CMA CMA Marketing Strategy & Planning 2 — Questions and Answers
Question 1: The 'marketing mix' traditionally refers to which set of four elements?
- Product, Price, Place, Promotion (Correct answer)
- People, Process, Physical Evidence, Performance
- Planning, Positioning, Profit, Promotion
- Product, Profit, People, Place
Correct answer: Product, Price, Place, Promotion
The traditional 4Ps marketing mix consists of Product, Price, Place, and Promotion, forming the foundation of any marketing strategy.
Question 2: A 'blue ocean strategy' differs from a 'red ocean strategy' in that it:
- Creates uncontested new market space rather than competing in existing markets (Correct answer)
- Focuses on lower prices than all competitors
- Targets premium customer segments only
- Relies exclusively on digital marketing channels
Correct answer: Creates uncontested new market space rather than competing in existing markets
Blue Ocean Strategy, coined by Kim and Mauborgne, involves creating new demand in uncontested market space rather than fighting over existing customers in saturated markets.
Question 3: Which concept describes the process of identifying a target market's perception of a product relative to competitors?
- Positioning (Correct answer)
- Segmentation
- Differentiation
- Penetration
Correct answer: Positioning
Positioning defines how a brand or product is perceived in the minds of the target audience relative to competing products.
Question 4: A company sets prices based on what competitors charge rather than on its own costs or consumer demand. This is called:
- Competitor-based pricing (Correct answer)
- Cost-plus pricing
- Value-based pricing
- Skimming pricing
Correct answer: Competitor-based pricing
Competitor-based (or competition-based) pricing sets prices primarily by referencing what rival companies charge for similar products.
Question 5: What is the primary purpose of a 'go-to-market' (GTM) strategy?
- To define how a company will reach target customers and achieve competitive advantage when launching a product (Correct answer)
- To calculate the total addressable market for a product
- To determine manufacturing costs for a new product
- To plan the internal organizational structure for a product team
Correct answer: To define how a company will reach target customers and achieve competitive advantage when launching a product
A GTM strategy outlines the plan for delivering a product to market, including target audience, value proposition, sales approach, and distribution channels.
Question 6: In the product lifecycle, sales grow rapidly and profits peak during which stage?
- Growth (Correct answer)
- Introduction
- Maturity
- Decline
Correct answer: Growth
During the Growth stage, sales increase rapidly as adoption spreads, and profits peak before competition intensifies and margins compress in the Maturity stage.
CMA CMA Marketing Strategy & Planning 2
The 'marketing mix' traditionally refers to which set of four elements?