Evolving to a New Dominant Logic for Marketing
The article that was brought to our attention discusses innovative approaches to marketing
thinking. Indeed, marketing has traditionally been seen as a means of exchanging things. The
dominant marketing reasoning at the time was based on tangible resources, embedded value, and
transactions. However, many authors have begun to disclose the new ideas that have evolved in
recent decades, presenting marketing in a fresh light—these new ideas centered on intangible
resources, value co-creation, and relationships. The current trend is to view marketing as a
continuous social and economic activity in which the value is rooted in operant resources.
“The relative relevance of operant resources began to shift in the late twenty-first century as
humans realized that skills and knowledge were the most significant sorts of resources,” the
author state. The classic rules of marketing analysis were ignored beginning in the 1980s.
Instead, new attributes have started to emerge, indicating a new route to achieving marketing
goals. We have relationship marketing, quality management, market, orientation, supply and
value chain management, resource management, and networks. Even though these qualities
appear intangible, they have been proved to be the primary marketing lever. In this new way of
thinking, we see that financial results are not the ultimate result but rather a test of "market
hypotheses" about a value offer.
The basic premises of the emerging dominant logic are:
1. The fundamental units of exchange are knowledge and skills
2. The indirect nature of the exchange masks the fundamental unit of exchange
3. Goods are distribution mechanisms (or vehicles, in a sense) for services
4. The fundamental source of competitive advantage is knowledge.
5. All economies are service economies.
6. The customer is always a co-producer.
7. The enterprise can only make value propositions (which the market tests, as above).
8. Service centered view is customer-oriented and relational.
Here, a fundamental examination is required, which the author provides. It is about the critical
distinction between goods and services orientation. This article demonstrates that the service
provided is more significant than the product itself. As a result, marketing should not be focused
solely on good sales but rather on determining how to provide clients' services.
Value is defined by and co-created with the consumer in a service-centered dominant logic rather
than being embedded in output. Instead of a "create and sell" method, a "sense and respond"
strategy would be more successful. According to the service-oriented perspective, businesses are
constantly generating and testing hypotheses. Financial results (outcomes) are used mainly as a
learning tool to assist companies in understanding their service's value.
Afterward, the authors present six attributes and eight fundamental premises (FPs) that
emphasize the new services-centric logic and distinguishes it from the traditional goods-centric
logic. The concept of Operand and Operant Resources is used to make the distinction.
The article that was brought to our attention discusses innovative approaches to marketing
thinking. Indeed, marketing has traditionally been seen as a means of exchanging things. The
dominant marketing reasoning at the time was based on tangible resources, embedded value, and
transactions. However, many authors have begun to disclose the new ideas that have evolved in
recent decades, presenting marketing in a fresh light—these new ideas centered on intangible
resources, value co-creation, and relationships. The current trend is to view marketing as a
continuous social and economic activity in which the value is rooted in operant resources.
“The relative relevance of operant resources began to shift in the late twenty-first century as
humans realized that skills and knowledge were the most significant sorts of resources,” the
author state. The classic rules of marketing analysis were ignored beginning in the 1980s.
Instead, new attributes have started to emerge, indicating a new route to achieving marketing
goals. We have relationship marketing, quality management, market, orientation, supply and
value chain management, resource management, and networks. Even though these qualities
appear intangible, they have been proved to be the primary marketing lever. In this new way of
thinking, we see that financial results are not the ultimate result but rather a test of "market
hypotheses" about a value offer.
The basic premises of the emerging dominant logic are:
1. The fundamental units of exchange are knowledge and skills
2. The indirect nature of the exchange masks the fundamental unit of exchange
3. Goods are distribution mechanisms (or vehicles, in a sense) for services
4. The fundamental source of competitive advantage is knowledge.
5. All economies are service economies.
6. The customer is always a co-producer.
7. The enterprise can only make value propositions (which the market tests, as above).
8. Service centered view is customer-oriented and relational.
Here, a fundamental examination is required, which the author provides. It is about the critical
distinction between goods and services orientation. This article demonstrates that the service
provided is more significant than the product itself. As a result, marketing should not be focused
solely on good sales but rather on determining how to provide clients' services.
Value is defined by and co-created with the consumer in a service-centered dominant logic rather
than being embedded in output. Instead of a "create and sell" method, a "sense and respond"
strategy would be more successful. According to the service-oriented perspective, businesses are
constantly generating and testing hypotheses. Financial results (outcomes) are used mainly as a
learning tool to assist companies in understanding their service's value.
Afterward, the authors present six attributes and eight fundamental premises (FPs) that
emphasize the new services-centric logic and distinguishes it from the traditional goods-centric
logic. The concept of Operand and Operant Resources is used to make the distinction.
