What Is a Portfolio Matrix in Marketing? - Definition & Model

What Is a Portfolio Matrix in Marketing? - Definition & Model
Coming up next: What Is Product Placement? - Definition, History & Examples

You're on a roll. Keep up the good work!

Take Quiz Watch Next Lesson
Your next lesson will play in 10 seconds
  • 0:00 What Is a Portfolio Matrix?
  • 0:38 How Do We Use It?
  • 2:17 Lesson Summary
Add to Add to Add to

Want to watch this again later?

Log in or sign up to add this lesson to a Custom Course.

Log in or Sign up


Recommended Lessons and Courses for You

Lesson Transcript
Instructor: Carol Woods

Carol has taught college Finance, Accounting, Management and Business courses and has a MBA in Finance.

Have you heard of a portfolio matrix? It's a marketing tool used to decide which products are worth keeping and which should be terminated. In this lesson, we'll learn how to create and use a portfolio matrix.

What Is a Portfolio Matrix?

A portfolio matrix is a chart used to define products in terms of both the growth in their industry and their specific market share.

To create a portfolio matrix, first draw a diagram with four squares. The vertical axis of the chart is for growth in the industry, and the horizontal axis is for the market share of the specific product within that industry. Then, each product being analyzed is placed on the matrix in terms of their specific market share versus industry growth.

Here is an example of a portfolio matrix, with some products place on the chart:

How Do We Use It?

Each quadrant has a name that reflects the characteristics of products in that section:

Cash Cow: Cash cows are products in a mature, slow, or no growth industry with a large market share. These products are preferred by consumers over competitors, and there is limited interest in launch of new products in the industry due to the stable sales level. These products can produce profits for the company for many years, often until technology renders the product obsolete - hence the term 'cash cow.'

Star: Stars are products with high market share in a fast growing industry. These products have the potential to be huge money makers for the company, due to their preferred status and the growth of the market.

To unlock this lesson you must be a Member.
Create your account

Register to view this lesson

Are you a student or a teacher?

Unlock Your Education

See for yourself why 30 million people use

Become a member and start learning now.
Become a Member  Back
What teachers are saying about
Try it risk-free for 30 days

Earning College Credit

Did you know… We have over 200 college courses that prepare you to earn credit by exam that is accepted by over 1,500 colleges and universities. You can test out of the first two years of college and save thousands off your degree. Anyone can earn credit-by-exam regardless of age or education level.

To learn more, visit our Earning Credit Page

Transferring credit to the school of your choice

Not sure what college you want to attend yet? has thousands of articles about every imaginable degree, area of study and career path that can help you find the school that's right for you.

Create an account to start this course today
Try it risk-free for 30 days!
Create An Account