Marketing

Table of Contents

1. Topic pack - Marketing - introduction
2. 4.1 The role of marketing - notes
3. 4.1 The role of marketing - questions
4. 4.2 Marketing Planning - notes
5. 4.2 Marketing planning - questions
6. 4.3 Product introduction - notes
   1. Product
   2. Classification of products
   3. The total product and Marketing Myopia
   4. New product design and development
   5. New Product Development: Invention and Innovation
   6. Product development: the good, the bad and the ugly
   7. New product development
   8. New product development - case study
   9. Product life cycle
   10. Product life cycle - interactive diagram
   11. Product life cycle - case study (1)
   12. Product life cycle - case study (2)
   13. Product life cycle - case studies (3)
   14. Product life cycle - extension strategies
   15. The product life cycle & cash flow
   16. The product life cycle and product diffusion
   17. Product adoption - case study
   18. Product portfolio analysis
   19. The Boston Consulting Group (BCG) matrix
   20. Using the BCG matrix
   21. Branding
   22. The importance and role of branding
   23. Branding - activities
   24. Brand development
   25. Brand loyalty
   26. Types of branding
   27. Global Brands
   28. Marketing blunders
   29. Brand-as-person
7. 4.3 Product - questions
8. 4.3 Product - simulations and activities
9. 4.4 Price - notes
10. 4.4 Price - questions
11. 4.4 Price - simulations and activities
12. 4.4 Promotion - notes
13. 4.5 Promotion - questions
14. 4.6 Place (distribution) - notes
15. 4.7 International marketing - notes
16. 4.7 International marketing - questions
17. 4.8 E-commerce - notes
18. 4.8 E-commerce - questions
19. Printable version

The Boston Consulting Group (BCG) matrix

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• Boston Consulting Group Matrix

The ideal product portfolio is likely to be balanced with a mixture of problem children, stars and cash cows, but not dogs (unless they have a purpose in completing the firm's offer). Firms need new products in the pipeline, but also require cash cows to generate funds for researching and developing new products and for turning question marks into stars. Too many question marks and stars may lead to cash flow problems for a firm and so it must be selective in developing products.

There is an assumption in BCG analysis that fast growing markets and high market share are always preferable as these generate higher profit levels. Certainly the higher the market share, the more cash will be generated, and as a result of the economies of scale the greater the potential profits.

However, it is possible for firms to be very profitable by:

• developing niche products in a large market segment
• introducing innovative technologies or design which change the nature of the market. A perfect example of this is Dyson's entry into the vacuum cleaner market.

There are links between the BCG and the Product Life Cycle:

However, it is best to be careful as to how this is used. It is possible that a Question Mark is not early on in its life cycle - it might just have a low market share in a large market. In general, however, the connection is appropriate and the strategies employed when a product is in its infancy will be suited to Question Marks as will products in the growth (Stars), maturity (Cash Cows) and decline (Dogs) stages.