CPIM Practice Exam

What is the basic plan the marketing function expects to use to achieve its business and marketing objectives in a particular market?

1. Marketing strategy

2. Market segmentation

3. Product positioning

4. Competitive analysis

The correct answer is: Marketing strategy

The basic plan that the marketing function expects to use to achieve its business and marketing objectives in a particular market is referred to as a marketing strategy. A marketing strategy outlines the overall approach and specific actions that a company will take to reach its target customers and meet its goals. This includes identifying the target market, defining the value proposition, and choosing the marketing mix—product, price, place, and promotion. In contrast, market segmentation involves dividing a broader market into smaller, more defined categories of consumers, which is a component of developing a marketing strategy. Product positioning refers to how a product is perceived in the context of other products and brands in the market, helping to establish its unique place. Competitive analysis involves evaluating competitors' strengths and weaknesses to inform strategic planning, but it is not a broad plan itself. Each of these elements supports the marketing strategy but does not represent the entire plan. Thus, the marketing strategy is the comprehensive plan that encompasses the details on how marketing objectives will be achieved.