Chapter 7Weaving Marketing into the Fabric of the Firm
COMPONENTS OF MARKET ORIENTATION1. Establish a corporate culture where every employee values their customers2. Listening to the voice of the customer throughout the entire company3. Developing superior skills to understand and satisfy customers 7-3
LINKING CUSTOMER NEEDS TO COMPANY CAPABILITIES COMPANYCUSTOMER NEEDS LINKS CAPABILITIESInputs by customers Spanning activities Defined by allthrough sales, service, that provide organization functionsinformation seeking decision-making information OBJECTIVE: TO ALIGN EACH PARTNER’S GOALS 7-4
USING INFORMATION AS A SPANEXTERNAL EMPHASIS INTERNAL EMPHASIS Outside-in Inside-Out Process Process Spanning Process• Market Sensing •Customer Order Fulfillment •Financial Management• Customer • Pricing • Cost Control Linking • Purchasing • Technology Development• Channel • Customer Service Delivery • Integrated Logistics Bonding • New Product / Service • Manufacturing/Trans-• Technology Development formation Process Monitoring • Strategy Development • Human Resources Management • Environmental Safety Health and Safety Exhibit 7-1 7-5
STAGES OF INTERNAL AND EXTERNAL PARTNERINGAWARENESS EXPLORATION EXPANSION COMMITMENT ACHIEVING THE SUPRAGOAL: CUSTOMER SATISFACTION 7-6
USING INFORMATION AS A SPAN • Marketing • Customer Outside-in Process OUTSIDE-IN PROCESS Linking • Channel Bonding Order Entry Billing Postal Order Order Order Order And andPlanning Generation Scheduling Fulfillment Service Prioritization Payment Cost Estimation and Pricing • Manufacturing Transformation • Financial Inside-Out Process Management • Integrated Logistics Exhibit 7-2 7-7
ENCOURAGING INTEGRATION IN MARKETING OPERATIONSDEVELOP AND ARTICULATE CLEAR STRATEGICDECISIONS THAT WILL BE IMPLEMENTEDPURSUE PERSONNEL STABILITY TO ENHANCE LONGTERM RAPPORTLEVEL THE BUDGET AND COMPENSATION PLAYINGFIELD THAT SUPPORTS MARKETING EFFORTSESTABLISH CLEAR AND FORMALIZEDCOMMUNICATION / ORGANIZATION STRUCTURES 7-9
TYPICAL FUNCTIONAL ORGANIZATION STRUCTURE MARKETING DIRECTORSALES MARCOMM PRODUCT MARKETING DEVELOPMENT RESEARCH Exhibit 7-4 7-10
HOW BUSINESS TO BUSINESS MARKETERS LEARN THE THREE-STEP PROCESS 1 2 3 INFORMATION INFORMATION SHARED ACQUISITION DISSEMINATION INTERPRETATIONMarketing Research To: Through:Sales and Service Feedback Marketing Management BrainstormingEnvironmental Scanning Senior Management PlanningCompetitive Intelligence Manufacturing Other ProcessesAccounting Systems Engineering and R&DInformation Systems FinanceExperimentsBenchmarkingJoint VentureLead CustomersOrganizational Memory 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 ObservationMore + Kinko’s stores = Have fewercompetitors compete with stores in a citymeans less each other whenbusiness per located in thestore same city because of free delivery service Exhibit 7-8 7-14
TWO COGNITIVE MAPS—MAP 2Assumption ObservationAdvertising Each storedrives has signageawareness or advertisingAssumption Observation Conclusion 2More stores Higher Have moremean more awareness = stores in a cityawareness means more business Exhibit 7-8 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
A particular slide catching your eye?
Clipping is a handy way to collect important slides you want to go back to later.