Exam 20: Managing Marketings Link With Other Functional Areas

Marketing cost analysis usually requires a new way of classifying accounting data based on functional accounts rather than the natural accounts typically used for financial analysis.

Cross-functional links rarely affect strategy planning.

If demand is irregular, a firm's production flexibility is likely to influence the severity of stock-out problems in the channel of distribution.

The value of a firm's stock is more likely to increase when its profits are growing.

If a marketing plan requires that the firm obtain additional capital, a manager should remember that:

Which of the following statements about the behavior of investors is True?

A firm is doing a marketing cost analysis involving two products, three target markets, and $6 million in advertising costs. The firm should:

Capital is the money needed to pay the personnel expenses required during the period of a marketing plan.

_____ involves borrowing money based on a promise to repay the loan.

Which of the following statements is true?

For marketing cost analysis, it's often useful to reallocate costs in various natural accounts to specific products or customers.

It makes sense for a firm to produce where it can produce most economically--if the cost of transporting and storing products to match demand doesn't offset the production savings.

Excess capacity may exist because there is _____ demand for what a firm can produce or there's _____ competition.

Marketing managers should strive to cut production costs that don't add value for customers.

A company has three products (X, Y, and Z) that it sells, packs, and ships to its customers. Because the products have different sizes they also have different packing and shipping costs so we will use a new measure-a packing/shipping unit. Because Product Y is the smallest of the three products, we will assign it a value of 1 packing/shipping unit. Product X is twice as big as Product Y and Product Z is four times as big as Product Y. If, on a monthly basis, this company sells an average of 1,500 units of Product X, 800 units of Product Y, and 60 units of Product Z, how many packing/shipping units should it allocate to Product Z per month (to the nearest whole number)?

What is the first step in marketing cost analysis?

Indirect distribution usually

Regarding capital:

It is the chief executive's job to communicate with others in the organization and explain the new marketing strategy, what needs to happen, and why.

Mass customization is based on the idea that all of the people in a particular market have the same needs.