The paper 'Processes of Value Creation in Service Marketing " is a good example of a marketing essay. Research in service marketing is one of the fields which have gained momentum in the last two decades. Despite being in existence since the 1970s, various scholars and researchers have continued to add their contribution to this area of research. In particular, these scholars have been focusing on value creation as an aspect of competitive advantage. Grö nroo & Ravald (2011) are some of the management experts who contributed to this topic through various publications.
In their article “ Service as business logic: implications for value creation and marketing” , the two researchers have adequately analyzed value co-creation within a service logic-oriented perspective of value creation. More emphasis has been put on the perspective of the customer in the supplier-customer relationship and the customer and supplier’ s role in the value creation and the co-creation. In the end, two processes of value creation can be derived; the process of suppliers offering resources for the use by customers and the process in which customers turn services into value. In two essays, this paper will analyze the work of Grö nroo & Ravald and shows how the concept can be used in current organizations.
From the analysis, three points of view can be presented; managers must make research and development part of value creation, value creation must be customer-driven and value creation is a determiner of growth. The second essay will critically review the different issues discussed in essay one based on evidence from academic literature. Why research and development part of value creation Research and development s a factor of growth so are value creation.
The company which creates customer value attracts more customers hence increasing sales and profits. High profits are indicators of growth, and the company can use it to expand its expansion further. However, without research and development, it has become very difficult for a company to create value. The research and development in this aspect mean a company that goes out to the market and conducts market research to get the customer perspective. In other words, this form of research and development is one that involves the customer in production.
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