Chapter 7 Weaving Marketing into the Fabric of the Firm Eaton

Business Marketing Objectives Role of Marketing in a learning organizational environment Internal Partnerships Partnering Process for Internal Partnerships Internal Partnership Skills for Marketing Managers

Organizational Culture Collectively held values, ideology, and social processes imbedded in the firm. 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 7-4

Market Oriented Companies What is a Market Orientation? –Highest priority on profitable creation and maintenance of superior customer value while considering the interests of other key stakeholders. –Provides norms for behavior regarding development of and responsiveness to market information How market orientation impacts performance [Ex. 7-1, p. 195] –Market sensing –Spanning processes

Classifying Capabilities Ex 7-1, p. 195

Internal Partnering to Create a Market Orientation Internal partnering carries the voice of the customer Order Fullfillment Process, Critical Spanning Capability –[Ex. 7-2, p. 198] Internal vs external partnering [Ex. 7-3, p. 200] –Customer Satisfaction -> Supragoal

Order Fulfillment Process Ex. 7-2, p. 198

Internal Partners Marketing Interfaces, Ex. 7-3, p. 200 Manufacturing –Make to stock –Make to order –Engineer to order Finance Purchasing

Marketing Interfaces Ex. 7-3, p. 200

Partnerships in Marketing Integrating Marketing Efforts –Clear Strategic Decisions –Personnel Stability –Compensation –Organizational Structure Organizational Structure – Marketing Partners Customer Focused Team structure [Ex. 7-5, p. 206] –Structure and Formal Communication [Ex. 7-6, p. 206; Ex. 7-7, p. 204]

Marketing Partners Functional Structure Ex. 7-4, p. 205

Customer-Focused Team Structure Ex. 7-5, p. 206

Communication in a Functional Organ. Structure, Ex. 7-6, p. 206

Marketing Orientation and Organizational Learning Known requisites Organizational Learning Further Defined Organizational Learning and Competitive Advantage - need to learn faster than the competition Competency Trap

How Marketing Learns [Ex. 7-7, p. 208] Cognitive Mapping Experiments Learning Laboratories –Scenarios –Case Studies –Strategic Planning Learning from others A Commitment to Learning

Cognitive Map 1, Ex. 7-8, p. 209

Cognitive Map 2, Ex. 7-8, p. 209

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, scenarios - simulations, models, case studies, strategic planning, and role playing LEARNING FROM OTHERS Getting knowledge from partners, consultants, seminars, and competitors. 7-19

HOW BUSINESS TO BUSINESS MARKETERS LEARN, Ex. 7-7, p. 208 THE THREE-STEP PROCESS 1 INFORMATION ACQUISITION 2 INFORMATION DISSEMINATION 3 SHARED INTERPRETATION Marketing Research Sales and Service Feedback Environmental Scanning Competitive Intelligence Accounting Systems Information Systems Experiments Benchmarking Joint Venture Lead Customers Organizational Memory To: Marketing Management Senior Management Manufacturing Engineering and R&D Finance Through: Brainstorming Planning Other Processes Exhibit

The Learning Market- Oriented Individual Important Internal Partnering Skills Finance and Accounting Skills Questioning and Listening Negotiation –Create a Sense of Urgency –What is Negotiated –Be Prepared

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 7-22