Marketing Strategy Flashcards

A company decides to target the same product to all market segments using a single marketing mix. This approach is known as:

Answer: Undifferentiated (mass) marketing

Undifferentiated marketing ignores segment differences and targets the whole market with one offer.

Which of Porter's generic competitive strategies involves offering the lowest cost in the industry while maintaining acceptable profit margins?

Answer: Cost leadership

Cost leadership strategy aims to become the lowest-cost producer in the industry.

A brand extends its name to a new product category it has never operated in before. This is best described as:

Answer: Brand extension

Brand extension applies an existing brand name to a product in a new category.

In the BCG Growth-Share Matrix, a product with high market share in a low-growth market is classified as a:

Answer: Cash cow

Cash cows generate strong cash flow with little investment due to their high share in mature markets.

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

Answer: Skimming pricing

Price skimming captures maximum revenue from early adopters before lowering prices for broader segments.

A firm's sustainable competitive advantage is MOST difficult for competitors to replicate when it is based on:

Answer: Unique organizational capabilities and culture

Organizational capabilities and culture are intangible assets that are inherently hard for rivals to copy.

When a firm adopts a market penetration strategy, it is attempting to:

Answer: Increase sales of existing products in existing markets

Market penetration focuses on growing market share within current markets using current products.