1. Unit 2 Marketing The Marketing Mix Product (Boston
Matrix)
2. Learning starts with a question..... In your groups, answer
the question: What is product portfolio analysis and why is it
important?
3. Product portfolio analysis It is a method used to identify
the position of every product in a companys portfolio within its
target market.
4. Product portfolio analysis can be done with: The Boston
matrix The product life cycle
5. The Boston Matrix It is the method of analysing the products
in a companys portfolio based on their share of the market and the
growth of the market
6. The Boston Matrix
7. The question mark/Problem child New products with a low
share of a high growth market High maintenance High failure rate
but potential for future success
8. The rising star Products with a high share of a growing
market High maintenance Generates a lot of income
9. The cash cow Products with a high share of a low growth
market Generates high profit for the business Low maintenance What
has happened to the X-Box? Did Microsoft manage to turn it to a
star or cash cow?
10. The Dog Products with a low share of a declining or low
growth market High cash burn rate Generates little or no
income
11. Example of a Boston Matrix for an independent newsagent
Question Mark Rising Star Sporting memorabilia - Lunch deals
-signed, framed photos of local sports stars Dog Cash Cow
-Convenience food -Postcards -Stationery items -Pay phone cards
-Cigarettes, chocolates, sweets, lottery tickets and scratch cards
- Local and national newspapers, magazines - Mobile phone top
up
12. Group activity Prepare a portfolio analysis for a mobile
phone company 1. Pick a mobile phone company (Nokia, Samsung...).
2. Think about the mobile phone market at the moment, is it growing
or is it relatively static? 3. List the product portfolio and place
each of their phones on a Boston Matrix chart. 4. Discuss with your
classmates your selection.
13. What is the relevance of the Boston Matrix in
Business?
14. The Product life cycle It shows the path of a product from
its development to its disappearance from a businesss portfolio and
the sales expected at each stage
15. The Product Life Cycle Sales Sales Sales are low Profits
will be Product is being designed negative Product may be unknown
Development Introduction Sales reach Similar its highest point
products enter the market Sales falling Rate of growth Profits will
Profits continue slows Price lowered reach their to fall highest at
the Competitors Some end of this stage enter businesses the market
may be forced out of the market increasing rapidly Growth Maturity
Saturation Decline How does the product life cycle relate to the
Boston Matrix? Time
16. Group activity Choose two products from the list below and
draw product life cycle sketches for the products and services
below: 1. 2. 3. 4. 5. 6. iPad James Bond films Dove chocolate bar
BMWs Mini Coca-Cola QQ Discuss with your classmates your
selections
17. Decline / Dog Maturity & Saturation / Cash Cow Growth /
Rising Star Introduction / Problem Child Sales Product Life Cycle
BMW 3 Series Why do BMW keep releasing another 3 series? 191975-82
1982-1990 1990-1998 1998-2006 2006 -> Why do some products have
a long life cycle while others do not?
18. Group activity Read the MINI case study and answer the
question given..
19. in t r o d u c e n e w v a r ia t io n s o f t h e o r ig
in a l p r o d u c t , e . g . a c h ild r e n ' s v e r s io n s e
ll in t o n e w m a r k e t s , e .g. e x port th e p rod uct to
anoth er country m a k e s m a ll c h a n g e s t o t h e p r o d u
c t ' s d e s ig n , c o lo u r o r p a c k a g in g EXTEN DIN G TH
E PRO D U CT LIFE CYCLE use a new a d v e r t is in g c a m p a ig
n in t r o d u c e a n e w , im p r o v e d v e r s io n o f t h e
o ld p r o d u c t s e ll t h r o u g h a d d it io n a l, d if f e
r e n t r e t a il o u t le t s
20. For next class: Research The Marketing Mix (PRICE)