Marketing Mangement

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Chapter Three

Marketing’s Strategic Role in the Organization

After studying this chapter, you should be able to:

1 2 3 4

Discuss the three basic levels in an organization and the types of strategic plans developed at each level. Understand the organizational strategic planning

process and the role of marketing in this process. Describe the key decisions in the development of corporate strategy.

Understand the different general business strategies

and their relationship to business marketing, product marketing, and international marketing strategies.

5

Realize the importance of relationships and teamwork in executing strategic plans.

www.honeywell.com

Honeywell International, Inc., is an advanced technology and manufacturing company serving customers worldwide. The company is organized around nine businesses: aerospace, consumer products, electronic materials, friction materials, home and building control, industrial control, performance polymers, specialty chemicals, and transportation and power systems. The firm employs approximately 120,000 individuals in 95 countries. The Web site for Honeywell provides a wealth of information. Details about the corporate businesses, as well as about individual products and services, are offered for potential customers. The Web site also provides information for investors, instructions and summaries for members of the media interested in the company’s background, and information on careers for students and other potential employees. The in-depth company history describes the evolution of the organization beginning with the first thermostat ads run in 1893, to the recent $14 billion merger of Honeywell and Allied Signal in December 1999.

Honeywell is making extensive use of its Internet site to enhance the performance of its employees and to improve relationships with its customers. Moreover, its Web-based capabilities are also being used to strengthen its supply-chain management. For example, Honeywell is offering Web-based distance learning solutions and employee training through MyPlant.com (http://www.myplant.com). This offering reduces the cost of training systems and the need for company staff to travel, while making continuing education more available. Honeywell has also introduced a Web-based customer resource designed to help homeowners recognize and locate home solutions, as well as suppliers and installers for improving home control systems (e.g., heating and cooling controls). Sources: http://www.honeywell.com/about/; http://biz.yahoo.com/bw/991202/nj_allieds_1.html; Robert P. Mader, “Honeywell to Merge with Allied Signal,” Contractor, July 1999, p. 46; Geoffrey Colvin, “Honeywell Packs Its Bags,” Fortune, July 5, 1999, p. 31; Jessica Davis, “Mentors Corner: Intranet Gives Honeywell Control Over Documents,” InfoWorld, March 15, 1999, p. 56.

Chapter Three

Marketing’s Strategic Role in the Organization

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The complexity of the Honeywell conglomerate illustrates the importance of a welldesigned corporate marketing strategy. The firm consists of unique business units, each offering an extensive array of products and services. Strategies and implementation of strategies must be developed and executed at the corporate, businessunit, and product levels. Overall, strategy and long-term planning are guided by the firm’s vision as stated in their mission statement. At the business level, planning begins with an examination of the current situation, including technological changes and competitive effects. From this analysis, both threats and new business opportunities are identified. Decisions to pursue new opportunities are followed by the establishment of objectives, often stated in terms of market share, sales volume, or profitability. Subsequently, business and marketing strategies are developed to achieve those objectives. Effective execution of strategy in implementation must then occur for objectives to be realized. Many of the...
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