CMD Product Marketing and Portfolio Management

Question 1

A company is evaluating its product portfolio using the BCG Matrix. A product with high market share in a low-growth market is classified as:

Accepted Answer

Cash Cow

Answer

A Cash Cow has high market share in a low-growth market and generates steady cash flow with minimal investment needed.

Question 2

Which product launch strategy involves setting a high initial price to maximize revenue from early adopters before lowering the price over time?

Accepted Answer

Price skimming

Answer

Price skimming starts with a high price targeting early adopters willing to pay a premium, then gradually lowers it to reach broader market segments.

Question 3

In a product portfolio review, the term 'cannibalization' refers to:

Accepted Answer

A new product taking sales from an existing product in the same company

Answer

Cannibalization occurs when a new product erodes the sales of an existing product within the same company's portfolio.

Question 4

A Marketing Director wants to identify the stage of the product life cycle where marketing costs are highest relative to revenue. Which stage is this?

Accepted Answer

Introduction

Answer

During the Introduction stage, heavy investment in awareness and distribution is required while sales volume is still low, making marketing costs highest relative to revenue.

Question 5

Which framework helps a marketing director prioritize which products to develop by evaluating market attractiveness and business strength?

Accepted Answer

GE-McKinsey Matrix

Answer

The GE-McKinsey Matrix evaluates products or business units along two dimensions—industry attractiveness and competitive strength—to guide portfolio investment decisions.

CMD - Certified Marketing Director Practice Test

CMD - Certified Marketing Director Practice Test

CMD Product Marketing and Portfolio Management