Question 1

The contribution-margin approach to marketing cost analysis focuses attention on variable costs rather than total costs.

Accepted Answer

A) True 
 B)False

Question 2

While doing an analysis,Sara realizes that close to 80 percent of her company's revenues comes from only 20 percent of her customers.This finding substantiates

Accepted Answer

A)  the iceberg principle. 
B)  the sales paradox. 
C)  the 80/20 rule. 
D)  the standard markup rule. 
E)  the fishbone rule. 
A)  the iceberg principle. 
B)  the sales paradox. 
C)  the 80/20 rule. 
D)  the standard markup rule. 
E)  the fishbone rule.

Question 3

A _____ is a systematic,critical,and unbiased review and appraisal of the basic objectives and policies of the marketing function and of the organization,methods,procedures,and people employed to implement the policies.

Accepted Answer

A)  benchmarking study 
B)  marketing audit 
C)  sales analysis 
D)  full-cost assessment 
E)  marketing strategy survey 
A)  benchmarking study 
B)  marketing audit 
C)  sales analysis 
D)  full-cost assessment 
E)  marketing strategy survey

Question 4

To improve the effectiveness of the marketing control process,the marketing manager should:

Accepted Answer

A)  realize that most errors are made because managers react to detailed information too quickly-instead of waiting to see what patterns show up in summary reports. 
B)  be the supervisor for the data-processing manager. 
C)  have all necessary data captured as it comes in and in a form that can be quickly sorted and analyzed by computer. 
D)  be certain that all cost records are kept in a central location controlled by the marketing department. 
E)  All of these are true. 
A)  realize that most errors are made because managers react to detailed information too quickly-instead of waiting to see what patterns show up in summary reports. 
B)  be the supervisor for the data-processing manager. 
C)  have all necessary data captured as it comes in and in a form that can be quickly sorted and analyzed by computer. 
D)  be certain that all cost records are kept in a central location controlled by the marketing department. 
E)  All of these are true.

Question 5

Every graduating senior at State University is required to answer the following survey question: "Please use the following scale to indicate your degree of overall satisfaction or dissatisfaction with your educational experience at this university." The response choices are: dissatisfied,slightly satisfied,somewhat satisfied,very satisfied,and extremely satisfied.After collecting the data,analysts at the university found that only 5 percent of the students chose "dissatisfied," while 40 percent chose "slightly satisfied," 35 percent chose "somewhat satisfied," 15 percent chose "very satisfied," and only 5 percent chose "extremely satisfied." In its brochures used to recruit new students,these results were summarized as follows: "The annual survey of student satisfaction indicates that an astounding 95 percent of our graduating seniors reported that they were satisfied with their educational experience at this university." This is an example of:

Accepted Answer

A)  A Pareto chart. 
B)  The iceberg principle. 
C)  A fishbone diagram. 
D)  Sales analysis. 
E)  The ostrich principle. 
A)  A Pareto chart. 
B)  The iceberg principle. 
C)  A fishbone diagram. 
D)  Sales analysis. 
E)  The ostrich principle.

Question 6

According to the "80/20 rule":

Accepted Answer

A)  marketing accounts for 80 percent of the consumer's dollar. 
B)  only 20 out of every 100 firms use formal marketing control programs. 
C)  about 20 percent of a typical firm's customers are unprofitable to serve. 
D)  even though a firm might be showing a profit, 80 percent of its business might be coming from only 20 percent of its products or customers. 
E)  None of these is correct. 
A)  marketing accounts for 80 percent of the consumer's dollar. 
B)  only 20 out of every 100 firms use formal marketing control programs. 
C)  about 20 percent of a typical firm's customers are unprofitable to serve. 
D)  even though a firm might be showing a profit, 80 percent of its business might be coming from only 20 percent of its products or customers. 
E)  None of these is correct.

Question 7

Compared with sales analysis,PERFORMANCE ANALYSIS:

Accepted Answer

A)  shows which customers should be dropped. 
B)  looks for exceptions or variations from planned performance. 
C)  does not do as much comparing against standards. 
D)  shows how to improve performance. 
E)  All of these are correct. 
A)  shows which customers should be dropped. 
B)  looks for exceptions or variations from planned performance. 
C)  does not do as much comparing against standards. 
D)  shows how to improve performance. 
E)  All of these are correct.

Question 8

A sales manager is trying to determine why the company's sales are down compared to a year ago.He starts with sales data summaries but quickly decides to break down sales further by territory,then salesperson,then store,and finally product.His actions suggest the:

Accepted Answer

A)  Contribution-margin approach. 
B)  Marketing audit. 
C)  Gross profit approach. 
D)  Iceberg principle. 
E)  Full-cost approach. 
A)  Contribution-margin approach. 
B)  Marketing audit. 
C)  Gross profit approach. 
D)  Iceberg principle. 
E)  Full-cost approach.

Question 9

Sales analysis is a:

Accepted Answer

A)  well-accepted trend analysis method. 
B)  necessity for making all important marketing decisions. 
C)  way of assuring that future sales will be profitable. 
D)  detailed report of likely profitability. 
E)  detailed breakdown of a company's sales records. 
A)  well-accepted trend analysis method. 
B)  necessity for making all important marketing decisions. 
C)  way of assuring that future sales will be profitable. 
D)  detailed report of likely profitability. 
E)  detailed breakdown of a company's sales records.

Question 10

Which of the following statements about the contribution-margin approach is FALSE?

Accepted Answer

A)  It is concerned with the amount contributed by an item or group of items toward covering fixed costs. 
B)  This approach suggests that it is not necessary to consider all costs in all situations. 
C)  Top management almost always finds this approach more useful than full-cost analysis. 
D)  This approach frequently leads to data which suggest a different decision than might be indicated by the full-cost approach. 
E)  It focuses on controllable costs-rather than on total costs. 
A)  It is concerned with the amount contributed by an item or group of items toward covering fixed costs. 
B)  This approach suggests that it is not necessary to consider all costs in all situations. 
C)  Top management almost always finds this approach more useful than full-cost analysis. 
D)  This approach frequently leads to data which suggest a different decision than might be indicated by the full-cost approach. 
E)  It focuses on controllable costs-rather than on total costs.

Question 11

A ________ requires a detailed look at the company's current marketing plans to see if they are still the best plans the firm can offer.

Accepted Answer

A)  cost analysis 
B)  full-cost approach 
C)  sales analysis 
D)  marketing audit 
E)  strategic scenario review 
A)  cost analysis 
B)  full-cost approach 
C)  sales analysis 
D)  marketing audit 
E)  strategic scenario review

Question 12

Because too much sales data can drown a manager,it's best to start by asking only for breakdowns that involve customer type.

Accepted Answer

A) True 
 B)False

Question 13

Capitol Enterprises uses the cost-sales ratio to measure the performance of its salespeople.If,in the past year,a salesperson made $800,000 in sales,had travel expenses of $23,000,and received a base salary of $40,000 plus $6,000 in commissions,what was this sales rep's cost-sales ratio (to the nearest whole number percent)?

Accepted Answer

A)  3 percent 
B)  6 percent 
C)  9 percent 
D)  12 percent 
E)  15 percent 
A)  3 percent 
B)  6 percent 
C)  9 percent 
D)  12 percent 
E)  15 percent

Question 14

Which of the following observations concerning sales analysis is NOT correct?

Accepted Answer

A)  It is a detailed breakdown of a company's sales records. 
B)  Product category is the best way to analyze sales data. 
C)  Data can easily be obtained from basic billing and accounts receivable procedures. 
D)  It is easy to do, and usually it's inexpensive. 
E)  There is no one best way to break down sales data. 
A)  It is a detailed breakdown of a company's sales records. 
B)  Product category is the best way to analyze sales data. 
C)  Data can easily be obtained from basic billing and accounts receivable procedures. 
D)  It is easy to do, and usually it's inexpensive. 
E)  There is no one best way to break down sales data.

Question 15

The accounting department should do a marketing audit since they have access to the data.

Accepted Answer

A) True 
 B)False

Question 16

Which of the following statements best explains the "iceberg principle"?

Accepted Answer

A)  Several salespeople in a sales force usually meet their quotas while many others don't. 
B)  Many salespeople don't make their quotas because they only try to sell to large customers. 
C)  Most consumer decisions are at the 90 percent pre-conscious level. 
D)  Ten percent of a firm's customers usually account for 90 percent of its sales. 
E)  Good performance in some areas may hide poor performance in other areas if only averages are evaluated. 
A)  Several salespeople in a sales force usually meet their quotas while many others don't. 
B)  Many salespeople don't make their quotas because they only try to sell to large customers. 
C)  Most consumer decisions are at the 90 percent pre-conscious level. 
D)  Ten percent of a firm's customers usually account for 90 percent of its sales. 
E)  Good performance in some areas may hide poor performance in other areas if only averages are evaluated.

Question 17

Regarding marketing control:

Accepted Answer

A)  Today's marketing managers have access to more information about the effectiveness of their strategies than in previous years. 
B)  Fast feedback from the marketplace can be a source of competitive advantage. 
C)  The marketing manager needs information that is captured as soon as it comes in. 
D)  Fast feedback is not possible unless the necessary data can be quickly sorted and analyzed. 
E)  All of these are correct. 
A)  Today's marketing managers have access to more information about the effectiveness of their strategies than in previous years. 
B)  Fast feedback from the marketplace can be a source of competitive advantage. 
C)  The marketing manager needs information that is captured as soon as it comes in. 
D)  Fast feedback is not possible unless the necessary data can be quickly sorted and analyzed. 
E)  All of these are correct.

Question 18

Effective implementation of a marketing plan:

Accepted Answer

A)  Matters least in markets that are mature and highly competitive. 
B)  Usually does not make the difference between winning and losing a customer. 
C)  Can involve decisions related to both internal (invisible to the consumer) and external (visible to the consumer) matters. 
D)  Is unrelated to the overall objectives of the marketing strategy. 
E)  None of these are true. 
A)  Matters least in markets that are mature and highly competitive. 
B)  Usually does not make the difference between winning and losing a customer. 
C)  Can involve decisions related to both internal (invisible to the consumer) and external (visible to the consumer) matters. 
D)  Is unrelated to the overall objectives of the marketing strategy. 
E)  None of these are true.

Question 19

The contribution-margin approach focuses attention on _____ rather than on ______.

Accepted Answer

A)  fixed costs; variable costs 
B)  gross margins; net margins 
C)  total costs; fixed costs 
D)  overheads; fixed costs 
E)  variable costs; total costs 
A)  fixed costs; variable costs 
B)  gross margins; net margins 
C)  total costs; fixed costs 
D)  overheads; fixed costs 
E)  variable costs; total costs

Question 20

A systematic,critical,and unbiased review and appraisal of the basic objectives and policies of the marketing function-and of the organization,methods,procedures,and people employed to implement the policies-is called a:

Accepted Answer

A)  MIS report. 
B)  marketing audit. 
C)  management review. 
D)  marketing information system. 
E)  marketing analysis survey. 
A)  MIS report. 
B)  marketing audit. 
C)  management review. 
D)  marketing information system. 
E)  marketing analysis survey.

The contribution-margin approach to marketing cost analysis focuses attention on variable costs rather than total costs.

While doing an analysis,Sara realizes that close to 80 percent of her company's revenues comes from only 20 percent of her customers.This finding substantiates

A _____ is a systematic,critical,and unbiased review and appraisal of the basic objectives and policies of the marketing function and of the organization,methods,procedures,and people employed to implement the policies.

To improve the effectiveness of the marketing control process,the marketing manager should:

According to the "80/20 rule":

Compared with sales analysis,PERFORMANCE ANALYSIS:

A sales manager is trying to determine why the company's sales are down compared to a year ago.He starts with sales data summaries but quickly decides to break down sales further by territory,then salesperson,then store,and finally product.His actions suggest the:

Sales analysis is a:

Which of the following statements about the contribution-margin approach is FALSE?

A ________ requires a detailed look at the company's current marketing plans to see if they are still the best plans the firm can offer.

Because too much sales data can drown a manager,it's best to start by asking only for breakdowns that involve customer type.

Which of the following observations concerning sales analysis is NOT correct?

The accounting department should do a marketing audit since they have access to the data.

Which of the following statements best explains the "iceberg principle"?

Regarding marketing control:

Effective implementation of a marketing plan:

The contribution-margin approach focuses attention on _ rather than on __.

A systematic,critical,and unbiased review and appraisal of the basic objectives and policies of the marketing function-and of the organization,methods,procedures,and people employed to implement the policies-is called a:

Marketings Value to Consumers, Firms, and Society

Marketing Strategy Planning

Managing Marketings Link With Other Functional Areas

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

Exam 2: Implementing and Controlling Marketing Plans: Evolution and Revolution

The contribution-margin approach to marketing cost analysis focuses attention on variable costs rather than total costs.

While doing an analysis,Sara realizes that close to 80 percent of her company's revenues comes from only 20 percent of her customers.This finding substantiates

A _____ is a systematic,critical,and unbiased review and appraisal of the basic objectives and policies of the marketing function and of the organization,methods,procedures,and people employed to implement the policies.

To improve the effectiveness of the marketing control process,the marketing manager should:

According to the "80/20 rule":

Compared with sales analysis,PERFORMANCE ANALYSIS:

A sales manager is trying to determine why the company's sales are down compared to a year ago.He starts with sales data summaries but quickly decides to break down sales further by territory,then salesperson,then store,and finally product.His actions suggest the:

Sales analysis is a:

Which of the following statements about the contribution-margin approach is FALSE?

A ________ requires a detailed look at the company's current marketing plans to see if they are still the best plans the firm can offer.

Because too much sales data can drown a manager,it's best to start by asking only for breakdowns that involve customer type.

Which of the following observations concerning sales analysis is NOT correct?

The accounting department should do a marketing audit since they have access to the data.

Which of the following statements best explains the "iceberg principle"?

Regarding marketing control:

Effective implementation of a marketing plan:

The contribution-margin approach focuses attention on _____ rather than on ______.

A systematic,critical,and unbiased review and appraisal of the basic objectives and policies of the marketing function-and of the organization,methods,procedures,and people employed to implement the policies-is called a:

Marketings Value to Consumers, Firms, and Society

Marketing Strategy Planning

Managing Marketings Link With Other Functional Areas

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

The contribution-margin approach focuses attention on _ rather than on __.