Production of Value Using Sdl: Service-Dominant Logic

Production of Value using SDL:

Service-dominant logic is a mindset or model that has emerged as the world continue to be increasingly interconnected and turbulent. This logic emphasizes on the relations of the producer and consumer as well as other partners in the supply and value network in their co-production of value through collaborative procedures. The logic is driven by an intrinsic purpose of carrying out an activity with other parties making it to be customer-centered and responsive. Actually, service-dominant logic considers service as the application of knowledge through actions, procedures, and performances for the advantage of the entity itself or another entity. Therefore, the concept leverages the strengths of the company to meet the needs of customers and accomplish both organizational and societal objectives (Lusch & Vargo, n.d.). Consequently, is generates competitive advantage and long-term customer loyalty through aligning the firm's capabilities with the needs of customers.

Co-production in Service Dominant Logic:

In the process of service design, co-creation is regarded as one of the major aspects since service design is increasingly inspired by service dominant logic. While service designers continue to experience difficulties with regards to the meaning and use of co-creation, service-dominant logic continued to have a huge effect on service marketing. Notably, the service-dominant logic is basically geared towards the creation of value instead of production through making output units. Due to its huge impacts on service marketing, service-dominant logic is increasingly important for marketers who need to engage in co-production of value using the concept.

Through this concept or logic, the co-production of the service system acts as the basis with the customer and marketer joint co-create the value of service during delivery and use ("Co-creation, co-production," 2012). For many organizations and marketers, the co-production of value in the global hyper-competitive market is challenging. This is primarily because of the need for the organization or individual to leave the traditional way of doing things and entrenched habits, which tend to die slowly. The task is even more challenging in the modern large international supply and value-creation networks when the process is not only on the way of doing things in the firm but across the firms. In most cases, many organizations experience difficulties in the co-production of value through the service-dominant logic because of resistance from the marketing department or team.

However, the individual or organization can engage in co-production of value using service-dominant logic through collaborative capability or absorptive capability. Through collaborative capability, the organization should work with other parties in truthful, open, and symmetric way. This requires the organization to have interior specialized knowledge and abilities since the lack of such competencies results in inability to work with other parties. Under the absorptive capability, the organization is able to soak in new information from the external environment such as collaborative partners. The two methods should be part of the organization's culture since they provide the basis for successful implementation of service-dominant logic.

Enhancing Service-dominant Logic:

As an important aspect of today's service marketing that contributes to several advantages and benefits, marketers can enhance the co-production of value using service dominant logic through various strategies. First, it can be enhanced through the interaction o relational orientation because value networks and groups continue to show the essential nature of exchange (Vargo & Lusch, 2007). As a result, the relational or interactive nature of value networks and groups is the essence of enhancing value creation. The need for this approach by marketers originates from the fact that there is an increased connectedness of people as every individual specializes and becomes dependent and connected to others. Actually, relational or interaction orientation is vital for enhancing these processes because service-dominant logic deals with interaction and value networks implicitly instead of ignoring them.

Secondly, marketers can enhance them through seamless integration of ethical accountability into marketing decision-making. The integration of ethical accountability is not only helpful in promoting the positive development of marketing ethics but it also enhances marketing performance (Abela & Murphy, 2007). Since the existing marketing scholarship tends to classify ethical issues, it has significantly contributed to ethical tensions and conflicts in marketing practice. Consequently, these conflicts and tensions in marketing practice can be removed by the seamless integration of ethical accountability into marketing decision-making in order to improve marketing performance.

The third strategy that marketers can use to enhance them is through adopting measures that promote flexibility of marketing structures and procedures. An analysis of the theoretical and practical applications of the service-dominant logic reveals that the marketing paradigm contributes to increased marketing flexibility (Calin, n.d.). The need to increase marketing flexibility originates from the fact that customers have different preferences and options in their involvement in the process of value co-creation. Increased marketing flexibility ensures that marketers consider the different preferences and options of customers.