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McGraw-Hill/Irwin Copyright © 2009 by the McGraw-Hill Companies, Inc. All rights reserved.
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 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
7-4
• Market Sensing• Customer Linking• Channel Bonding• Technology Monitoring
Outside-in Process
•Financial Management• Cost Control• Technology Development• Integrated Logistics• Manufacturing/Trans- formation Process• Human Resources Management• Environmental Safety Health and Safety
•Customer Order Fulfillment• Pricing• Purchasing• Customer Service Delivery• New Product / Service Development• Strategy Development
Inside-Out Process
Spanning Process
INTERNAL EMPHASISEXTERNAL EMPHASIS
Exhibit 7-1
USING INFORMATION AS A SPAN
7-5
STAGES OF INTERNALAND EXTERNAL PARTNERING
AWARENESS
EXPLORATION
EXPANSION
COMMITMENT
ACHIEVING THE
SUPRAGOAL:
CUSTOMER SATISFACTION
7-6
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
Exhibit 7-2
7-7
INTERNAL CORPORATE PARTNERS
PURCHASING
MARKETINGMANUFACTURING AND
ENGINEERING(R&D)
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 FUNCTIONALORGANIZATION STRUCTURE
MARKETING DIRECTOR
SALES PRODUCTDEVELOPMENT
MARCOMMMARKETINGRESEARCH
Exhibit 7-4
7-10
Exhibit 7-5
CUSTOMER FOCUSED TEAM STRUCTURE
Customer
Sales
AccountManager
Manufacturing
Shipping
Finance
FinanceRep
PurchasingAgent
Purchasing
EngineeringRep
Engineering
Mfg. Rep
ShippingRep
7-11
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
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’sObservation 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
+ = Have fewer stores in a city
Exhibit 7-8
7-14
TWO COGNITIVE MAPS—MAP 2
Advertising drives awareness
Assumption Conclusion 2
Each store has signage or advertising
More stores mean more awareness
Higher awareness means more business
Have more stores in a city
Assumption Observation
=
Exhibit 7-8
Observation
7-15
IMPORTANT INTERNALPARTNERING 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