SERVICE MARKETING SD LOGIC

Presented by Group 8

Vinod Soni 110 Vipin Jain 111 Yasmin Gupta 112 Ashish Aggarwal 113 Abhishek 115 Vikram Yadav 116

Service Dominant Logic

http://www.youtube.com/watch?v=BegxLWmK apU http://www.youtube.com/watch?v=qB8_gCGO Ylo&feature=related http://www.youtube.com/watch?v=gWN9VPu7 Xi8&feature=related

Service

The application of specialized competences (knowledge and skills) through deeds, processes, and performances for the benefit of another entity or the entity itself (self-service)

Shift in Focus from Operand to Operant Resources

Operand Resources
Resources
primarily

upon which an operation or act is performed to produce an effect

physical resources, goods, etc

Operant Resources
Resources
e.g.,

that produce effects

primarily knowledge and skillscompetences

Evolution of Marketing Thought

Market With (Collaborate with Customers & Partners to Create & Sustain Value)

To Market (Matter in Motion)

Market To (Management of Customers & Markets )

Through 1950

1950-2005

2005+

Foundational Premises

FP1. The application of specialized skill(s) and knowledge is the fundamental unit of exchange.

Service (application of skills and knowledge) is exchanged for service

FP2. Indirect exchange masks the fundamental unit of exchange.

Micro-specialization, intermediaries, and money obscure the service-for-service nature of exchange

FP3. Goods are distribution mechanisms for service provision.

Activities render service; things render service (Gummesson 1995) : goods are appliances

Foundational Premises (2)

FP4. Knowledge is the fundamental source of competitive advantage

Operant resources, especially know-how, are the essential component of differentiation

FP5. All economies are service economies.

Service only now becoming more apparent with increased specialization and outsourcing

FP6. The customer is always a co-creator of value.

There is no value until offering is usedexperience and perception are essential to value determination

Foundational Premises (3)

8

FP7. The enterprise can only make value propositions.

Since value is always determined by the customer (value-inuse)it can not be embedded through manufacturing (valuein-exchange)

FP8. A service-centered view is inherently customer oriented and relational

Operant resources being used for the benefit of the customer places the customer in the center of value creation and implies relationship.

FP 9. Organizations exist to combine specialized competences into complex service that is demanded in the marketplace.

The firm is an integrator of macro and micro-specializations

Evolving Toward a Service-Dominant Lexicon

G-D Focus

S-D Focus

Operand Resources Tangible Value Added Goods Products Transactional Units of Output Promotion Brand Equity Profit Maximization

Operant Resources Intangible Co-creation of value Service Experiences Relational Processes Conversation/Dialog Customer Equity Financial Feedback

An S-D Logic Definition of Marketing

Marketing is the process in society and organizations that facilitates voluntary exchange through collaborative relationships that create reciprocal value through the application of complementary resources.
Therefore

marketing can be viewed as the means by which societies are able to create value through the voluntary exchange of knowledge and skills.

S-D Logic Can Direct Macro/Public Policy

From goods to service(s). Tax policy to encourage firms to retain tangible goods and sell service flows? From operand to operant resources. Public policy to encourage collaboration vs. competition. From tangible to knowledge resources. Tax policy to encourage investments in education and skill development vs. housing. From value in exchange to value in use. Public data collection on value in use and home production.

The Inversion

Goods Logic
Products
(units of output)

Service Logic
Service
(processesapplied competences)

Goods

Services
(Intangible goods)

Indirect
(Goods--Appliances)

Direct

Marketings Service Dominant Logic and Customer Value

Key Learning - Foundational Premises 1, 6 & 8 are interrelated. - Customer Value Concept (Value added concept,

Economic worth of a customer, Economic worth of a sellers perspective/ service offerings & Value in use)

- Customer Value as a phenomenon like - Implications

Going Beyond the Product

Cross Functional Business Processes for the Implementation of SD Logic

Organization

CRM approach Economic worth of the consumer shift to Value to use approach Relationship Management Customer Value change Market Sensing Value Propositions

Conclusion

Thank you!!!