Which of the following statements is true about a reduce-market-focus defensive strategy?
A)It involves introducing new lines of products.
B)It requires an increase in the marketing budget.
C)It will likely lead to lower levels of profitability as a percentage of sales.
D)It is most appropriate when a business has the resources to invest in protecting its current share position.
E)It involves trimming market share in an effort to improve profit performance.

Question

Quizplus · Accepted Answer

A reduce-market-focus defensive strategy involves trimming market share in an effort to improve profit performance. This means focusing on the most profitable segments of the market and reducing investment in less profitable areas. This strategy may lead to a decrease in overall sales revenue but can result in higher profitability as a percentage of sales. It does not usually require an increase in the marketing budget, and introducing new lines of products is not typically part of this strategy. It is most appropriate when a business needs to improve profitability but may not have the resources to invest in expanding its market share.

Which of the Following Statements Is True About a Reduce-Market-Focus