benefit. Itobert Lauterborn suggested that I bo sellers' fOUr I's correspond I o the customers' four Cs,29

Four Ps Four Cs

Producl Customer solution

Price Customar cosí

Ptaoe Convenience

Promotion Conimunicaliofl

Winning companies ^vjll he those thai trail meet customer needs economically and conveniently and with effective communication.

fwn key themes of Integrated marketing are that (1) many different marketing activities are employed to communicate and deliver value and (2) all marketing activities are coordinated to maximize their joint effects. In other words, the design and ¡mplemematlon of any one marketing activity is done with all other activities in mind. Businesses must intégrate their systems for demand management, resource (management, and network management. For example, an integrated communication strategy involves choosing communication options til at reinforce and complement each other. A marketer might selectively employ television, radio, and print advertising, public relations and events, and PK and Web site communication!» so that each contributes on its own as well as improves die elTectiveness of others. Heeausc there was already a buzz for its remake of the cult 1974 film The Texas Cbainsaw Massacre, New Une Cinema relied on a combination of both traditional TV ads and trailers, as well as interactive marketing via AOLs Instant Messenger and "bo is"—robot agents—to help spread the word and get teens talking about the film.'['heir goal was to create a pcer-m-pcer communication, that is, getting teens to do the marketing for the niliM integrated channel strategy involves ensuring thfit direct (e.g.. online sales) and indirect channels {e.g., retail sales) work together to maximize sales and brand equtlv.

Holistic marketing incorporales infernal marketing, ensuring that everyone in the organization embraces appropriate marketing principles, especially senior management. Internal marketing is the task of hiring, training, and motivating able employees vmo want to serve customers well. Smart marketers recognize that marketing activities within the company can be as important as, or even mo re so than, marketing activities directed outside the company. It makes no sense to promise excellent service before the company's stall'is ready to provide it.

Internal marketing must take place on two levels. At One level, the various marketing functions—sLiles force, advertising, customer service, product management, marketing research—must work together. Too often, the sales force thinks product managers set prices or sale quntas "too high": or the advertising director and a brand manager cannot agree on an advertising campaign. All these marketing functions must be coordinated from the cus' tptiter's point of view. The following example highlights the coordination problem:

1'h.e marketing vice president of a major European airline wants to increase the airline's traffic share. His strategy is to build up customer satisfaction through providing better food, cleaner cabins, betEcr-trained cabin crews, and lower fares; yet lie has no authority in these matters. The catering depa rimen I chooses food that keeps food costs down; the maintenance department uses cleaning services that keep down cleaning costs: the human resources department hires people Without regard to whether they are naturally friendly; the finance department sets ihe fares. Because these departments generally take a cost or production point of view, die vice president oí marketing is stymied in creating an integrated marketing mix,

At another level, marketing must be embraced by the other departments; they must also "think customer." Marketing is not a department so much as a company orientation. Marketing i ¡linking must be pervasive throughout the company (see table 1.11- Xerox goes so far as to include in every job description an explanation of how that job affects the customer. Xerox factory managers know that visits to I he faetory can help sell a potential customer if the factory is clean and efficient. Xerox accountants know thai customer attitudes are affected by Xerox's hilling accuracy and promptness in returning calls.

i ■■'..., '- , I lolislie marketing incorporates sociai Fe$t/wif(bil-ity Marketing and understanding broader concerns and the ethical, environ menial, legal, and social context of marketing activities and programs. J he cause anil effects of marketing


■ They spend time meeting customers and listening 10 Itielr problems.

■ They welcome Die involvemeni of markeling. manufacturing, and olher departments to each new proiKt. a Ttiey benchmark competitors' products and seek "best of class" solutions.

b They solicit cuslOfTier reactions and suggestions as lhe project progresses.

■ They continuously Improve and reline the product on lhe basis ol maiket feedback. Purchasing

■ They proactive^ search for lhe best suppliers.

■ They build long-term relationships wllh few but more reliable. high-Quality suppliers. » Tliey con't compromise qrality for price savings.


■ They invite customers to visat and tour trteir plains.

■ fhepisit customer planls.

■ They willingly work ovcrtrne to meei promised delivery schedules.

h They continuously search for ways to produce tjoods faster and/or at kww cost, u They cominuousfy improve producl duality, aiming ¡or zero defects. r They meet customer requi-'emenls lor "customization" where possible. Marketing

■ They sludy customer needs anct wants in well-defined market segments.

■ They allocate marketing effort in relation to lhe long-run pmtil poipnitjl ol [ho largeied Segments. « They develop vji lining offers ior each largel segment.

■ They measure company image and customer satisfaction on a continuous basis.

■ They continuous^ gather and evaluate ideas ior new products, product implements, and services,

* They urge all company departments and employees to be customer-centered. Safes

■ lhey have specialised knowledge of (he customer's industry.

* They &lrive 10 give the customer 'the besl solution."

■ They onty make promises thai ihey can keep.

n They feed bacfc customers' needs and ideas to those in change ol product development.

m They serve the same customers for a long period ol time.


■ They set a high standard for service delivery time and meet Ihis standard consistently.

in They Operate a knowledgeable and friendly cuslomer service department that can anshver questions, handle complaints, ¿nd resolve problems in a sitisiaclory and timely manner.

Accounting a They prepare periodic "profitability' reports hy producl. morkel segment, geographic areas (regions, sales tenilories}, order sizes, channels, and rndivid'jal customers.

■ Thsy cxepare invoices tailored lo customer needs and answer customer quenes courteously and quickly. Finance m Ir-ey understand and support expenditures (e.g., image advertising) thai produce iccig-ierm customer preference and loyalty, u They lailor [he financial package to the cuslamef Ls financial requirements. « Tftey make tptt decisions W customer oecjitwMWflh&s. Public Relations

■ They send out favorable news about lhe company and "damage control" unfavorabsc news.

u They act as an internal Customer end public advocate for belter company policies and practices.

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