Marketing Strategy Flashcards

A company discovers its product is in the 'question mark' quadrant of the BCG matrix. What does this indicate?

Answer: Low market share in a high-growth market

Question marks have low market share but operate in high-growth markets, requiring investment decisions about whether to build or divest.

Which pricing strategy involves setting a high initial price and gradually lowering it over time?

Answer: Price skimming

Price skimming starts high to capture early adopters willing to pay a premium, then lowers price to attract more price-sensitive segments.

A firm uses the same marketing mix for all market segments. This approach is best described as:

Answer: Undifferentiated (mass) marketing

Undifferentiated marketing ignores segment differences and targets the entire market with a single offer, aiming for the broadest possible appeal.

Porter's Five Forces model is primarily used to assess:

Answer: The attractiveness and competitive intensity of an industry

Porter's Five Forces analyzes industry structure by evaluating rivalry, threat of new entrants, substitutes, buyer power, and supplier power.

When a brand extends its name to a new product category, this is called:

Answer: Brand extension

A brand extension uses an established brand name to launch a product in a different category, leveraging existing brand equity.

Which element of the marketing mix is most directly responsible for communicating value to customers?

Answer: Promotion

Promotion encompasses all communication activities—advertising, PR, sales promotion, and personal selling—used to convey the product's value proposition.

A company's 'value proposition' is best defined as:

Answer: The unique bundle of benefits that satisfies target customers better than alternatives

A value proposition articulates why a customer should choose your offering by clearly stating the unique benefits it delivers relative to competitors.