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Marketing Looked At Within the Growth Share
Matrix
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Growth Share Matrix
COW DOG
STAR ? MARK•High growth•High profit’s
•Fast Growing• No profitability (requires cash/time investment)
•Slow growth•Stable profitability (slowing)
•Slow growth•No profitability (low market share)
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High Profitability Low Profitability
Low
G
row
thH
igh
G
row
th
• Growth Share Matrix developed by Boston Consulting Group in the late 60’s• Designed for large corporations – takes a theoretical approach to growth. However, is still a fundamental tool for marketing businesses across the board. • Matrix is closely associated with the Product Life Cycle curve.
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Cash Cows
Cash Cows. These are products/services with a high share of a slow growth market. Cash Cows generate more than is invested in them. So keep them in your portfolio of products for the time being.
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•Stable Income• Funds generated by cows help turn ? Marks into stars and eventually stars turn into cows.
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Dog
Dogs. These are products with a low share of a low growth market. They do not generate cash for the company, they tend to absorb it. Get rid of these products.
Note: All products/services eventually become cows or dogs. The value of the product is completely dependent upon obtaining a leading share of its market before the growth slows.
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? Mark
Question Mark. These are products with a low share of a high growth market. They consume resources and generate little in return. They absorb the most money as you attempt to increase market share.
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•Question marks turn into stars or dogs – keep an eye on them.
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Star
Stars. These are products that are in high growth markets with a relatively high share of that market. Stars tend to generate high amounts of income. Keep and build your stars.
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•Low End Sites•Social Media Marketers•Search Engine Optimization (SEO)•Email/Newsletter Distribution•Data Management •Adword Campaign Management
Matrix Applied to World of Marketing
COW DOG•Newspaper Ads•Print Literature•Snail Mail Distribution•Catalogue Creation•Flier Distribution
•High-End websites•Internet programming / web development •Integration of website & IT systems•Mobile Sites & Mobile Marketing•Wrap Signage (taxi’s)•Interactive Web Applications
•Branding / Corporate Identity•Logo Design•Graphic Design•Copywriting•TV/Radio Advertising•Production of Online Video•PR & Communications•Billboards
STAR ? MARK
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•Low End Sites•Social Media Marketers•Search Engine Optimization (SEO)•Email/Newsletter Distribution•Data Management Adword Campaign Management
Enter SLCSTAR ? MARK
COW DOG•Newspaper Ads•Print Literature (business cards, brochures, etc.)•Snail Mail Distribution•Catalogue Creation•Flier Distribution
LEGEND:BLUE = service already provided by SLC.RED = hot area. Get into. CROSSED OUT = Not worth investing time/$.GREEN = provided as a convenience for customers.
•Branding / Corporate Identity•Logo Design•Graphic Design•Copywriting•TV/Radio Advertising•Production of Online Video•PR & Communications•Billboards
•High-End websites•Internet programming /web development •Integration of website & IT systems•Mobile Sites & Mobile Marketing•Wrap Signage (taxi’s)
Sanna Lee Consulting| www.sannalee.com | 763-898-2858 | All Rights Reserved
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Parting Challenge
STAR ? MARK
COW DOG
1) What are your products/services that are growing but questionable in terms of future profits?2) Are you ahead of the curve with these products/services?
1) What are your products/services that are profitable but in a slow-growth market?2) Are you maintaining these products/services that add stability to your business?
What are your products/services that are profitable and strong growth areas?
1)What are your products/services where you have low share of a low growth market? 2) Are these products/services absorbing your time/money?
Sanna Lee Consulting| www.sannalee.com | 763-898-2858 | All Rights Reserved
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Be Inspired
Boeuf Bourguignon
Sanna Lee Consulting| www.sannalee.com | 763-898-2858 | All Rights Reserved