BCG MATRIX IN ONLINE MARKETING

MATRIX APPLIED IN ONLINE MARKETING AS A LONG-TERM STRATEGY PLANNING TOOL.

BCGThe Boston Consulting Group matrix, better known by its acronym BCG or as Boston.

It first became known in 1973, after its publication by the consulting firm that had created it; this firm used it to make strategic decisions for businesses seeking advice. Here we are going to tell you what it is and how you can use it in your online and offline strategies.

What is the BCG matrix

To understand what the BCG matrix is, also called the growth-share matrix, and why it is so useful, we have to tell you that it is a graphical representation system that allows you to analyze business strategy quickly and very visually. It is not enough on its own to make decisions, since it is too simplified, but it is a good start to see which aspects it is convenient to go deeper into.

It is based on a simple business strategy analysis model that can help you decide which products or services are most profitable and which are worth investing more effort in. It consists of two axes: the vertical axis expresses the growth rate, i.e. the existing demand in the market; the horizontal axis analyzes the market share, i.e. the sales or market share achieved by the company. These axes create four quadrants, which are named as follows.

- Question mark. This is where products with a lot of growth, requiring a lot of investment but with few sales, are located. These are usually products in the launch phase.

- Star. As its name indicates, this is the space reserved for star products, those with high growth and many sales. A product that has been a question mark can become a star if its evolution in the market is positive.

- Cow. These are the most profitable products, consolidated in the market with many sales. Their main advantage is that they do not require much investment.

- Dog. These are the products with low growth and low market share. In these cases it is recommended to review the strategy and evaluate whether it is advisable to eliminate them from the portfolio.

How it is applied in online marketing

The application of the BCG growth matrix in online marketing allows you to reveal which products or services are profitable, understand their growth and promote a positive evolution of each of them in the market. In short, it will help you to decide where to invest more effort to obtain a higher ROI.

The use of the BCG matrix is useful in different areas of digital marketing. So, whether you want to increase the sales of an online store or if you are looking to improve your web positioning, this analysis will help you to focus your strategy on what provides you with greater conversion and benefits.

Creating a BCG matrix

To create a BCG matrix you must first create a list of all the products or services you have, bearing in mind their life expectancy and the investment needed for each one. Then, analyze sales, market share and growth.

With the information provided by these variables, place each product in one of the four quadrants - question mark, star, cow or dog. You will then be able to assess whether these products generate profits or losses, and which ones need strategic improvements to optimize their evolution. With all this information, you will have the first clues to determine which products are most worthwhile for your business.

Launching a product: marketing campaign

The vision offered by the BCG matrix is essential to ensure a good evolution in the market after the launch of a new product. Remember that a question mark product can become a star or a cow if you invest in it wisely, or a dog if you don't make the right decisions. So, taking the growth-share matrix as a starting point will help you to better design and target your marketing campaigns from the beginning.

The BCG matrix helps you enormously in decision making

The BCG matrix is a very useful tool to clarify where to direct an online marketing strategy and minimize mistakes. In addition, it will allow you to make the most of your investment without wasting your budget.