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Chapter 7
Weaving Marketing into
the Fabric of the Firm
COMPONENTS OF MARKET
ORIENTATION
1. Establish a corporate culture where every
employee values their customers
2. Listening to the voice of the customer
throughout the entire company
3. Developing superior skills to understand and
satisfy customers
7-3
LINKING CUSTOMER NEEDS
TO COMPANY CAPABILITIES
CUSTOMER NEEDS
LINKS
Inputs by customers
through sales, service,
information seeking
Spanning activities
that provide
decision-making
information
COMPANY
CAPABILITIES
Defined by all
organization functions
OBJECTIVE: TO ALIGN EACH PARTNER’S GOALS
7-4
USING INFORMATION AS A SPAN
EXTERNAL EMPHASIS
INTERNAL EMPHASIS
Outside-in
Process
Inside-Out
Process
Spanning Process
• Market Sensing
• Customer
Linking
• Channel
Bonding
• Technology
Monitoring
•Customer Order Fulfillment
• Pricing
• Purchasing
• Customer Service Delivery
• New Product / Service
Development
• Strategy Development
Exhibit 7-1
•Financial Management
• Cost Control
• Technology
Development
• Integrated Logistics
• Manufacturing/Transformation Process
• Human Resources
Management
• Environmental Safety
Health and Safety
7-5
STAGES OF INTERNAL
AND EXTERNAL PARTNERING
AWARENESS
EXPLORATION
EXPANSION
COMMITMENT
ACHIEVING THE
SUPRAGOAL:
CUSTOMER SATISFACTION
7-6
USING INFORMATION AS A SPAN
OUTSIDE-IN
PROCESS
Outside-in
Process
•
•
•
Order
Planning
Order
Generation
Order Entry
And
Prioritization
Marketing
Customer
Linking
Channel
Bonding
Order
Scheduling
Order
Fulfillment
Cost Estimation
and Pricing
Billing
and
Payment
Postal
Service
• Manufacturing
Inside-Out Process
Exhibit 7-2
Transformation
• Financial
Management
• Integrated
Logistics
7-7
INTERNAL CORPORATE PARTNERS
PURCHASING
MANUFACTURING AND
ENGINEERING
(R&D)
MARKETING
FINANCE
Exhibit 7-3
7-8
ENCOURAGING INTEGRATION IN
MARKETING OPERATIONS
DEVELOP AND ARTICULATE CLEAR STRATEGIC
DECISIONS THAT WILL BE IMPLEMENTED
PURSUE PERSONNEL STABILITY TO ENHANCE LONG
TERM RAPPORT
LEVEL THE BUDGET AND COMPENSATION PLAYING
FIELD THAT SUPPORTS MARKETING EFFORTS
ESTABLISH CLEAR AND FORMALIZED
COMMUNICATION / ORGANIZATION STRUCTURES
7-9
TYPICAL FUNCTIONAL
ORGANIZATION STRUCTURE
MARKETING DIRECTOR
SALES
PRODUCT
DEVELOPMENT
MARCOMM
MARKETING
RESEARCH
Exhibit 7-4
7-10
CUSTOMER FOCUSED TEAM STRUCTURE
Sales
Account
Manager
Engineering
Engineering
Rep
Mfg. Rep
Customer
Shipping
Rep
Purchasing
Agent
Purchasing
Manufacturing
Shipping
Finance
Rep
Finance
Exhibit 7-5
7-11
HOW BUSINESS TO BUSINESS MARKETERS LEARN
THE THREE-STEP PROCESS
1
INFORMATION
ACQUISITION
Marketing Research
Sales and Service Feedback
Environmental Scanning
Competitive Intelligence
Accounting Systems
Information Systems
Experiments
Benchmarking
Joint Venture
Lead Customers
Organizational Memory
2
INFORMATION
DISSEMINATION
To:
Marketing Management
Senior Management
Manufacturing
Engineering and R&D
Finance
3
SHARED
INTERPRETATION
Through:
Brainstorming
Planning
Other Processes
Exhibit 7-7
7-12
CREATING NEW KNOWLEDGE:
THE TOOLS
•
•
•
•
COGNITIVE MAPPING
•
Finding links of cause and effect through exploring beliefs and
assumptions
EXPERIMENTS
•
Research that tests cognitive maps
LEARNING LABORATORIES
•
A time and space that is set aside for sharing and learning through
experiments, simulations, models and role playing
LEARNING FROM OTHERS
•
Getting knowledge from partners, consultants, seminars, and
competitors.
7-13
COGNITIVE MAPS—MAP 1
Example: FedEx-Kinko’s
Observation
Observation
More
competitors
means less
business per
store
+
Kinko’s stores
compete with
each other when
located in the
same city
because of free
delivery service
Observation
=
Have fewer
stores in a city
Exhibit 7-8
7-14
TWO COGNITIVE MAPS—MAP 2
Assumption
Observation
Advertising
drives
awareness
Each store
has signage or
advertising
Assumption
Observation
More stores
mean more
awareness
Higher
awareness
means more
business
Conclusion 2
=
Have more
stores in a city
Exhibit 7-8
7-15
IMPORTANT INTERNAL
PARTNERING SKILLS
•
•
•
•
FINANCE AND ACCOUNTING SKILLS helps communicate with other managers and make
better decisions
QUESTIONING AND LISTENING helps understand needs of others
NEGOTIATION –
helps resolve conflicts
ANALYTICAL SKILLS –
helps apply meaning to numbers
7-16