Question 1

Problems of matching supply and demand often occur when a marketing plan calls for a regional roll out rather than a national roll out.

Accepted Answer

A) True 
 B)False

Question 2

"Natural accounts" are:

Accepted Answer

A)  usually allocated to functional accounts by the MIS method. 
B)  accounts to which various costs are charged in the normal accounting cycle. 
C)  misleading for calculating a firm's total profitability. 
D)  usually named to show the purpose for which expenditures are made. 
E)  All of the above. 
A)  usually allocated to functional accounts by the MIS method. 
B)  accounts to which various costs are charged in the normal accounting cycle. 
C)  misleading for calculating a firm's total profitability. 
D)  usually named to show the purpose for which expenditures are made. 
E)  All of the above.

Question 3

Human resource issues include recruiting and hiring new employees, deciding how people will be compensated, and what to do when a job is not being performed well or is no longer necessary.

Accepted Answer

A) True 
 B)False

Question 4

Capital is the financial term for the amount of cash that a firm has in a bank checking account or other readily available form.

Accepted Answer

A) True 
 B)False

Question 5

A marketing plan is more likely to be funded if the marketing manager has included financial measures as quantitative criteria when screening possible opportunities.

Accepted Answer

A) True 
 B)False

Question 6

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 the above 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 the above is true.

Question 7

Production flexibility should help a supplier support its business customers with:

Accepted Answer

A)  just-in-time delivery 
B)  EDI 
C)  rapid response replenishment of inventories 
D)  computerized reorder capabilities 
E)  any of the above 
A)  just-in-time delivery 
B)  EDI 
C)  rapid response replenishment of inventories 
D)  computerized reorder capabilities 
E)  any of the above

Question 8

A virtual corporation may enjoy flexibility in operations, but often at higher cost or with less control of quality and schedules.

Accepted Answer

A) True 
 B)False

Question 9

Mykleenextissue.com, where customers can personalize a box design with their own color photos, is a good example of mass customization.

Accepted Answer

A) True 
 B)False

Question 10

Funded marketing plans have no budget constraints.

Accepted Answer

A) True 
 B)False

Question 11

Coordinating the linkages between different functional areas is likely to be easier when a new strategy involves only a minor modification to a plan that the firm is already implementing.

Accepted Answer

A) True 
 B)False

Question 12

Which of the following statements is FALSE in regard to borrowing money?

Accepted Answer

A)  Interest expense on a loan may impact prices and profits. 
B)  A company with a successful marketing strategy has its own internal source of fund--profits. 
C)  Institutions that loan money are usually more willing to take a risk than are investors who buy stock. 
D)  The firm may be able to sell stock to its own employees. 
E)  None of the above is false. 
A)  Interest expense on a loan may impact prices and profits. 
B)  A company with a successful marketing strategy has its own internal source of fund--profits. 
C)  Institutions that loan money are usually more willing to take a risk than are investors who buy stock. 
D)  The firm may be able to sell stock to its own employees. 
E)  None of the above is false.

Question 13

When Frito-Lay introduced Tostitos Gold, demand quickly outstripped supply resulting in lost sales and wasted promotion spending.

Accepted Answer

A) True 
 B)False

Question 14

Regarding marketing cost analysis:

Accepted Answer

A)  there is only one right way to allocate functional costs. 
B)  traditional accounting analysis doesn't analyze the purpose of marketing costs. 
C)  marketing costs usually should be allocated to general overhead. 
D)  functional accounts and natural accounts usually have the same names. 
E)  All of the above are true. 
A)  there is only one right way to allocate functional costs. 
B)  traditional accounting analysis doesn't analyze the purpose of marketing costs. 
C)  marketing costs usually should be allocated to general overhead. 
D)  functional accounts and natural accounts usually have the same names. 
E)  All of the above are true.

Question 15

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

Accepted Answer

A) True 
 B)False

Question 16

Which of the following observations concerning debt financing is NOT TRUE?

Accepted Answer

A)  The cost of borrowing money can be a real financial burden. 
B)  The impact of interest charges on prices is negligible. 
C)  Most commercial banks are conservative. 
D)  The greater the risk that the lender takes on, the greater the interest rate charge will be. 
E)  It might involve a loan from a commercial bank or the use of corporate bonds. 
A)  The cost of borrowing money can be a real financial burden. 
B)  The impact of interest charges on prices is negligible. 
C)  Most commercial banks are conservative. 
D)  The greater the risk that the lender takes on, the greater the interest rate charge will be. 
E)  It might involve a loan from a commercial bank or the use of corporate bonds.

Question 17

Marketing cost analysis usually requires a new way of classifying accounting data.

Accepted Answer

A) True 
 B)False

Question 18

When evaluating possible strategies, a marketing manager shouldn't have to worry about screening based on financial criteria because the finance area's main job is to get the capital needed to implement the firm's marketing plan.

Accepted Answer

A) True 
 B)False

Question 19

Functional accounts show the purpose for which expenditures are made.

Accepted Answer

A) True 
 B)False

Question 20

Cross-functional challenges are greater for minor changes to a strategy than for a completely new strategy.

Accepted Answer

A) True 
 B)False

Exam 20: Managing Marketings Link With Other Functional Areas

Problems of matching supply and demand often occur when a marketing plan calls for a regional roll out rather than a national roll out.

"Natural accounts" are:

Human resource issues include recruiting and hiring new employees, deciding how people will be compensated, and what to do when a job is not being performed well or is no longer necessary.

Capital is the financial term for the amount of cash that a firm has in a bank checking account or other readily available form.

A marketing plan is more likely to be funded if the marketing manager has included financial measures as quantitative criteria when screening possible opportunities.

Which of the following statements about mass customization is true?

Production flexibility should help a supplier support its business customers with:

A virtual corporation may enjoy flexibility in operations, but often at higher cost or with less control of quality and schedules.

Mykleenextissue.com, where customers can personalize a box design with their own color photos, is a good example of mass customization.

Funded marketing plans have no budget constraints.

Coordinating the linkages between different functional areas is likely to be easier when a new strategy involves only a minor modification to a plan that the firm is already implementing.

Which of the following statements is FALSE in regard to borrowing money?

When Frito-Lay introduced Tostitos Gold, demand quickly outstripped supply resulting in lost sales and wasted promotion spending.

Regarding marketing cost analysis:

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

Which of the following observations concerning debt financing is NOT TRUE?

Marketing cost analysis usually requires a new way of classifying accounting data.

When evaluating possible strategies, a marketing manager shouldn't have to worry about screening based on financial criteria because the finance area's main job is to get the capital needed to implement the firm's marketing plan.

Functional accounts show the purpose for which expenditures are made.

Cross-functional challenges are greater for minor changes to a strategy than for a completely new strategy.

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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