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Finance and Accounting - Assignment Example

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Discussion 1 Contents Discussion 1: 3 Introduction 3 Service Dominant Logic 3 Conclusion 5 Reference 7 Discussion 1: Introduction Marketing has inherited a model from economic which provided dominant logic and was based on “exchange of goods”. The dominant logic tends to focus on transactions, embedded values and also tangible resources…
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Finance and Accounting Assignment
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Finance and Accounting

The customers are seen as resources with which firms are able to create a solution that takes into consideration the needs of the customers and solve the issues and problems (Jacob & Rettinger, n.d). Service Dominant Logic Executing on the new perspective, the service dominant logic is a hyper active and a competitive market place. Old ways of performing things along with the entrenched habits tends to die slowly creating challenge for firms across the globe. It will not be taken as surprise if the biggest resistance or barriers occur from marketing perspectives which are built around the traditional concept of marketing mix. In many aspect marketing has failed as it had little control over the 4Ps. The concept of traditional marketing mix is not accurate for future use due to rise in competition and global change in the environment and therefore model of interaction has taken over model of separation through S-D logic (Lusch & Vargo, n.d) With S-D logic, customers has the ability to become a part of inbound marketing by way of using the competencies and skills to help produce a product which forms a part of core offerings for the customers. In such situation, the customers tend to take part on the marketing programs. For example IKEA, customers has helped in the production of furniture by assembling the final parts of it. In case of Dell computers, the customers can form a part of dell team which helps the team to discover new and exciting products to satisfy the needs and wants of the customers. In ALDI, customers are the part of retail staff as they select the merchandise and also cater it to the store (Lusch & Vargo, 2009). Situation where I have involved myself in the coproduction of value is in the process of buying a car. Purchasing a car is an example of lack of power of the consumers in the real world. Before associating me with S-D logic, the normal process was to visit a dealer show room where uninformed of model appears, performance of comparative product, level of availability of product, financing, and the market value of the car. And even after the purchase of the car, customers are still unaware of the fact that whether they were able to achieve the real value for money spends on purchasing the car. Thus based on the analysis, I decided to check the net which tends to provide the prospective car buyers with every minute detail which are required by the customers. I have made use of the innovative web service, Edmunds.com which provides the prospective customers with complete specification of each and every model of cars along with additional features that can be fitted into the car. This process have allowed dealers to enter the decision making process but at a later stage which has further allowed me to take the entire decision. Therefore information about dealers cost and other information have made it clear that whether the great deal for me is really that great. Thus finally purchased a car from Edmunds.com and not from the showroom dealers which have helped me to contribute in the decision making process (Pitt, et al, 2002). With the emerging process of S-D logic, the brand tends to face major challenges and thus to incorporate with the ongoing challenges, markets should provide them with strategies such as, providing ample information regarding the product and the services in the web through which the customers ... Read More
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