1. Weaving Marketing into the Fabric of the Firm
Chapter Seven
Weaving Marketing into
the Fabric of the Firm

2. LEARNING OBJECTIVES Introduce market orientation concept
Describe the internal partnerships that must be developed with marketing
Discuss how marketing learns

3. MARKET ORIENTATION CONCEPT
What is a Market Orientation
Components of Market Orientation
How Market Orientation Impacts Performance
Spanning Process

4. What is Market Orientation
The systematic gathering of information on customers and competitors, both present and potential
The systematic analysis of the information for the purpose of developing market knowledge
The systematic use of such knowledge to guide strategy recognition, understanding, selection, implementation and modification
A market-oriented firm should - benefit from better marketing programs; be difficult for competitors to identify;
be unique

5. Components of Marketing Orientation
Establish a corporate culture where every employee values their customers
Listening to the voice of the customer throughout the entire company
Developing superior skills to understand and satisfy customers
A market orientation must exist in the culture of the organization (part of the values & norms of the organization)
A company needs a market orientation in order to learn successfully.

6. How Market Orientation Impacts Performance
Do a better job of market sensing
Anticipating market requirements ahead of competition
Marketing research is one form of market sensing
Can be achieved through listening to the salesforce, observing competition at trade shows, and developing stronger ties with innovative customers and suppliers
Be able to develop stronger relationships
With customers
With channels of distribution

7. Spanning Process
CUSTOMER NEEDS
LINKS
COMPANY CAPABILITIES
Inputs by customers through sales, service, information seeking
Spanning activities that provide decision-making information
Defined by all organization functions
- Spanning processes link the firm’s internal processes with the customer
- Market oriented firms must have adequate spanning processes

8. Outside-in Process Inside-Out Process Spanning Process
EXTERNAL EMPHASIS
INTERNAL EMPHASIS
Outside-in Process
Inside-Out Process
Spanning Process
Market Sensing
Customer
Linking
Channel
Bonding
Technology
Monitoring
Customer Order Fulfillment
Pricing
Purchasing
Customer Service Delivery
New Product / Service
Development
Strategy Development
Financial Management
Cost Control
Technology Development
Integrated Logistics
Manufacturing/Trans-
formation Process
Human Resources
Management
Environmental Safety
Health and Safety

9. PARTNERSHIP IN MARKETING
Internal Partnering – The process of creating partnerships with other functional areas within the firm
Partnerships are characterized by open communication, trust and commitment to the partner.
Partners are able to align their goals with the goals of the other
Silo structure is with high walls built around the departments and no ability or desire to go between the departments
The creation of internal partnerships
Internal Partners

10. Stages of Internal & External Partnering
AWARENESS
EXPLORATION
EXPANSION
COMMITMENT
ACHIEVING THE
SUPRAGOAL:
CUSTOMER SATISFACTION

11. Internal Partners PURCHASING MARKETING MANUFACTURING AND ENGINEERING
(R&D)
FINANCE

12. Encouraging Integration in Marketing Operations
Develop & 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 / Organizations Structures

13. Typical Marketing Organizational Structure
MARKETING DIRECTOR
SALES
PRODUCT DEVELOPMENT
MARCOMM
MARKETING RESEARCH

14. Customer Focused Team Structure
Sales
Account Manager
Manufacturing
Engineering
Engineering Rep
Mfg. Rep
Customer
Shipping Rep
Purchasing Agent
Shipping
Finance Rep
Purchasing
Finance

15. HOW BUSINESS MARKETERS LEARN
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

16. Tools to Generate New Knowledge
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.

17. Cognitive Maps—MAP 1 Example: Kinko’s Observation Observation
More competitors means less business per store
Kinko’s stores compete with each other when located in the same city because of free delivery service
Have fewer stores in a city + =

18. Two Cognitive Maps—MAP 2
Observation
Observation
Advertising drives awareness
Each store has signage or advertising
Assumption
Observation
Conclusion 2
More stores mean more awareness
Higher awareness means more business
Have more stores in a city =