ITPEC IP April 2021 Question 84

Source exam: ITPEC IP April 2021Topic: Business Strategy Management

ITPEC IP April 2021 — Question 84 of 100

PPM analysis prioritizes product investment using market growth rate and relative market share. Product Portfolio Management groups products as stars, cash cows, question marks, or dogs, allowing limited funds to be allocated according to market potential and competitive position.

Answer (c)

Why not others:
- cluster analysis groups similar observations

- RFM segments customers by recency, frequency, and monetary value

- principal component analysis reduces many correlated variables to a smaller set of components

Key rule: Portfolio investment based on market growth and relative share is PPM.

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