MGMA01H3 Chapter 5: Marketing Chapter 5
Document Summary
Introduction y long-term success implies that managers understand and adapt to the environment, that the organization operates in. cash cows y main source of earnings y maintain this position as long as possible y maximize cash flow while maintaining market share. stars y requires heavy cash consumption to maintain a leading market position y can be high dollar earners if maintained until growth of market slows. dogs y consumes too much management attention y minimize position in this market area. marketing strategy cannot be developed in a vacuum. making decisions on setting up a marketing strategy y firms sometimes enter a market with an inadequate understanding of the extent of competition. If expected profits are insufficient to pay adequate return on the required investment, then the firm should consider other lines of business. pull back from marketplace: status quo is an attempt to maintain competitive equilibrium in a market.
