Boston Matrix

Boston Matrix

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Market Share and Market Growth

Market Share= a firm's sales expressed as a percentage of the total sales in that market.

Market Growth= the increase in the total value od sales of a entire market from one period to the next

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DOGS

  • Low market growth
  • Low Market Share
  • In decline
  • Do not generate much cash
  • Should be deleted from the product mix
  • At the end of the product life cycle
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Problem Children/Question Mark

  • High Market Growth
  • Low Market Share
  • Like a naughty child- has potential but sales are not particulaly good
  • May become the cash cows of the future
  • At the start of the product life cycle-launch
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Stars

  • High market growth
  • High market Share
  • Sucessful products that generate cash
  • Money is spent on developing and promoting them
  • May become cash cows of the future
  • Just reaching the peak of the product life cycle- Growth
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Cash Cows

  • Low Market Growth
  • High Market Share
  • In MATURE markets
  • Well established, generate cash and do not need much marketing
  • Extension strategies used to stop them becoming dogs and prolong their high earning potential
  • Money raised from cash cows can be used to support other products
  • At the peak of the product life cycle- maturity
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Summary

  • Products at the beginning of the product life cycle will not have recovered costs for developing and promoting them yet.
  • Promotional and devlopment costs of cash cows is likely to have been recovered and their promotional costs should be low.
  • Firms want a mixture of all 4 types of products
  • Dogs should be deleted, stars promoted. cash cows kept as they are and problem children invested in so that the stars and problem children might develop into future cash cows.
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Comments

Gabby Tracey

thankyou

Kelly Thornton

no probs

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