Week 2: AT&T Market Orientation aligns with Drucker

When a company is market oriented it means the firm focuses on meeting the needs and wants of its customers as a  primary business driver. This includes developing new products, improving existing product line and even removing a product.  Firms that have high market orientation can be proactive in determining the customer needs before other firms are able to respond.

AT&T is a company that has high market orientation.  The company strives to build the best, intelligent network in the world for its customers.  It continually innovates products that provide high customer value through cutting edge technology, competitive pricing and reliability.  Another example of AT&T market orientation can be found in a customer program called network promoter score (NPS).  This is a program focused towards customer feedback and what AT&T can do to improve customer experience and value.  Customer feedback can fall into three distinct categories: 

Promoters (score 9–10): considered to be loyal enthusiasts who will keep buying and referring others, fueling growth

Passives (score 7–8): satisfied but unenthusiastic customers vulnerable to competitive offerings

Detractors (score 0–6): unhappy customers who can damage brand image and impede growth through negative word-of-mouth

AT&T uses this feedback and disseminates the data throughout the organization so the entire company is involved in making positive changes. Internally, we have a process that helps ensure successful interaction.  First we must create a positive experience for the customer and achieve high customer satisfaction.  Second, we must deliver this positive experience consistently to create predictability.  Third, create loyalty in customer relationships and earn trust.  Fourth,  honor customer choices and respect the manner in which the customer chooses to be our customer.  Lastly, be wildly successful in the previous items so the customer enthusiastically shares their heighten satisfaction with family and friends about AT&T products and service.

Peter Drucker stated, "because the purpose of business is to create a customer, the business enterprise has two–and only two–basic functions: marketing and innovation. Marketing and innovation produce results; all the rest are costs. Marketing is the distinguishing, unique function of the business.”(Trout, 2006)  I find AT&T Leadership would agree with Drucker's statements.  Drucker intensely focused on marketing and not the typical finance, margins,workforce or big business norms.  AT&T is similarly focused on marketing, innovation and customer satisfaction.  AT&T Labs is one of the largest corporate research facilities in the world. Formerly known as Bell Labs, this research facility's main goal is to innovate products that customer wants and need.  Labs innovates so much that it creates two new patents every day.  These innovations help AT&T create new customers and also help retain existing customers.  Yes,  AT&T is a publicly traded company and yes the company cares about profits.  However, the driving force in its business model are the customers, their need and wants, and their loyalty.

 

Trout, J.  (2006).  Forbes Magazine.  Peter Drucker On Marketing.  Retrieved http://www.forbes.com/2006/06/30/jack-trout-on-marketing-cx_jt_0703drucker.html

Week 2: Customer Focus

Corporate mission statements should convey a complete statement about the company's direction, culture and value created .  Sometimes mission statements can be too broad and generic which fails to convey the mission of the corporation.  When I reviewed my company's mission statement I find it is somewhat vague and indistinct.  "Our mission is to exploit technical innovations for the benefit of AT&T and its customers by implementing next-generation technologies and network advancements in AT&T's services and operations. " AT&T 2013.

While I am pleasantly surprised the mission statement is void of overt superlatives, it is also void of distinct value for the customer.  I suppose the "exploit technician innovations" would provide customer value but perhaps it could be more distinctly stated. 
 
The next mission statement appears to be more customer focused with company direction...
"The commitment is to put our customers first by providing excellent service and great communications experiences. This is what we do, and this is why we exist. By focusing on our customers and being a responsible member of our communities, we will produce a solid return for our shareowners, create meaningful work for ourselves and provide something of lasting value for society.."
Can you guess which company owns this mission statement? 

In reading and listening about market orientation, customer focus is the main topic.  This mission statement incorporates the customer focus and cites this will provide solid returns. 

How does a company become customer focused in understanding what a customer wants?  Two words... Market Research!  Market research is the key to understanding customer wants and needs.  However, just because a corporation conducts market research does not guarantee success.  The firm must also share this research data with the entire company.  All this data will have value to each department and assist in making good decisions.  The increase in customer needs met and/or exceeded will result in higher customer retention and satisfaction.  This all leads to customers that are loyal which cost the corporation less to retain through advertising/promotions, they will buy more products and even pay more for the product.  The end result is increased profitability. 

Week 2- Death of a Brand Manager

This week I began advancing (or retreating if you look at some of my income statements) in PharmaSim as a Brand Manager for Allstar. It took some time to view all the possible decisions such as sales force, pricing, advertising and promotion. The market updates helped along with the industry outlook. I did not buy too many reports in the beginning and I think I missed the big picture. Once I started expanding my marketing decisions I began to see some good returns. Although I am not sure if my returns are poor, average or how about a big bonus...

The first period was instrumental in setting my path...

By Period Five I launched a new product but I was also recovering from an issue associated with product pricing!

Periods 6-8 I was fighting for my job...

By Period Ten I was moving in the right direction...

The simulator was a lot of fun but most of all it affords a glimpse into a Brand Manager's job function and why marketing is important to business.

Much ado about Marketing

A few years ago I attended a conference for work and the corporate speaker stated marketing was about being right. Marketing is the ability to put the right product, in the right place, for the right price at the right time. I didn't think much of it at the time but after completing a few undergraduate marketing courses I have come to realize... the speaker might have known a thing or two about this topic. 

Academia has taught me that marketing includes the 4 Ps.  Marketing is about understanding what products the customers want or need.  Then determining where to sell these products (online, chain store, specialty store) that is convenient for them to buy. Next marketers must determine what customers are willing to spend to have the product.  Lastly,  the target audience will need to be informed about the product.  Marketing is about customers and the ability to ensure their decision  about a product was easy, convenient and well informed.

When I think of innovation or engineering I think of the phase "the product is so good it sells itself". I believed outstanding products were the result of countless months and/or years of research by the engineers in designing the perfect product.  It turns out I was partly correct except it isn't the engineers... it is the marketers.  I did not realize the extent of marketing's involvement in product creation and was unaware that marketing was key to product innovation. 

I still catch myself on occasion when I hear marketing mentioned in a meeting or business course.  My first thought is advertising, sales and slogans...  then I stop and remind myself that marketing is about innovating the products consumers desire, value and purchase.

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