33:630:301 Lecture Notes - Lecture 2: Marketing Effectiveness
17 Jun 2016
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Mission turned into detailed supporting objectives that guide the entire company. Headquarters decides what portfolio of businesses and products is best for the company and how much support to give to each one. Identify the sbus (strategic business units) can be a company division, product line, brand, or a single product. Assess the attractiveness of sbus and decide how much support each deserves. 4 strategies for sbus: invest more to build its share, invest enough to hold its share, milk short-term cash flow harvest, sell or phase out sbu divest. Star cash cow dog (typical cycle of a sbu) The limitation of bcg growth share matrix is that the approach focuses on classifying current businesses but provides little advice for future planning: companies are developing more customized methods or decentralizing strategic planning. Existing products in existing markets market penetration: making more sales to current customers without changing its original products: adding new stores or improving advertising, prices, services, etc.
