MAC Strategic Planning & Analysis 3 — Questions and Answers
Question 1: A CMO asks for a 'marketing mix optimization' study. Which analytical technique is most commonly applied?
- Conjoint analysis
- Marketing Mix Modeling (MMM) (Correct answer)
- A/B hypothesis testing
- Cohort analysis
Correct answer: Marketing Mix Modeling (MMM)
Marketing Mix Modeling (MMM) uses regression-based statistical methods to decompose sales into contributions from each marketing channel and external factor.
Question 2: A strategic plan identifies a 'cash cow' business unit. The recommended resource allocation strategy is to:
- Invest heavily to accelerate growth
- Harvest profits and limit new investment (Correct answer)
- Divest immediately to fund stars
- Reposition the product for a new segment
Correct answer: Harvest profits and limit new investment
Cash cows generate high profits in low-growth markets; the BCG strategy is to harvest returns while minimizing reinvestment.
Question 3: Which of the following is an example of a lagging indicator in a marketing strategic plan?
- Website sessions
- Lead volume
- Annual revenue growth (Correct answer)
- Ad impression share
Correct answer: Annual revenue growth
Annual revenue growth reflects outcomes that have already occurred, making it a lagging indicator rather than a predictive or real-time signal.
Question 4: In strategic segmentation, 'behavioral segmentation' groups customers based on:
- Age, income, and education level
- Geographic region and climate
- Purchase patterns, usage rate, and brand loyalty (Correct answer)
- Personality traits and lifestyle values
Correct answer: Purchase patterns, usage rate, and brand loyalty
Behavioral segmentation uses actual customer actions — such as purchase frequency, brand loyalty, and product usage — to group audiences.
Question 5: A company's strategic plan calls for 'penetration pricing.' What is the primary marketing analytics KPI to validate this strategy's success?
- Gross margin percentage
- Market share growth rate (Correct answer)
- Customer satisfaction score
- Brand awareness lift
Correct answer: Market share growth rate
Penetration pricing aims to rapidly gain market share by pricing low, so market share growth rate is the direct success metric.
Question 6: When a strategic plan includes 'scenario planning,' analysts typically model:
- A single most-likely forecast
- Best-case, base-case, and worst-case outcomes (Correct answer)
- Historical averages projected forward
- Competitor financial statements
Correct answer: Best-case, base-case, and worst-case outcomes
Scenario planning prepares organizations for uncertainty by modeling multiple plausible futures — typically three scenarios: optimistic, base, and pessimistic.
Question 7: A strategic review reveals that two market segments have similar needs but different price sensitivities. The recommended segmentation approach is:
- Merge them into one segment to simplify targeting
- Use psychographic variables to re-segment
- Apply differentiated pricing and messaging per segment (Correct answer)
- Exit the lower-margin segment entirely
Correct answer: Apply differentiated pricing and messaging per segment
Different price sensitivities within similar need profiles call for differentiated strategies — separate pricing tiers and tailored messaging per segment.
MAC Strategic Planning & Analysis 3
A CMO asks for a 'marketing mix optimization' study.
Which analytical technique is most commonly applied?