BCG

Growth-s
 BCG
 Growth-share matrix
 Market growth rate on th
annual growth rate of the
Question
operates. marks (high
 Relative market share (ho
 Most businesses start off as
SBUto’senter
tries market share
a high relat
-growth
acompetitor.
market leader.
A
 question
Growth markmatrix
-share requires
is da
has to spend a lot of money
indicating a different typ
 Stars (high growth
 If the question mark busin
busi
star.
 A star is the market leade
 A star does not necessari
forCash cows (low gro
the company

 Company
When a marketmust’spend subg
s annual
the
10%, high
themarket growtha&c
star becomes
 largest
Use largerelative market
amounts sh
of cas
 so they cow
A cash should also gener
produces a lo
 company
Stars tenddoes not have
to generate to
hig
 Dogs (low growt
 Businesses that have weak
markets. They typically ge
although they may genera
 Dogs often consume more
mor
Problems wi
are worth & need to be ph
There is
 Beware
 of an assumption
expensive ‘turn
are directly
 Deliver related toliqh
cash, otherwise
This may not always
 They do not generate c
b
launch a new jet, it ma
tend to absorb it
quickly but it still has
 Avoid and minimize the n
 Problems with
wit
 The main problem is t
complex set of decisio
Matrix as a planning tot
gut feeling
Balancing
 High market share is n
 Try
 not to
Market have any
growth Dot
is not
 Cash Cows, Problem
attractiveness of a marC
 be kept in a kind
Sometimes Dogsof equ
can e
 Funds
Cows generated by yo
Ansoff’
Ansoff
 Market P
 Market our existing p
customers
Market D
 Promoting the produ

 Product is not altered

 Market our existing p
new customers
market
 Product remains the
 Product D
 New product to be ma
customers
 develop and innovate
replace existing ones
Divers
We
 market are
products completely
then markne
 2customers
types of diversification
 related & unrelated
 This often happens wi
 Related diversification
existing models are up - w
industry with which
marketed to existing c we ar
The General Elec
(GE Busines
 GE
 Each business is rated
attractiveness & busin
 Companies are succes
GE
enter attractive market
business strengths to s
 If 1 Attractiveness:
Market of the factors is m
not produce
 Size of market outstandin
 company
Market rate in of
unattracti
growth
 company
Nature of in attractive
competition
 GE
Build
 Objective is to increas
even forgoing short-ter
GE
 Appropriate for questio
shares must grow if the
Hold
 GROW strong busines
Objective is
industries, to preserv
average bus
Appropriate
industries, & for strong
strong bu
continue yielding a lar
industries
 GE
Harvest
 Objective is to increase th
regardless of long-term ef
 Involves a decision to eve
GE
business by implementing
retrenchment.
 Company plans to milk its
Divest
costs at a faster rate than a
Here the objective
 increasing companyis’stocash
se
cas
because
cash cowsresources
. can be
Appropriateweak
 HARVEST for dogs &q
business
 Ana
t
Purpose of Marketing
Marketing
To know
 where the environmen
 relevant events & tren
 Which events & trend
 Types of Enviro
Mega/Macro/External Analysis

 Political Analysis
Mega/Macro/
 Economic Analysis
 Social Analysis
PEST Analysis
 Technological
Analysis
 Analysis of macro-env
 Legal Environment
 Analysis of external fa
 Natural Environment
 Politica

 Form of Government
 Political stability
Risk of invasion

Econom
 Legal framework for con
co
Economic
  Economic & system
Industrial p
 Govt. intervention
 Economic Growth also
Economic Growth also d
 Comparative advantag
 Social & Religious orga
 Exchange rate & stabi
 Economic
 Labor costs
 Economic growth rate
Discretionary income

Social
 Unemployment rate

 Inflation rate
Demographics

 Interest rates
Class structure

 Business
Educationcycle stage (pr
 Culture
 Technolog
 Recent technological d
 Technology impact
Impact on cost structu

Legal En
Legal En
 Rate of techno diffusio
diffusi
IPR Options
 protectionavailable in T
Trade regulations
Govt & tariffs
’s approach in re
 Anti-trust laws
 Technology selection
 Pricing regulations
 Taxation policy
 Natural E

 Natural Resources

 Raw Materials
Micro/Inte
 Ecology – environme
 Market demand
of wild-life & ocean
of wild-life & ocean
 Consumer
 Climate
 Industry
 Marke

 Nature of demand
 Size of demand
Consum
 Present & potential d
Invasion
Basic
 need –of substitute
According to
Firm & Consumer
 Changes taking place
 Customer Value &
pattern/buying habits
Benefits
 Benefits –
 Micro/Intern

 Industry & Compet

M ar k et in g E
 Government Policie

 Supplier related fac

influencing the cost o

 Environmental A
continu
SWOT

 S – Strength
 W – Weakness
 O – Opportunities
 Strengths

 Marketing:
1. Company reputatio
2. Market Strengths
share
3. Product/service qua
4. Pricing/distribution
Finance
 effectiveness
Deep pockets
Geographical
5. Cash
 flow cover
6. Financial
 stability
“Core competencie
 Strengths

Organization
 Visionary capable lead
lea
Oppo
 Dedicated employees
 Entrepreneurial orient
A marketing opportun
Flexible/responsive
in which a company c
 Opportunities can be c
attractiveness & succe
succ
 Th

 A challenge posed by an
development that would l
M ar k e
defensive marketing actio
profit.
 Threats should be classifi
M ar k et in g mix is a set of mar k e
t o seriousness
pur sue it s mar&
k et in g obj ec t
probability
seriousness & probability
E .J er ome M c C ar t h y c l assif ied
t h e f our Ps of Mar ket ing.
M ar k e

Marke
 7 P’s in Serv
3 additional P’s in serv
 People: Any person
with customers can
M ar k
overall satisfaction.e
 Process: Process(es
service and the beh
can be crucial to cus
cu
 Physical evidence
 The Four P’s

Ma

Marketing
Product

Customer
Solution Price
 Matching Mix C

 4 A’s
Acceptability
Affordable PACS
Accessible
 Product Acceptability C
Awareness
Price Acceptable
Place Access C
 M ar k e
The 3 C ’s M odel c o mpr is

C ust o

Porter’s gen
C o mpan y A n al ysis
 Porter’s gen
1. Overall cost leade
hard to achieve lo
distribution costs
than competition
Porter ’s gen
share. Firms pursu
be good at engine
Differentiation&–
2. manufacturing
on achieving
(they need lesssup
ma
isimportant custom
competition ope
by a (e.g.
costs largethe
partChi
Chof
 Porter’s gen

Focus – business focuses o

segments, gets to know
pursues either cost lea
within the target segm