Market Segment Strategy-
1) Performance Obj.-Strategic (Qualitative, where are we going?) Operational (Quantitative ($) How will we get there?) 2) Strategic Focus- Where to allocate resources—Unit Sales Volume (Current Revenue Based- Increase customer retention, Increase Customer Use) (New Revenues- Attract customers from competitors, New Business) Margins and Investment Returns (Increase revenues- Raise prices, Improve sales mix) (Reduce costs and assets- Reduce operating costs, Improve asset utilization) 3) Positioning- (Customer targets, Competitor Targets, Value Proposition, Reason to Believe) 4) Implementation Programs- (Marketing Mix, Other Functional Programs)
Product Mix Cube-consists of all the products lines and items that a particular seller offers for sale. Product Mix Width: Refers to the number of different product lines the company carries. Product Line Length: Refers to the total number of items the company carries within its product lines. Product Line Depth: Refers to the number of versions offered of each product in the line. Product Mix Consistency: Refers to how closely related the various product lines are in end us, production requirements, distribution channels, or some other way.
Build: Provide financial resources if SBU (strategic Business Unit) has potential to be a star Hold: Preserve market share if SBU is successful; use cash flow for other SBU’s Harvest: Increase short-term cash return
Divest: Get rid of SBU’s with low shares in low-growth markets.
High Market Shares/High Growth Market- Stars— should reinvest earning, in product improvement, better distribution, more promotion, and production efficiency. High Market Shares/Low Growth Market- Cash Cow— Maintain market dominance thru price leadership, & technological improvements in the product. Low Market Shares/Low Growth Market- Dogs— Harvest or Divest Low Market Shares/High Growth Market- Question Mark—Invest heavily to gain market share, acquire...
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