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
The Fabric of the Firm
Organizational Culture
Collectively held values, ideology, and
social processes imbedded in 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
Marketing Research
Sales and Service Feedback
Environmental Scanning
Competitive Intelligence
Accounting Systems
Information Systems
Experiments
Benchmarking
Joint Venture
Lead Customers
Organizational Memory
2
INFORMATION
DISSEMINATION
To:
Marketing Management
Senior Management
Manufacturing
Engineering and R&D
Finance
3
SHARED
INTERPRETATION
Through:
Brainstorming
Planning
Other Processes
Exhibit 7-7
7-20
The Learning MarketOriented 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