Perreault−McCarthy: Basic
Marketing: A
Global−Managerial
Approach, 14/e- Evaluating Opportunities
in the Changing Marketing
Environment
Text © The McGraw−Hill
Companies, 2002122 Chapter 4
- Explain how a firm’s resources may limit its search
for opportunities. Cite a specific example for a spe-
cific resource. - Discuss how a company’s financial strength may
have a bearing on the kinds of products it produces.
Will it have an impact on the other three Ps as well?
If so, how? Use an example in your answer. - In your own words, explain how a marketing man-
ager might use a competitor analysis to avoid
situations that involve head-on competition. - The owner of a small hardware store—the only one
in a medium-sized town in the mountains—has just
learned that a large home improvement chain plans
to open a new store nearby. How difficult will it be
for the owner to plan for this new competitive
threat? Explain your answer. - Discuss the probable impact on your hometown if a
major breakthrough in air transportation allowed
foreign producers to ship into any U.S. market for
about the same transportation cost that domestic
producers incur. - Will the elimination of trade barriers between coun-
tries in Europe eliminate the need to consider
submarkets of European consumers? Why or why not? - Which way does the U.S. political and legal envi-
ronment seem to be moving (with respect to
business-related affairs)? - Why is it necessary to have so many laws regulating
business? Why hasn’t Congress just passed one set of
laws to take care of business problems? - What and who is the U.S. government attempting
to protect in its effort to preserve and regulate com-
petition? - For each of the majorlaws discussed in the text, in-
dicate whether in the long run the law will promote
or restrict competition (see Exhibit 4-3). As a con-
sumer without any financial interest in business,
what is your reaction to each of these laws? - Are consumer protection laws really new? Discuss
the evolution of consumer protection. Is more such
legislation likely? - Explain the components of product-market screening
criteria that can be used to evaluate opportunities. - Explain the differences between the total profit ap-
proach and the return-on-investment approach to
evaluating alternative plans. - Explain General Electric’s strategic planning grid
approach to evaluating opportunities. - Distinguish between the operation of a strategic
business unit and a firm that only pays lip service to
adopting the marketing concept.
Suggested Cases- Healthy Foods, Inc. 6. Three Rivers Steel Company
Computer-Aided Problem4.Competitor Analysis
Mediquip, Inc., produces medical equipment and uses
its own sales force to sell the equipment to hospitals. Re-
cently, several hospitals have asked Mediquip to develop
a laser-beam “scalpel” for eye surgery. Mediquip has the
needed resources, and 200 hospitals will probably buy
the equipment. But Mediquip managers have heard that
Laser Technologies—another quality producer—is
thinking of competing for the same business. Mediquip
has other good opportunities it could pursue—so it
wants to see if it would have a competitive advantage
over Laser Tech.
Mediquip and Laser Tech are similar in many ways,
but there are important differences. Laser Technologies
already produces key parts that are needed for the new
laser product—so its production costs would be lower. It
would cost Mediquip more to design the product—and
getting parts from outside suppliers would result in
higher production costs.
On the other hand, Mediquip has marketing
strengths. It already has a good reputation with hospi-
tals—and its sales force calls on only hospitals.
Mediquip thinks that each of its current sales reps could
spend some time selling the new product and that it