Question 1

A company with a successful marketing strategy has its own external source of funds--profits.

Accepted Answer

A) True 
 B)False

Question 2

The first step in marketing cost analysis is to reclassify all of the costs in functional accounts into natural accounts.

Accepted Answer

A) True 
 B)False

Question 3

A firm's _____ is usually responsible for finding and allocating capital.

Accepted Answer

A)  chief financial officer 
B)  chief operating officer 
C)  chief technology officer 
D)  chief executive officer 
E)  chief marketing officer 
A)  chief financial officer 
B)  chief operating officer 
C)  chief technology officer 
D)  chief executive officer 
E)  chief marketing officer

Question 4

Outsourcing reduces coordination and logistics problems if several firms are involved in different parts of production.

Accepted Answer

A) True 
 B)False

Question 5

Production flexibility allows a firm to make better use of EDI or some other type of computerized reorder system--because the firm can respond to customer needs more quickly.

Accepted Answer

A) True 
 B)False

Question 6

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 7

A restaurant chain wants to improve its marketing information function by doing regular customer surveys using a random sample of consumers, and by placing comment cards on the tables in all of its locations. This effort would likely be financed with:

Accepted Answer

A)  Marketing capital. 
B)  Working capital. 
C)  Research capital. 
D)  Long-term capital. 
E)  None of the above. 
A)  Marketing capital. 
B)  Working capital. 
C)  Research capital. 
D)  Long-term capital. 
E)  None of the above.

Question 8

_____ are the categories to which various costs are charged in the normal financial accounting cycle.

Accepted Answer

A)  Natural accounts 
B)  Live accounts 
C)  Functional accounts 
D)  Defined accounts 
E)  Normal accounts 
A)  Natural accounts 
B)  Live accounts 
C)  Functional accounts 
D)  Defined accounts 
E)  Normal accounts

Question 9

Excess capacity can be a safety net if demand suddenly picks up.

Accepted Answer

A) True 
 B)False

Question 10

A virtual corporation is one where the firm is primarily a coordinator--with a good marketing concept.

Accepted Answer

A) True 
 B)False

Question 11

Classifying marketing costs in terms of their purpose--why the money was spent--requires the use of:

Accepted Answer

A)  iceberg accounts. 
B)  marketing audit accounts. 
C)  expense accounts. 
D)  functional accounts. 
E)  natural accounts. 
A)  iceberg accounts. 
B)  marketing audit accounts. 
C)  expense accounts. 
D)  functional accounts. 
E)  natural accounts.

Question 12

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

Accepted Answer

A) True 
 B)False

Question 13

A firm that relies on mass customization tries to get a competitive advantage by finding a low-cost way to give each customer in its target market more or better choices.

Accepted Answer

A) True 
 B)False

Question 14

A virtual corporation:

Accepted Answer

A)  does all of its production "in house" 
B)  looks for capable suppliers who can meet the specs it lays out 
C)  acts primarily as a producer 
D)  needs to have a good marketing plan 
E)  B and D only 
A)  does all of its production "in house" 
B)  looks for capable suppliers who can meet the specs it lays out 
C)  acts primarily as a producer 
D)  needs to have a good marketing plan 
E)  B and D only

Question 15

When finances are tight, it's sensible to look for strategy alternatives that get a better return on money that is already invested.

Accepted Answer

A) True 
 B)False

Question 16

Production capacity is more easily matched to the distribution of a new product if that distribution is staged.

Accepted Answer

A) True 
 B)False

Question 17

A virtual corporation is one that achieves great flexibility in production by using computer-controlled manufacturing equipment.

Accepted Answer

A) True 
 B)False

Question 18

A marketing manager who wants to calculate the cost of marketing several products to several target markets will probably have to:

Accepted Answer

A)  read all requisitions very carefully. 
B)  allocate advertising expense to general overhead. 
C)  reorganize some of the company`s functional cost accounts to natural accounts. 
D)  reclassify all natural accounts into functional accounts. 
E)  None of the above--it is impossible to link the costs of marketing to target markets. 
A)  read all requisitions very carefully. 
B)  allocate advertising expense to general overhead. 
C)  reorganize some of the company`s functional cost accounts to natural accounts. 
D)  reclassify all natural accounts into functional accounts. 
E)  None of the above--it is impossible to link the costs of marketing to target markets.

Question 19

Working capital may be used to pay for:

Accepted Answer

A)  advertising 
B)  what a firm owes suppliers 
C)  employee salaries 
D)  marketing research 
E)  all of the above 
A)  advertising 
B)  what a firm owes suppliers 
C)  employee salaries 
D)  marketing research 
E)  all of the above

Question 20

A firm may raise money by selling shares of ownership in the company called:

Accepted Answer

A)  Bonds. 
B)  Working capital. 
C)  Capital. 
D)  Stock. 
E)  None of the above. 
A)  Bonds. 
B)  Working capital. 
C)  Capital. 
D)  Stock. 
E)  None of the above.

Exam 20: Managing Marketings Link With Other Functional Areas

A company with a successful marketing strategy has its own external source of funds--profits.

The first step in marketing cost analysis is to reclassify all of the costs in functional accounts into natural accounts.

A firm's _____ is usually responsible for finding and allocating capital.

Outsourcing reduces coordination and logistics problems if several firms are involved in different parts of production.

Production flexibility allows a firm to make better use of EDI or some other type of computerized reorder system--because the firm can respond to customer needs more quickly.

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.

A restaurant chain wants to improve its marketing information function by doing regular customer surveys using a random sample of consumers, and by placing comment cards on the tables in all of its locations. This effort would likely be financed with:

_____ are the categories to which various costs are charged in the normal financial accounting cycle.

Excess capacity can be a safety net if demand suddenly picks up.

A virtual corporation is one where the firm is primarily a coordinator--with a good marketing concept.

Classifying marketing costs in terms of their purpose--why the money was spent--requires the use of:

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

A firm that relies on mass customization tries to get a competitive advantage by finding a low-cost way to give each customer in its target market more or better choices.

A virtual corporation:

When finances are tight, it's sensible to look for strategy alternatives that get a better return on money that is already invested.

Production capacity is more easily matched to the distribution of a new product if that distribution is staged.

A virtual corporation is one that achieves great flexibility in production by using computer-controlled manufacturing equipment.

A marketing manager who wants to calculate the cost of marketing several products to several target markets will probably have to:

Working capital may be used to pay for:

A firm may raise money by selling shares of ownership in the company called:

Marketings Value to Consumers, Firms, and Society

Marketing Strategy Planning

Evaluating Opportunities in the Changing Marketing Environment

Focusing Marketing Strategy With Segmentation and Positioning

Demographic Dimensions of Global Consumer Markets

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, Publicity, and Sales Promotion

Pricing Objectives and Policies

Price Setting in the Business World

Implementing and Controlling Marketing Plans: Evolution and Revolution

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

Economics Fundamentals

Marketing Arithmetic

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