Boston Consulting Group's portfolio analysis classifies a company's products or product lines into a two-by-two matrix. What are the bases of classification and what are the products or product lines in each of the four quadrants called? What marketing strategies are usually considered for each of the four classifications?
What will be an ideal response?
The two bases of classification are relative market share (high-low) and market growth rate (high-low). This leads to four quadrants labeled stars, cash cows, dogs, and question marks.
Stars: high market share/high growth rate. Usually require continued promotion efforts and expansion of production capacity.
Cash cows: high market share/low growth rate. Sources of funding for other parts of the firm. They typically require modest promotional and production support.
Dogs: low market share/low growth rate. Candidates to be phased out unless they are needed to complement or boost sales of other products.
Question marks: low market share/high growth rate. Candidates for strategic marketing planning, assessing potential for growth.
You might also like to view...
Which statement is not correct? The goal of batch controls is to ensure that during processing
a. transactions are not omitted b. transactions are not added c. transactions are free from clerical errors d. an audit trail is created
According to the problem definition and approach development process as shown in Figure 2.1 in the text, the tasks involved in problem definition consist of all of the following except ________
A) discussions with the decision makers B) interviews with industry experts C) analysis of project costs D) analysis of secondary data
When using the ACE process to compose your brand message, what should be considered?
A) What companies you want to work for B) How to present yourself to companies during the application process C) How to develop your social media presence D) Evaluating your virtual image E) Interviewing experience
What type of criteria is used in an open and informal selection system?
a) Clearly defined criteria b) Selectors’ individual preferences c) Less defined criteria d) No panel discussion.