Weaving Marketing into

1
Chapter 7
Weaving Marketing into the Fabric of the
Firm Eaton
2
Business Marketing

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

3
The Fabric of the Firm

• Organizational Culture
• Collectively held values, ideology, and social
  processes imbedded in the firm.

4
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
5
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 performanceEx.
  7-1, p. 195
• Market sensing
• Spanning processes

6
Classifying CapabilitiesEx 7-1, p. 195
7
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 partneringEx. 7-3, p. 200
• Customer Satisfaction -gt Supragoal

8
Order Fulfillment ProcessEx. 7-2, p. 198
9
Internal Partners

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

10
Marketing InterfacesEx. 7-3, p. 200
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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 CommunicationEx. 7-6, p.
  206 Ex. 7-7, p. 204

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Marketing PartnersFunctional StructureEx. 7-4,
p. 205
13
Customer-Focused Team StructureEx. 7-5, p. 206
14
Communication in a Functional Organ. Structure,
Ex. 7-6, p. 206
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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

16
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

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Cognitive Map 1, Ex. 7-8, p. 209
18
Cognitive Map 2, Ex. 7-8, p. 209
19
CREATING NEW KNOWLEDGETHE 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
20
HOW BUSINESS TO BUSINESS MARKETERS LEARN, Ex.
7-7, p. 208
THE THREE-STEP PROCESS
1INFORMATION ACQUISITION 2INFORMATION DISSEMINATION 3SHAREDINTERPRETATION
Marketing Research Sales and Service FeedbackEnvironmental Scanning Competitive Intelligence Accounting Systems Information Systems Experiments Benchmarking Joint Venture Lead Customers Organizational Memory To Marketing Management Senior Management Manufacturing Engineering and RD Finance Through Brainstorming Planning Other Processes
Exhibit 7-7
7-20
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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

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IMPORTANT INTERNALPARTNERING 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