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SERVICE MARKETING SD LOGIC

Presented by Group 8

Vinod Soni 110

Vipin Jain 111

Yasmin Gupta 112Ashish Aggarwal 113

Abhishek 115

Vikram Yadav 116

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Service Dominant Logic

http://www.youtube.com/watch?v=BegxLWmKapU

http://www.youtube.com/watch?v=qB8_gCGO

Ylo&feature=related

http://www.youtube.com/watch?v=gWN9VPu7Xi8&feature=related

http://www.youtube.com/watch?v=BegxLWmKapUhttp://www.youtube.com/watch?v=BegxLWmKapUhttp://www.youtube.com/watch?v=qB8_gCGOYlo&feature=relatedhttp://www.youtube.com/watch?v=qB8_gCGOYlo&feature=relatedhttp://www.youtube.com/watch?v=gWN9VPu7Xi8&feature=relatedhttp://www.youtube.com/watch?v=gWN9VPu7Xi8&feature=relatedhttp://www.youtube.com/watch?v=gWN9VPu7Xi8&feature=relatedhttp://www.youtube.com/watch?v=gWN9VPu7Xi8&feature=relatedhttp://www.youtube.com/watch?v=gWN9VPu7Xi8&feature=relatedhttp://www.youtube.com/watch?v=qB8_gCGOYlo&feature=relatedhttp://www.youtube.com/watch?v=qB8_gCGOYlo&feature=relatedhttp://www.youtube.com/watch?v=qB8_gCGOYlo&feature=relatedhttp://www.youtube.com/watch?v=BegxLWmKapUhttp://www.youtube.com/watch?v=BegxLWmKapUhttp://www.youtube.com/watch?v=BegxLWmKapU

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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)

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Shift in Focus fromOperand to Operant Resources

Operand Resources

Resources upon which an operation or act isperformed to produce an effect

primarily physical resources, goods, etc

Operant Resources

Resources that produce effects

e.g., primarily knowledge and skillscompetences

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Evolution of Marketing Thought

To Market

(Matter in Motion)

Market To

(Management ofCustomers

& Markets )

Market With

(Collaborate with

Customers & Partners

to Create & Sustain

Value)

Through 1950 1950-2005 2005+

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Foundational Premises

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

exchanged for service

FP2. Indirect exchange masks the fundamentalunit of exchange. Micro-specialization, intermediaries, and money

obscure the service-for-service nature of exchange

FP3. Goods are distribution mechanisms forservice provision. Activities render service; things render service

(Gummesson 1995) : goods are appliances

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Foundational Premises (2)

FP4. Knowledge is the fundamental source ofcompetitive 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 usedexperienceand perception are essential to value determination

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Foundational Premises (3)8

FP7. The enterprise can only make valuepropositions. Since value is always determined by the customer (value-in-

use)it can not be embedded through manufacturing (value-in-exchange)

FP8. A service-centered view is inherentlycustomer oriented and relational Operant resources being used for the benefit of the customer

places the customer in the center of value creation andimplies relationship.

FP 9. Organizations exist to combinespecialized competences into complexservice that is demanded in the marketplace. The firm is an integrator of macro and micro-specializations

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Evolving Toward a

Service-Dominant Lexicon

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

G-D Focus S-D Focus

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An S-D LogicDefinition of Marketing

Marketing is the process in society andorganizations that facilitates voluntaryexchange through collaborative relationships

that create reciprocal value through theapplication of complementary resources. Therefore marketing can be viewed as the means

by which societies are able to create valuethrough the voluntary exchange of knowledge andskills.

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S-D Logic Can Direct Macro/Public

Policy

From goods to service(s).

Tax policy to encouragefirms to retain tangiblegoods and sell service

flows?

From tangible toknowledge resources.

Tax policy to encourageinvestments in education

and skill development vs.housing.

From operand to operantresources.

Public policy toencourage collaborationvs. competition.

From value in exchange tovalue in use.

Public data collection onvalue in use and homeproduction.

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The Inversion

Products(units of output)

Goods Services(Intangible goods)

Service(processesapplied

competences)

DirectIndirect

(Goods--Appliances)

Goods Logic Service Logic

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Marketings Service Dominant Logicand Customer Value

Key Learning

- Foundational Premises 1, 6 & 8 areinterrelated.

- Customer Value Concept (Value added concept,Economic worth of a customer, Economic worth of asellers perspective/ service offerings & Value in use)

- Customer Value as a phenomenon like

- Implications

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Going Beyond the Product

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Cross Functional Business Processes forthe Implementation of SD Logic

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Organization

CRM approach Economic worth of theconsumer shift to Value to use approach

Relationship Management

Customer Value change

Market Sensing

Value Propositions

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Conclusion

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Thank you!!!