Boston matrix

• Product portfolio - collection of all the products and services offered by a company.

  analysis can give insight into sales and profits and growth prospects
• Boston Matrix - maketing planning tool which helps managers plan for a balanced product portfolio
• Boston Matrix dimension - looks at two dimensions

  • market share
  • market growth
• Boston Matrix, why helpful - helps marketing managers work out how much to spend on each product
• there are four types of products:

  1. star
  2. question mark
  3. cow
  4. dog
• Star products: where they sit

  • high market share
  • in a high growth market
• Star products:

  • maintain current marketing spend to keep sales high
  • stars should become cow in time
• Cash Cow: where it sits

  • have high market share
  • are in a low growth market
• Cash cows:

  • good sellers so need little to no new investment
  • just need to be milked for cash
  • need monitors in asset become dogs
• Question mark: where sits

  • low market share
  • high growth market
• Question marks:

  • have lots of potential to become stars if managed correctly
  • need lots of investment in marketing and promotion - if to succeed
• Dog: where sits

  • low market share
  • in a low growth market
• Dog:

  • no investment as in decline phase off lifecycle
  • product may become obsolete or replaced
  • bus. may consider discontinuing or withdrawing product