1. What are some key differences between BCG and IE portfolio matrices? Please consider an industry in which you have worked, are working, or would like to work when addressing the questions.

2. What is the “marketing mix” and why is it so important in strategy formulation and implementation?

The Boston Consulting Group growth-share matrix is a planning tool that uses graphical representations of a company’s products and services in an effort to help the company decide what it should keep, sell, or invest more in. The IE Matrix is a strategic management tool which is used to analyze the current position of the divisions and suggest the strategies for the future. Both matrices are very similar to each other in that both tools involve plotting organization divisions in a schematic diagram. Some of the key differences between BCG and IE include the way that each measure their market share. BCG matrix measures the market share and growth of the company while IE matrix measures the calculated value that captures internal and external factors. The IE matrix requires additional information about the firms’ divisions and business compared to the BCG matrix. One of the main differences is the way each tool is utilized and what it can deliver, the IE matrix is considered to be a strategic management tool that can suggest future strategies and analyze the firm’s current position. While the BCG matrix can help a company to analyze their growth and company’s market share. A common practice includes developing a BCG matrix and an IE matrix for the present and then develop projected matrices to reflect expectations of the future. This before and after analysis forecasts the expected effect of strategic decisions on an organization’s portfolio of divisions.

The “marketing mix” is important to a company when determining strategy and implementation. Without understanding the “marketing mix” of a company whether offering goods or services, a company could fail and lose business. The four Ps, price, place, promotion, and product, all play a role in determining strategy (David, David & David, 2020).

When considering places to sell products and services, a company must understand the market and ensure there is a need, otherwise, they will not be successful. Pricing is the biggest driver of strategy and implementation, because without it, a company cannot promote its product or sell its products unless pricing is in line with demand and other competitive factors (David, David & David, 2020). When pricing is too high, products do not move or sell. When pricing is too low, a company does not do well financially because their returns may be lower than the costs to operate the company. It is important that strategies are implemented to ensure pricing is successful and in line with customer value.

A company that sells services may have a different “marketing mix”. Their mix maybe the process, the people they work with or the environment in which they work. Pricing may not be the main strategy, however, providing excellent customer service in a timely fashion is much more important which leads to more referrals, customers, and higher profits.

When implementing the marketing plan, there are many factors that one must consider. It all depends on the assessment that is completed by the team. The four Ps must be considered with other factors like a “blue ocean” or a “red ocean” (David, David & David, 2020). This will help determine implementation, strategy and actions taken to improve the company financially.

Reference

David, F. R., David, F. R., & David, M. E. (2020). Strategic management concepts and cases: A competitive advantage approach (17th ed.). New York, NY: Pearson Education.