Marketing and Design

ThinkingTor W. Andreassen

Professor

Center for Service Innovation (CSI)

Change # 1

Change #2

Marketing and design i two contexts

Examples

WarbyParker

The WarbyParker Experience

The IKEA effect

The goal of marketing is to create value for customers

To make everyday life easier, more convenient, more efficient

Customer Value Added.

Perceived value per unit

Variable cost per unit delivered

0

Customer value added

Source: Sexton, 2009, p 13

The goal of MKTG

Market offer

Firm valueWHAT YOU GET

Employees Services Brands

WHAT YOU DO

Customer experience

HOW CUSTOMERS FEEL

CustomerprofitabilityWHAT CUSTOMERS DO

Organization & Technology

The Holey Grail of Marketing

5C

CustomerCompany

CompetitorsContext

Collaborators

S T P

Segmentation

Targeting

Positioning

7Ps

ProductPlace

PromotionPrice

PeopleProcess

ManagementPhysical facilities

Norwegian Innovation Index modell: All banks

12

Service delivery

Relations

Service-scape

Firms’innovations

Perceivedinnovativeness

Relative attractiveness

Customerloyalty

Perceived change in

Core serviceEmotions

Chi2 = 377.62, df = 308RMSEA = 0.027NNFI = 0.99; SRMR = 0.06N=307

Evidence of marketing

Why do people pull

products or services

into their life??

MKTG does not do the job

Design and Service Profit Chain

Andreassen et al 2016

Final thoughts

• Service design thinking can reduce transaction costs

• Service design thinking can improve the market offering

• Service design thinking must continue to be developed as a field because it

has a value/paradigm of its own

• Service design thinking will (slowly) become a management capability as it

finds its way into b-schools

• Service design thinking will (slowly) become part of marketing which is in

dire need of development

• Service design thinking has probably done more good to customer value and

the philosophy of marketing than mktg has

Design thinking forces you to take care of customers