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What is a boston matrix?
- A marketing planning tool used to help managers plan a product portfolio. It looks at market share and market growth in order to assess new and existing products in terms of their market potential
- Dogs: Products operating in low growth markets with a low market share. Dogs do not generate much cash for the business so these products tend to be eliminated.
- Problem Child/Question Mark: Products operating in high growth markets but have low market share. It is unsure whether businesses should invest more in these products. Businesses should try to develop strategies to gain a higher market share in this vast growing market.
- Stars: Products that operate in high growth markets and have high market share. These products tend to be very successful and generates a large amount of profit for the business. Businesses tend to invest money in developing and promoting these products.
- Cash Cows: Products that operate in low growth markets and have high market share. These products are very well-established and generates a great amount of cash flow for the business and this tends to be long term profit as the products are marketed to “mature markets” meaning more recognized markets.