1. Stars are high-growth, high-share businesses or products requiring
heavy investment to finance rapid growth. They will eventually turn
into cash cows.
2. Cash cows are low-growth, high-share businesses or products that
are established and successful SBUs requiring less investment to
maintain market share.
3. Question marks are low-share business units in high-growth markets
requiring a lot of cash to hold their share.
4. Dogs are low-growth, low-share businesses and products that may
generate enough cash to maintain themselves but do not promise to
be large sources of cash.
Market Expansion Grid Strategies
1. Market penetration is a growth strategy increasing sales to current
market segments without changing the product.
2. Market development is a growth strategy that identifies and
develops new market segments for current products.
3. Product development is a growth strategy that offers new or
modified products to existing market segments.
4. Diversification is a growth strategy for starting up or acquiring
businesses outside the company’s current products and markets. Market Environment Scenarios
Demography is the study of human populations in terms of size, density,
location, age, gender, race, occupation, and other statistics.
• Demographic environment is important because it involves people,
and people make up markets.
• Demographic trends include age, family structure, geographic
population shifts, educational characteristics, and population
Economic environment consists of factors that affect consumer purchasing
power and spending patterns.
• Industrial economies are richer markets.
• Subsistence economies consume most of their own agriculture and
Natural environment involves the natural resources that are needed as
inputs by marketers or that are affected by marketing activities.
1. Shortages of raw materials
2. Increased pollution
3. Increase government intervention
4. Environmentally sustainable strategies Political environment consists of laws, government agencies, and pressure
groups that influence or limit various organizations and individuals in a
• Legislation regulating business
1. Increased legislation
2. Changing government agency enforcement
• Increased emphasis on ethics
1. Socially responsible behavior
2. Cause-related marketing
Cultural environment consists of institutions and other forces that affect a
society’s basic values, perceptions, and behaviors.
• Core beliefs and values are persistent and are passed on from
parents to children and are reinforced by schools, churches,
businesses, and government.
• Secondary beliefs and values are more open to change and include
people’s views of themselves, others, organizations, society, nature,
and the universe. SWOT Analysis
• Strengths include internal capabilities, resources, and positive
situational factors that may help to serve company customers and