 International Coffee Agreement, 196, 197 Index Internet, as distribution channel, 37 Job satisfaction and performance, 20, 314 Kanban system, 191, 194 Kerridge, John, 268–9, 270, 280 Laura Ashley (case study 6.1), 429–30 agreement with ICL, 445 alliance with Federal Express, 445 background, 432–4 Board of Directors, 1985/86, 435 Board of Directors, 1993, 452 financial crisis, 439–40 human resources policy, 446–7 new management, 440–2 operational mishaps, 448–9 post flotation, 434, 436–8 resignations, 449–50 return to profitability, 445–6 simplification strategy, 444 London Metal Exchange (LME), 208, 209 Loyalty card, Tesco, 38 Loyalty ladder, relationship, 45–6 Loyalty-based systems, 20 Asda, 92, 93–4 cycle of growth, 21 Safeway, 88 Sainsbury, 87, 89–90, 91–2 Tesco, 38, 89–90 McDonald’s, employee training, 311 McKinsey Seven-S model, 424 Managing People First (British Airways programme), 459 Market domains: detailed examination, 27 first identification, revised identification, 25 505 Market relationships: classic, 17 special, 17 Market segmentation, 37–8 by customer groupings, 421 Marketing mix, expanded, 410 Marriott Hotels: employee satisfaction, 20 employee training, 311 Mass-customization, 413 Media Natura (advertising agency), 199 Megarelationships, 17 Micro Compact Car (MCC) project, 174–5 Motor industry, collaborative practices, 10–11 Motor insurance market: direct marketing, 60–1 UK, 117–18 see also Direct Line Insurance Nanorelationships, 17 National Council for Voluntary Organizations (NCVO), 143 National Lottery, effect on charities revenue, 144 National Trust, profile, 138 Nestlé Buitoni (case study 2.1), 54–5, 68–71, 73–4 brand building, 71–3 Casa Buitoni brand image, 7, 70–1 company history, 64–7 in Europe, 74 United Kingdom developments, 67–8 Net Back Premium (NBP), 208 Nickel marketing, see Transvaal Nickel Mines Nissan, supplier development, 167 Non-customer referrals, 228 Non-market relationships, 17 506 Nordstrom Inc (case study 5.3), 331–3 advocacy referrals, 226–7 background, 375–7 company philosophy, 394 company structure, 386 core tensions, 393–6 culture formula, 382–3 detailed differentiating techniques, 384–5 expansion programme, 377–82 handling customer requests, 385–7 operating system, 387–93 social system negative effects, 396–9 Norwich Union, car insurance, 117–18 Not-for-profit sector, application of relationship marketing, 62 Operations excellence discipline, 417 Organizational structures: for internal marketing, 319–21 for process orientation, 423–4, 425–6 Outsourcing, strategic, 165 Oxfam (partner in Cafédirect), 197 Pareto Law (80/20 rule), 412 Part-time marketer, 316 Partnership sourcing, 168 supplier benefits, 171–2 Peat business, Fisons, 274–7 Peatlands Campaign, 249, 275–7 Pensions Investment and Research Consultants (PIRC), 276 People, importance in marketing, 408 Performance indicators, 427 Political and regulatory influence markets, 242–3 Index Proactive/personalized service, 409–10 Process orientation, 423–4 Processes, core, 408–9 Procter and Gamble, building consumer relationships, 42 Product leadership focus, 417 Putting People First (British Airways programme), 459 Ratners Group (case study 4.1), 248–9, 253 background, 253–5 continued losses, 261–3 growth strategy, 255–8 Institute of Directors conference, 260–1 over-extension, 259 restructuring, 263–6 US acquisitions, 258, 259 Recruitment: alternative methods, 306–9 costs, 305–6 monitoring and evaluation, 311–12 selection techniques, 309–10 training and development, 310–11 Recruitment markets domain, 8–9, 25, 302–5 Referral markets domain, 7–8, 25, 221, 222 developing relationships, 234–5 Referrals: advocacy, 223, 224–7 company-initiated customer, 227–8 customer base development, 227–8 general, 228–30 incentive-based, 231–2 non-customer, 228 reciprocal, 230–1 staff, 232–4 Index third-party, 228 Relational exchanges identification, 13–14 Relationship management chain, 419–20 Relationship marketing: 30 relationships listing, 18–19 contingency approach, 415 core firm and network partners, 14–15 multiple stakeholder perspectives, 12 network diagram, 27 origins, 2–4 plan, 418 strategy creation, 407–8, 412 ten relational exchanges, 13–14 Total Marketing comparison, 12–13 value-adding through customization, 412, 414 Resource sharing, 16 Roddick, Anita, 288, 290–1 Rodger’s seven-point plan (employee selection), 309 Rolls Royce, engine suppliers, 481 Rover Group: collaboration with Honda, 10–11, 163–4 preferred suppliers, 162 supplier association development, 182–3 Welsh Automotive Supplier Association, 182 Rover Group (case study 2.4): Catalyst programme, 99–104 Conquest ‘91 programme, 104–10 direct marketing programmes, 58–60 Interlink and Superlink programmes, 99 telemarketing, 108 507 Royal Society for the Prevention of Cruelty to Animals (RSPCA), profile, 141 Royal Society for the Protection of Birds (RSPB) (case study 2.6): chief executive, 127–8 competitor profile, 138–41 database development, 153 donor pyramid, 150–2 history, 128–9 income generation, 145 international development, 130 market research, 152–3 marketing activities, 61–3 marketing strategy, 145, 146 member retention, 153–5 membership experience, 156–7 mission statement, 130 objectives, 130 policy development, 134–5 prospects, 160 relationship marketing, 157–60 staff development, 130, 134 strategy plan, 129, 131–3 Towards 2000, 147–50, 153 5S housekeeping programme, 191, 193 Saatchi & Saatchi advertising campaigns, for British Airways, 456–7 Safeway: banking services, 92 introduction of Cafédirect, 205 loyalty card, 88 Sainsbury: banking services, 91 insurance services, 93 performance results, 93 Reward loyalty card, 87, 89–90, 91–2 Scandinavian Airline System, internal marketing, 313 Segmentation base, 37–8 508 Service profit chain, 316 Services marketing, 25 SERVQUAL instrument, 316 Shouldice Hospital, advocacy referrals, 226 Six Markets Model: basics, 4–6 developing strategy, 416–18 domains identification, global competition, 12 overlaps, 24–5 process integration, 11 revised version, 22 scope, 11 usage experience, 26–8 SMH watch company, use of alliances, 174 Source Wales (Welsh Development Agency division), 182 South Yorkshire Pensions Authority (SYPA), 276, 277, 280 Spidergram, 416 Stakeholder model, 23–4 Supermarkets: banking services, 91–3 loyalty card schemes, 87–8 see also under individual names Supermelt Vacuum Melters (SVM), 211–14 Supplier association, definition, 167 Supplier Association Partners, 182 Supplier Capability Benchmarking, 187, 189 Supplier markets domain, 10–11, 162 Supplier-led innovation, 166, 417–18 Supply chain management, 168–71 partnership benefits, 171–3 supplier development, 166–8 transformation stages, 169, 170 vertical partnerships, 164 Index Target Group Index, 200 TAT (air carrier), 482, 487 Telemarketing, Rover Group, 108 Tesco (case study 2.3): background, 79–80 banking services, 90 Clubcard experience, 85–6 Clubcard introduction, 38, 56–8, 79, 83–5 Clubcard magazine, 89 Clubcard Plus launch, 89–90 customer service, 82 improved stores, 82 performance results, 94–5 pricing initiatives, 81–2 way forward, 81 Toiletries industry, 298–300 Tokyo Disneyland, 330, 353, 358–9 Total Marketing concept, 12 Trade marketing approach, 16, 55, 56 Traidcraft (partner in Cafédirect), 197 Transaction costs, 165 Transactional marketing, 44 Transvaal Nickel Mines (case study 3.3): background, 208–10 marketing plan, 211 marketing strategy, 180–1 Supermelt Vacuum Melters (SVM), 211–14 Trico (case study 3.1): background, 182–5 supplier association, 179, 185–93 supplier relationships, 178–9 Trico Quest Supplier Association, 185–7, 194 mission statement, 188 Twin Trading (partner in Cafédirect), 197, 199, 200 Unipart, employee training, 311 USAir, 482, 485 Index Value chain, increased span, 174 Value creation, 21–2 Value delivery network, 36, 39, 421–2 Value disciplines, 415, 417 Value generating processes, 408–9 Value proposition, definition, 421 Vehicle Information Portfolio (VIP), Rover Group, 101, 102 Vendor Managed Inventory (VMI), 172 Vertical partnerships, 164 Virgin Atlantic: 509 advocacy referrals, 225 libel case against BA, 485–6 Virgin Group, media relationships, 10 Walker & Hall (jewellers), acquired by Ratners, 255 Walt Disney Company, 352–3 Welsh Automotive Supplier Association, 182 Worldwide Fund for Nature (WWF), profile, 139 Xerox, customer loyalty, 224 This Page Intentionally Left Blank ... Profitable Product Management, Richard Collier Relationship Marketing, Martin Christopher, Adrian Payne and David Ballantyne Relationship Marketing for Competitive Advantage, Adrian Payne, Martin Christopher,... selected readings, Relationship Marketing for Competitive Advantage These readings were chosen to provide a broad, multifaceted view of the by now rapidly developing arena of Relationship Marketing Such... Services and Relationship Marketing, Cranfield School of Management Adrian Payne is Professor of Services and Relationship Marketing and Director of the Centre for Relationship Marketing at the