Chapter 7

Weaving Marketing into

the Fabric of the FirmEaton

Business MarketingObjectives

• 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 CapabilitiesEx 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 ProcessEx. 7-2, p. 198

Internal PartnersMarketing Interfaces, Ex. 7-3, p. 200

• Manufacturing– Make to stock

– Make to order

– Engineer to order

• Finance

• Purchasing

Marketing InterfacesEx. 7-3, p. 200

Partnerships in Marketing

Integrating Marketing Efforts– Clear Strategic Decisions

– Personnel Stability

– Compensation

– Organizational Structure

Organizational Structure – Marketing PartnersCustomer Focused Team structure [Ex. 7-5, p. 206]

– Structure and Formal Communication[Ex. 7-6, p. 206; Ex. 7-7, p. 204]

Marketing PartnersFunctional Structure

Ex. 7-4, p. 205

Customer-Focused Team StructureEx. 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 DefinedOrganizational 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 PROCESS1

INFORMATION ACQUISITION

2INFORMATION

DISSEMINATION

3SHARED

INTERPRETATION

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 R&D

Finance

Through:

Brainstorming

Planning

Other Processes

Exhibit 7-77-20

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 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