COMPONENTS OF MARKET 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
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McGraw-Hill/Irwin Copyright © 2009 by the McGraw-Hill Companies, Inc. All rights reserved.Chapter 7Weaving Marketing intothe Fabric of the FirmCOMPONENTS OF MARKET ORIENTATIONEstablish a corporate culture where every employee values their customersListening to the voice of the customer throughout the entire companyDeveloping superior skills to understand and satisfy customers7-* LINKING CUSTOMER NEEDSTO COMPANY CAPABILITIESCUSTOMER NEEDSLINKSCOMPANY CAPABILITIESInputs by customers through sales, service, information seekingSpanning activities that provide decision-making informationDefined by all organization functionsOBJECTIVE: TO ALIGN EACH PARTNER’S GOALS7-* Market Sensing Customer Linking Channel Bonding Technology MonitoringOutside-in Process Financial Management Cost Control Technology Development Integrated Logistics Manufacturing/Trans- formation Process Human Resources Management Environmental Safety Health and Safety Customer Order Fulfillment Pricing Purchasing Customer Service Delivery New Product / Service Development Strategy DevelopmentInside-Out ProcessSpanning ProcessINTERNAL EMPHASISEXTERNAL EMPHASISExhibit 7-1USING INFORMATION AS A SPAN7-*STAGES OF INTERNALAND EXTERNAL PARTNERINGAWARENESS EXPLORATION EXPANSION COMMITMENT ACHIEVING THE SUPRAGOAL: CUSTOMER SATISFACTION7-*USING INFORMATION AS A SPAN Marketing Customer Linking Channel Bonding Manufacturing Transformation Financial Management Integrated LogisticsOUTSIDE-IN PROCESSOutside-in Process Inside-Out Process Cost Estimation and Pricing Billing and Payment Order Scheduling Order EntryAnd Prioritization Order Generation Order Planning Postal Service Order FulfillmentExhibit 7-27-*INTERNAL CORPORATE PARTNERSPURCHASINGMARKETINGMANUFACTURING ANDENGINEERING(R&D)FINANCEExhibit 7-37-*ENCOURAGING INTEGRATION IN MARKETING OPERATIONSDEVELOP AND ARTICULATE CLEAR STRATEGIC DECISIONS THAT WILL BE IMPLEMENTEDPURSUE PERSONNEL STABILITY TO ENHANCE LONG TERM RAPPORTLEVEL THE BUDGET AND COMPENSATION PLAYING FIELD THAT SUPPORTS MARKETING EFFORTSESTABLISH CLEAR AND FORMALIZED COMMUNICATION / ORGANIZATION STRUCTURES7-*TYPICAL FUNCTIONALORGANIZATION STRUCTUREMARKETING DIRECTORSALESPRODUCTDEVELOPMENTMARCOMMMARKETINGRESEARCHExhibit 7-47-*Exhibit 7-5CUSTOMER FOCUSED TEAM STRUCTURECustomerSalesAccountManagerManufacturingShippingFinanceFinanceRepPurchasingAgentPurchasingEngineeringRepEngineeringMfg. RepShippingRep7-*HOW BUSINESS TO BUSINESS MARKETERS LEARNTHE THREE-STEP PROCESS1INFORMATION ACQUISITION2INFORMATION DISSEMINATION3SHAREDINTERPRETATIONMarketing ResearchSales and Service FeedbackEnvironmental ScanningCompetitive IntelligenceAccounting SystemsInformation SystemsExperimentsBenchmarkingJoint VentureLead CustomersOrganizational MemoryTo:Marketing ManagementSenior ManagementManufacturingEngineering and R&DFinanceThrough: Brainstorming Planning Other ProcessesExhibit 7-77-*CREATING NEW KNOWLEDGE:THE TOOLSCOGNITIVE MAPPINGFinding links of cause and effect through exploring beliefs and assumptionsEXPERIMENTSResearch that tests cognitive mapsLEARNING LABORATORIESA time and space that is set aside for sharing and learning through experiments, simulations, models and role playingLEARNING FROM OTHERSGetting knowledge from partners, consultants, seminars, and competitors.7-*COGNITIVE MAPS—MAP 1Example: FedEx-Kinko’sObservationObservationObservationMore competitors means less business per storeKinko’s stores compete with each other when located in the same city because of free delivery service+=Have fewer stores in a cityExhibit 7-87-*TWO COGNITIVE MAPS—MAP 2Advertising drives awarenessAssumptionConclusion 2Each store has signage or advertisingMore stores mean more awarenessHigher awareness means more businessHave more stores in a cityAssumptionObservation=Exhibit 7-8Observation7-*IMPORTANT INTERNALPARTNERING SKILLSFINANCE AND ACCOUNTING SKILLS - helps communicate with other managers and make better decisionsQUESTIONING AND LISTENING - helps understand needs of othersNEGOTIATION – helps resolve conflictsANALYTICAL SKILLS – helps apply meaning to numbers7-*