Boston Matrix - Question Marks

This category of the Boston Matrix has several common names. It is usually known as 'Question Mark' but can sometimes be referred to as a 'Wildcat' or 'Problem Child.' This eBook refers to it as 'Question Mark' throughout.

A Question Mark has a low market share in a fast-growing market. Whilst this type of product is likely to generate some revenue it may not be enough to sustain rapid growth and it may become a net consumer of cash as it struggles to retain its market share.

Identifying those Question Marks that have the potential to gain sufficient market share to become a Star and eventually a Cash Cow is critically important to the future of any organization.

Question marks within the Boston matrix

Question Marks require careful analysis to determine whether or not they are worth the investment required to grow their market share. This may be especially important if the emerging market could replace your established market in the near future.

It is essential to define how much investment the organization is prepared to allocate to a Question Mark product in order to gain market share. This type of decision requires more sophisticated analysis than the Boston Matrix can offer and an organization may need to invest heavily to transform a Question Mark product.

Investment could involve a relaunch of the product, creating a new image that fits the consumer profile better, or some redesigning of the product or service in response to changing market conditions. Two well-cited marketing examples of this are:

Levi jeans in the 1980s were out of fashion, but the market for teenage clothes was growing fast. So, Levis relaunched their jeans with 501s, which were advertised with a new stylish image positioning them as a teenage fashion item.

The result within a few months was to increase sales by a factor of 10, turning the product into a star. The soundtrack of the TV advertisements used famous pop songs, and the ads became so popular they are still talked about 25 years later.

HMV, whose primary market was music, found that their CD sales were falling, whilst the music market was growing. Their response was to diversify and extend their product range into other areas of the 'home entertainment' sector such as computer and console games, DVDs, and online downloads. This turned out to be too little, too late and HMV were taken into administration in 2013.

The very nature of a Question Mark product or service means that it will be a cash consumer until it can gain sufficient market share to become a Star or Cash Cow. If it is unable to do either, it will be withdrawn from the market or become a Dog as market growth declines.

Organizations need to continually examine the value they achieve in terms of market share or revenue against continued investment in a Question Mark. Not all new products will succeed even if they do gain a reasonable market share, because the revenue generated may not meet the expectations set by the organization.


Key Points

  • Identifying those Question Marks that could become Stars and Cash Cows is critically important to the future of any organization.
  • Organizations need to continually examine the value they achieve in terms of market share or revenue against continued investment in a Question Mark.
More Free eBooks

You may also be interested in: Introduction to the Boston Matrix, Classifying Products and Business Units, Stars, Question Marks, Cash Cows, Dogs, Using the Boston Matrix at Brand Level, A Balanced Portfolio and Advantages and Disadvantages.

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