CAM Strategic Planning & Analysis 3 — Questions and Answers
Question 1: The Ansoff Matrix helps account managers plan growth strategies. Which quadrant represents selling existing products to new markets?
- Market Penetration
- Market Development (Correct answer)
- Product Development
- Diversification
Correct answer: Market Development
Market Development in the Ansoff Matrix means taking existing products into new customer segments or geographic markets.
Question 2: Which of the following is a leading indicator of account health, as opposed to a lagging indicator?
- Annual revenue generated
- Number of active stakeholder relationships at executive level (Correct answer)
- Last year's renewal rate
- Total contract value signed
Correct answer: Number of active stakeholder relationships at executive level
Executive-level engagement is a leading indicator because it predicts future retention and expansion before financial results materialize.
Question 3: A CAM is asked to prioritize which accounts to focus strategic resources on. Which framework is best suited for this tiering decision?
- Balanced Scorecard
- Account segmentation matrix based on revenue potential and strategic fit (Correct answer)
- Product lifecycle analysis
- Net Promoter Score alone
Correct answer: Account segmentation matrix based on revenue potential and strategic fit
An account segmentation matrix evaluates both revenue potential and strategic fit, allowing objective prioritization of resource allocation.
Question 4: In strategic planning, 'scenario analysis' is most valuable when:
- Historical data is highly predictable
- Future market conditions are uncertain and multiple outcomes are plausible (Correct answer)
- The account has only one decision-maker
- Revenue targets have already been achieved
Correct answer: Future market conditions are uncertain and multiple outcomes are plausible
Scenario analysis is designed to prepare for uncertainty by modeling multiple possible futures and planning appropriate responses.
Question 5: Which Porter's Five Forces element evaluates the threat posed by clients who could potentially produce the product or service themselves?
- Threat of new entrants
- Bargaining power of buyers
- Threat of backward integration (Correct answer)
- Competitive rivalry
Correct answer: Threat of backward integration
Backward integration (a subset of buyer power) occurs when a customer considers producing a supplier's product internally, increasing their negotiating leverage.
Question 6: A strategic account plan should be reviewed and updated at minimum:
- Every five years
- Annually, or when significant changes occur in the client's business (Correct answer)
- Only when a contract is up for renewal
- Whenever a competitor launches a new product
Correct answer: Annually, or when significant changes occur in the client's business
Strategic account plans should be reviewed at least annually and updated whenever the client's business environment changes significantly.
Question 7: When a CAM identifies that a key account has a 'critical dependency' on a single product, the strategic risk this creates is best described as:
- High upsell opportunity with no risk
- Concentration risk that threatens account retention if that product fails (Correct answer)
- A sign of strong customer loyalty with no downside
- An indicator that pricing can be increased
Correct answer: Concentration risk that threatens account retention if that product fails
Concentration risk means that if the single relied-upon product underperforms or is discontinued, the entire account relationship is jeopardized.
CAM Strategic Planning & Analysis 3
The Ansoff Matrix helps account managers plan growth strategies.
Which quadrant represents selling existing products to new markets?