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Product Marketing and Portfolio Management Flashcards

7 cards from real CMD practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.

Read the first 7 Product Marketing and Portfolio Management flashcards as text
  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:

    Answer: Cash Cow

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

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

    Answer: Price skimming

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

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

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

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

  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?

    Answer: Introduction

    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.

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

    Answer: GE-McKinsey Matrix

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

  6. What is the primary purpose of a product positioning statement in product marketing?

    Answer: To clearly articulate how a product fills a specific need for a target segment better than competitors

    A positioning statement defines the target audience, product category, key benefit, and competitive differentiator to guide all marketing communications.

  7. A CMD is reviewing the product mix width, depth, and length for a consumer goods company. 'Width' refers to:

    Answer: The number of different product lines the company offers

    Product mix width (also called breadth) is the number of distinct product lines a company carries, such as having separate lines for beverages, snacks, and personal care.