AMA Marketing Strategy 2

Question 1

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

Accepted Answer

Low market share in a high-growth market

Answer

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

Question 2

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

Accepted Answer

Price skimming

Answer

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

Question 3

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

Accepted Answer

Undifferentiated (mass) marketing

Answer

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

Question 4

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

Accepted Answer

The attractiveness and competitive intensity of an industry

Answer

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

Question 5

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

Accepted Answer

Brand extension

Answer

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

(AMA) American Marketing Association Certification Practice Test