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without too much concern for the long-run impact. It is especially worthwhile when more cash is needed for a cash cow whose long-run prospects are not good because of a low market growth rate. 4.
Divest. Getting rid of SBUs with low shares of low-growth markets is often appropriate. Question marks and cash traps are particularly suited for this objective.
SBUs change position in the business portfolio matrix. As time passes, ques¬tion marks may become stars, stars may become cash flows, and cash cows may be¬come cash traps. Ok, lets keep on going.
Once the basic offer e. g. a product concept, has been established, the company has to think about the marketing mix, i.
e. all the various elements of a marketing programme, their integration, and the amount of effort that a company can expend on them in order to influence the target market. The best-known classification of these elements is the '4 Ps': product, place, promotion and price.
Aspects to be considered in marketing products include quality, features (standard and optional), style, brand name, size, packaging, services and guarantee. Place in a marketing mix includes such factors as distribution channels, locations of points of sale, transport, inventory size, etc. Promotion groups together advertising, publicity, sales promotion, and personal selling.
Price includes the basic list price, discounts, the length of the payment period, possible credit terms, and so on. In setting price, the goal should be to maximize profit. The ingredients of profit are, costs, selling price and the unit sales volume and they must be in a proper proportions if the desired profit is to be obtained.
The "best" price for a product is not necessarily the price that will sell the most units. The "best" selling price should be cost oriented and-market oriented.Скачать