1. 7-1

2. Chapter Seven
Weaving Marketing into
the Fabric of the Firm
McGraw-Hill/Irwin Copyright © 2006 The McGraw-Hill Companies, Inc. All rights reserved.

3. 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

4. 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

5. 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
7-5

6. STAGES OF INTERNAL
AND EXTERNAL PARTNERING
AWARENESS
EXPLORATION
EXPANSION
COMMITMENT
ACHIEVING THE
SUPRAGOAL:
CUSTOMER
SATISFACTION
7-6

7. 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
and Pricing • Manufacturing
Transformation
• Financial
Inside-Out Process Management
• Integrated
Logistics
7-7

8. INTERNAL CORPORATE PARTNERS
PURCHASING
MANUFACTURING AND
MARKETING ENGINEERING
(R&D)
FINANCE
7-8

9. 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
7-9

10. TYPICAL MARKETING
ORGANIZATION STRUCTURE
MARKETING DIRECTOR
SALES PRODUCT MARKETING
DEVELOPMENT MARCOMM RESEARCH
7-10

11. CUSTOMER FOCUSED TEAM STRUCTURE
Sales
Account
Manufacturing
Engineering Manager
Engineering Mfg. Rep
Rep
Customer
Purchasing Shipping
Agent Rep
Shipping
Finance
Purchasing
Rep
Finance
7-11

12. 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
7-12

13. 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.
7-13

14. 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
7-14

15. 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
7-15