PCM Marketing Strategy 2

Question 1

A company discovers that its target segment is highly price-sensitive and competition is intensifying. Which pricing strategy best defends market share while maintaining profitability?

Accepted Answer

Value-based pricing with tiered offerings

Answer

Value-based pricing with tiered offerings addresses price sensitivity by matching price to perceived value while protecting margins through differentiated product tiers.

Question 2

In the BCG Growth-Share Matrix, a 'Question Mark' business unit is best described as one with:

Accepted Answer

Low market share, high market growth

Answer

Question Marks have low relative market share in high-growth markets, requiring strategic decisions about investing to build share or divesting.

Question 3

A brand extending into a new product category leverages its existing equity. The primary risk of brand extension is:

Accepted Answer

Brand dilution if the extension underperforms or misaligns with core identity

Answer

Brand dilution occurs when a poorly received or misaligned extension weakens consumers' perceptions of the parent brand.

Question 4

Which strategic framework explicitly evaluates the attractiveness of an industry based on five competitive forces?

Accepted Answer

Porter's Five Forces

Answer

Porter's Five Forces analyzes supplier power, buyer power, competitive rivalry, threat of new entrants, and threat of substitutes to assess industry attractiveness.

Question 5

A company pursuing a 'market development' strategy according to the Ansoff Matrix would:

Accepted Answer

Enter new markets with existing products

Answer

Market development involves selling existing products to new customer segments or geographic markets.

(PCM) Professional Certified Marketer Practice Test

(PCM) Professional Certified Marketer Practice Test

PCM Marketing Strategy 2