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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 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

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LINKING CUSTOMER NEEDSTO COMPANY CAPABILITIES

CUSTOMER NEEDS LINKSCOMPANY

CAPABILITIES

Inputs by customers through sales, service, information seeking

Spanning activities that provide decision-making information

Defined by all organization 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

• Technology Development

• Integrated Logistics

• Manufacturing/Trans-

formation Process

• Human Resources

Management

• Environmental Safety

Health and Safety

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STAGES OF INTERNALAND EXTERNAL PARTNERING

AWARENESS

EXPLORATION

EXPANSION

COMMITMENT

ACHIEVING THESUPRAGOAL:CUSTOMER

SATISFACTION

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USING INFORMATION AS A SPAN

• Marketing

• Customer Linking

• Channel Bonding

• Manufacturing Transformation

• Financial Management

• Integrated Logistics

OUTSIDE-IN PROCESSOutside-in Process

Inside-Out Process

Cost Estimation and Pricing

Billing and Payment

Order Scheduling

Order EntryAnd

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 IN MARKETING OPERATIONS

DEVELOP AND ARTICULATE 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

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TYPICAL MARKETINGORGANIZATION STRUCTURE

MARKETING DIRECTOR

SALES PRODUCTDEVELOPMENT MARCOMM

MARKETINGRESEARCH

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CUSTOMER FOCUSED TEAM STRUCTURE

Customer

Sales

AccountManager

Manufacturing

Shipping

Finance

FinanceRep

PurchasingAgent

Purchasing

EngineeringRep

Engineering

Mfg. Rep

ShippingRep

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HOW BUSINESS TO BUSINESS MARKETERS LEARN:

THE THREE-STEP PROCESS1

INFORMATION ACQUISITION

2INFORMATION

DISSEMINATION

3SHARED

INTERPRETATION

Marketing Research

Sales and Service FeedbackEnvironmental Scanning

Competitive Intelligence

Accounting Systems

Information Systems

Experiments

Benchmarking

Joint Venture

Lead Customers

Organizational Memory

To:

Marketing Management

Senior Management

Manufacturing

Engineering and R&D

Finance

Through:

Brainstorming

Planning

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 stores compete with each other when located in the same city because of free delivery service

+ =

Have fewer stores in a city

More competitors 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 stores mean more awareness

Higher awareness means more business

Have more stores in a city

Observation Observation

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