Marketing Strategy Quiz

Which stage of the product life cycle is characterized by high marketing costs and low or negative profits?

• Introduction

• Growth

• Maturity

• Decline

In which product life cycle stage do sales peak and profits begin to decline due to increased competition?

• Growth

• Maturity

• Saturation

• Decline

Which of the following strategies is most appropriate during the decline stage of the product life cycle?

• Increase advertising

• Focus on cost reduction

• Expand into new markets

• Increase product range

What is the primary objective during the growth stage of the product life cycle?

• Maximize market share

• Reduce production costs

• Phase out weaker products

• Harvest remaining profits

What is the significance of the product life cycle for marketing strategy?

• It identifies customer demographics.

• It dictates the pricing strategy across different stages.

• It helps plan resource allocation for a product.

• It determines the location for product launches.

In the Boston Matrix, a product with high market growth but low market share is categorized as a:

• Star

• Cash Cow

• Question Mark

• Dog

What is the main marketing strategy for 'Cash Cows' in the Boston Matrix?

• Heavy investment to increase market share

• Harvesting profits with minimal investment

• Divesting the product

• Rapid market expansion

Which quadrant of the Boston Matrix requires significant investment to maintain its position?

• Star

• Dog

• Question Mark

• Cash Cow

What is the most likely outcome for a product categorized as a 'Dog' in the Boston Matrix?

• It will eventually become a Star.

• It will be divested or discontinued.

• It will receive significant marketing investment.

• It will be expanded into new markets.

The Boston Matrix primarily helps businesses with:

• Pricing strategy formulation

• Product development timelines

• Strategic decision-making for product portfolios

• Identifying customer needs