BOOK REVIEW

Doyle, P. (2000) Value Based Marketing. Wiley, 357 pages.

This book has been described as ground breaking and the author himself states the aim of the book is ‘to redefine the purpose of marketing and how its contribution should be measured'. He forcefully argues that marketing should be held accountable for its impact on business and that the objective of marketing is to create shareholder value (SV). He is careful to point out that shareholder value and maximizing profitability are not the same thing and that a focus on SV does not mortgage the long term for short term gains. Additionally, he posits that marketing is the key driver of SV.

Throughout the ten chapters, Doyle provides rigorous examples and analysis of how marketing strategies can and should evaluated form a SV perspective and he also stresses the importance of intangible assets such as brand equity.

Overall, the book is a must read for all senior managers and marketing practitioners. A word of warning however, measurement does not mitigate the need for creative thinking and common sense.