Latest Masters of Business Research (Work in Progress): Conceptualising service dominant logic in not for profit marketing by Mary Lim

Conceptualising service dominant logic in not for profit marketing

Mary Lim

Research Assistant, Department of Management and Marketing, Faculty of Creative Industries and Business, mlim@unitec.ac.nz, Phone: ++(649) 815 4321, Postal Address: Unitec Institute of Technology, Department of Management, Private Bag 92025, Auckland, New Zealand.

Robert Davis

Associate Professor, Department of Management and Marketing, Faculty of Creative Industries and Business, rdavis@unitec.ac.nz, Phone: ++(649) 815 4321, Postal Address: Unitec Institute of Technology, Department of Management, Private Bag 92025, Auckland, New Zealand.

Abstract:

A literature and knowledge gap in not for profit (NFP) marketing in New Zealand prompted an exploratory research on the subject. Using grounded theory approach to flesh out emergent themes from data obtained through 20 in-depth interviews with marketing, communication, and fundraising executives from NZ organisations, the results support service dominant logic (SDL) as a suitable framework for NFP marketing.

Value co-creation, a key SDL construct, was evident in all the intra- and inter-key stakeholder relationships that NFPs have with their multiple publics. This added strength to foundational premise (FP) six, where customers are the co-creators of value. Evidence from the data richly supported FP1, which posits that service is the fundamental basis of exchange, as NFPs were producers of services, to create social value for communities in need. Therefore, as service-centred organisations, NFPs are inherently customer oriented and relational (FP8). Being cause- and value-driven, NFPs inherently place emphasis on their beneficiaries and donors, and there is ample evidence to support this view.

Compared to transaction marketing practices, relationship marketing, and a hybrid transaction-relationship stance, SDL is a viable framework for NFP marketing to gain competitive advantage in an increasing crowded market for the public’s affection and donor dollar.

Reference:

Dolnicar, S. & Lazarevski, K. (2009). Marketing in non-profit organisations: An international perspective. International Marketing Review 26(3), p 275-291.

Vargo, S. L., & Lusch, R. F. (2004). Evolving to a new dominant logic for marketing. Journal of Marketing, 68, p 1-17.

Vargo, S. L., & Lusch, R. F. (2008). Service-dominant logic: continuing the evolution. Journal of the Academy of Marketing Science. 31. p 1-10.

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