CMP Strategic Marketing and Planning 3 — Questions and Answers
Question 1: Which metric is most directly used to measure the return on marketing investment (ROMI)?
- Net Promoter Score (NPS)
- Customer Lifetime Value (CLV)
- Incremental revenue attributable to marketing divided by marketing spend (Correct answer)
- Share of voice in advertising
Correct answer: Incremental revenue attributable to marketing divided by marketing spend
ROMI is calculated by dividing the incremental revenue generated by marketing activities by the cost of those activities.
Question 2: A company operating in a highly commoditized market decides to differentiate through superior customer service. This is an example of which differentiation strategy?
- Product differentiation
- Price differentiation
- Service differentiation (Correct answer)
- Image differentiation
Correct answer: Service differentiation
Service differentiation focuses on delivering superior service experiences as the primary basis for distinguishing from competitors.
Question 3: In strategic planning, a 'stretch goal' differs from a standard objective primarily because it:
- Is set by external consultants rather than internal teams
- Requires significantly more resources than the current budget allows
- Pushes performance beyond what is considered easily achievable (Correct answer)
- Focuses exclusively on short-term quarterly results
Correct answer: Pushes performance beyond what is considered easily achievable
Stretch goals challenge organizations to achieve performance levels beyond their current capabilities, driving innovation and breakthrough thinking.
Question 4: Which of the following best describes 'flanking strategy' in competitive marketing?
- Directly attacking a competitor's strongest market position
- Targeting underserved segments or geographic areas the leader ignores (Correct answer)
- Matching a competitor's price point exactly
- Withdrawing from a competitive market entirely
Correct answer: Targeting underserved segments or geographic areas the leader ignores
Flanking strategy involves attacking competitors in market segments they have ignored or underserved, avoiding direct confrontation.
Question 5: A marketing plan's 'situation analysis' typically concludes with which tool that summarizes internal and external factors?
- Perceptual map
- SWOT analysis (Correct answer)
- Product life cycle analysis
- Customer journey map
Correct answer: SWOT analysis
SWOT analysis synthesizes the situation analysis by identifying Strengths, Weaknesses, Opportunities, and Threats facing the organization.
Question 6: When a company sets marketing objectives using the SMART framework, 'A' stands for:
- Adaptive
- Achievable (Correct answer)
- Analytical
- Ambitious
Correct answer: Achievable
In the SMART framework, 'A' stands for Achievable, meaning the goal should be realistic and attainable given available resources.
Question 7: Which of the following is the primary purpose of a 'perceptual map' in marketing strategy?
- Tracking customer purchase journeys over time
- Visualizing how consumers perceive competing brands on key attributes (Correct answer)
- Mapping out the geographic distribution of target customers
- Displaying the internal organizational hierarchy
Correct answer: Visualizing how consumers perceive competing brands on key attributes
A perceptual map visually plots how target customers perceive competing brands relative to two or more important attributes.
CMP Strategic Marketing and Planning 3
Which metric is most directly used to measure the return on marketing investment (ROMI)?