© 2012 pearson education, inc. publishing prentice hall. chapter 2 situation assessment: the...
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© 2012 Pearson Education, Inc. publishing Prentice Hall.
Chapter 2Situation
Assessment:The External Environment
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Figure 2-1 - Situation Assessment
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Figure 2-2 - Concentric Markets
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Table 2-1 - Questions in CompetitiveAssessment
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Table 2-2 - Elements of the Context: PEST
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Table 2-3 - Organizing Customer-Focused Research
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Figure 2-3 - Customer Knowledge throughout Strategic Marketing Management
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Figure 2-4 - Five Forces Industry Analysis
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Laws of Strategic Marketing
The laws of marketing strategy describe essential regularities in the way things work and the way things relate
The generalizations include: The product lifecycle (product-market evolution) Scale effects (cost leverage) Market share effects (share leverage)
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Laws of Strategic Marketing
Managers may choose a strategy: That builds directly on one of the generalizations That is less directly tied to a given generalization, but they
can’t change the reality
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Figure 2-5 - The Product Lifecycle
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Figure 2-6 - Experience Curve
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Table 2-4 - Sources of Scale Effects
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Market Share Effects/Share Leverage
Firms with higher market share tend to be more profitable
The share-profitability association is logical; market share will correlate with advantages of scale
Scale leads to lower unit costs, and lower unit costs should lead to higher profits
Shaping strategy around market share ignores the ambiguity in the share ROI findings
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