CMA Marketing Planning & Budgeting 2

Question 1

The objective-and-task budgeting method requires marketers to first:

Accepted Answer

Define specific marketing objectives and then estimate the costs of tasks needed to achieve them

Answer

Match the industry average spend ratio

Answer

Allocate whatever funds remain after operational costs

Answer

Set budget equal to a fixed percentage of gross profit

Question 2

What is the competitive parity budgeting approach?

Accepted Answer

Setting the marketing budget to match or benchmark against competitors' spending levels

Answer

Setting the budget to maximize short-term profit margins

Answer

Allocating the same marketing budget as the previous fiscal year

Answer

Investing only in channels where the company holds a competitive advantage

Question 3

In marketing planning, what does the acronym SMART stand for when applied to objective-setting?

Accepted Answer

Specific, Measurable, Achievable, Relevant, Time-bound

Answer

Strategic, Measurable, Actionable, Realistic, Timely

Answer

Structured, Manageable, Aligned, Resourced, Tracked

Answer

Scalable, Meaningful, Agile, Responsive, Targeted

Question 4

Which term describes the ratio of a brand's advertising spend to total category advertising spend, used to gauge marketing weight relative to competitors?

Accepted Answer

Share of voice (SOV)

Answer

Share of wallet

Answer

Cost per impression

Answer

Market penetration rate

Question 5

A marketing audit differs from a routine performance review primarily because it:

Accepted Answer

Provides a comprehensive, systematic examination of the entire marketing environment, objectives, and strategies

Answer

Focuses only on digital channel performance metrics

Answer

Is conducted exclusively by external consultants

Answer

Measures only financial outcomes of marketing campaigns

Question 6

In a marketing budget, what is the primary purpose of a contingency reserve?

Accepted Answer

To cover unexpected opportunities or crises that arise during the plan period

Answer

To fund executive travel and entertainment expenses

Answer

To allocate funds for annual salary increases in the marketing department

Answer

To set aside money for regulatory fines

Question 7

Which phase of the marketing planning process involves translating strategy into specific programs, responsibilities, budgets, and timelines?

Accepted Answer

Implementation planning

Answer

Situation analysis

Answer

Strategy formulation

Answer

Performance evaluation