...An Overview Of Service Dominant Logic Marketing Essay It is thought that the service-dominant logic view of marketing provides a valuable contribution to the dialogue about necessary and evolving change to marketing. This assignment will be evaluating the impacts on the marketing activities undertaken by firms in both strategic and relationship marketing concepts. From 18th to 19th century, there were major changes in agriculture, mining, transporting and manufacturing. Industrial revolution was the main reason for these changes which had emerged in the Western countries and then eventually influenced the world. It was led by the creation of division of labour which caused exchange, productivity and efficiency. Industrial revolution was the beginning of a shift from agriculture to manufacturing. Therefore, massive material production took its place. As the production was based on standardised goods, the marketing focus became entirely on the output. Thus, the materialistic idea became dominant which is called ‘Good-Dominant Logic' (G-D). Nevertheless, there was another milestone which has been substantially experienced by high-income countries is moving from manufacturing to service sector. It is believed that this change also has resulted in major changes in marketing approaches. As the outcome in services is not tangible, the old approach cannot fully apply in services (Shostack, 1977). Moreover, there has been a change in the aspects of goods itself. The decider and creator...
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...Service-dominant logic: continuing the evolution Stephen L. Vargo & Robert F. Lusch Received: 3 July 2007 / Accepted: 6 July 2007 / Published online: 1 August 2007 # Academy of Marketing Science 2007 Abstract Since the introductory article for what has become known as the “service-dominant (S-D) logic of marketing,” “Evolving to a New Dominant Logic for Marketing,” was published in the Journal of Marketing (Vargo, S. L., & Lusch, R. F. (2004a)), there has been considerable discussion and elaboration of its specifics. This article highlights and clarifies the salient issues associated with S-D logic and updates the original foundational premises (FPs) and adds an FP. Directions for future work are also discussed. Keywords Service-dominant logic . New-dominant logic . Service Introduction In the few years since we published the first article on what has become known as “service-dominant (S-D) logic,” “Evolving to a New Dominant Logic for Marketing” (Vargo and Lusch 2004a), there has been substantial concurrence, debate, dialog, and inquiry. These varied responses began with the seven commentaries invited by Ruth Bolton (2004), the Journal of Marketing editor who published the article. Additionally, in the publication of The Service-Dominant Logic of Marketing: Dialog, Debate and Directions (Lusch and Vargo 2006b), 50 well-recognized scholars reacted and responded to and elaborated S-D logic. The reactions and elaborations continued in the Otago Forum...
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...the need for services, despite the importance of the service and the pivotal role it plays in achieving sustainability and loyalty by customers. Nowadays, and with the increasing the need for services and after Vargo and Lusch invite the researchers to think and increase their interest in service dominant logic due to its effectiveness and its strategic role in the integration and customer loyalty. The drafting style of marketing is a challenge in both services and goods, and comes through studies and analyses of the target market sector , and to improve the marketing mix level commensurate with satisfying the needs of customers, as we know that all of the intangible services and tangible goods arrive together to satisfy the needs of customers which need several ways and methods in a way of marketing them. This paper aims to analyze the impact of the service dominant logic which is developed Vargo (2008) in a modern concepts of the marketing in terms of relationship between the company and the customer and to expand beyond social trends such as relations and cooperation between the company and the consumer including participation, dialogue and discussion. Also , by taking into consideration the literature relating to the service dominant logic and methods of developing in order to achieve sustainability and loyalty . Vargo (2008) focused in his researches on the service dominant logic challenging the good dominant logic and its potency in the world of marketing. In his article...
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...University of Hawaii at Manoa Service-dominant logic & Marketing audit report: Hanh Phat Consultancy NGUYEN Thanh Hanh – Vemba 9 Hanoi Table of Contents A. “Marketing” vs “marketing” concept and Service – dominant logic Concept Explanation ………………………………………………………………………….2 Implementation in my practical business……………………………………………………...2 B. Marketing Audit Report: Hanh Phat Consultancy Executive Summary………………………………………………………………………….. 3 Company Introduction………………………………………………………………………3-4 Mission Statement……………………………………………………………………………..4 Situation & SWOT analysis ……………………………………………………………...4-5 Customers Equity & Competition………………………………………………………….6 Portfolio Analysis using Boston Consulting Group & GE Matrixes……………………..6-7 Segmenting, Targeting, Positioning ………………………………………………………..8 Marketing Mix ……………………………………………………………………………...9 Product, Price, Place, Promotion……………………………………………………………9 Conclusion and Recommendations……………………………………………………….10-11 A. “Marketing” vs “marketing” concept and Service – dominant logic Concept Explanation In my viewpoint, the two ideas of Peter Drucker and S Vargo on marketing try to convey an important message in analysing the “Marketing” that is not only a sole activity to engage in the market with its own business strategy but also “marketing” with involving the whole business to finalize the result based on customers’ needs, wants and requirements...
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...S-D LOGIC Service-dominant (S-D) logic defines service as the application of competencies for the benefit of another entity and sees mutual service provision, rather than exchange of good, as the proper subject of marketing (Lusch & Vargo, 2006). Service, rather than goods is the basis of economic and social exchange. The idea of it is that organizations, marketing and society are basically concerned with exchange of service. The service that provided requires company to use specialized skills and knowledge to deliver the service to customers. In other words, service is always exchanged for service. According to Vargo and Lusch (2008a), goods become valuable to customers as service appliance, which it serves as distribution mechanisms for service and the value provided is at the time of its use, as value-in-use. Customers buy goods not just exchange money for goods, but the service and solutions that can provide by the goods. For example, customers who buying a heater is because of the solution, which is keep the customers warm that it provides. This is the service provided by the heater. Differences of G-D Logic and S-D Logic Traditional perspective refers to good-dominant (G-D) logic. G-D logic is centered on the good and based on value-in-exchange, in which the value is created through exchange of money and goods in the market. The economic exchange is fundamentally concerned with units of output that are embedded with value during manufacturing process (Vargo &...
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...“Taking a Leadership Role in Global Marketing Management” Marketing theory has traditionally revolved around a logic which in today’s hyper-competitive market is becoming less and less effective- that is, “Goods Dominant Logic”. It focuses on selling more in order to maximize profitability. This understanding of marketing is centralized around the valuation that which is tangible, and is used as a basis from measuring an economies performance. In today’s market, a more comprehensive, inclusive, and effective marketing understanding is required for a company to excel, and achieve true value provision- that is, “Service-Dominant Logic” (SDL). This marketing logic explores a much deeper relationship between the members of the value-exchange channel, whether inter-departmental relations within a firm, or firm-customer relations. For the SDL to be adopted, a firm’s core ideology must revolve around co-creating value with the customers. It’s a matter of value proposition, where value is weighed by the service that fulfills the accentuated need. The SDL puts most emphasis on the intangible; the exchange that ensues is an exchange of the intangible. It plays on the desired experience that is offered through the service that the good provides. Tangible resources decay, while intangible resources such knowledge is a source of true value. The underlining premise of the SDL is encompassed in “treating others the way you want to be treated”, which in essence puts relationships above...
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...homepage: www.elsevier.com/locate/emj Service co-production and value co-creation: The case for a service-oriented architecture (SOA) q Andrea Ordanini a,*, Paolo Pasini b a b Bocconi University, Viale Filippetti, 9, 20122 – Milan, Italy SDA Bocconi, School of Management, Via Bocconi, 8, 20136 – Milan, Italy Available online KEYWORDS Service dominant logic; Co-production; Service management Summary An emerging marketing management logic proposes a new perspective on service activities, which previously have been subject to a biased goods-dominant logic. According to this new logic, customers always are co-producers of services and co-creators of value, not simple marketing targets, because they mobilize knowledge and other resources in the service process that affect the success of a value proposition. This article explores this key proposition, analyzing service co-production and value co-creation phenomena in the business-to-business segment and focusing on the case of service-oriented architecture (SOA) with an in-depth, qualitative analysis of two firms pioneering the implementation of SOA solutions. Ó 2008 Elsevier Ltd. All rights reserved. Introduction Marketing literature and practice converge around the idea that, especially when it comes to services, customers play different foundational roles in value-creation mechanisms. Marketing theory recently introduced the concept of the service dominant logic (SDL), according to which the customer...
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...Research proposal Consumer choice of service provision in services industries Birgit Rettinger Author: Dipl.-Kffr. Birgit Rettinger Doctoral Student ESCP-EAP European School of Management Berlin Chair of Marketing (Prof. Dr. Frank Jacob) Heubnerweg 6 14059 Berlin Germany T: ++49 (0) 30 / 3 20 07-129 F: ++49 (0) 30 / 3 20 07-118 birgit.rettinger@escp-eap.de I. Introduction In the past decade the range of service provision modes in services industries has increased considerably especially as information technology got increasingly sophisticated. Accordingly, the phenomenon of multiple service provision options, owned by one company and providing similar services simultaneously is relatively new (Neslin et al. 2006). Moreover, modified consumer habits and lifestyles have led to altered attitudes concerning modes of service provision. At the same time, there has be a growing call for a paradigm shift to customer focus and value creation (see for instance, Sheth and Sisodia 2003). In line with this, the notion of the consumer‟s part in value creation has changed. Consumers now are seen as actively involved in creating value instead of being only passive responders (Beckett and Nayak 2008; Vargo and Lusch 2004; Xie et al. 2008). II. Statement of the Problem and Purpose of the Study The research is intended to focus exclusively on the consumer‟s perspective concerning the choice of service provision in services industries. This is regarded as consistent...
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...CHAPTER 1 One more time: what is marketing? MICHAEL J. BAKER The enigma of marketing is that it is one of man’s oldest activities and yet it is regarded as the most recent of the business disciplines. Michael J. Baker, Marketing: Theory and Practice, 1st edn, Macmillan, 1976 Introduction As a discipline, marketing is in the process of transition from an art which is practised to a profession with strong theoretical foundations. In doing so it is following closely the precedents set by professions such as medicine, architecture and engineering, all of which have also been practised for thousands of years and have built up a wealth of descriptive information concerning the art which has both chronicled and advanced its evolution. At some juncture, however, continued progress demands a transition from description to analysis, such as that initiated by Harvey’s discovery of the circulation of the blood. If marketing is to develop it, too, must make the transition from art to applied science and develop sound theoretical foundations, mastery of which should become an essential qualification for practice. Adoption of this proposition is as threatening to many of today’s marketers as the establishment of the British Medical Association was to the surgeon–barber. But, today, you would not dream of going to a barber for medical advice. Of course, first aid will still be practised, books on healthy living will feature on the bestsellers list and harmless...
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...................8 II. Impacts of the concept co-creation on film tourism. ........... 9 III. Case study: Co-creation in case of Studio Tour with examples Lord of the ring tours and Harry Potter tours ................... 12 IV. Conclusion ............................................................ 17 References ................................................................ 18 Page | 2 Introduction Globalization has had a great impact on economic activities, of course, including services. Wilson, Zeithaml et al (2012) explained that services are not tangible things that can be touched, seen and felt, but are rather intangible deeds and performances. Similarly, Ballantyne and J. Varey mentioned in their paper that services is an interactive process of “doing something for someone” that is value. In fact, all activities of economic always have at least a connection to the service. Nowadays, most of the process of business actitivites would be grounded in services logic, theory and...
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...“Selling and marketing are antithetical rather than synonymous or even complementary. There will always be, one can assume, a need for some selling. But the aim of marketing is to make selling superfluous. The aim of marketing is to know and understand the customer so well that the product or service fits him and sells itself.” (Drucker 1973, pp.64-65) In the early years of the ‘70s era, Drucker was one of the first educators and authors who identify marketing as a way to understand customers’ needs rather than to sell the products. With the same thinking as Drucker, in a journal article named Marketing Myopia (1960), Theodore Levitt examines and analyzes limitations of managers in approaching the philosophy of modern business. The core of this article is to criticize myopic visions of managers who always pay attention to their selling targets as well as their firms’ without perceiving that the most crucial goal in business is to satisfy customers, not to sell products. In order to illustrate his view, Levitt (1960) take the railroad industry as a typical example for the failure in its business at that time. In this case, he points his finger on the railroads’ disorientation as the main culprit in making their customers to use others such as cars, trucks, airplanes and even telephones instead of being royal travelers to the old traditional transportation. In other words, the railroads killed their business by themselves because they determined their industry in a wrong mind...
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...Case Report Banque Accord Table of contents 1. Banque Accord...............................................................................................................3 2. Problem Definition.........................................................................................................3 3. Analysis..........................................................................................................................4 3.1 Extend services.............................................................................................................4 3.2 Expand markets............................................................................................................5 3.3 Engage customers.........................................................................................................6 4. Conclusion .....................................................................................................................7 5. Appendices.....................................................................................................................8 6. References......................................................................................................................9 1. Banque Accord Banque Accord is a fully-owned subsidiary of the Auchen mass retailer group. Being a bank with backing from a huge retailer has given Banque Accord unique opportunities to tap on such as the ability to better communicate with consumers and retail...
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...Chapter 2 Goods, Products and Services Glenn Parry, Linda Newnes, and Xiaoxi Huang 2.1 Introduction Defining terminology is a useful starting point when reading or writing on the subject of service to prevent any confusion or assumptions that we all understand the terms to mean the same thing. So, what do we mean by goods, products and services? This is a book about service, but what is a ‘service’ and how is it different to ‘goods’ or ‘products’? Whilst most people intuitively know the difference between a product and service, actually defining this difference with clarity and accuracy of text is not straight forward. The terms ‘goods’ and ‘products’ appear to be used interchangeably in much of the literature, but even here we can find debate about meaning (Araujo and Spring 2006; Callon 1991, 2002). However, for the sake of brevity we will here accept that they both refer to the same thing and focus on attempts to differentiate goods and services. This quest is far from straightforward. Since the early eighteenth century academics and scholars from different domains have attempted to define these terms explicitly (Say 1803; Levitt 1981; Hill 1999; Gadrey 2000). In this chapter we will attempt to illustrate their findings in order to provide some background to the debate. 2.2 Goods In the eighteenth century Adam Smith (1776) stated that goods have exchangeable value and so a characteristic of a good is that its ownership rights can be established and exchanged...
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...CHAPTER 1 Understanding Services Marketing True-False Questions |Ans: T |1. T F Compared to physical goods, services are the dominant economic activity in developed | |Page: 6 |countries around the world. | |Ans: T |2. T F A service is defined as a performance. | |Page: 7 | | |Ans: F |3. T F Services marketing is identical to goods marketing. | |Page: 8-9 | | |Ans: T |4. T F Distinguishing service and physical goods along a continuum from intangible dominant | |Page: 8-9 |services to tangible dominant physical goods is a good way to differentiate services | | |marketing from goods marketing. | |Ans: T |5. T F The proportion of tangibles to intangibles in a product determines whether it is a | |Page: 8-9 ...
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...Roles, authority and involvement of the management accounting function: a multiple case-study perspective Caroline Lambert HEC, Paris 1, rue de la Libération 78351 Jouy en Josas Cedex lambert@hec.fr Samuel Sponem Conservatoire National des Arts et Métiers GREG-CRC (EA 2430) samuel.sponem@cnam.fr Acknowledgements The authors are grateful to participants at the European Accounting Association Conference 2009, the Accounting department ESSEC seminar, France, and at the seminar of Ecole de Comptabilité de l’Université Laval, Québec, Canada for their constructive comments on earlier drafts of this paper. They also wish to thank and useful suggestions of members of the CriM group, Martin Messner and Juhani Vaivio. We would particularly like to thank Markus Granlund and the two anonymous reviewers for their many helpful comments and suggestions. Both authors thank ‘Fondation HEC’ and ‘Agence Nationale de la Recherche’ for their fundings. Abstract Recent techniques and shifts in the environment are often foreseen as leading management accountants to adopt a business orientation. However, empirical evidence pointing to fundamental shifts in the roles played by management accountants remains relatively scarce. We explore this paradox and give sense to the various roles played by the management accounting function by focusing on how management accountants are involved in and endowed with authority in decision-making situations. Using data we gathered from 73 interviews in ten...
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