General Motors

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Question 1
Which role should marketing managers play in helping to formulate business-level (SBU) strategies in a large diversified firm such as General Motor? Visit the company’s South African website at and use the information obtainable from it to formulate your answer.
At the business unit level the strategic issues of General Motors are both practical co-ordination of operating units and about developing and sustaining a competitive advantage for the cars and industry that they provide.
The marketing manager’s role is to formulate and implement strategies that deal with the positioning: General Motors has to find a way of positioning and differentiating its cars and services against rivals such as BMW.
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Typical systems are relationship management, volume discounts, special offers and bonus cards.
Product development- Existing products, new markets. The Swire Company needs to screen their product. Afterwards they should test the concept; this is where the customer is presented with a proposal product and measures attitudes and intentions. At this early stage of development, concept testing is a quick and inexpensive way of measuring consumer enthusiasm. It asks potential consumers to the product. This enables Swire to determine initial attitudes prior to expensive time consuming prototype development.
Business and financial analysis for the remaining product concepts is much more detailed than product screening. The factors considered in the business analysis are demand projections, cost projections, competition, required investment and profitability. Now there is need to position and test the product.
Swire can now place its drinks for sale in selected area(s) and observe its actual performance under the proposed plan. The purpose is to evaluate the product and pretest marketing efforts in a real setting prior to a full scale introduction. It allows actual customer behavior to be observed. After testing is completed, Swire is ready to introduce the product to its full target market. This is commercialization and corresponds to the introductory stage of

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