Strategic Marketing Management Essay Example | Topics and Well Written Essays - 500 words

Strategic Marketing Management - Essay Example However, it should be noted that portfolio analysis tools should be applied with caution as each of the individual technique has limitations. These are further elaborated on the discussion of the different tools. The three main portfolio planning tools are The Boston Consulting Group Growth-share Matrix, General Electric Market Attractiveness Competitive Position Model, and Shell Directional Policy Matrix. The Product Life Cycle (PLC) as a portfolio analysis tool highlights four stages in a product's life cycle-introduction, growth, maturity and decline. This technique stresses that products life is limited and each stage in the life cycle offers different levels of potential gains. Thus, companies should employ the right strategies to maximize cash flow. PLC is valuable as a marketing tool because it emphasizes product termination, growth projections, different marketing objectives and strategies in each stage, product planning, and dangers of overpowering. However, it is also recognized that PLC is limited as each product follows a unique life cycle (e.g., fads and classics), PLC is the result of marketing efforts and not the cause, the time span of each stage is unpredictable, and misleading objectives and strategies. The PLC can always be a good tool choice for compani