Marketing 300 Ch.2 notes

Marketing 300 Ch.2 notes - in the market/industry-Vertical...

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Marketing 300 Ch. 2 Notes - Strategic planning begins by defining overall missions then you decide how much support you give each business and product. - Mission statements should be market oriented and defined in terms of satisfying basic consumer needs - To make a business portfolio you must analyze a company’s current business portfolio and decide which businesses should receive more, less, or no investment. - Second, it must shape the future portfolio by developing strategies for growth and downsizing - Strategic business unit (SBUs) are the key businesses that make up the company. They are evaluated on their attractiveness in their market/industry and their strength
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Unformatted text preview: in the market/industry.-Vertical axis of growth share matrix: market growth rate, provides a measure of market attractiveness-Horizontal axis of growth share matrix: relative market share, serves as a measure of company strength in the market-Growth share matrix defines stars (high growth, high share businesses that need heavy investments and will turn into cash cows)-Cash cows= low growth, high share businesses that need less investment but still produce a good amount of cash-Question marks = low share, high growth, need a lot of cash and are trying to turn into stars-Dogs = low growth, low share, generate enough cash just to maintain themselves...
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