PCM Marketing Strategy & Planning 2 — Questions and Answers
Question 1: A company discovers its product has a 60% market share but the market itself is shrinking at 5% annually. According to the BCG matrix, this product is classified as a:
- Star
- Cash Cow
- Dog (Correct answer)
- Question Mark
Correct answer: Dog
A high market share in a low/declining growth market is a 'Dog' in the BCG matrix, not a Cash Cow (which requires a growing or stable market).
Question 2: Which planning tool asks marketers to evaluate Strengths, Weaknesses, Opportunities, and Threats in a structured 2x2 grid?
- Porter's Five Forces
- PESTLE Analysis
- SWOT Analysis (Correct answer)
- Ansoff Matrix
Correct answer: SWOT Analysis
SWOT Analysis organizes internal factors (Strengths, Weaknesses) and external factors (Opportunities, Threats) in a 2x2 grid.
Question 3: A marketer sets an objective to 'increase brand awareness among millennials by 15% within 6 months, measured by aided recall surveys.' This objective best demonstrates which quality?
- Aspirational
- SMART (Correct answer)
- Tactical
- Functional
Correct answer: SMART
SMART objectives are Specific, Measurable, Achievable, Relevant, and Time-bound — all qualities present in this example.
Question 4: When a firm pursues a strategy of selling existing products to new geographic markets, this is best described as which Ansoff Matrix quadrant?
- Product Development
- Diversification
- Market Penetration
- Market Development (Correct answer)
Correct answer: Market Development
Market Development involves taking existing products into new markets, including new geographic territories or new customer segments.
Question 5: A company's marketing plan projects $500,000 in incremental revenue from a $100,000 campaign investment. What is the marketing ROI?
- 5%
- 400% (Correct answer)
- 500%
- 20%
Correct answer: 400%
Marketing ROI = (Incremental Revenue - Marketing Cost) / Marketing Cost = ($500,000 - $100,000) / $100,000 = 400%.
Question 6: In strategic planning, the term 'competitive advantage' refers to:
- Having the lowest price in the market
- A superior position that allows a firm to outperform rivals (Correct answer)
- Owning more patents than competitors
- Spending more on advertising than rivals
Correct answer: A superior position that allows a firm to outperform rivals
Competitive advantage is a condition enabling a firm to generate greater value or operate more efficiently than competitors, leading to superior performance.
Question 7: Which environmental scanning framework specifically analyzes Political, Economic, Social, Technological, Legal, and Environmental factors?
- SWOT
- PESTLE (Correct answer)
- BCG
- VRIO
Correct answer: PESTLE
PESTLE is a macro-environmental analysis tool covering six external dimensions that affect an organization's strategy.
PCM Marketing Strategy & Planning 2
A company discovers its product has a 60% market share but the market itself is shrinking at 5% annually.
According to the BCG matrix, this product is classified as a: