Advanced Studies in Marketing - presentation

1. PERSPECTIVES IN
CONTEMPORARY MARKETING
Advanced Studies in Marketing
Sílvia L. L. Pahins

2. Perspectives in Contemporary Marketing
INDEX
1. A contemporary concept of Marketing
2. Consumers in a changing world
3. Managing interactions
4. Value: propositon, creation, in-use
5. Marketing is not an organizational function
6. Service-logic for Marketing (versus goods-logic)
References
A contemporary
concept of Marketing
Consumers in a
changing world
Managing
interactions
Value: proposition,
creation, in-use
Marketing is not a
organizational function
Service-logic for Mkt
(versus goods-logic)

3. Perspectives in Contemporary Marketing
INDEX
1. A contemporary concept of Marketing
2. Consumers in a changing world
3. Managing interactions
4. Value: propositon, creation, in-use
5. Marketing is not an organizational function
6. Service-logic for Marketing (versus goods-logic)
MAIN
BIBLIOGRAPHY
EXTRA
BIBLIOGRAPHY
References
A contemporary
concept of Marketing
Consumers in a
changing world
Managing
interactions
Value: proposition,
creation, in-use
Marketing is not a
organizational function
Service-logic for Mkt
(versus goods-logic)

4. Perspectives in Contemporary Marketing
1. A CONTEMPORARY CONCEPT OF MARKETING
In order to understand the contemporary marketing, we need to remember the paradox
between transaction and relationship marketing:
(adapted from Grönroos, 1993)
A contemporary
concept of Marketing
Consumers in a
changing world
Managing
interactions
Value: proposition,
creation, in-use
Marketing is not a
organizational function
Service-logic for Mkt
(versus goods-logic)

5. Perspectives in Contemporary Marketing
1. A CONTEMPORARY CONCEPT OF MARKETING
‘‘Transaction Marketing tends to focus on the exchange process between groups of
customers in the market and the organisation supplying products and services’’.
(Coviello, Brodie and Munro, 1997, p.503)
Transaction Marketing, or marketing mix paradigm, ‘‘assumed that consumers were
avaiable in great numbers and behaved passively ’’. The marketing objectives are attract
the consumer.
(Harker and Egan, 2006, p.221)
A contemporary
concept of Marketing
Consumers in a
changing world
Managing
interactions
Value: proposition,
creation, in-use
Marketing is not a
organizational function
Service-logic for Mkt
(versus goods-logic)

6. Perspectives in Contemporary Marketing
1. A CONTEMPORARY CONCEPT OF MARKETING
In a relational approach, attraction of new customers should be viewed only as an
intermediate step in the marketing process. The real objective is retaining customers.
(Coviello, Brodie and Munro, 1997, p.503)
‘‘An interactive relationship would have bilateral communication and exchange of
information (...), but it has become a technique for trapping and imprisoning customers’’
(Harker and Egan, 2006)
Coviello (1997; 2002) suggested three perspectives of Relational Marketing:
» Database marketing: information and economic transaction
» Interaction marketing: interactive relationships between buyer and seller
» Network marketing: connected relationships between firms
A contemporary
concept of Marketing
Consumers in a
changing world
Managing
interactions
Value: proposition,
creation, in-use
Marketing is not a
organizational function
Service-logic for Mkt
(versus goods-logic)

7. Perspectives in Contemporary Marketing
1. A CONTEMPORARY CONCEPT OF MARKETING
Many deffinitions of Marketing was built based on these two approaches: transactional
and relational marketing. But, Grönroos (2006b) suggest that, to go further,
‘‘ a definition should be generic enough to cover a large variety of products (...) and
contexts (transaction-based as well as relationship-based approaches), yet specific
enough to be meaningful as a guiding principle, while still allowing for adoption to
changes customer preferences, technologies and the business environment’’
A contemporary
concept of Marketing
Consumers in a
changing world
Managing
interactions
Value: proposition,
creation, in-use
Marketing is not a
organizational function
Service-logic for Mkt
(versus goods-logic)

8. Perspectives in Contemporary Marketing
1. A CONTEMPORARY CONCEPT OF MARKETING
Marketing is a customer focus that permeates
organizational functions and processes and is geared
towards making promises through value proposition,
enabling the fulfilment of individual expectations created
by such promises and fulfilling such expectations through
support to customer’s value-generating processes,
thereby supporting value creation in the firm’s as well as
its customer’s and other stakeholders’ processes.
(Grönroos, 2006b, p. 407)
A contemporary
concept of Marketing
Consumers in a
changing world
Managing
interactions
Value: proposition,
creation, in-use
Marketing is not a
organizational function
Service-logic for Mkt
(versus goods-logic)

9. Perspectives in Contemporary Marketing
1. A CONTEMPORARY CONCEPT OF MARKETING
Marketing is a customer focus that permeates
organizational functions and processes and is geared
towards making promises through value proposition,
enabling the fulfilment of individual expectations created
by such promises and fulfilling such expectations through
support to customer’s value-generating processes,
thereby supporting value creation in the firm’s as well as
its customer’s and other stakeholders’ processes.
(Grönroos, 2006b, p. 407)
Then, let’s talk about Perspectives in Contemporary Marketing
taking this concept as a starting point.
A contemporary
concept of Marketing
Consumers in a
changing world
Managing
interactions
Value: proposition,
creation, in-use
Marketing is not a
organizational function
Service-logic for Mkt
(versus goods-logic)

10. Perspectives in Contemporary Marketing
2. CONSUMERS IN A CHANGING WORLD
‘‘The characteristics of consumers also changed [as the market context]. Standardisation
had been the key to mass production, but mass markets had begun to fragment.
Customers became more sophisticated and demanding, requiring produtcs and services
tailored to their specific needs’’
(Harker and Egan, 2006, p. 219-220)
How are these new consumers?
A contemporary
concept of Marketing
Consumers in a
changing world
Managing
interactions
Value: proposition,
creation, in-use
Marketing is not a
organizational function
Service-logic for Mkt
(versus goods-logic)

11. Perspectives in Contemporary Marketing
2. CONSUMERS IN A CHANGING WORLD
‘‘The role of the consumer in the industrial system has changed from isolated to
connected, from unaware to informed, from passive to active’’.
» Information access: ‘‘knowledgeable
consumers can make more informed decisions’’;
» Experimentation: its possible to use te internet to
experiment with and develop products;
» Global view: ‘‘consumers can also access
information on firms, products, technologies,
performance, prices, and consumer actions and
reactions from around the world’’;
» Activism: ‘‘as people learn, they can better
discriminate when making choices; and, as
they network, they embolden each other to act
and speak out. Consumers increasingly provide
unsolicited feedback to companies and to each
other’’.
» Networking: ‘‘individuals share ideas and
feelings without regard for geographic or social
barriers, are revolutionizing emerging markets
ans transforming established ones.’’ Their power
comes from their independence from the firm;
A contemporary
concept of Marketing
Consumers in a
changing world
Managing
interactions
(Pahalad and Ramaswany, 2004, p. 4)
Value: proposition,
creation, in-use
Marketing is not a
organizational function
Service-logic for Mkt
(versus goods-logic)

12. Perspectives in Contemporary Marketing
2. CONSUMERS IN A CHANGING WORLD
What is the net result of the changing role of consumers?
A contemporary
concept of Marketing
Consumers in a
changing world
Managing
interactions
Value: proposition,
creation, in-use
Marketing is not a
organizational function
Service-logic for Mkt
(versus goods-logic)

13. Perspectives in Contemporary Marketing
2. CONSUMERS IN A CHANGING WORLD
What is the net result of the changing role of consumers?
‘‘Companies can no longer act autonomously, designing products, developing processes,
crafting marketing messages, and controlling sales channels with little or no interference
from consumers.
Consumers now seek to exercise their influence in every part of the business system.
Armed with tools and dissatisfied choices, consumers want to interact with firms and
thereby co-create value. The use of interaction as a basis of co-creation is at the crux of
our emerging reality’’.
(Pahalad and Ramaswany, 2004, p. 5)
interaction + co-creation
A contemporary
concept of Marketing
Consumers in a
changing world
Managing
interactions
Value: proposition,
creation, in-use
Marketing is not a
organizational function
Service-logic for Mkt
(versus goods-logic)

14. Perspectives in Contemporary Marketing
3. MANAGING INTERACTIONS
What is interaction?
‘‘Interaction means that the consumers now take part in activities and processes which
used to be seen as the domain of the companies. But (...) also means that companies enter
the domain of the consumers and take part in their consumption of the product and even
their scrapping of what is left over’’
(Wikström, 1996, p. 361)
Fig. Extending the company-consumer interaction in the value-creating process (Wikström, 1996, p. 371)
A contemporary
concept of Marketing
Consumers in a
changing world
Managing
interactions
Value: proposition,
creation, in-use
Marketing is not a
organizational function
Service-logic for Mkt
(versus goods-logic)

15. Perspectives in Contemporary Marketing
4. VALUE
VALUE CREATION PROCESS:
Conventional approach
New approach
‘‘Companies and consumers had distinct
roles of production and consumption (...).
Value creation occurs outside de markets’’.
‘‘Consumers want to interact and co-create
value, not just with one firm but whith
whole communities of professionals, service
providers, and other consumers (...). Cocreation supplants the exchange process’’.
(Prahalad and Ramaswany, 2004, p. 5)
Fig. Customer/consumer
entry into the value-creating
process in different markets
(Wikström, 1996, p. 361)
A contemporary
concept of Marketing
Consumers in a
changing world
Managing
interactions
Value: proposition,
creation, in-use
Marketing is not a
organizational function
Service-logic for Mkt
(versus goods-logic)

16. Perspectives in Contemporary Marketing
4. VALUE
VALUE PROPOSITION AND VALUE-IN-USE:
Value-in-exchange
Value-in-use
‘‘Traditionally, value is viewed in the
literature as embedded in a product that is
exchange’’. Value is the product itself.
‘‘Value is created when products, goods ou
services are used by customers (...). Value
really emerges for customers when goods
and services do something for them. Before
this happens, only a potential value exists’’.
(Grönroos, 2006a, p. 323)
‘‘Delivering value to customers is not possible. What marketers can do is to develop value
propositions or suggested value in form of various type of offerings and communicate them
to customers and then support customers’ value creation’’
(Grönroos, 2006b, p. 400)
‘‘Value propositions are reciprocal promises of value, operating to and from suppliers and
customers seeking an equitable exchange’’.
(Ballantyne and Varey, 2006, p. 344-345)
A contemporary
concept of Marketing
Consumers in a
changing world
Managing
interactions
Value: proposition,
creation, in-use
Marketing is not a
organizational function
Service-logic for Mkt
(versus goods-logic)

17. Perspectives in Contemporary Marketing
5. MARKETING IS NOT A ORGANIZATIONAL FUNCTION
A focus on interactions and value-creation process lead to a different perspective on
marketing. ‘‘Marketing is not the one function, but several functions:’’
» Traditional external function: ‘‘involving typically specialist activities such as advertising,
market research and direct mail’’. A marketing departament.
» Interactive marketing function: ‘‘is what take place during the interactions when
the simultaneous production and consumption occur (...). Succesful service marketing
becomes the responsability of the part-time marketer for making customers satisfied’’.
(Grönroos, 2006a, p. 321; 2006b; 1989; Harker and Egan, 2006; Coviello, Brodie and Munro, 1997)
A contemporary
concept of Marketing
Consumers in a
changing world
Managing
interactions
Value: proposition,
creation, in-use
Marketing is not a
organizational function
Service-logic for Mkt
(versus goods-logic)

18. Perspectives in Contemporary Marketing
6. SERVICE-LOGIC FOR MARKETING (versus GOODS-LOGIC)
In 2004, Vargo and Lusch introduced their own service-domint marketing logic (S-D logic).
It supports many of the insights of earlier relationship marketing scholars and contains
reworked perspectives on the interaction, relationship, value-in-use, etc.
(Vargo and Lusch, 2004; Grönroos, 2006a; Ballantyne and Varey, 2006)
A contemporary
concept of Marketing
Consumers in a
changing world
Managing
interactions
Value: proposition,
creation, in-use
Marketing is not a
organizational function
Service-logic for Mkt
(versus goods-logic)

19. Perspectives in Contemporary Marketing
(adaptaded from Vargo and Lusch, 2004, p. 7)
A contemporary
concept of Marketing
Consumers in a
changing world
Managing
interactions
Value: proposition,
creation, in-use
Marketing is not a
organizational function
Service-logic for Mkt
(versus goods-logic)

20. Perspectives in Contemporary Marketing
S-D LOGIC:
NORDIC SCHOOL - SERVICE LOGIC:
» service is an open process, where the
costumer participate as co-producers;
» consumption and production of services are
simultaneous processes;
» services should support customers in a valuecreating way;
» goods include an incresing number of service
elements.
» Points of difference:
_ Goods are a type of resources among others,
such as people, systems, infrastructures and
information;
_ Goods are value-supporting resources and
services are value-supporting processes.
(Vargo and Lusch, 2004; Grönroos, 2006a)
* Eight of these were put forth in the initial Vargo and Lusch 2004 article in the
Journal of Marketing. Two additional premises have been added since and appear
in their 2008 article in the Journal of the Academy of Marketing Science.
A contemporary
concept of Marketing
Consumers in a
changing world
Managing
interactions
Value: proposition,
creation, in-use
Marketing is not a
organizational function
Service-logic for Mkt
(versus goods-logic)

21. Perspectives in Contemporary Marketing
What is the future of marketing?
A contemporary
concept of Marketing
Consumers in a
changing world
Managing
interactions
Value: proposition,
creation, in-use
Marketing is not a
organizational function
Service-logic for Mkt
(versus goods-logic)

22. Perspectives in Contemporary Marketing
REFERENCES
Main Bibliography
Extra Bibliography
Coviello, N. E., Brodie, R. J., & Munro, H. J. (1997).
Understanding contemporary marketing: development
of a classification scheme. Journal of Marketing
Management, 13, 501–522.
Ballantyne, D., & Varey, R. J. (2006). Creating value-in-use
through marketing interaction: the exchange logic of relating,
communicating and knowing. Marketing Theory, 6(3), 335–
348.
Grönroos, C. (2006b). On defining marketing: finding
a new roadmap for marketing. Marketing Theory, 6(4),
395–417.
Grönroos, C. (2006a). Adopting a service logic for marketing.
Marketing Theory, 6(3), 317–333.
Grönroos, C. (1989). Defining marketing: a marketoriented approach. European Journal of Marketing,
23(1), 52–60.
Grönroos, C. (1994). From marketing mix to relationship
marketing: towards a paradigm shift in marketing. AsiaAustralia Marketing Journal, 32(2), 4–20.
Harker, M. J., & Egan, J. (2006). The past, present and future of
relationship marketing. Journal of Marketing Management,
22, 215–242.
Vargo, S. L., & Lusch, R. F. (2004). Evolving to a new dominant
logic for marketing. Journal of Marketing, 68(January), 1–17.
Wikström, S. (1996). Value creation by company‐consumer
interaction. Journal of Marketing Management, 12, 359–374.
A contemporary
concept of Marketing
Consumers in a
changing world
Managing
interactions
Value: proposition,
creation, in-use
Marketing is not a
organizational function
Service-logic for Mkt
(versus goods-logic)