CMP Strategic Marketing and Planning 2 — Questions and Answers
Question 1: Which framework helps marketers evaluate the attractiveness of a market segment by examining market size, growth rate, competitive intensity, and profitability?
- Porter's Five Forces
- Market Attractiveness-Business Strength Matrix (Correct answer)
- BCG Growth-Share Matrix
- Ansoff Matrix
Correct answer: Market Attractiveness-Business Strength Matrix
The Market Attractiveness-Business Strength Matrix (GE-McKinsey Matrix) evaluates segments on market attractiveness and competitive strength dimensions.
Question 2: A company discovers that its primary customer segment has shifted from baby boomers to millennials. Which planning step should the marketing team prioritize first?
- Revising the promotional budget
- Updating the customer persona and segmentation analysis (Correct answer)
- Launching a new product line
- Increasing distribution channels
Correct answer: Updating the customer persona and segmentation analysis
Updating the customer persona and segmentation analysis is the foundational step before any tactical changes can be effectively made.
Question 3: In strategic marketing planning, what does the term 'sustainable competitive advantage' mean?
- A cost-cutting measure that reduces environmental impact
- An advantage that can be maintained over time despite competitor actions (Correct answer)
- A temporary price reduction to gain market share
- An advantage achieved through green marketing initiatives
Correct answer: An advantage that can be maintained over time despite competitor actions
A sustainable competitive advantage is a long-term edge over competitors that is difficult to replicate or neutralize.
Question 4: Which of the following best describes a 'market penetration' strategy in the Ansoff Matrix?
- Selling new products to new markets
- Selling existing products to new markets
- Selling new products to existing markets
- Selling existing products to existing markets (Correct answer)
Correct answer: Selling existing products to existing markets
Market penetration involves increasing sales of existing products within existing markets, typically through promotions or pricing.
Question 5: A brand's 'positioning statement' should primarily communicate which of the following?
- The company's financial goals for the year
- How the brand is distinct and valuable to its target customer (Correct answer)
- The tactical media channels to be used
- The pricing strategy relative to competitors
Correct answer: How the brand is distinct and valuable to its target customer
A positioning statement articulates the unique value a brand offers to a specific target audience and how it differs from competitors.
Question 6: When conducting a competitive analysis, which of the following is considered an example of 'indirect competition'?
- Two airlines competing on the same routes
- A movie theater competing with a streaming service (Correct answer)
- Two fast-food chains offering similar burgers
- Two car manufacturers in the same price segment
Correct answer: A movie theater competing with a streaming service
Indirect competitors satisfy the same customer need through different products or services, like streaming vs. in-theater entertainment.
Question 7: Which type of organizational structure is most commonly aligned with a market-oriented marketing strategy where departments are organized around customer segments?
- Functional structure
- Product-based structure
- Market-based structure (Correct answer)
- Geographic structure
Correct answer: Market-based structure
A market-based structure organizes teams around specific customer segments, enabling a more customer-centric approach.
CMP Strategic Marketing and Planning 2
Which framework helps marketers evaluate the attractiveness of a market segment by examining market size, growth rate, competitive intensity, and profitability?