Definition of marketing

There are numerous definitions of what marketing represents ... Marketing is conducting business activities that lie on the courses and services from producer to consumer. Activities that are...

Marketing mix and marketing research

Marketing is not only for the purpose of creating an image, but creating reputation among all stakeholders of the enterprise, and through the construction of identity and the implementation of communication activities the company can build an image, and reputation can ...

Marketing concept and tasks of marketing managemen...

Marketing concept is a business concept that finds great application in practice and which will continue to evolve, supplemented and amended in line with changes in the environment in which the companies are operating. Marketing concept

Actors in Micro environment

Success of the operation will depend largely on the efficiency of connection within a certain system. Because of that actors in micro environment are:

Macro environment of the company

n general micro-environment of the company operate a number of factors.

Showing posts with label BCG matrix. Show all posts
Showing posts with label BCG matrix. Show all posts

Tuesday, March 12, 2013

Alternative strategies at BCG-matrix


Depending on whether it will also depend on the strategy that the company should apply in respect of which of them will continue to invest, where to stop investing, to leave. In this regard, the company at the disposal of four strategies:
- Investment in order to increase market share
- Investing as much as necessary to maintain constant market share
- The collection of income
- Leaving
The first strategy is usually applied to question marks, but only those that projected sales volume is large, ie on IE having a chance to become the leading run. If those things do not have the perspective that may become worthless things, then the company should apply a strategy for leaving.
The second strategy of investment in order to maintain market share is applied to cash cow, ie those that generate more cash than is necessary for their manufacture and sale. Excess cash used for financing the leading Test run and things.
The third strategy of collecting revenue is applied to things that are a poor source of cash in an unclear future known as dogs, and also to test things and work out if they have no perspective.
The fourth strategy of leaving apply on dogs, or test things if they do not have the opportunity to develop, whereby funds are moving toward a things that much more promising.

BCG matrix quadrants


Stars. These are things which are characterized by vsoka market growth rate (high attractiveness) and high relative market share over the competition. These data show that the activities taking place in attractive markets to competition, and markets the company has a very strong position. Products belonging to the leading things usually are in the growth phase of the product life cycle curve. Best examples of Stars currently amazon.com lastminute.com which recorded high growth rates.
Question marks. These are things that are characterized by a high rate of growth in the market, but low relative market share. Are located in the upper right quadrant matrix growth and market share. Starting from the fact that it is a market with high growth rate, it can be concluded that these activities have a great need for funds. Products are found in this quadrant generally in the introduction phase of the product life cycle.
Cash cow. That it is positioned in the lower left quadrant of the matrix and are characterized by low growth and high market share. Given that it is a market with low growth rate, there is no need of large funds because the competition does not attract those markets, and therefore does not require major investments. Commercial products that are found in this quadrant typically operate in mature industries and products in this quadrant are typically found in the mature phase of the product life cycle.
Dogs. That it is positioned in the lower right quadrant are characterized by low growth and low market share. The low growth rate of the market means that no great need of funds, and on the other hand, it means that the market loses its appeal and no major competition. Products in this quadrant are in the phase-out of the product life curve.