Reaction about the article : Evolving to a New Dominant Logic for marketing

Brief summary of the article :

Evolving to a New Dominant Logic for marketing by Stephen L. Vargo & Robert F. Lusch basically is about how the concept of marketing has evolved over time, and how different school of thoughts influenced a paradigm shift in marketing theory and practice. The ultimate purpose of the article is to illuminate the evolution of marketing thought toward a new dominant logic. At first, around the 1900s – 1950s, marketing was featured as a foundation in economics; distribution and exchange of commodities and manufactured products. As time went on, marketing was gradually moving from this goods-dominant view, in which tangible output and discrete transactions were central, to a service-dominant view, in which intangibles, exchange processes and relationships are central. Where service is here is defined as “the application of specialized competencies through deeds, processes, and performances for the benefit of another entity. Service is so indispensable to marketing that some marketers argue that it should be a subordinate course to marketing in the form of service marketing; which by the way is already a course in some universities around the world. Marketing should give importance not only to operand resource (customers), but also operant (core competences). Moreover, with the service-centered view of marketing, the firm must target and segment the market appropriately, build a relationship with its customers by involving them in the production, and create a competitively compelling value proposition to meet the segment’s specific needs, and finally, continually conduct research in market for feedback, which will improve firm’s offering to customers and consequently improve the firm’s performance.

Comments on the article based on my study and work experience :

The article was published in 2004; 10 years ago and most of what the authors were discussing about the future of marketing and what marketing needs to focus are now represented clearly. They talked about consumers being the co-producers, maximizing consumer involvement in the customization of a particular product to better suit his or her needs. If we take Apple for instance, in addition to the perceived value and quality of the products, customers can customize their own PCs to better suit their needs. This makes them feel part of process and creates a bond between the consumer and the product. When customers are able to see the value of a product and resonate with it, they will repurchase the product the product. Apple Inc. announced that within 24 hours of availability, over 4 million pre-orders of the iphone 6 and iphone 6 plus were made; more than 10 million iphone 6 devices were sold in the first three days. This is because Apple is a brand that has perfectly understood the new dominant logic of marketing; which is ensuring that product development management, supply chain management, and customer relationship management processes are all customer-centric and market driven. In addition to services marketing, marketing now has many other branches such brand management, competitive strategies and product development that need to work together for a better execution of marketing just as the authors mentioned in the article.

How my views on marketing and sales have evolved :

While reading this article, I did not understand how marketing could even be derived from microeconomic theories. Initially, I thought that marketing was generally concerned about the selling of a product, but thanks to this article and personal reading, I noticed that there is more to marketing than just selling a product. Marketing involves relationship building, research and development, branding and many more. These components are what make customers feel secured when purchasing a particular product. If marketing which encompasses a lot of resource (both operant and operand) pulling is not done effectively and efficiently, consumers will soon realize it and the business will eventually plummet, especially with competition present in the market. The bottom line for every business is to make profit and marketing (which is key to businesses) is just another mechanism to facilitate sales and thereby increasing revenue but also, customers must be satisfied because it’s from their purchase that the firm gets it revenue.


Sorel Vanessa Ngankouo

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