This third edition of Total Relationship Marketing confirms it as a classic text on the subject of relationship marketing and CRM, areas which have become accepted – and debated – parts of marketing but are currently undergoing dramatic change.
A major contribution to marketing thought internationally, this seminal title presents a powerful in-depth analysis of relational approaches to marketing where the three words relationships, networks and interaction are king. The book effects a dramatic shift in the fundamentals of marketing thought, with the author’s refined model of thirty relationships, the 30Rs, presenting a sophisticated and cogent challenge to the traditional 4Ps schema. Previous editions were widely praised as breakthrough texts in the field, combining incisive and searching analysis with an accessible and pragmatic approach to putting the theory to work.
This third edition is the first book on relationship marketing and CRM to integrate the ongoing evolution in marketing through the service-dominant logic, lean consumption and the customer’s value chain, the augmented role of the customer in value creation, the increasing importance of customer-to-customer (C2C) interaction, network-based many-to-many marketing, and marketing accountability and metrics. It addresses both the high tech, information technology aspects of marketing and the high touch, human aspects. Further, customer-centricity is suggested to be broadened to balanced centricity, a trade-off between the needs of all stakeholders of a network of relationships. Examples, cases, concepts and references have been updated.
Highly informative, practical in style and packed with illustrations from real companies, Total Relationship Marketing is an essential resource for all serious marketing practitioners as well as undergraduate and postgraduate students.
'An informed and innovative approach . . . Gummesson has provided a vivid demonstration of the ubiquity of relationships in marketing.'
PHILIP KOTLER, Distinguished Professor of International Marketing, Northwestern University, USA
“There is no one I know who knows more about relationship marketing than Evert Gummesson. In this third edition of Total Relationship Marketing he provides an informed and innovative approach to relationship marketing, CRM, Return on Relationships, and the suppliers’ and customers’ roles in the valuecreating network economy.”
S.C. Johnson Distinguished Professor of International Marketing, Kellogg School of Management, Northwestern University, USA
“A corporation, its employees and management operate within multiple relationships to customers, suppliers, the media, banks and numerous others. With its broad approach to relationship marketing Gummesson’s book has become a classic. This updated third edition clearly shows the critical role of relationships for the enhancement of service and profits in today’s economic reality.”
Chief Human Resources Officer and Member of the Board of Management, Deutsche Telekom AG, Bonn, Germany
“In this third edition of Total Relationship Marketing
Evert Gummesson integrates his thirty relationships with new developments in marketing, among them the service-dominant logic, the network thinking of manyto-
many marketing, and the value-creating economy where intellectual capital is many times as important as its financial capital. Do as the author says: Put on the relationship eye-glasses and rethink your marketing!”
President of UNIC and Professor of Intellectual Capital, Lund University,Sweden, and the Hong Kong Polytechnic University
“Evert Gummesson invites readers to think about relationship marketing in new and exciting ways. This is a fascinating, worthwhile book.”
Leonard L. Berry
Distinguished Professor of Marketing, the Mays Business School, Texas A&M University, USA
“The ideas of Gummesson’s book are trend-setting realities in the new context of today’s business, characterized by networks and relationships.
Particularly important for all managers, whether they are responsible for specific marketing aspects of a firm’s value creation, or whether they are general managers.”
President and The Nestlé Professor, IMD, Lausanne, Switzerland
“Evert Gummesson is a pioneer in the field of relationship marketing. He is an original and stimulating thinker whose insights and ideas are essential reading for anyone who is seeking to understand the role of marketing in a rapidly changing global environment. This book is an important contribution to the literature of marketing.”
Michael J. Baker
Professor Emeritus, Founding Editor Journal of Marketing Management and Journal of Customer Behaviour, UK
Figures and tables
Preface and acknowledgements
Chapter 1 Rethinking marketing
What are RM, CRM and 1to1?
Society is a network of relationships - and so is business!
The roots of RM
Basic values of marketing
RM versus transaction marketing
Common sense, intuition and experience
What do we see through the relationship eye-glasses?
General properties of relationships, networks and interaction
The 30Rs of RM - introductory specification of thirty relationships
Chapter 2 Classic market relationships
Relationship 1 The classic dyad - the relationship between the supplier and the customer
Relationship 2 The classic triad - the drama of the customer-supplier-competitive triangle
Relationship 3 The classic network - distribution channels
Chapter 3 Special market relationships
Relationship 4 Relationships via full-time marketers (FTMs) and part-time marketers (PTMs)
Relationship 5 The service encounter - interaction between customers and service providers
Relationship 6 The many-headed customer and the many-headed supplier
Relationship 7 The relationship to the customer's customer
Relationship 8 The close versus the distant relationship
Relationship 9 The relationship to the satisfied customer
Relationship 10 The monopoly relationship - the customer or supplier as prisoners
Relationship 11 The customer as 'member'
Relationship 12 The e-relationship
Relationship 13 Parasocial relationships - relationships to brands and objects
Relationship 14 The non-commercial relationship
Relationship 15 The green relationship
Relationship 16 The law-based relationship
Relationship 17 The criminal network
Chapter 4 Mega relationships
Relationship 18 Personal and social networks
Relationship 19 Mega marketing - the real 'customer' is not always found in the marketplace
Relationship 20 Alliances change the market relationships
Relationship 21 The knowledge relationship
Relationship 22 Mega alliances change the basic conditions for marketing
Relationship 23 The mass media relationship
Chapter 5 Nano relationships
Relationship 24 Market mechanisms are brought inside the company
Relationship 25 Internal customer relationships
Relationship 26 Quality and customer orientation: the relationship between operations management and marketing
Relationship 27 Internal marketing - relationships with the 'employee market'
Relationship 28 The two-dimensional matrix relationship
Relationship 29 The relationship to external providers of marketing services
Relationship 30 The owner and financier relationship
Chapter 6 Do RM and CRM pay?
Return on relationships (ROR)
Satisfaction, loyalty and ROR
Duration, retention and defection
Customer interaction, triplets and tribes
Intellectual capital and the balanced scorecard
Return on the non-measurable
ROR and the whole network
Strategies for improved ROR
An RM-inspired marketing plan and audit
Chapter 7 RM, the network organization and the network society
Introducing the new organization
Nobody has seen a corporation!
The company and the market: two phenomena, or two perspectives on the same phenomenon?
Paradoxes of organizations
The human ratio: internal and external 'employees'
From delimited structures to boundaryless processes
Our need for security
Synthesis 1: from exclusive hierarchies to inclusive networks and processes
Synthesis 2: from partial to complete marketing equilibrium
Chapter 8 The genesis of RM and CRM
Theoretical contributions to RM
Current RM and CRM literature: a comparison with the 30R approach
Synthesis of theories and experiences to a more general marketing theory
Chapter 9 In conclusion - RM and CRM provide a paradigm shift!
A paradigm shift in marketing
RM, CRM and the 4Ps
The value society and the network society, modernism and post-modernism
Epilogue: approaching the end of the book - or the beginning?