Evolving to a New Dominant Logic for Marketing

Evolving to a New Dominant Logic for Marketing

January 2004 | Stephen L. Vargo & Robert F. Lusch
The chapter discusses the evolution of marketing logic from a goods-centric model to a service-centric one. Initially, marketing was rooted in economics, focusing on tangible goods and tangible resources. However, over the past few decades, new perspectives have emerged, emphasizing intangible resources, value co-creation, and relationships. The authors argue that these new perspectives are converging to form a new dominant logic for marketing, where service provision is fundamental to economic exchange. The formal study of marketing began with the distribution and exchange of commodities, influenced by economic theories. Early marketing scholars focused on commodities, institutions, and functional aspects. By the 1950s, the marketing management school emerged, emphasizing customer focus and decision-making. However, by the 1980s, new frames of reference, such as relationship marketing, quality management, and network analysis, began to challenge the traditional 4 P's model. The shift from a goods-centric to a service-centric view is driven by the recognition that skills and knowledge are the fundamental units of exchange, not tangible goods. Goods are seen as distribution mechanisms for service provision, and knowledge is the primary source of competitive advantage. All economies are now characterized by the exchange of services, and customers are always coproducers, involved in the continuous process of value creation. The chapter also discusses the implications of this shift for marketing practitioners, scholars, and educators, emphasizing the need to adapt to a new dominant logic that focuses on intangible resources and dynamic processes.The chapter discusses the evolution of marketing logic from a goods-centric model to a service-centric one. Initially, marketing was rooted in economics, focusing on tangible goods and tangible resources. However, over the past few decades, new perspectives have emerged, emphasizing intangible resources, value co-creation, and relationships. The authors argue that these new perspectives are converging to form a new dominant logic for marketing, where service provision is fundamental to economic exchange. The formal study of marketing began with the distribution and exchange of commodities, influenced by economic theories. Early marketing scholars focused on commodities, institutions, and functional aspects. By the 1950s, the marketing management school emerged, emphasizing customer focus and decision-making. However, by the 1980s, new frames of reference, such as relationship marketing, quality management, and network analysis, began to challenge the traditional 4 P's model. The shift from a goods-centric to a service-centric view is driven by the recognition that skills and knowledge are the fundamental units of exchange, not tangible goods. Goods are seen as distribution mechanisms for service provision, and knowledge is the primary source of competitive advantage. All economies are now characterized by the exchange of services, and customers are always coproducers, involved in the continuous process of value creation. The chapter also discusses the implications of this shift for marketing practitioners, scholars, and educators, emphasizing the need to adapt to a new dominant logic that focuses on intangible resources and dynamic processes.
Reach us at info@study.space