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Chapter Seven
Weaving Marketing into
the Fabric of the Firm

McGraw-Hill/Irwin Copyright © 2006 The McGraw-Hill Companies, Inc. All rights reserved.
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

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LINKING CUSTOMER NEEDS
TO COMPANY CAPABILITIES

CUSTOMER NEEDS LINKS COMPANY


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

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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
• Channel • Customer Service Delivery Development
Bonding • New Product / Service • Integrated Logistics
•Technology Development • Manufacturing/Trans-
Monitoring • Strategy Development formation Process
• Human Resources
Management
• Environmental Safety
Health and Safety

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STAGES OF INTERNAL
AND EXTERNAL PARTNERING

AWARENESS

EXPLORATION

EXPANSION

COMMITMENT

ACHIEVING THE
SUPRAGOAL:
CUSTOMER
SATISFACTION

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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 and
Planning Generation Scheduling Fulfillment Service
Prioritization Payment

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

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INTERNAL CORPORATE PARTNERS

PURCHASING

MANUFACTURING AND
MARKETING ENGINEERING
(R&D)

FINANCE

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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

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TYPICAL MARKETING
ORGANIZATION STRUCTURE

MARKETING DIRECTOR

SALES PRODUCT MARKETING


DEVELOPMENT MARCOMM RESEARCH

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CUSTOMER FOCUSED TEAM STRUCTURE

Sales

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

Finance

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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

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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.

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COGNITIVE MAPS—MAP 1

Example: Kinko’s
Observation Observation Observation

More Kinko’s stores Have fewer


competitors compete with stores in a city
means less each other
business per + when located =
store in the same
city because
of free
delivery
service

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TWO COGNITIVE MAPS—MAP 2

Observation Observation
Advertising Each store
drives has
awareness signage or
advertising

Assumption Observation Conclusion 2


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

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