CPM Marketing Strategy 2

Question 1

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

Accepted Answer

Undifferentiated (mass) marketing

Answer

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

Question 2

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

Accepted Answer

Cost leadership

Answer

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

Question 3

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

Accepted Answer

Brand extension

Answer

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

Question 4

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

Accepted Answer

Cash cow

Answer

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

Question 5

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

Accepted Answer

Skimming pricing

Answer

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

(CPM) Certified Professional Marketer Practice Test