Marketing Strategy and Product Management: BCG Matrix, Segmentation, Positioning, and Branding

Mission Statement

An organization's purpose that defines what it wants to accomplish in the larger environment; should be market-oriented and motivating.

Objectives & Goals

Specific, measurable outcomes that turn the mission into actionable performance targets.

BCG Matrix

Portfolio tool classifying business units by market growth and relative market share into Stars, Cash Cows, Question Marks, and Dogs.

Stars

High market share in a high-growth market; require heavy investment but can become Cash Cows.

Cash Cows

High market share in a low-growth market; generate strong cash flow.

Question Marks

Low market share in a high-growth market; require decisions about investment or divestment.

Dogs

Low market share in low-growth markets; often candidates for discontinuation.

Product/Market Expansion Grid

Framework for growth: Market Penetration, Market Development, Product Development, Diversification.

Market Penetration

Increasing sales of existing products to current markets.

Market Development

Selling existing products in new markets.

Product Development

Creating new products for existing markets.

Diversification

New products in new markets.

SWOT Analysis

Evaluating internal Strengths & Weaknesses and external Opportunities & Threats.

Marketing Mix (4 Ps)

Product Price Place Promotion; controllable factors to create value.

Segmentation

Dividing a market into groups of consumers with distinct needs/behaviors.

Segmentation Variables

Geographic Demographic Psychographic Behavioral Intermarket.

Geographic Segmentation

Dividing a market by location (region climate city).

Demographic Segmentation

Basing segmentation on age income gender etc.

Psychographic Segmentation

Segmenting based on lifestyle personality values.

Behavioral Segmentation

Segmenting by usage rate benefits sought or response.

Intermarket Segmentation

Segmenting consumers across countries with similar needs.

Effective Segmentation Requirements

Measurable accessible substantial differentiable actionable.

Targeting

Selecting and entering one or more market segments.

Undifferentiated Marketing

Single market strategy with one offer for everyone.

Differentiated Marketing

Targeting several segments with separate marketing mixes.

Concentrated (Niche) Marketing

Focusing on a large share of a small segment.

Micromarketing

Tailoring products to individuals or local areas.

Positioning

How the product is defined in consumers' minds relative to competitors.

Competitive Advantage

Superior value via differentiation product people channel image.

Horizontal Differentiation

Differences based on preference not objective quality.

Vertical Differentiation

Differences based on objective quality/performance.

Positioning Statement

Concise description of target frame of reference point of difference reason to believe.

Product

Anything offered to satisfy a need or want.

Core Benefit

Primary value a customer seeks from a product.

Actual Product

Tangible product attributes like design features and brand name.

Augmented Product

Additional value-adding services like warranty or support.

Convenience Products

Frequent low-involvement purchases.

Shopping Products

Less frequent purchases involving comparison.

Specialty Products

High-involvement unique items with strong brand preference.

Unsought Products

Products consumers don't usually think about buying.

Product Line

Group of related products sold by a company.

Line Stretching

Adding products above or below current line.

Line Filling

Adding products within the existing range.

Product Mix

All product lines a company offers.

Brand

Name/symbol that identifies a seller and differentiates its products.

Brand Equity

Added value a brand gives beyond functional benefits.

Line Extension

Using an existing brand to add items within a category.

Brand Extension

Using an existing brand to launch products in a new category.

Multibranding

Offering multiple brands in the same category.

New Brand

Creating a new brand name for a new category.

New Product Development (NPD)

Process of creating and launching new products.

Idea Generation

Collecting new product ideas.

Idea Screening

Filtering out bad or unfeasible ideas.

Concept Development & Testing

Developing concepts and testing with consumers.

Marketing Strategy Development

Planning positioning and marketing mix for a new product.

Business Analysis

Assessing financial viability and demand.

Product Development (NPD)

Creating and testing prototypes.

Test Marketing

Limited launch to assess market response.

Commercialization

Full launch with production and marketing support.

Product Life Cycle (PLC)

Introduction Growth Maturity Decline stages.

Introduction Stage

Low sales negative profits focus on awareness.

Growth Stage

Rapid sales rising competition focus on differentiation.

Maturity Stage

Peak sales intense competition defend market share.

Decline Stage

Falling sales and profits.

Style

Basic mode of expression that lasts.

Fashion

Popular style that changes over time.

Fad

Short-lived high-sales craze driven by novelty.