BCG matrix

Question 1

BCG matrix

Answer 1

visual marketing management tool used to analyse a firms product portfolio.

Question 2

pros of have a balanced product portfolio

Answer 2

• having a broad product portfolio can help businesses to increase its brand awareness.
  -reduces the risks and exposure associated with having a single product e.g. seasonal fluctutations.
  -increases the firm’s revenue streams as a variety of products will appeal to a wider customer base

Question 3

question marks (low market share, high market growth)

Answer 3

-products with low market share but in a high growth market.
-the product is at the launch stage
- these products use up the firms finances but are yet to be profitable.
- these products may also have suffered from relatively inferiror marketing or product quality
- they require the most amount of funding as there is uncertainty for such products in the market.
- marketers may attempt to convert question marks into stars.

Question 4

Stars (high market share, high market growth)

Answer 4

• successful products
• stars are at the growth stage in their product life cycle
• require funding and investment to maintain their position in the BCG matrix, but less so than question markets
• marketers aim to invest in these products to make them cash cows.

Question 5

Cash Cows

Answer 5

• products with high market share, in mature markets with low market growth
• cash cows are the most profitable in a firm’s product portfolio as they are at the maturity stage in their product life cycle.
• the products are well established in the market so are the main cash earners for the business

Question 6

dogs (low market share, low market growth)

Answer 6

• products are at the decline phase of the PLC
• ## can still be profitable