Internal Marketing & Relationship Strategies

Executive Summary

Service dominant logic has changed the world as with the help these concept marketers are able to create value for customers. In past markers used to focus on goods dominant logic but now they are focusing on service dominant logic. This logic focuses on attaining customers satisfaction through effective customer service. SD logic has also increased the importance of external marketing as more management has started to have more focus on employees because they are important components that provide various services to customers. Co created value, two way equity in interaction, and working together through dialogical interaction are some challenging implication for relationship marketing of Service Dominant value creating perspective. Relationship marketing is part of service dominant logic it helps companies to effectively operate in B2B and B2C marker. The concept of Service dominant logic is expanding and evolving.

Internal Marketing & Relationship Strategies

Marketing as a Philosophy

Marketing is a very broad term; it is sometimes seen as confusing fact that has drawn its theories from different number of sources (Lancaster, 2002). The main source of source of confusion is the marketing combination as business philosophy. Marketing philosophy states that it is a basic way of thinking about business that focuses on needs and wants of customers (Drucker, 1954). According to Peter Doyle, Marketing is not a theory but a significant business philosophy (Doyle, 1994). Marketing is considered as more than a significant business function. It is a business philosophy. At P&G, Marketing is everything from opportunities search, creation of winning offerings to their successful distribution, pricing, and communication. Marketing is advertising which fairly limited in its activity but other than that marketing is also about public relations and market positioning which is broader and can be considered as more of a philosophy than a list of activities to perform. Marketing is a significant functional area of management but more importantly, it is an overall business philosophy which is to be adopted by everyone in the whole organization.

Service Dominant Logic

Service Dominant logic is defined as a mindset for unified understanding of nature and object of the markets, organizations, and society. Service Dominant logics fundamental proposition is that markets, organizations, and society are essentially concerned with service exchange (Vargo, 2004, 5). According to Lusch and Vargo Service Dominant Logic is gaining attention in academic circles (Lusch, 2006, 281). Initially, markers followed goods dominant logic but now they are focusing on service dominant logic to attain customer satisfaction. The difference between goods dominant logic and service dominant logic is very simple, goods dominant logic focus on the marketing and exchange of goods only while service dominant logic is reformulation of thoughts, it takes services as fundamental basis of exchange.

Internal Marketing

Internal marketing is defined as the process of empowering and motivating company employee to work as team for overall wellbeing of customers and ultimately the company (Jobber, 2004). According to Gary Armstrong and Philip Kotler, internal marketing is creation of an environment that motivates supporting service people ...