M300 1nd Edition Lecture 3 Outline of Current LectureI. Growth Share MatrixII. Growth Share Matrix ExerciseIII. Growth Share Matrix and PLCIV. Designing the Business PortfolioV. Marketing StrategyVI. Marketing Strategy applied to Growth Share MatrixVII. Planning and Implementing the Marketing StrategyCurrent LectureI. Growth Share Matrixa. Remember, Growth Share Matrix shows you on a map how your product is doing.b. There can be:-Question Marks: new products, unsure of how will react.-Stars: young, maturing. Strong, growing sales.-Cash Cows: mature products, strong sales.-Dogs: declineII. Growth Share Matrix Examplesa. Question Mark: 4kTVb. Star: Energy Efficient Carsc. Cash Cow: Smartphonesd. Dog: Mp3 players, GPS systemsIII. Growth Share Matrix and PLCa. Star = growthb. Question Mark = don’t knowc. Cash Cow = matured. Dog = declineIV. Designing the Business Portfolioa. It is better to have a portfolio that is balanced with products/business in a varietyof the Growth Share Matrix quadrants. b. The bigger the circle in a GSM, the bigger the business. V. Marketing Strategya. Build strategyi. InvestThese notes represent a detailed interpretation of the professor’s lecture. GradeBuddy is best used as a supplement to your own notes, not as a substitute.b. Hold Strategyi. Maintain current positionc. Harvest Strategyi. Milk-reduce investmentd. Divest Strategyi. Sell or close downVI. Marketing Strategy applied to Growth Share Matrixa. Question Marki. Buildb. Starsi. Holdc. Cash Cowsi. Harvestd. Dogsi. DivestVII. Planning and Implementing Marketing Strategya. Identify the target customer segment through segmentationi. Could be segmented through demographics or psychographics.ii. Demographics: geography, age, gender etc.iii. Psychographics: based on what people want out of life. More experiential. b. Target certain segments of customersi. 18-49 year olds are target demographic for advertisers. c. Position the product (or positioning)i. Positioning is about creating perceptions of the product among the targetsegment. ii. Tell the customer why they should buy this product vs. another product.iii. How? Use promotion to communicate a positioning that is clear, concise, distinctive, and desirable perception of product. iv. Example: Wal-Mart took over the position as a low design, low price market. There was no place for Target anymore. Target had to reposition as a “cheap-chic” market. d. Apply 4 P’s for sales and profiti. 1. Productii. 2. Promotioniii. 3. Priceiv. 4.
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