Product / Boston matrix

• What are the 7 P's?


  Physical

  Product

  Price

  Promotion

  Place

  People

  Process
• Products are at the heart of marketing

  The product needs to exist for the other elements to function

  A product is anything that is capable of satisfying customer needs
• What are the layers pf a product?

  core project --> actual product --> augmented product
• What is the product portfolio analysis?

  It asses the position of each product or brand in a firms portfolio to help execute the right marketing strategy for each. It helps to analyse what you should do to improve the profitability of any product through marketing
• What are the sections of the Boston matrix?

  Star

  Cash Cow

  Question mark

  Dog
• What does a star have in terms of market share and market growth?

  high growth

  high market share
• What does a question mark have in terms of market share and market growth?

  Low market share

  High growth
• What does a cash cow have in terms of market share and market growth?

  Low market growth

  High market share
• What does a dog have in terms of market share and market growth?

  Low market growth

  Low market share
• Firms should analyse their portfolio of products, firms should aim for a balanced port with some products in each category
• What are the chacterisrs of stars?

  • High share of rapidly growing market
  • position of leadership in high growth market
  • require high marketing spend
  • net cash cash inflow is neutral or at best mostly positive
• What are the characteristics of a question mark?

  • low share of a rapidly growing market
  • cash flow is negative
  • has potential but no certainty
  • can be a dog or star
• What are the characteristics of a cash cow?

  • high share of a slowly growing market
  • maturity in the product lifecycle
  • dominant share
  • large positive cash flow
  • little potential for growth
• What are the characteristics of a dog?

  • have failed/in decline phase
  • low share of a slowly growing market
  • no potential
• What are the good things about the boston matrix?

  useful tool for analysing product portfolio decisions

  shows clearly what to invest in or not

  links to product lifecycle
• What are the bad things about the Boston matrix?

  can be misleading for market share

  not predictable, it’s not certain

  markets are constantly changing