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Copyright © 2006 The McGraw-Hill Companies, Inc. All rights reserved McGraw-Hill/Irwin

Chapter Seven

Weaving Marketing into

the Fabric of the Firm

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COMPONENTS OFMARKET ORIENTATION

1. Establish a corporate culture where everyemployee values their customers

2. Listening to the voice of the customer throughout the entire company

3. Developing superior skills to understand andsatisfy customers

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LINKING CUSTOMER NEEDSTO COMPANY CAPABILITIES

CUSTOMER NEEDS LINKS COMPANYCAPABILITIES

Inputs by customersthrough sales, service,

information seeking

Spanning activitiesthat provide

decision-makinginformation

Defined by allorganization functions

OBJECTIVE: TO ALIGN EACH PARTNER’S GOALS

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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

• Financial Management

• Cost Control

• TechnologyDevelopment

• Integrated Logistics

• Manufacturing/Trans-

formation Process• Human Resources

Management

• Environmental Safety

Health and Safety

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USING INFORMATION AS A SPAN

• Marketing

• CustomerLinking

• ChannelBonding

• Manufacturing

Transformation

• FinancialManagement

• IntegratedLogistics

OUTSIDE-IN PROCESSOutside-in Process

  Inside-Out Process

Cost Estimation

and Pricing

  Billing

and

Payment

  Order 

Scheduling

  Order Entry

And

Prioritization

  Order 

Generation

  Order 

Planning

Postal

Service  Order 

Fulfillment

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INTERNAL CORPORATE PARTNERS

PURCHASING

MARKETINGMANUFACTURING AND

ENGINEERING

(R&D)

FINANCE

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ENCOURAGING INTEGRATION INMARKETING OPERATIONS

DEVELOP AND ARTICULATE STRATEGIC DECISIONSTHAT WILL BE IMPLEMENTED

PURSUE PERSONNEL STABILITY TO ENHANCE LONGTERM RAPPORT

LEVEL THE BUDGET AND COMPENSATION PLAYING

FIELD THAT SUPPORTS MARKETING EFFORTS

ESTABLISH CLEAR AND FORMALIZEDCOMMUNICATION / ORGANIZATION STRUCTURES

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TYPICAL MARKETINGORGANIZATION STRUCTURE

MARKETING DIRECTOR

SALES PRODUCT

DEVELOPMENT MARCOMMMARKETING

RESEARCH

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CUSTOMER FOCUSED TEAM STRUCTURE

Customer 

Sales

Account

Manager Manufacturing

Shipping

Finance

FinanceRep

Purchasing

Agent

Purchasing

Engineering

Rep

Engineering

Mfg. Rep

Shipping

Rep

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HOW BUSINESS TO BUSINESSMARKETERS LEARN:

THE THREE-STEP PROCESS1

INFORMATIONACQUISITION

2INFORMATION

DISSEMINATION

3SHARED

INTERPRETATION

Marketing Research

Sales and Service Feedback Environmental Scanning

Competitive Intelligence

Accounting Systems

Information Systems

Experiments

Benchmarking

Joint Venture

Lead Customers

Organizational Memory

To:

Marketing ManagementSenior Management

Manufacturing

Engineering and R&D

Finance

Through:

BrainstormingPlanning

Other Processes

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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 physical environment set aside for learning through experiments,

simulations, models and role playing

• LEARNING FROM OTHERS• Getting knowledge from partners, consultants, seminars, and

competitors.

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COGNITIVE MAPS—MAP 1

Example: Kinko’s

Observation Observation Observation

Kinko’s storescompete with

each other 

when located

in the same

city becauseof free

delivery

service

+ =

Have fewer stores in a cityMorecompetitors

means less

business per 

store

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TWO COGNITIVE MAPS—MAP 2

Advertising

drives

awareness

Assumption Observation Conclusion 2

Each store

has

signage or 

advertising

More

storesmean more

awareness

Higher 

awarenessmeans more

business

Have more

stores in acity

Observation Observation

=