Under the Iceberg

The Power of Marketing

Service Dominant Logic
A new dominant logic for marketing, one in which service
provision rather than goods is fundamental to economic
exchange.
4 Axioms of Service
Dominant Logic


Service Dominant Logic
A 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
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.
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
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.
4 Axioms of Service Dominant Logic
Examples from the King Crab Industry

Service Dominant Logic
A 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
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.
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.
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.
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.
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 at
large.
value
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 at
large.
creatingvalue
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 at
large.
deliveringvalue
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 at
large.
communicatingvalue
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 at
large.
exhangingvalue
Strategy vs. Tactics
Strategy Tactics
Purpose
To identify clear broader goals that
advance the overall organization and
organize resources.
To utilize specific resources to achieve
sub-goals that support the defined
mission.
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.
Accountability
Held 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.
Methods
Uses 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.
Montreaux Chocolate
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 6
Total 0 18 35 43
+ Case Discussion Points
The case of Jasmine Rice
$1 for 64oz or $2 for 8oz
16X more expensive

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