Articles that cover basic background information
Does the classic marketing mix- product, price, place and promotion - fit for today's world? A world where
It's useful to have some background on product-dominated innovation since service-dominated innovation is similar (yet with additional factors to address).
In this article we look at:
Is our current way of thinking about the world - a so called goods-dominant logic that is goods-centric and has a heavy focus on value-exchange - the best mindset for services?
In this first of two articles we look at what is this goods-dominant mindset. We conclude that yes we could use it for services, but it limits us. It is like driving a performance sports car, but only ever using 1st gear.
Once we look more at services we realise a new logic is needed to access the other gears. But that this is a realisation not a revolution.
"94% of executives are unsatisfied with innovation performance". Yet "84% see innovation as important to growth"! And "54% of companies struggle to bridge the gap between innovation and business". Worse; "very few executives know what the problem is and how to fix it"!
We have forgotten the basics. Firstly that "the firm has two, and only two activities: marketing and innovation". And that "people don't want to buy a 1/4 inch drill, they want a 1/4 inch hole".
Instead, we (accidentally?) embark on innovation theatre, misalign execution with vision, and forget there is resistance to innovation. We miss following service-dominant logic. Which drives customer-centric thinking, and co-value generation; is a natural home for job-to-be-done and blue ocean theories; helps us minimise marketing myopia; and focuses us past point of sale, to additional services, servitization of goods, and the circular economy.
