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
CUSTOMER NEEDS LINKS CAPABILITIES
Inputs by customers Spanning activities Defined by all
through sales, service, that provide organization functions
information seeking decision-making
information

OBJECTIVE: TO ALIGN EACH PARTNER’S GOALS

7-4
 USING INFORMATION AS A SPAN
EXTERNAL 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 PARTNERING
AWARENESS

EXPLORATION

EXPANSION

COMMITMENT

ACHIEVING THE
SUPRAGOAL:
CUSTOMER SATISFACTION

7-6
 USING INFORMATION AS A SPAN
• Marketing
• Customer
Outside-in
OUTSIDE-IN Process
PROCESS Linking
• Channel
Bonding

Order Entry Billing Postal

Order Order Order Order
And and
Planning Generation Scheduling Fulfillment Service
Prioritization Payment

Cost Estimation
and Pricing • Manufacturing
Transformation
• Financial
Inside-Out Process Management

• Integrated
Logistics
Exhibit 7-2

7-7
INTERNAL CORPORATE PARTNERS

PURCHASING

MANUFACTURING AND
MARKETING 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 MARCOMM
PRODUCT MARKETING
DEVELOPMENT RESEARCH

Exhibit 7-4

7-10
CUSTOMER FOCUSED TEAM STRUCTURE

Sales

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

Finance

Exhibit 7-5
7-11
 HOW BUSINESS TO BUSINESS MARKETERS LEARN

THE THREE-STEP PROCESS

1 2 3
INFORMATION INFORMATION SHARED
ACQUISITION DISSEMINATION INTERPRETATION

Marketing Research To: Through:

Sales and Service Feedback Marketing Management Brainstorming
Environmental Scanning Senior Management Planning
Competitive Intelligence Manufacturing Other Processes
Accounting Systems Engineering and R&D
Information Systems Finance
Experiments
Benchmarking
Joint Venture
Lead Customers
Organizational 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’s
Observation Observation Observation
More + Kinko’s stores = Have fewer
competitors compete with stores in a city
means less each other when
business per located in the
store same city
because of free
delivery service

Exhibit 7-8

7-14
 TWO COGNITIVE MAPS—MAP 2
Assumption Observation
Advertising Each store
drives has signage
awareness or advertising

Assumption Observation Conclusion 2

More stores Higher
Have more
mean more awareness
= stores in a city
awareness 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