MGMA01H3 Chapter 5: Chapter 5
15 Apr 2011
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Introduction: long-term success implies that managers understand and adapt to the environment, that the organization operates in. cash cows: main source of earnings, maintain this position as long as possible, maximize cash flow while maintaining market share. Stars: requires heavy cash consumption to maintain a leading market position, can be high dollar earners if maintained until growth of market slows. dogs: consumes too much management attention, minimize position in this market area. Customer analysis: seven questions marketers should ask about their customers, who are our actual and potential customers, why do they buy our product, why do noncustomers not buy our product? www. notesolution. com. making decisions on setting up a marketing strategy: 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 www. notesolution. com.
