Product prioritization matrix
The BCG matrix or product prioritization matrix is the most widely used marketing model to analyze a company’s portfolio. The model takes a close look at the various product prioritization matrix and distinguishes between Question marks, Stars, Cash cows and Dogs. The goal is to get an answer to the question of whether certain product groups are interesting to keep or whether the company would be better off divesting.
Why a portfolio analysis?
Most companies market multiple products or services because one product or service represents a risk to continuity. If demand for that one product ceases, the company would go out of business. Therefore, it is important to have products or services distributed appropriately in terms of a product’s contribution to the business. Thus, a balanced portfolio, or portfolio, product prioritization matrix of products and services is very important.
Product prioritization matrix
A portfolio is a collection of product prioritization matrix ns that make up a business or enterprise. A product can be either an item or a service specifically offered on the market. That product can be for different target groups. A combination of a product and a target group is called a “product-market combination” (PMC).
Boston matrix in the marketing plan
A portfolio analysis, such as the BCG matrix, analyzes a company’s product-market combinations. For this reason, the BCG matrix is applied in step 3 of the marketing plan – organization. The BCG matrix has similarities with the Product Life Cycle (or product life cycle), a marketing concept that refers to the stage in the life cycle that a product is in;
Dimensions of the BCG model
The BCG model consists of a quadrant in which products or services are placed based on market share and market growth. The BCG model shows a graph in which 4 boxes can be distinguished. These boxes represent the quadrants:
These terms often recur in business and marketing jargon. So you can trace these words back to the BCG matrix when you hear them again.
What is customer journey mapping?
A customer journey model is the journey a customer takes when they are about to buy or have bought a product or service. A customer journey tells a customer’s story before and after the purchase. The customer journey mapping model is often divided into different phases. In each phase, there is a goal of the customer, and a step to the next phase. By responding to the customer’s goals in each phase, your business can better serve potential and existing customers. Read more about what is customer journey mapping?
What is a customer journey used for?what is customer journey mapping
The customer journey mapping model is used to map the relationship between the customer and company and provide insight into the steps the customer takes. A customer who buys something takes a number of steps in his purchase process. It is important for a company to understand these steps and how they are completed. A positive customer experience can create repeat customers and even more customers.
By properly mapping out what potential customers focus on in a particular purchasing process, you as a company can respond accordingly. Thanks to information from website statistics, data sources and various tools, it is possible to place a potential customer in a journey. This allows a company to know what stage they are in and how to best provide them with their next need.