Perreault−McCarthy: Basic
Marketing: A
Global−Managerial
Approach, 14/e- Managing Marketing’s
Link with Other Functional
Areas
Text © The McGraw−Hill
Companies, 2002When You
Finish This Chapter,
You Should
1.Understand why
turning a marketing
plan into a profitable
business requires
money, information,
people, and a way to
get or produce goods
and services.
2.Understand the
ways that marketing
strategy decisions
may need to be
adjusted in light of
available financing.
3.Understand how a
firm can implement
and expand a market-
ing plan using
internally generated
cash flow.
4.Understand how
different aspects of
production capacity
and flexibility should
be coordinated with
marketing strategy
planning.
5.Understand the
ways that the location
and cost of produc-
tion affect marketing
strategy planning.
6.Know how market-
ing managers and
accountants can work
together to improve
analysis of the costs
and profitability of
specific products and
customers.
7.Know some of the
human resource
issues that a marketer
should consider when
planning a strategy
and implementing a
plan.
8.Understand the
important new terms
(shown in red).
Chapter Twenty
Managing
Marketing’s Link with
Other Functional
Areas
Illinois Tool Works, Inc.
(www.itwinc.com) produces and
sells thousands of products—
ranging from nuts, bolts, screws,nails, and plastic fasteners to
sophisticated equipment—like its
new robot that automates themanufacture of picture frames
by taking molding directly from a
high-speed saw and then automati-
cally joining the pieces into acomplete picture frame with virtually
no labor required. ITW’s fasteners
are hidden inside or attached to
appliances, cars, computers, and
hundreds of other products youbuy. One key to ITW’s success is
that it is fast and creative in
identifying target markets with
specific needs, developing
products—actually wholemarketing mixes—and then
implementing plans to meet
the target market’s needs.
Another key to ITW’s success is
that managers from different