BTC Matrix Example How it can be applied to digital marketing strategies The

Btc matrix example how it can be applied to digital

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BTC Matrix Example: How it can be applied to digital marketing strategies? The BCG Model is based on products rather than services. However, it does apply to both. You could use this if reviewing a range of products, especially
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before starting to develop new products. Looking at the British retailer, Marks & Spencer, they have a wide range of products and many different lines. We can identify every element of the BCG matrix across their ranges: Stars: Example: Lingerie . M&S was known as the place for ladies’ accessories at a time when choice was limited. In a multi-channel environment, M&S lingerie is still the UK’s market leader with high growth and high market share. Question Marks/Problem Child: Example: Food . For years M&S refused to consider food and today has over 400 Simply Food stores across the UK. Whilst not a major supermarket, M&S Simply Food has a following which demonstrates high growth and low market share. Cash Cows: Example: Classic range . Low growth and high market share, the M&S Classic range has strong supporters. Dogs: Example: Autograph range . A premium priced range of men’s and women’s clothing, with low market share and low growth. Although placed in the dog category, the premium pricing means that it makes a financial contribution to the company. You can also apply the BCG model to areas other than your product strategy. We developed this matrix as an example of how a brand might evaluate its investment in various marketing channels. The medium is different, but the strategy remains the same- milk the cows, don't waste money on the dogs, invest in the stars and give the question marks some experimental funds to see if they can become stars.
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What to watch for? The BCG Model appears simplistic. It can be difficult to classify products in smaller businesses where the relative market share is too small to quantify. It’s also based on the concept that market share can be achieved by spending more on the marketing budget. Reference Barksdale, H. C. and Harris Jr., C. E. (1982). Portfolio Analysis and the Product Life Cycle. Long Range Planning, 15(6), pp. 74-83.
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  • Spring '16
  • murad
  • Marketing, Boston Consulting Group Matrix

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