BMT 4 - Boston Consulting Group (BCG) Matrix

The BCG matrix is a product portfolio analysis tool that indicates to managers which products may need to receive more funding and marketing effort.

• True

• False

Star products are highly desirable as they create cash inflows for a business and could become cash cows.

• True

• False

Question marks are products with great commercial potential, but the firm is unsure what to do with them due to the commitment and risks involved.

• True

• False

Star products suffering from the lack of effective marketing mix, so have low market share and could be more competitive and desirable to customers.

• True

• False

The Boston Consulting Group matrix is a visual representation of the various stages a firm's products go through during their useful commercial life.

• True

• False

The BCG matrix uses the criteria of the market share (high or low) and market growth (high or low).

• True

• False

Match the following products with their respective stage in the product life cycle

• Maturity stage

• Stars

• Growth stage

• Cash cows

• Decline stage

• Question Mark

• Introduction/launch stage

• Dogs

Question mark products are also known as problem children.

• True

• False

A dog is a good or service with low market share and low market growth, meaning it is no longer successful and sales in the industry are falling.

• False

• True

The BCG matrix facilitates marketing planning as it reveals how a firm's products or brands are perceived by consumers.

• False

• True