MZUMBE UNIVERSITY

SCHOOL OF BUSNESS (SOB)

PROGRAME: BARCHELOR OF BUSNESS ADMINISTRATION IN INNOVATION

AND ENTERPRENEURSHIP MANAGEMENT (BBA-IEM)

SUBJECT NAME: BUSS 111

NAME OF LECTURER: MR. MNZAVA

NATURE OF ASSIGNMENT: INDIVIDUAL

NAME OF INDIVIDUAL: ALEX FREDIAN HAMIS

REGSTRATION NUMBER: 1739078/T.20

QUESTION:

Explain the use of portfolio in marketing planning

 INTRODUCTION

Marketing planning Is the process of anticipating future events and developing strategies
to achieve organization objectives. It involves designing activities relating to marketing
objectives. While portfolio models is the most valuable aid to marketing managers in their efforts
to develop effective marketing plans, also it comparing strategies business unit (SBU) within the
company on specific criteria to give an indication of the most logical strategies direction to take
each strategies business unit, the use of this models has become a widespread as marketing
managers face a situation that can best be describe as more products, less time and less money.
Portfolio models divided into two models which is Boston consulting group (BCG) that focused
on determining the potential of the firm existing successfully strategies business unit (SBU) to
generate cash that the firm can them use to invest in other business, it based on the assumption
that profitability and cash flow will be closely related to sale volume, also General electric
models (Mckinsey models) is a technique used in brand marketing and product management to
help a company decide what product to add to its portfolio and which opportunities in the market
they should continue to invest in. The main purpose of this essay is to explain the use of portfolio
models in marketing planning

MAIN BODY

, the followings are the some uses of portfolio models in marketing planning a follows.

Firstly, used to balance yield and risk of the investment, by using portfolio models
enable investors to seek a desirable balance among alternatives strategies business unit, the
investors seek to manage the portfolio to maximize whatever objective he or she might have,
specifically management should seek to develop a business portfolio that will ensure long run
profit and cash flow by doing so the investors are able to balance the risk and increase yield in
investment, for example when there is possibility of risk occurrence in a business by using
portfolio model investors can be able to undertake reasonable measures to fix all risk and
increase yield.

Secondly, used in separating under performance and out performance and

accordingly the investment can be allocated, by using portfolio models especially general
electric model enables the investors to allocate his or her resources effectively according to its
market need by doing so it’s easy to generate a large return by using less money and less time,
for example by using portfolio models enable the investors to know the need of his or her
targeted market, that enable to allocate his or her recourses according to its targeted market need.

Thirdly, used to classify strategies business unit (SBU), to determine the future cash
contribution that can be expected from each strategies business unit as well as the future
recourses that each require, by using portfolio models investors can be able to diversify the
business strategies into different unit that can bring about reasonable return by knowing the need
of its targeted market through business portfolio, for instance by using Boston consulting
group(BCG) investors can classify business strategies to generate return that can be used to
invest in other sectors.

Fourthly, used in realigning the investment strategies with changing investment

objective of the investors, by using portfolio models especially Boston consulting group (BSG)
allow us to align his or her investment with their dreams, investors can set the objective
matching with their dreams intended to achieve, for example by using general electric models
investors are able to know which opportunities should continue to invest in then set the objective
according to the allocated resources that will match with the objective intended to achieve.

Fifthly, used to assess the performance periodically and make changes to their
investment strategies, portfolio models enable investors to know or understand
underperformance and well performed investment by comparing the performance of investment
to the former performance by doing so it enable investors to make amendment to the investment
strategies so as to improve the performance to maximize return using less money and time.

Lastly, used in matching investment return risk characteristics with your goals.
By using portfolio models used in comparing the return risk with your goals intended to achieve,
this it enable investors to understand investment loss and profit and take a reasonable
reconciliation to create business strategies that can reduce return risk in business.

CONCLUTION

In nutshell, a portfolio models especially Boston consultant group models (BCG) and general
electric models (GE models) is an indispensable part of investment planning and should be taken
periodically to identify and improvise observed deviation against the investment objective.

REFERENCE

PETER. J AND DONES J, (1992), Marketing management knowledge and skills (3thEd),
United State of America: RICHARD IRWIN publishers

STUART, E. Et al,(2000),Marketing Real people and Real choice (4thEd),New York :

University of Oxford publisher