Service-dominant logic marketing approach

What is Service-Dominant (S-D) Logic Marketing?

Service-Dominant (S-D) Logic is a mindset for a unified understanding of the purposes and nature of organizations, markets and society. The foundational proposition of S-D logic is that organizations, markets, and society are fundamentally concerned with exchange of service - the applications of competences (knowledge and skills) for the benefit of a party. That is, service is exchanged for service; all firms are
service firms; all markets are centered on the exchange of service, and all economies and societies are service based. Consequently, marketing through and practice should be grounded in service logic,principles and theories.

In line with S-D logic, it follows that instead of service marketing "breaking free" from goods marketing, as has been the pursuit of the services marketing sub-discipline for the last several decades, all of marketing needs to break free from the goods and manufacturing-based model - that is, goods-dominant (G-D) logic. S-D logic embraces concepts of the value-in-use and co-creation of value rather than the value-in-exchange and embedded-value concepts of G-D logic. Thus, instead of firms being informed to market to customers, they are instructed to market with customers, as well as other value-creation partners in the firm's value network. (StartLogic, 2018.)

The benefit of a social marketing offering is the value the customer experiences when they interact with it (whether it be using the product, trying the service or practicing the behavior). Value (or benefits) are uniquely experienced by each customer when they use our offering - not in how creatively we "package" it or persuasively "sell it". (Lefebrve, 2012.)

The 10 Foundational Premises of Service Dominant Logic (from Vargo & Lusch, 2008).
1. Service is the fundamental basis of exchange
2. Indirect exchange masks the fundamental basis of exchange
3. Goods are a distribution mechanism for service provision
4. Knowledge and skills are the fundamental source of competitive advantage
5. All economies are service economies
6. The customer is always a co-creator of value
7. The entrepreneur cannot deliver value, but only offer value propositions
8. A service-centered view is inherently customer oriented and relational
9. All social and economic actors are resource integrators
10. Value is always uniquely and phenomenologically determined by the beneficiary (experienced in use)



References

Lefebrve, C. 2012. Service-Dominant Logic and Marketing. Accessed 28 February 2018 http://socialmarketing.blogs.com/r_craiig_lefebrves_social/2012/01/service-logic-and-social-marketing.html.

StartLogic. 2018. What is S-D logic? Accessed 28 February 2018 http://www.sdlogic.net/index.html.

Vargo, S.L. &Lusch, R.F. (2008). Service-Dominant Logic: Continuing the Evolution. Journal of the Academy of Marketing Sciences; 36: 1-10.