ITPEC IP October 2019 Question 79
ITPEC IP October 2019 — Question 79 of 100
Product portfolio management (PPM) compares relative market share and market growth to prioritize investment among products or business units. Its matrix groups offerings as stars, cash cows, question marks, or dogs, supporting decisions to invest, maintain, harvest, or withdraw.
Answer (c)
Why not others:
- cluster analysis groups similar observations but does not provide the standard investment portfolio matrix
- RFM segments customers by recency, frequency, and monetary value
- principal component analysis reduces correlated variables and is not a fault-cause method for portfolio allocation
Key rule: The PPM matrix uses market growth for market attractiveness and relative market share for competitive strength.
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