Final answer:
Toyota's strategy to grow market share in Germany for Lexus is increasing their advertising budget. This option is more strategic and less risky than a complete re-branding effort, and aligns with global competitive pressures automakers face.
Step-by-step explanation:
The student's question concerns Toyota's strategy to gain market share in Germany for the Lexus brand. Upon completing a product-market grid, the choice that best describes Toyota's strategy is increasing the advertising budget in Germany (Choice D). This is because it directly targets consumer awareness and perception in the German market. This approach is likely more feasible than re-branding to appear more 'German' (Choice B), because re-branding may involve uncertain costs and does not guarantee increased sales or market share. Moreover, the decision to increase the advertising budget may also be based on a strategic competitive response, as car manufacturers face intense competition globally, requiring them to innovate and adapt their strategies to what consumers want in each specific market.