Question 1

With externally generated funding a firm's marketing program may be expected to "pay its own way."

Accepted Answer

A) True 
 B)False

Question 2

The first step in marketing cost analysis is to:

Accepted Answer

A)  Reclassify the dollar cost entries in the functional accounts into natural cost accounts. 
B)  Use the entries in the functional accounts to evaluate the profitability of profit centers. 
C)  Allocate the entries in the functional accounts to specific customers. 
D)  Reclassify the dollar cost entries in the natural accounts into functional cost accounts. 
E)  None of these. 
A)  Reclassify the dollar cost entries in the functional accounts into natural cost accounts. 
B)  Use the entries in the functional accounts to evaluate the profitability of profit centers. 
C)  Allocate the entries in the functional accounts to specific customers. 
D)  Reclassify the dollar cost entries in the natural accounts into functional cost accounts. 
E)  None of these.

Question 3

When the cost of borrowing is high,firms should wait before implementing a marketing plan.

Accepted Answer

A) True 
 B)False

Question 4

Working capital would be used to pay for:

Accepted Answer

A)  employee salaries. 
B)  marketing research. 
C)  advertising. 
D)  storing. 
E)  All of these. 
A)  employee salaries. 
B)  marketing research. 
C)  advertising. 
D)  storing. 
E)  All of these.

Question 5

A bank (or other institution)that provides debt financing to fund a marketing plan is usually more willing to take risks than are investors who buy stock.

Accepted Answer

A) True 
 B)False

Question 6

Functional accounts show the purpose for which expenditures are made.

Accepted Answer

A) True 
 B)False

Question 7

Which of the following statements regarding marketing cost analysis is FALSE?

Accepted Answer

A)  Functional accounts include items such as salaries, wages, supplies, raw materials, and advertising. 
B)  The costs allocated to the functional accounts will be equal in total to those in the natural accounts. 
C)  Functional accounts can be used to show the profitability of territories, products, customers, sales representatives, and so on. 
D)  Cost analysis is not performance analysis. 
E)  Traditional accounting methods do not show the purpose for which marketing expenditures are made. 
A)  Functional accounts include items such as salaries, wages, supplies, raw materials, and advertising. 
B)  The costs allocated to the functional accounts will be equal in total to those in the natural accounts. 
C)  Functional accounts can be used to show the profitability of territories, products, customers, sales representatives, and so on. 
D)  Cost analysis is not performance analysis. 
E)  Traditional accounting methods do not show the purpose for which marketing expenditures are made.

Question 8

Overseas production:

Accepted Answer

A)  generally makes distribution more complicated. 
B)  may be very economical. 
C)  sometimes brings concerns about nationalism to the forefront. 
D)  can apply to services as well as physical goods. 
E)  All of these. 
A)  generally makes distribution more complicated. 
B)  may be very economical. 
C)  sometimes brings concerns about nationalism to the forefront. 
D)  can apply to services as well as physical goods. 
E)  All of these.

Question 9

Kikkoman is a good example of a company that took advantage of both production capacity and production flexibility to introduce a new line of specialized condiments to appeal to additional market segments.

Accepted Answer

A) True 
 B)False

Question 10

Which of the following would NOT be paid for using working capital?

Accepted Answer

A)  Employee salaries 
B)  What it costs to store inventory 
C)  What a firm owes suppliers 
D)  Marketing research costs 
E)  The cost of new production equipment 
A)  Employee salaries 
B)  What it costs to store inventory 
C)  What a firm owes suppliers 
D)  Marketing research costs 
E)  The cost of new production equipment

Question 11

Mass customization means using the principles of mass production to appeal to the unique needs of individual customers and smaller segments of the market.

Accepted Answer

A) True 
 B)False

Question 12

While there are real human resources challenges in dealing with rapidly expanding marketing efforts,there are also challenges in dealing with decisions to drop products,channels of distribution,or even certain types of customers.

Accepted Answer

A) True 
 B)False

Question 13

Indirect distribution usually

Accepted Answer

A)  requires less investment capital than direct approaches. 
B)  increases the initial cash outlay. 
C)  has no effect on capital investment when compared to direct approaches. 
D)  drastically increases the time required to bring a product to market. 
E)  is always the most effective distribution method. 
A)  requires less investment capital than direct approaches. 
B)  increases the initial cash outlay. 
C)  has no effect on capital investment when compared to direct approaches. 
D)  drastically increases the time required to bring a product to market. 
E)  is always the most effective distribution method.

Question 14

Indirect distribution usually requires less investment capital than direct approaches.

Accepted Answer

A) True 
 B)False

Question 15

Each month the billing department of Phoenix Enterprises processes an average of 51 orders from customers at a cost of about $612 (in salaries and supplies).What is the average cost per order for this department (to the nearest dollar amount)?

Accepted Answer

A)  $4 
B)  $6 
C)  $8 
D)  $10 
E)  $12 
A)  $4 
B)  $6 
C)  $8 
D)  $10 
E)  $12

Question 16

The introduction of a totally new product idea would present a greater challenge in coordinating the activities of the different functional areas of a company than would a modification of an existing product.

Accepted Answer

A) True 
 B)False

Question 17

Indirect distribution typically requires less capital than direct distribution because:

Accepted Answer

A)  agent wholesalers may take on much of the selling effort and not expect any compensation until the revenue is in on what they've sold. 
B)  intermediaries may provide the capital required for logistics facilities. 
C)  merchant wholesalers and retailers usually pay for products when they purchase them and then take over the costs of carrying inventory. 
D)  All of these. 
E)  None of these-indirect distribution usually requires more capital. 
A)  agent wholesalers may take on much of the selling effort and not expect any compensation until the revenue is in on what they've sold. 
B)  intermediaries may provide the capital required for logistics facilities. 
C)  merchant wholesalers and retailers usually pay for products when they purchase them and then take over the costs of carrying inventory. 
D)  All of these. 
E)  None of these-indirect distribution usually requires more capital.

Question 18

Which of the following statements about mass customization is true?

Accepted Answer

A)  Mass customization means that a firm is targeting the mass market but that it tries to customize the design of a product so it is different from what a competitor offers. 
B)  Mass customization requires a firm to give up segmentation thinking to pursue larger, more heterogeneous markets. 
C)  The mass-customization approach applies only to services, and they often must be custom produced anyway. 
D)  ChemStation's industrial detergents, which a business customer can order to fit any special cleaning need, is a good example of mass customization. 
E)  None of these is true. 
A)  Mass customization means that a firm is targeting the mass market but that it tries to customize the design of a product so it is different from what a competitor offers. 
B)  Mass customization requires a firm to give up segmentation thinking to pursue larger, more heterogeneous markets. 
C)  The mass-customization approach applies only to services, and they often must be custom produced anyway. 
D)  ChemStation's industrial detergents, which a business customer can order to fit any special cleaning need, is a good example of mass customization. 
E)  None of these is true.

Question 19

A marketing strategy that is focused on a real breakthrough opportunity will usually be successful even if there are obstacles in getting help from other functional areas in the firm.

Accepted Answer

A) True 
 B)False

Question 20

A financial report that forecasts how much money will be available after paying expenses is a(n):

Accepted Answer

A)  Income statement. 
B)  Balance sheet. 
C)  Cash flow statement. 
D)  Capital report. 
E)  None of these. 
A)  Income statement. 
B)  Balance sheet. 
C)  Cash flow statement. 
D)  Capital report. 
E)  None of these.

Exam 4: Managing Marketings Link With Other Functional Areas

With externally generated funding a firm's marketing program may be expected to "pay its own way."

The first step in marketing cost analysis is to:

When the cost of borrowing is high,firms should wait before implementing a marketing plan.

Working capital would be used to pay for:

A bank (or other institution)that provides debt financing to fund a marketing plan is usually more willing to take risks than are investors who buy stock.

Functional accounts show the purpose for which expenditures are made.

Which of the following statements regarding marketing cost analysis is FALSE?

Overseas production:

Kikkoman is a good example of a company that took advantage of both production capacity and production flexibility to introduce a new line of specialized condiments to appeal to additional market segments.

Which of the following would NOT be paid for using working capital?

Mass customization means using the principles of mass production to appeal to the unique needs of individual customers and smaller segments of the market.

While there are real human resources challenges in dealing with rapidly expanding marketing efforts,there are also challenges in dealing with decisions to drop products,channels of distribution,or even certain types of customers.

Indirect distribution usually

Indirect distribution usually requires less investment capital than direct approaches.

Each month the billing department of Phoenix Enterprises processes an average of 51 orders from customers at a cost of about $612 (in salaries and supplies).What is the average cost per order for this department (to the nearest dollar amount)?

The introduction of a totally new product idea would present a greater challenge in coordinating the activities of the different functional areas of a company than would a modification of an existing product.

Indirect distribution typically requires less capital than direct distribution because:

Which of the following statements about mass customization is true?

A marketing strategy that is focused on a real breakthrough opportunity will usually be successful even if there are obstacles in getting help from other functional areas in the firm.

A financial report that forecasts how much money will be available after paying expenses is a(n):

Marketings Value to Consumers, Firms, and Society

Implementing and Controlling Marketing Plans: Evolution and Revolution

Marketing Strategy Planning

Evaluating Opportunities in the Changing Market Environment

Focusing Marketing Strategy With Segmentation and Positioning

Final Consumers and Their Buying Behavior

Business and Organizational Customers and Their Buying Behavior

Improving Decisions With Marketing Information

Elements of Product Planning for Goods and Services

Product Management and New-Product Development

Place and Development of Channel Systems

Distribution Customer Service and Logistics

Retailers, Wholesalers, and Their Strategy Planning

Promotion-Introduction to Integrated Marketing Communications

Personal Selling and Customer Service

Advertising and Sales Promotion

Publicity: Promotion Using Earned Media, Owned Media, and Social Media

Pricing Objectives and Policies

Price Setting in the Business World

Ethical Marketing in a Consumer-Oriented World: Appraisal and Challenges

Filters