Market Share vs. Market Growth Rates
        Market Share
          The percentage of the total market (industry) revenue 
           that your company has. Example: Heinz has 60% of 
           the ketchup market, meaning that they earn 60% of 
           all US ketchup sales.
        Market Share Growth Percentage
          The annual percentage growth in your market share 
           versus the competition. Example: Heinz’s market 
           share growth rate was 2 percentage points in 2017 
           (58% to 60%). 
                                                              2
         Product Life Cycle Stages Terminiology
         The Boston Consulting Group Matrix (BCG Matrix))
     e              
     t
     a   h
     R   g
         i      Star                       Question Mark
     h
     t   H
     w
     o
     r
     G
      
     t
     e   w
     k   o      Cash Cow                Dog     
     r
     a   L
          
     M    
          
          
          
          
                          Relative Market Share
          
          
                 High                      Low             3
         The BCG Approach Of Analyzing Business 
         Portfolios
         Stars
          High market share, high growth
          Need heavy investment to finance growth
          Next stop: “Cash Cows”
         Cash Cows
          High market share, low growth (mature phase)
          Well-established and successful
          Produce profits and cash to fund other products 
           (Stars and Question Marks) 
                                                             4
         The BCG Approach Of Analyzing Business 
         Portfolios
         Question Marks
          Low market share, but high growth
          Require a lot of cash/investment to increase 
           growth
          Decision: build into “stars” or phase out?
         Dogs
          Low market share, low growth
          Usually have negative cash flow or break even
          Businesses will most likely discontinue 
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              Marketing Quiz
       1.   According to the BCG matrix, a low-growth, low-market share 
            product would be called a ______.
       2.   According to the BCG matrix, a low-growth, high-market share 
            product would be called a ______.
       3.   According to the BCG matrix, a high-growth, low-market share 
            product would be called a ______.
       4.   According to the BCG matrix, a high-growth, high-market share 
            product would be called a ______.
        
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