Marketing Strategy
in Service Business
- amegaro@unisa.it -
Some preliminary information
1. Who am I? – I’m a research fellow at the
University of Salerno, PhD in Marketing
2. Teaching material – Only slides that I will share
with you at the end of each class
3. How will the exam be? – A written and multiple
choice test
4. When will the exam be? – It will be held on the
last day of class (May 3)
Programme
• Marketing and Service Marketing: an overview
• Traditional Marketing: Marketing plan
• New marketing strategies approaches: Relationship
Marketing and Many-to-Many network; Experience
marketing; Non-conventional marketing
• New marketing vision: Service Research - from S-D logic &
Service Science to service ecosystems & service systems
Examples
Project work
Agenda: Lesson 1 - Pt.1
• Marketing: origins, evolution and definitions
• Service Marketing: the advent of service-dominant mind-set
Marketing: origins, definitions
and evolution
1.1
Definition of Marketing
Marketing is NOT the same as selling!
Definition of Marketing
Marketing is NOT the same as selling!
Definition of Marketing
Marketing is NOT the same as selling!
Definition of Marketing
Marketing is NOT (only) advertising!
Definition of Marketing
AMA (1985):
“Marketing is the process of planning and executing the design
of offering (product), pricing, promotion and distribution of
goods, ideas and services designed to create exchanges that
meet the individual and organizational objectives”
Business
function
Process
Orientation
Over time,
Marketing has been
conceptualized as a(n)
Marketing as a business function
Porter’s Value chain (1985)
The Marketing function regards
the approach to the market
that each company must
develop to place its
product/service to satisfy the
needs of the potential
customers it has identified, in
order to be more competitive
and to reach/maintain its
market share.
Marketing as a business function
Previous Journey - TRADITIONAL Marketing vision
The origins of Marketing date back to the early
twentieth century, and over time several theories
have alternated in an attempt to correctly frame the
decisional dynamics and the results obtained by
every successful company.
Marketing as a business function
Previous Journey - TRADITIONAL Marketing vision
Thanks to the Marketing function it has been possible to
connect (also conceptually) different phases of
entrepreneurial activity: the inspiration about the MISSION,
the identification of OBJECTIVES, the definition of STRATEGIES,
the implementation of TACTICS.
Marketing as a business function
Previous Journey - TRADITIONAL Marketing vision
MOST analysis is the foundation that support and allow a
business to reach its goal.
A business first develops its mission statement, then its
objectives, then its strategies, and then finally the tactics. Moving
from general to the specific.
Marketing as a business function
Previous Journey - TRADITIONAL Marketing vision
The Marketing function has
always found greater
accreditation thanks to the
actions of SEGMENTATION,
TARGETING and POSITIONING of
each company, as a synthesis of
analysis, reasoning, choice and
decision related to
competitiveness and survival.
STRATEGIC MARKETING
Marketing as a business function
Previous Journey - TRADITIONAL Marketing vision
Even the orientation of the company itself has changed, first
focused on the production process, then on the product, then
on the market (sales), then marketing and customer-oriented.
This led to the development of methods and tools useful to
support entrepreneurs and managers of each company.
Marketing as a business function
Change in perspective
OPERATIONAL MARKETING – MARKETING MIX
Marketing as a business function
Previous Journey - TRADITIONAL Marketing vision
SISTEMA INFORMATIVO DIREZIONALE ED OPERATIVO
Marketing is a process which consists
of different strategic and tactical choices:
Market
Analysis
Products Design
Demand
Promotion
Selling
Marketing as a process
- Study of the selected market(s)
- Research on demand’s evolution and
trends, analysis of competitors and
identification of business opportunities
- Adaptation of processes and
production to potential customers
- Creation of demand for new products
Allocation of products for different
sales channels
Product
features
Ways to
attract
consumers
Selling
orientation
Marketing
Orientation
Users’ needs
Business’
survival
Product
Orientation
Production
Process
Production
Orientation
D>O
O>D
Focus
ENDOGENOUSESOGENOUS
Product-Market
Process & product
standardization
To sell what has
been produced
Research on
consumers:
To product the
goods which can
be sold
Efficiency of
production
Goods
Selling
Marketing as an Orientation
Needs
Products
D>O O>D
Goods
Selling
Marketing as an Orientation
Needs
Products
PRODUCTION
ORIENTATION PRODUCT ORIENTATION
MARKETING ORIENTATION
SELLING ORIENTATION
Segment
A Segment
A
Segment
B
Segment
A
Segment
B
Segment
C
Segment
C
Segment A1
Segment A2
Segment A3
Segment A4
Segment A5
Segment B1
Segment B2
Segment C1
Segment C2
Segment C3Segment C3
MASS
APPROACH
BROAD
SEGMENTS
ADJACENT
SEGMENTS
MULTI-
SEGMENTATION
For small
segments
For niche
segment
MASS
CUSTOMIZATION
Marketing as an Orientation
The most widespread Marketing models affect all the
other areas and functions of the company,
concerning production, promotion, distribution, R&D,
quality, recruiting, fund raising, partnerships,
relations with consumers, with the competition, and
in general with all relevant supra-systems.
Marketing as an Orientation
Redefining the role of Marketing in Value chain
Marketing as an Orientation
Product orientation
Production
capacity Selling CUSTOMERS
Marketing orientation
Study of
demand Production
Production
Selling
Production
PLANNING CUSTOMERS
New needs of
users
Needs of
POTENTIAL
users
New business
opportunities
F e e d b a c k
Marketing as an Orientation
 Complex selection and diffusion of values, personality,
story and identity (brand)
 Translation of value into a coherent culture to be spread
within and oustide the organization
Value orientation
Corporate culture
STRATEGY
TACTICSTACTICS
Stakeholder
Organization
Management
Governance
Marketing as an Orientation
Evolution of Marketing Focus
In recent decades, Marketing has been focused on:
• managerial aspects (ref: Kotler);
• organizational (ref: Grönroos);
• relational (ref: Gummesson);
• new forms of collaboration (ref: Hakansson &
Snehota);
• new concepts of value (refer to Ballantyne &
Varey; Prahalad & Ramaswamy);
• and finally to the Service (reference Vargo &
Lusch).
Evolution of Marketing Focus
Managerial (Kotler, Keller and Brady 1967)
Organizational (Grönroos, 1983)
Relational (Gummesson, 1997)
Collaboration-oriented
(Hakansson and Snehota, 1989)
Value-based and co-creation-based
(Prahalad and Ramaswamy, 2004)
(Ballantyne and Varey, 2006)
….and
Service-Dominant
(Vargo and Lusch)
INTERNAL
EXTERNAL
McCarthy, 1964:
- Product, Price, Promotion, Place
Kotler, 1986:
- Product, Price, Promotion, Place, Public Relations, Politics
Booms and Bitner, 1981:
- Product, Price, Promotion, Place, People, Physical Evidence, Process
Over time, different models have been adopted by practitioners
and scholars for the definition and study of the marketing mix:
Evolution of Marketing Mix
Lauterborn, 1990:
- Consumer, Cost, Communication, Convenience
Kotler, 2018:
- Customers, Company, Collaborators, Competitors,
Context
P
C
New definitions of Marketing
AMA (1985):
“Marketing is the process of planning and executing the design of offering
(product), pricing, promotion and distribution of goods, ideas and services
designed to create exchanges that meet the individual and organizational
objectives”
AMA (2004):
“Marketing is an organizational function and a set of
processes aimed at creating, communicating, and delivering
value to customers and managing relationships with
customers in order to benefit from the organization and
related stakeholders.”
AMA (2017):
“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.”
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.
New definitions of MarketingRather than an outcome! the activities of individuals
(marketers and consumers) and organizations (e.g.,
manufacturers, wholesalers, retailers, advertising
agencies, distributors, marketing research firms)
Various institutions that both individually
and collectively help facilitate and
govern these activities (e.g.,
governmental agencies, legislators,
courts, professional associations, social
norms, ethics and individual values)
Various processes that result
from these activities (e.g.,
networks, systems, markets,
channels of distribution,
communication flows, consumer
processes)
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.
Very similar to Product,
Promotion, Place, Price

New definitions of 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.
(American Marketing Association, July 2017)
Customers: the actual or prospective purchaser of offerings
Clients: broader term. Non profit focus, and user focus
Partners: business critical for success
Society at large: not just profitability, societal marketing concept
New definitions of 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.
(American Marketing Association, July 2017)
Definition of Marketing
Marketing orientation redefines the entire organization and permeates the
strategic objectives and decision-making
Customers
Shareholder
Partners
Employees
VALUE
Public
Administration
Competitive
Advantage
STAKEHOLDERS’
SATISFACTION
Selection of
resources
Suppliers
Distributors
Media
Value Proposition and Creation
Value is the complex set of economic, functional,
psychological and social benefits that customers want
to receive (or receive actually) in exchange for the
money spent (or for the money they want to spend) to
enjoy a good or service
Evolution of Marketing
From consumer to
B2B and B2C: two traditional categories for the exchanges
between entities in charge of
Production vs. consumption.
Evolution of Marketing
• B2B demand is derived from Cs;
• Bs can profit from helping their Cs become
more competitive;
• almost all Bs serve both Bs and Cs.
What about the distinction
between B2B and B2C if…
Combining Bs and Cs
B
C C
B2B
C2C
C2B
B
B2B2C2B2C2C…
A2Aorientation “point[s]
away from the fallacy of the
conceptualization of the linear,
sequential creation, flow, and
destruction of value and toward
the existence of a much more
complex and dynamic system of
actors that relationally cocreate
value”.
It’s all B2B… and beyond
A2A Collaboration
In a Service marketing, value takes place upon a
collaborative perspective among actors, A2A (actors to
actors) [gruadualy abbandoning the old view of B2C,
B2B, etc].
In a multi-stakeholder relational perspective, only
through collaboration (co-production e co-creation) it
is possibile to create a shared competitive advantage
thanks to the exchange of services and resources.
Service Marketing: the advent of
service-dominant mind-set
1.2
42
Barter is direct service-forservice
exchange, in which
each actor provides a
reciprocal service provision
for another actor. (Vargo and Lusch,
2004)
Service Marketing: It’s all about
service!
The overcompetition of contemporary complex markets
has imposed in time the double passage from :
• Orientation to Relationship Marketing;
• From Good-Dominant Logic to Service-Dominant Logic.
Service Orientation Focus
Economic Value
+ Social Value
Product-
Market
Demolition of
the UserProvider
view
Products and Services
are co-created
Service Marketing: toward S-D logic
Organizations, markets, and society are fundamentally
concerned with exchange of service:
the applications of resources (knowledge, skills, …) for
the benefit of a part.
Service-Dominant Logic
(from Service Research)
Strict View
{(Shareholder;
stakeholder (Direct
Only)}
Internal
Stakeholders/Shareh
olders
Production Processes
Organizational Model
Unidirectional/Diadi
c Relationships
Stakeholder-Oriented View
Sells Orientation
PUSH MODEL
Corporate Orientation
Good-dominant
logic
Service-dominant
logic
Customer
orientation
Co-creation &
resouce integration
Enlarged View
(multi-stakehoklder)
MANY-TO-MANY
Reticular Network
Service’s Output is
collaborative and
co-created
Value is no longer
the exclusive
competence of
the manufacturer
but is the result of
a dealing
between all the
stakeholders
From Good-Dominant Logic to
Service-Dominant Logic
Antonietta Megaro
amegaro@unisa.it
THANK YOU
Questions?
Comments?