Chapter Seven

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

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

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/Transformation Process Human Resources Management Environmental Safety Health and Safety

STAGES OF INTERNAL AND EXTERNAL PARTNERING

AWARENESS EXPLORATION EXPANSION COMMITMENT ACHIEVING THE SUPRAGOAL: CUSTOMER SATISFACTION

USING INFORMATION AS A SPAN

Marketing Customer Linking Channel Bonding
Order Scheduling Order Fulfillment
Billing and Payment

OUTSIDE-IN PROCESS Outside-in Process

Order Planning

Order Generation

Order Entry And Prioritization

Postal Service

Cost Estimation and Pricing Inside-Out Process

Manufacturing Transformation Financial Management Integrated Logistics

INTERNAL CORPORATE PARTNERS

PURCHASING

MARKETING

MANUFACTURING AND ENGINEERING (R&D)

FINANCE

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

TYPICAL MARKETING ORGANIZATION STRUCTURE

MARKETING DIRECTOR

SALES

PRODUCT DEVELOPMENT

MARCOMM

MARKETING RESEARCH

CUSTOMER FOCUSED TEAM STRUCTURE

Sales

Engineering

Account Manager Engineering Rep Customer Purchasing Agent Mfg. Rep Shipping Rep Finance Rep

Manufacturing

Shipping

Purchasing

Finance

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

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.

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

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

Observation
Have fewer stores in a city

TWO COGNITIVE MAPSMAP 2

Observation
Advertising drives awareness

Observation
Each store has signage or advertising

Assumption
More stores mean more awareness

Observation
Higher awareness means more business

Conclusion 2

Have more stores in a city