MAC Strategic Planning & Analysis 2 — Questions and Answers
Question 1: A marketing analyst discovers that a product's market share has declined 8% YoY despite increased ad spend. Which framework is BEST suited to diagnose the root cause?
- BCG Growth-Share Matrix
- Porter's Five Forces (Correct answer)
- McKinsey 7S Framework
- Ansoff Matrix
Correct answer: Porter's Five Forces
Porter's Five Forces analyzes competitive pressures (rivalry, substitutes, new entrants, buyer/supplier power) that most directly explain market share erosion.
Question 2: In a marketing analytics strategy, 'zero-based budgeting' requires teams to:
- Increase budgets by a fixed percentage each year
- Justify every dollar of spend from scratch each cycle (Correct answer)
- Allocate budgets based solely on prior-year performance
- Divide the total budget equally across all channels
Correct answer: Justify every dollar of spend from scratch each cycle
Zero-based budgeting requires rebuilding the budget from zero each period, forcing justification of every expenditure regardless of historical allocations.
Question 3: Which metric BEST captures the efficiency of customer acquisition relative to long-term value generated?
- Return on Ad Spend (ROAS)
- LTV:CAC ratio (Correct answer)
- Net Promoter Score (NPS)
- Churn Rate
Correct answer: LTV:CAC ratio
The LTV:CAC ratio directly compares lifetime customer value against acquisition cost, indicating whether acquisition investment is strategically sound.
Question 4: A company wants to enter a new market segment with an existing product. Which Ansoff Matrix quadrant does this represent?
- Market Penetration
- Product Development
- Market Development (Correct answer)
- Diversification
Correct answer: Market Development
Market Development means taking an existing product into a new market or segment, which carries moderate risk compared to diversification.
Question 5: When building a strategic marketing plan, a 'situation analysis' typically includes all of the following EXCEPT:
- SWOT analysis
- Competitive benchmarking
- Media channel execution plans (Correct answer)
- Customer segmentation review
Correct answer: Media channel execution plans
Media channel execution plans belong in the tactical phase, not the situation analysis phase which focuses on assessing the current environment.
Question 6: A brand's SWOT shows high internal strengths and low external threats. The recommended strategic posture is to:
- Pursue aggressive growth and expand market position (Correct answer)
- Focus defensively on protecting existing share
- Divest non-core assets to cut costs
- Delay strategic decisions until threats materialize
Correct answer: Pursue aggressive growth and expand market position
High strengths + low threats create an ideal environment for aggressive growth strategies, as the brand can expand with minimal competitive resistance.
Question 7: Which planning horizon is most appropriate for a marketing analytics roadmap tied to annual business goals?
- 90-day sprint plan
- 1-year operational plan (Correct answer)
- 3–5 year strategic plan
- 10-year vision plan
Correct answer: 1-year operational plan
A 1-year operational plan aligns analytics initiatives with annual business cycles, enabling measurable milestones and budget accountability.
A marketing analyst discovers that a product's market share has declined 8% YoY despite increased ad spend.
Which framework is BEST suited to diagnose the root cause?