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Under the Iceberg

The Power of Marketing

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Service Dominant LogicA new dominant logic for marketing, one in which service

provision rather than goods is fundamental to economic

exchange.

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4 Axioms of Service

Dominant Logic

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Service Dominant LogicA new dominant logic for marketing, one in which service

provision rather than goods is fundamental to economic

exchange.

1. Service is the basis of all exchange

Operand resources

Ope

rant

resources

Operand resources

Ope

rant

resources

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Service Dominant Logic

2. All value is co-created

A new dominant logic for marketing, one in which service

provision rather than goods is fundamental to economic

exchange.

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Service Dominant Logic

3. All actors are resource integrators

A new dominant logic for marketing, one in which service

provision rather than goods is fundamental to economic

exchange.

Markets as

Ecosystems

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Service Dominant Logic

4. value is contextually determined

A new dominant logic for marketing, one in which service

provision rather than goods is fundamental to economic

exchange.

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4 Axioms of Service Dominant LogicExamples from the King Crab Industry

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Service Dominant LogicA new dominant logic for marketing, one in which service

provision rather than goods is fundamental to economic

exchange.

Service is the basis of all exchange

Operand resources Operant resources

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Service Dominant Logic

All value is co-created

A new dominant logic for marketing, one in which service

provision rather than goods is fundamental to economic

exchange.

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Service Dominant Logic

All actors are resource integrators

A new dominant logic for marketing, one in which service

provision rather than goods is fundamental to economic

exchange.

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Service Dominant Logic

value is contextually determined

A new dominant logic for marketing, one in which service

provision rather than goods is fundamental to economic

exchange.

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Service Dominant Logic

Why is this important for marketing?

A new dominant logic for marketing, one in which service

provision rather than goods is fundamental to economic

exchange.

With this emerging lens, the firm develops an understanding and

empathy with people, and tries to understand their lives and how

the firm is relatively small but hopefully important to their .

Unless the firm understands how they are a part of a larger service

ecosystem, it will not be able to fully understand its customers,

markets and opportunities for driving markets versus being merely

market-driven.

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What is Marketing?Marketing is the activity, set of institutions, and processes for

creating, communicating, delivering, and exchanging offerings

that have value for customers, clients, partners, and society atlarge.

value

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What is Marketing?Marketing is the activity, set of institutions, and processes for

creating, communicating, delivering, and exchanging offerings

that have value for customers, clients, partners, and society atlarge.

creatingvalue

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What is Marketing?Marketing is the activity, set of institutions, and processes for

creating, communicating, delivering, and exchanging offerings

that have value for customers, clients, partners, and society atlarge.

deliveringvalue

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What is Marketing?Marketing is the activity, set of institutions, and processes for

creating, communicating, delivering, and exchanging offerings

that have value for customers, clients, partners, and society atlarge.

communicatingvalue

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What is Marketing?Marketing is the activity, set of institutions, and processes for

creating, communicating, delivering, and exchanging offerings

that have value for customers, clients, partners, and society atlarge.

exhangingvalue

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Strategy vs. Tactics

Strategy Tactics

Purpose

To identify clear broader goals that

advance the overall organization andorganize resources.

To utilize specific resources to achieve

sub-goals that support the definedmission.

Roles

Individuals who influence resources in

the organization. They understand how

a set of tactics work together to achieve

goals.

Specific domain experts

that maneuver limited resources into

actions to achieve a set of goals.

AccountabilityHeld accountable to overall health

of organization.

Held accountable to specific resources

assigned.

Scope

All the resources within the

organizations, as well as broader market

conditions including competitors,

customers, and economy. Yet dont over

think it, to paraphrase my business

partner Charlene Li, Strategy is often

what you dont do.

A subset of resources used in a plan or

process. Tactics are often specific tactics

with limited resources to achieve

broader goals.

Duration Long Term, changes infrequently.Shorter Term, flexible to specific market

conditions.

MethodsUses experience, research, analysis,

thinking, then communication.

Uses experiences, best practices, plans,

processes, and teams.

Outputs

Produces clear organizational goals,

plans, maps, guideposts, and key

performance measurements.

Produces clear deliverables and outputs

using people, tools, time.

https://twitter.com/charlenelihttps://twitter.com/charleneli

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Montreaux Chocolate

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Rubric

Unacceptable Acceptable Proficient Highly Proficient

Define Problem 0 1 2 3

External Situation 0 2 3 4

Internal Situation 0 2 3 4

Marketing Analysis 0 3 6 7

Strategic Alternatives 0 3 6 7

Recommendations 0 4 8 9

Appendices 0 1 2 3

Mechanical & Design 0 3 5 6Total 0 18 35 43

+ Case Discussion Points

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The case of Jasmine Rice

$1 for 64oz or $2 for 8oz

16X more expensive

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