Transcript Product-portfolio-an..

T HEME 1:
M ARKETING
AND
PEOPLE
Can products be designed to make you
happier?
Edexcel Business
1.3 M ARKETING MIX AND STRATEGY
1.3.5 M ARKETING STRATEGY
Theme 1: Marketing & People
This theme enables students to understand how businesses identify opportunities and to explore how
businesses focus on developing a competitive advantage through interacting with customers. Students
develop an understanding of how businesses need to adapt their marketing to operate in a dynamic
business environment. This theme also considers people, exploring how businesses recruit, train,
organise and motivate employees, as well as the role of enterprising individuals and leaders.
1.3 Marketing mix and strategy
Subject content
1.3.5 Marketing strategy
What students
need to learn:
a) The product life cycle
b) Extension strategies:
• product
• promotion
c) Boston Matrix and the product portfolio
d) Marketing strategies appropriate for different types of
market:
• mass markets
• niche markets
• business to business (B2B) and business to
• consumer (B2C) marketing
e) Consumer behaviour – how businesses develop
customer loyalty
Product Portfolio Analysis
• Allows you to make decisions with
regards your company’s product mix
‘Analysing the existing product mix to
help develop a balanced range of
goods and services’
What is a product portfolio?
What are the advantages to a firm of having a broad product
portfolio?
Are there any disadvantages?
The range of products/services that a business offers
The Boston Matrix
A method of analysing the products
in a firm’s portfolio based on
relative market share and market
growth
Recap.
Define market
share.
Define market
growth.
Boston Matrix
STARS
• Large market share of a high growth market
• Market leading products
• Fast growing
• Substantial profits
e.g. the Playstation was a star when it was first
introduced into the games market.
PROBLEM CHILDREN/ QUESTION MARK
• Might have future potential as they are in growth markets
• Need a lot of financing
e.g. An example of a Question
Mark could be a newly launched
fashion item or a new car model.
CASH COWS
• Products that generate funds possibly to support
other products
• Stable market share
e.g. cornflakes in the breakfast
cereals market.
DOGS
• Products that are in decline
• Cost disadvantage
• Markets are not growing
A business wants to avoid any of its products being Dogs, although this
may happen as technology, innovation and trends change.
e.g. For example, DVD recorders have
replaced video recorders which became Dogs
for the electrical firms making them.
Draw a Boston matrix for Apple
• IPod
• IPad
• IPod shuffle
• IPhone 6
• IPhone 2
• Apple mac
• Apple watch
Boston Matrix
Develops
Rising star
Becomes
established
Cash cow
Problem child
Reinvents
Dog
Product analysis
Can you explain any links between these two models?
Discussion
• To what extent will simplifying its product range help Tesco to slow
the decline in its sales?
Cadbury has a wide range of chocolate brands
including Dairy Milk, Flake, Crunchie, Twirl and
Fudge. It wishes to push its UK market share from
34 per cent to 38 per cent within the next two years.
Evaluate the extent to which the Boston Matrixmight
help in achieving this goal.