Free CMP Marketing Strategy and Planning Questions and Answers

Question 1

A company that manufactures high-quality running shoes decides to launch a new line of athletic apparel targeting its existing customer base. According to the Ansoff Matrix, which growth strategy is this company employing?

Accepted Answer

Product Development

Answer

The company is introducing new products (athletic apparel) into its existing market (current customers who buy running shoes). This is the definition of a Product Development strategy within the Ansoff Matrix.

Question 2

When setting objectives for a new marketing plan, a marketing manager specifies the goal: 'Increase website traffic from organic search by 15% in the next quarter.' Which element of the SMART goal framework is best represented by 'in the next quarter'?

Accepted Answer

Time-bound

Answer

The phrase 'in the next quarter' establishes a clear deadline for achieving the goal, which is the 'Time-bound' component of the SMART framework. This ensures the objective has a defined timeframe for completion and evaluation.

Question 3

A firm is conducting a situation analysis as part of its marketing planning process. It identifies a new government regulation that will create significant barriers for new competitors to enter the market. In a SWOT analysis, this would be classified as a(n):

Accepted Answer

Opportunity

Answer

An opportunity is an external factor that the company can leverage to its advantage. A new regulation that limits competition is an external event that creates a favorable condition for the existing firm.

Question 4

In the Boston Consulting Group (BCG) Matrix, a business unit that has a high market share in a low-growth market is referred to as a:

Accepted Answer

Cash Cow

Answer

A 'Cash Cow' is characterized by high market share in a mature, slow-growing industry. These units typically generate more cash than they consume and are used to fund other, more speculative ventures like 'Stars' and 'Question Marks'.

Question 5

Which of the following is a primary focus of Porter's Five Forces model when used in marketing strategy development?

Accepted Answer

Assessing the competitive intensity and attractiveness of an industry.

Answer

Porter's Five Forces is a framework for analyzing the level of competition within an industry to determine its profitability and attractiveness. The five forces are: competitive rivalry, threat of new entrants, threat of substitute products, bargaining power of buyers, and bargaining power of suppliers.

(CMP) Certified Marketing Professional Practice Test

(CMP) Certified Marketing Professional Practice Test

Free CMP Marketing Strategy and Planning Questions and Answers