CMA CMA Marketing Strategy & Planning 1 — Questions and Answers
Question 1: Which framework divides a market into four quadrants based on market growth rate and relative market share?
- BCG Growth-Share Matrix (Correct answer)
- SWOT Analysis
- Ansoff Matrix
- Porter's Five Forces
Correct answer: BCG Growth-Share Matrix
The BCG Growth-Share Matrix, developed by Boston Consulting Group, categorizes business units into Stars, Cash Cows, Question Marks, and Dogs based on growth rate and market share.
Question 2: A company using a 'market penetration' strategy according to the Ansoff Matrix is focused on:
- Selling existing products to existing markets (Correct answer)
- Selling new products to new markets
- Selling existing products to new markets
- Selling new products to existing markets
Correct answer: Selling existing products to existing markets
Market penetration in the Ansoff Matrix involves increasing sales of current products within existing markets, typically through competitive pricing or increased promotion.
Question 3: What does STP stand for in marketing strategy?
- Segmentation, Targeting, Positioning (Correct answer)
- Strategy, Tactics, Performance
- Sales, Targeting, Promotion
- Segmentation, Testing, Planning
Correct answer: Segmentation, Targeting, Positioning
STP is a three-step marketing framework: Segmentation (dividing the market), Targeting (selecting segments), and Positioning (creating a distinct image in consumers' minds).
Question 4: Which competitive strategy, as defined by Michael Porter, focuses on being the lowest-cost producer in an industry?
- Cost Leadership (Correct answer)
- Differentiation
- Focus
- Blue Ocean
Correct answer: Cost Leadership
Porter's Cost Leadership strategy aims to achieve the lowest production and distribution costs in the industry, enabling a company to compete on price.
Question 5: In strategic marketing planning, a 'SMART' objective must be Specific, Measurable, Achievable, Relevant, and:
- Time-bound (Correct answer)
- Trackable
- Tactical
- Transferable
Correct answer: Time-bound
SMART objectives must be Time-bound, meaning they have a clear deadline or timeframe for achieving the goal.
Question 6: Which marketing planning tool analyzes internal strengths and weaknesses alongside external opportunities and threats?
- SWOT Analysis (Correct answer)
- PESTLE Analysis
- BCG Matrix
- Perceptual Map
Correct answer: SWOT Analysis
SWOT Analysis evaluates internal factors (Strengths and Weaknesses) and external factors (Opportunities and Threats) to inform strategic planning.
CMA CMA Marketing Strategy & Planning 1
Which framework divides a market into four quadrants based on market growth rate and relative market share?