Page 44 - Marketing the Basics 2nd

36 Marketing: the Basics
planet. Corporate leaders are aware of the problem and are trying to find ways to balance profit and socially responsible behaviour. However, the most effective way to enact change is not to expect our business leaders to lead the cause. Businesses respond to market signals, and therefore, it is up to the politicians and consumers to send the right messages. Stricter enforcement of environmental regulations and changes in consumer behaviour would go a long way to improving our social welfare.
SUMMARY
• Large-sized organizations decentralize decision-making powers to smaller organizational units to better respond to customer needs.
• To coordinate activities between SBUs, a strategic plan is created at the corporate level.
• Though the life-cycle of a product is ‘S-shaped’ over time, managers can delay a product’s death by changing the marketing mix.
• The emergence of consumers who are at times seeking experience or thrift is radically changing the corporate landscape.
CRITICAL qUESTIONS
1 Take a look at Figure 2.1. If SBU #2 could only be milked to fuel one star SBU, which one should be chosen? If SBU #2 could be milked to fund every SBU, in what order should funding be allocated? Should the dogs be divested? In which circumstances should dogs be kept in the portfolio?
2 According to some studies, the number of children classi- fied as obese is well over 30 per cent. Knowing that there are innovators, early adopters and other types of people, devise a list of strategies that you think would combat the problem of obesity. Next, assess which ideas are likely to diffuse into the general population? Is there a role for government to play in the equation? What can marketers do to help solve this social problem?