Marketing Performance Tools and Application Exercises
11.1Product Life Cycle Portfolio: This marketing performance tool is used with Figure 11-2 to address the question
that follows.
Using the data provided, adjust the proposed product life-cycle portfolio to the recommended
percentage of sales and product life-cycle position. How will the revised portfolio perform in the future
with respect to sales and profit?
Teaching Note: The starting-data portfolio would produce good profits with modest sales growth over
the short term, but long-term sales and profits would stagnate. The revised portfolio provides two
11.2Market Growth Rate–Share Development Portfolio: This marketing performance tool uses Figure 11-6
in answering the question that follows.
Market-Based Management Copyright © 2012
Sixth Edition –39– Pearson Education, Inc.
Instructor’s Manual– Chapter 4 Publishing as Prentice Hall
Using the data provided, adjust the portfolio position to reflect market redefinition and efforts to improve
share performance metrics. What is the potential impact for future sales and profits?
Teaching Note: The revised portfolio takes into account changes in market growth and the share
development index. Products A, B, and E are basically in high share index positions. Thus, holding
Products A, B, and C are the real cash producers of this portfolio. They will produce high sales but not
11.3GE/McKinsey Portfolio: This marketing performance tool uses Figure 11-8 to address the question that
follows.
Market-Based Management Copyright © 2012
Sixth Edition –40– Pearson Education, Inc.
Instructor’s Manual– Chapter 4 Publishing as Prentice Hall
Using the data provided, alter the market attractiveness and competitive position ratings to create a
revised portfolio for product A. How would you expect the revised portfolio to perform with respect to
sales and profits?
Teaching Note: The market attractivenessindex for product A decreases from 67 to 51.4 over the next
several years, as shown above. The competitive position is slightly above average. The strategic
Market-Based Management Copyright © 2012
Sixth Edition –41– Pearson Education, Inc.
Instructor’s Manual– Chapter 4 Publishing as Prentice Hall