Product Portfolio Analysis for Marketing Success
TITLE
Analyse how product portfolio analysis can help a business to achieve its marketing objectives.
ESSAY
Title: The Role of Product Portfolio Analysis in Achieving Marketing Objectives
Introduction:
Product portfolio analysis is a strategic tool that businesses use to evaluate their range of products or services and make decisions to effectively meet marketing objectives. This essay will analyze how product portfolio analysis can assist businesses in achieving their marketing goals by examining the link between product portfolio analysis and marketing objectives.
Knowledge and understanding:
Product portfolio analysis involves assessing the range of products/services offered by a business and is often linked with the product life cycle. Marketing objectives should align with overall business goals and can include increasing market share, becoming a market leader, boosting sales volume, expanding product range, enhancing customer satisfaction, building brand loyalty, and entering new markets.
Application:
Businesses utilize product portfolio analysis to understand their product mix and make strategic decisions to align with marketing objectives. By systematically evaluating each product's position in the lifecycle, businesses can reallocate resources, develop new products, or adjust existing offerings to meet marketing targets.
Analysis:
💥 Increasing market share may prompt a business to reevaluate its product range to stay competitive and differentiate from rivals.
💥 Products at maturity or decline stages may signal a need for new offerings to achieve marketing objectives.
💥 Entering new markets requires adapting products to suit customer preferences in those markets.
💥 Successful businesses maintain a balanced product portfolio to respond to changing market needs and align with marketing objectives.
💥 Adjusting the product range is necessary to meet evolving marketing goals, with changes in objectives potentially leading to product modifications.
Conclusion:
In conclusion, product portfolio analysis plays a crucial role in enabling businesses to achieve their marketing objectives. By carefully assessing their product mix and making strategic decisions based on marketing goals, businesses can adapt to changing market conditions and effectively meet customer needs. Integrating product portfolio analysis into the marketing strategy helps businesses stay competitive and achieve long💥term success.
SUBJECT
BUSINESS STUDIES
LEVEL
A level and AS level
NOTES
Analyse how product portfolio analysis can help a business to achieve its marketing objectives. Knowledge and understanding 2 marks • Clear understanding of product portfolio analysis • Clear understanding of marketing objectives Application 2 marks • Reference to the use of product portfolio analysis • Reference to the use of marketing objectives Analysis 4 marks • Product portfolio analysis – assesses the range of products/services offered by a business. This analysis is often integrated with the product life cycle. • Marketing objectives should be in line with the overall business objectives and might be: – to increase market share – to become the market leader – to increase sales volume – to increase the product range – to improve customer satisfaction – to increase brand loyalty – to enter new markets. 8 9609/12 Cambridge International AS & A Level – Mark Scheme PUBLISHED May/June 2021 © UCLES 2021 Page 10 of 17 Question Answer Marks 5(a) • An increase in market share might require the business to reassess the range or products or services being offered. Perhaps a competitor offers a wider range or a better quality. • An increase in market share often needs a business to stand out and therefore the business might need to look at whether or not its products are outdated and perhaps there is a need to introduce extension strategies or to introduce new product(s). • Linking to the product life cycle, if the business has too many products in the maturity or decline stages this would indicate that new products are required if the marketing objectives are to be achieved. • New markets might require products to be adjusted/changed to meet the needs of the customers in that market. • Successful businesses often have products in all stages of the product life cycle; new products being developed to take the place of ones in decline or to meet the changing needs of the market. • The range of products offered will have to be adjusted to meet the marketing objectives and if the objectives change the products might have to change too. • Accept any other valid response.