Preface to the Fourth Edition

In the three years since the last edition of this book, the world of business has undergone some radical transformations. In 2009, the global financial crisis (GFC) was just taking hold – few could have foreseen its dramatic consequences. The major economies of the USA, Britain and Western Europe have been struggling with the combined effects of recession, rising unemployment, spiralling sovereign and personal debt levels, and heightened consumer uncertainty. Businesses have been forced to deal with the most difficult economic environment since the Great Depression of the 1930s. In these circumstances, marketing capabilities have come under ever greater scrutiny. Businesses are competing more fiercely for reduced levels of consumer expenditure, so innovative products and services need to be developed, and delivered in ever more creative ways in a ‘noisy’ marketplace.

One of those interesting innovations to really take hold in the past three years has been social media. Facebook, which was founded in just 2004, has gone on to claim over 600 million members by 2011 making it one of the largest ‘countries’ in the world. Tweeting has become part of the general lexicon as more and more people use Twitter to find out about what is going on or to stay in touch. While some critics argue that social media may become a victim of its own hype, these large audiences provide interesting challenges and opportunities for organizations. Many are trying to develop a social media strategy or to figure out the role of social media in integrated marketing communications. Some have been successful in building their interactions with these communities; others much less so.

And in terms of how we think about marketing there have been some subtle changes also. While value has always been key to marketing, it is increasingly assuming centre stage. Many of the classic distinctions in marketing such as the marketing mix (4Ps) and products versus services have been losing some of their explanatory power. Instead value is the concept that captures the essence of modern marketing. In global, highly competitive and fast-moving markets, organizations of whatever type need to be clear about what value they are offering and communicate this value to their audiences. But the process is no longer one-way. In a networked world, value is often co-created between organizational partners and often jointly by organizations and consumers. This is the era of the consumer who can blog about their poor experiences with products, tweet their interesting ideas or upload videos of their innovations. A value-centred approach to marketing is more important than ever.