CAM Strategic Planning 2 — Questions and Answers
Question 1: Which framework helps account managers analyze the competitive environment by examining suppliers, buyers, substitutes, new entrants, and rivalry?
- BCG Matrix
- Porter's Five Forces (Correct answer)
- PEST Analysis
- Balanced Scorecard
Correct answer: Porter's Five Forces
Porter's Five Forces framework evaluates five competitive forces that shape industry structure and profitability.
Question 2: When an account manager sets a long-term goal to increase share-of-wallet in a key account by 30% over two years, this is best described as a:
- Tactical objective
- Strategic objective (Correct answer)
- Operational target
- Sales quota
Correct answer: Strategic objective
A long-term, directional goal tied to revenue growth within an account is a strategic objective.
Question 3: A customer's 'willingness to pay' is most directly increased by:
- Lowering the account manager's commission
- Expanding the product catalog
- Demonstrating superior value relative to alternatives (Correct answer)
- Offering the lowest market price
Correct answer: Demonstrating superior value relative to alternatives
Willingness to pay rises when customers perceive that a solution delivers more value than competing options.
Question 4: In strategic account planning, a 'whitespace analysis' is used to:
- Identify gaps where additional products or services could be sold (Correct answer)
- Evaluate competitor pricing strategies
- Assess the customer's financial health
- Determine the renewal date of current contracts
Correct answer: Identify gaps where additional products or services could be sold
Whitespace analysis maps where an account manager's offerings are not yet present within an account, revealing growth opportunities.
Question 5: The concept of a 'customer success plan' in strategic account management primarily focuses on:
- Documenting complaint resolution steps
- Ensuring the customer achieves desired outcomes from purchased solutions (Correct answer)
- Scheduling quarterly business reviews
- Tracking invoice payment history
Correct answer: Ensuring the customer achieves desired outcomes from purchased solutions
A customer success plan outlines specific milestones and actions to help the customer realize value from the solution.
Question 6: Which planning horizon is typically associated with strategic account plans?
- Daily to weekly
- Monthly
- One to three years (Correct answer)
- Ten or more years
Correct answer: One to three years
Strategic account plans typically span one to three years, allowing enough time to pursue significant growth while remaining actionable.
Question 7: An account manager conducting a 'stakeholder mapping' exercise is primarily trying to:
- Identify all individuals who influence or are affected by purchasing decisions (Correct answer)
- Document the client's org chart for HR purposes
- Measure customer satisfaction across departments
- Track competitive activity within the account
Correct answer: Identify all individuals who influence or are affected by purchasing decisions
Stakeholder mapping identifies decision makers, influencers, and end users so the account manager can tailor engagement strategies.
CAM Strategic Planning 2
Which framework helps account managers analyze the competitive environment by examining suppliers, buyers, substitutes, new entrants, and rivalry?