All Exchange is Service Centered

S-D Logic

the great economic law is this: Services are exchanged for services. It is trivial, very commonplace; it is, nonetheless, the beginning, the middle, and the end of economic science. - Frederic Bastiat 1860
services are the application of specialized competences (knowledge and skills) through deeds, processes, and performances for the benefit of another entity or the entity itself. - (Vargo and Lusch 2004)

Growth of Markets & Marketing

S-D Logic

Institutions

Commercial or Civil Society

Institutions

Division of Labor

Institutions
Markets

Goods

Money

Organizations

Service for Service

Goods, Money, Organizations are Intermediaries

Evolving To a New Frame of Reference

S-D Logic

To Market (matter in motion)

Market To (management of customers & markets)

Market With (collaborate with customers & partners to produce & sustain value)

Through 1950

1950-2010

Future
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Conceptual Transitions in Marketing

S-D Logic

G-D Logic
Goods Products Feature/attribute Value-added Profit maximization Price Equilibrium system Supply Chain Promotion To Market Product orientation

Transitional

S-D Logic
Service Experiences Solution Co-creation of value Financial feedback Value proposition Complex adaptive system Value-creation network Dialog Market with S-D Orientation
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Services Offerings Benefit Co-production Financial Engineering Value delivery Dynamic system Value-Chain IMC Market to Market Orientation

Draw Upon Resources (internal & external)

S-D Logic

Co-Create Service Offering

Co-Create Value Proposition

Collaborate Collaborate: With Customers & Customers & Partners Co-Create Partners Value Co-Create Processes & Conversation Network & Dialogue

S-D Logic as a Theory of Marketing

Overcome Resistances
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The Nature of Marketing?

S-D Logic

Division of Labor

Exchange

Change

Increasing Degree of Change in Society

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Where Do We Go From Here?

S-D Logic

Nature & Scope of Marketing

Commercial Society Condition Means Division of Labor Exchange World of Work Specialized Competences Labor Market Value World of Consumption Specialized Competences Consumer & Business Market Value

End

Change

Where Do We Go From Here?

Frontiers in Research
S-D Logic

Co-Production & Collaboration Feedback & Adaptation Meaning of Consumption & Work

Dialog & Conversation Business Processes & Service Flows Markets, Marketing & Class Conflict

Value Propositions & Networks Knowledge & Competitive Advantage Marketing & Macroeconomic Policy
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Marketing Curriculum Reform

S-D Logic

Fundamental of Marketing (service dominant) Designing Value Propositions & Pricing Strategy

Competency Building and Competitive Advantage Integrated Marketing Communication

Managing Cross Functional Business Processes Managing Value Networks & Constellations
The Role of Marketing in Society
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Consumer Buying, Designing and Usage & Co-Creation Delivering Service Flows

Postscript
S-D Logic

The fundamental purpose of the corporation is not wealth creation. It is job creation and collaborating with all stakeholders (including the customer) to co-create value.

Robert F. Lusch

The extent of the market may be a function of the division of labor; however if society does not benefit from the division of labor and the fruits it bears then markets and marketing will be replaced by other institutions.

Robert F. Lusch

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