Which of the following is true about investing to protect position in growth markets?
A)Protecting a share leadership position in a growth market requires a much lower investment in new products than would be required in a mature market.
B)Growing markets are inherently prone to inducing share loss.
C)The faster a market is growing,the lower the investment a company must make in marketing resources to protect share from new and existing competitors.
D)There is a direct relationship between market share change and size of market share.
E)The effects of market growth on market share change remain the same across industries.

Question

Quizplus · Accepted Answer

Growing markets often attract new competitors, making it more difficult for established companies to maintain their share of the market. Therefore, protecting a position in a growth market often requires significant investment in marketing and new products. Choices A and C are incorrect because protecting share in a growth market typically requires more investment, not less. Choice D is incorrect because there is not necessarily a direct relationship between market share change and the size of market share. Choice E is incorrect because the effects of market growth on market share change can vary across industries.

Which of the Following Is True About Investing to Protect