ITPEC IP October 2022 Question 81
ITPEC IP October 2022 — Question 81 of 100
PPM analysis prioritizes investment by comparing each product's market growth rate and relative market share. Product Portfolio Management places businesses or products into categories such as stars, cash cows, question marks, and dogs, helping management allocate limited funds according to market potential and competitive strength.
Answer (c)
Why not others:
- cluster analysis groups similar observations
- RFM analyzes customers by recency, frequency, and monetary value
- principal component analysis reduces many correlated variables to major components
Key rule: PPM is the portfolio tool for resource allocation using market growth and relative market share.
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