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 NEEDS TO COMPANY CAPABILITIES

COMPANY CAPABILITIES Defined by all organization functions

CUSTOMER NEEDS Inputs by customers through sales, service, information seeking

LINKS Spanning activities that provide decision-making information

OBJECTIVE: TO ALIGN EACH PARTNERS GOALS

7-4

USING INFORMATION AS A SPAN

EXTERNAL EMPHASIS INTERNAL EMPHASIS

Outside-in Process Spanning Process

Inside-Out 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/Transformation Process Human Resources Management Environmental Safety Health and Safety

Exhibit 7-1

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

Marketing Customer Linking Channel Bonding

Order Fulfillment

Order Planning

Order Generation

Order Entry And Prioritization

Order Scheduling

Billing and Payment

Postal Service

Cost Estimation and Pricing Inside-Out Process

Manufacturing
Transformation Financial Management Integrated Logistics
7-7

Exhibit 7-2

INTERNAL CORPORATE PARTNERS

PURCHASING

MARKETING

MANUFACTURING 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 FUNCTIONAL ORGANIZATION STRUCTURE

MARKETING DIRECTOR

SALES

PRODUCT DEVELOPMENT

MARCOMM

MARKETING RESEARCH

Exhibit 7-4
7-10

CUSTOMER FOCUSED TEAM STRUCTURE

Sales

Engineering
Engineering Rep Purchasing Agent Purchasing

Account Manager Mfg. Rep Customer Shipping Rep Finance Rep

Manufacturing

Shipping

Finance Exhibit 7-5

7-11

HOW BUSINESS TO BUSINESS MARKETERS LEARN

1 INFORMATION ACQUISITION

THE THREE-STEP PROCESS

2 INFORMATION DISSEMINATION

3 SHARED 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 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 Research that tests cognitive maps A time and space that is set aside for sharing and learning through experiments, simulations, models and role playing Getting knowledge from partners, consultants, seminars, and competitors.
7-13

EXPERIMENTS LEARNING LABORATORIES

LEARNING FROM OTHERS

COGNITIVE MAPSMAP 1
Example: FedEx-Kinkos
Observation
More competitors means less business per store

Observation

Observation

Kinkos 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 MAPSMAP 2

Assumption
Advertising drives awareness

Observation
Each store has signage or advertising

Assumption
More stores mean more awareness

Observation
Higher awareness means more business
Exhibit 7-8

Conclusion 2 =
Have more stores in a city

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