Different Communication Strategies for Different Customers I like how you have talked about how we should communicate differently with each of the types of customers related to each quadrant of the Boston Matrix …. google_ad_client="pub-4054602051779066";google_ad_slot="9782801057";google_ad_width=468;google_ad_height=15; Here is how the BCG Matrix is typically represented whereby a given product or service is categorized based on how much market share you have and how much the market is growing: • Dogs are low-performing products or services in a stagnant market and traditional sales and marketing wisdom dictates that they should be sold off or discontinued, • Cash Cows are the ideal products or services that are performing well in a market that is relatively mature. For example, is it okay for you to be #2 if you are a smaller company and are making a good profit? Whilst this type of product is likely to generate some revenue it may not be enough to sustain rapid growth and it may become a net consumer of cash as it struggles to retain its market share. The good news is that they can and that sales and marketing for large companies works using the same principles as it does for smaller ones. Cash Cow: This is a product that’s sitting in the pasture waiting to be milked (not literally, of course). Rather, stay focused on what you know and plan, execute and keep improving in order to succeed! You’re probably very confused about what each image means and why it’s broken down this way. Marketing The 5 Basic Questions of Marketing The foundation of successful marketing is understanding how your product fits into your customer's plans. Rather than getting caught up in the technicalities of what the BCG Matrix calls "market share" you should focus rather on whether or not you are doing well enough to break even and then meet your own profit goals. Stay abreast of innovations in the market that you may adopt and communicate your unique differentiators to customers while building trust with service husain@sales-and-marketing-for-you.com Regardless of how you picture your market you should make sure to avail yourself of every opportunity to reach potential customers. Although the concepts of Cash Cows, Dogs, Question Marks and Stars may described are used more widely in large business they may be applied to business of all sizes. +1 (425) 835-3581. These unanswered questions could end up affecting your bottom line. Your contribution will appear on a web page on Sales-and-Marketing-For-You.com exactly the way you enter it here... To receive credit as the author, enter your information below. What this means is that you cannot say how well you will be doing in the future. The answer is that this depends on what your definition of your market is and the reason for the ambiguity is why I substitute the term high performance for high market share. More than anything else the BCG Matrix should get your thinking about where each of your products places in terms of your given market. What traditional business wisdom advises is that you should trim your portfolio of Question Mark product and services down to a manageable level. In 1966, the Boston Consulting Group (BCG) created the BCG Portfolio Matrix to determine each Strategic Business Unit’s (SBU) return on investment, growth potential, and level of risk. If so, the next question becomes, how should you compare yourself against your competition? If you don’t want to sit through a class, stay right here for a crash course. Dogs:These are products with low growth or market share. GO TO: •What is Positioning? Make sure to continue asking your customers for feedback and making changes to keep abreast of their expectations Check box to agree to these  submission guidelines. Examples: You promise to call me every day? Send in your thoughts in as much detail as you like to create a page in this section. As a business owner, you can use this chart to help you determine which of your products are working and which ones are complete duds. The Boston Consulting group’s product portfolio matrix (BCG matrix) is designed to help with long-term strategic planning, to help a business consider growth opportunities by reviewing its portfolio of products to decide where to invest, to discontinue or develop products. Your Marketing Communication Mix should therefore make use of as much of each of the basic types of communications which are verbal, written, electronic and physical. 3. F: (866) 314-5646 Qu… • Question Marks are the flipside of Stars and are performing not-so-well in a growing market. Cash Cows are what you would like to have as many of as possible as they provide a relatively stable source of ongoing income with little work required, • Stars are only called as such because they hope is that they will become the next Cash Cows. Alyssa is a promo expert with over four years of experience in the industry. Question mark, Approved and Web lectures icons. Physical marketing includes packaging, point of sale (POS) marketing and special events. 1. •Product Differentiation •Differentiation Strategy •Market Segmentation •Marketing Segmentation •Niche Marketing •BCG Matrix Consultant. What is “Market Share”? Sales and Marketing for "YOU" 'http':'https';if(!d.getElementById(id)){js=d.createElement(s);js.id=id;js.src=p+'://platform.twitter.com/widgets.js';fjs.parentNode.insertBefore(js,fjs);}}(document,'script','twitter-wjs'); Tweets by @samulousremus !function(d,s,id){var js,fjs=d.getElementsByTagName(s)[0],p=/^http:/.test(d.location)? Stars, question marks, dogs, and cows are used to describe products and are part of strategic business marketing. 2. Regardless of how well a given product or service is doing, you should not take for granted its continued success in the future and at the very least your sales and marketing efforts should be focused on gathering continuous customer feedback and ensuring customer satisfaction in doing business with you. If you can catch customers in the product’s prime, you’re likely to strike gold! Marketing sign. Do you have insights, advice or a story about strategic marketing to share with other readers? Dog: Products in this category have low-growth potential and own a very small market share. Use a … Most companies think about their “market” solely in terms of how may customers they have won versus their competition without having a real idea of the actual numbers of people that comprise their actual market. These products generate more cash than they need to maintain the market share and the revenue made is used to fund Stars and fix Question Marks. What Are Optical Illusions and How Can They Be Used in Advertising? In other words, “let a sleeping dog lie.”. 2. If you need a reminder, or want this wisdom to exist in the office every day, you can’t go wrong with a star stress reliever, cow stress ball, or dog stress toy! Find out what similar businesses are doing and experiment with what works for you. Each quadrant was broken down into basic categories that you learned in kindergarten – Stars, Question Marks, Dogs, and Cows. 10 of the Greatest Animals Ever Used in Advertising, Must-Have ‘Community’ Merchandise to be Your Best Human Being. Help support, Winner badge, Online test.. She is the Lead Copywriter at Quality Logo Products and has had work published for the Promotional Products Association International and the Advertising Specialty Institute. Marketing questions to ask to: Improve your customer experience; Measure overall brand impression; Compare your company to a competitor; Get a complete understanding of your analytics data; Track performance over time; Evaluate the omnichannel customer experience; Improve your social media marketing; Find out if your copy is effective; Learn what customers think of your ads; Optimize your … What this means is that your place in the market is not likely to change as fewer competitors are entering the market and you can sustain your high performance with relatively lower effort. Illustration about content, arrows, questionail, blue, line - 114806884 2. A Question Mark has a low market share in a fast-growing market. Stars: This market is changing and it is likely that you will need to keep revamping your offerings in this category in order to stay competitive. Think of it like a child actor who loses their fame after they get gray hairs and a deeper voice. Multiple product lines and product investment strategies makes sense talking about multi-million dollar companies but can these concepts apply to smaller business as well? My goal is to provide you with simple and straightforward tips and advice in using the concepts of the BCG Matrix to help you think about your own business strategy regardless of your size or the number of products or services you market. Here are some basic assumptions and understandings in order to get the BCG Matrix to work for you. What you hope by banking on a Question Mark is that through a concerted sales and marketing effort you will be able to turn the tables and earn a place for yourself in a lucrative market. As well, I will focus on different Marketing Communication Strategies based on how much market share you have and how mature your market is. What you hope by banking on a Question Mark is that through a concerted sales and marketing effort you will be able to turn the tables and earn a place for yourself in a lucrative market. Question Mark/Problem Child: These products show promise because of their rapid growth, but because of their poor profit margins, they end up creating a lot of questions. You can break all the products and services you offer into these categories and figure out a better plan of action. If you are making a satisfactory profit on a given product or service then you are doing better that 98% of business out there and that is a good starting point. Feedback is also crucial here: ask customers what other benefits they are looking for and try to offer these as well. Perhaps you have implemented a different marketing analysis approach that has worked really well or have insights into implementing strategic marketing for different kinds of businesses! What you have here is a product that is performing will in a market that is still robust and growing. Electronic marketing can include generating website traffic using Google AdWords and other online advertising as well as e-mail marketing. It's also known as the Growth/Share Matrix. (You can preview and edit on the next page). Question Mark - Brouwers Garage (small garage) - small market share, but big demand for car repairs and car safety check-ups. Does that sound crazy? What is your total market? Dogs: Seeing as you will eventually discontinue these products or services you should cross-market these customers to make them aware of your other offerings. Here’s how! Cash Cow - a business thats not growing but makes lots of profit in teh meantime (Pepsi) Dog - a business with low market growth rate and and small market share (small town theatre maybe) It takes a special marketing class to really learn the in’s and out’s of appealing to customers. It shouldn’t! Use a question mark at the end of a sentence when you turn a statement into a question to get a specific answer. See you there at 8:00 tonight? Your only options are to either grab your money and run or completely scratch the idea and move on. Many businesses may never operate at levels in which they consider the term “market share” to be of any significance to them as it is described in the BCG Matrix. info@qualitylogoproducts.com. Moreover, stars require a lot of ongoing investment in terms of sales, marketing and product development dollars in order to keep up with the pace of the growing market and secure you a permanent place in it, • Question Marks are the flipside of Stars and are performing not-so-well in a growing market. Question Marks: For those products or services in this category you want to keep in your portfolio you goal should be to incorporate the features of your marketing-leading competitors and communicate this value to customers. There’s a direct way stars, question marks, cows, and dogs relate to your business. Cash Cows: Stability is the name of the game for products or services in this category but you should not take these customers and your high market share here for granted. More articles by Alyssa Mertes, 724 North Highland AvenueAurora, Illinois 60506, P: (866) 312-5646 Tweet !function(d,s,id){var js,fjs=d.getElementsByTagName(s)[0],p=/^http:/.test(d.location)? The Matrix is divided into 4 quadrants based on an analysis of market growth and relative market share, as shown in the diagram below. Focus, instead, on maximizing the goodwill you have built up. This type of question is used when the speaker is hoping for a certain answer. You should educate these customers as to why this is a diminishing market – there are likely valid reasons why other customers are no longer interested in these products or services 'http':'https';if(!d.getElementById(id)){js=d.createElement(s);js.id=id;js.src=p+"://platform.twitter.com/widgets.js";fjs.parentNode.insertBefore(js,fjs);}}(document,"script","twitter-wjs"); google_ad_client="pub-4054602051779066";google_ad_slot="9667999069";google_ad_width=160;google_ad_height=600; Copyright © 2015 The BCG Matrix - or Boston Matrix - was developed by The Boston Consulting Group in the late 60s as a way for companies to develop strategies for their different product lines. Looking at each of your various products and services we can now talk about strategies for effectively reaching customers for each of the various categories of the BCG Matrix. Here's how it works. Does that describe you as well? Verbal sales and marketing includes in-person selling, telemarketing, seminars, networking, word-of-mouth ad referral marketing. There you have it! Written communications include flyers, print ads and yellow page ads. 1. As with much of the theory on sales and marketing you should take care not to get bogged down by technical details that do not apply to your business. After all, are most business that are not of the Fortune 500 caliber in a position to own even 1 or 2 percent of a given market? What does all of this mean to a small-to-medium sized business like yours? Performance At the end of the day much of the “hard science” of sales, marketing and business boils down to subjective questions such as these which is why it is more importance to be performance driven than anything else. Star: This is a fast-growing market leader that yields large profits but needs a lot of cash to finance its growth.