Question 1

When a new marketing plan is more successful than expected,

Accepted Answer

A)  scarce supply may result in a waste of marketing resources, especially promotion spending. 
B)  the firm may face problems finding enough well-trained people to handle the growth that occurs. 
C)  the firm is more likely to be able to fund expansion through its own cash flow. 
D)  all of the above are correct 
E)  none of the above is correct 
A)  scarce supply may result in a waste of marketing resources, especially promotion spending. 
B)  the firm may face problems finding enough well-trained people to handle the growth that occurs. 
C)  the firm is more likely to be able to fund expansion through its own cash flow. 
D)  all of the above are correct 
E)  none of the above is correct

Question 2

In planning a new strategy or reorganization, it's important to keep in mind that each change may require several other changes, and each change may take time.

Accepted Answer

A) True 
 B)False

Question 3

In marketing cost analysis, all of the following are considered functional accounts EXCEPT:

Accepted Answer

A)  rent. 
B)  billing. 
C)  order assembly. 
D)  storing. 
E)  transporting. 
A)  rent. 
B)  billing. 
C)  order assembly. 
D)  storing. 
E)  transporting.

Question 4

Indirect distribution usually requires less investment capital than direct approaches.

Accepted Answer

A) True 
 B)False

Question 5

_____ refers to the money invested in a firm.

Accepted Answer

A)  Dividend 
B)  Debt 
C)  Cash flow 
D)  Capital 
E)  Overhead 
A)  Dividend 
B)  Debt 
C)  Cash flow 
D)  Capital 
E)  Overhead

Question 6

Which of the following is an example of a FUNCTIONAL cost account?

Accepted Answer

A)  Auto repairs 
B)  Advertising 
C)  Taxes 
D)  Social Security 
E)  Any of the above--because functional accounts include any costs which are used in the normal preparation of a company's operating statement. 
A)  Auto repairs 
B)  Advertising 
C)  Taxes 
D)  Social Security 
E)  Any of the above--because functional accounts include any costs which are used in the normal preparation of a company's operating statement.

Question 7

In marketing cost analyis, all of the following are considered natural accounts EXCEPT:

Accepted Answer

A)  salaries. 
B)  raw materials. 
C)  wages. 
D)  office supplies. 
E)  packing and shipping. 
A)  salaries. 
B)  raw materials. 
C)  wages. 
D)  office supplies. 
E)  packing and shipping.

Question 8

With the mass customization approach, a firm

Accepted Answer

A)  tailors the principles of mass production to meet the unique needs of individual customers in its target market 
B)  tries to justify high prices by customizing its offering for everyone in a mass market 
C)  gives up segmenting to go after the mass market 
D)  all of the above 
E)  none of the above 
A)  tailors the principles of mass production to meet the unique needs of individual customers in its target market 
B)  tries to justify high prices by customizing its offering for everyone in a mass market 
C)  gives up segmenting to go after the mass market 
D)  all of the above 
E)  none of the above

Question 9

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)  Purchase of new facilities 
E)  Advertising expense 
A)  Employee salaries 
B)  What it costs to store inventory 
C)  What a firm owes suppliers 
D)  Purchase of new facilities 
E)  Advertising expense

Question 10

The department within a company that is typically concerned with providing money to invest in marketing plans and meet ongoing expenses is the:

Accepted Answer

A)  Marketing department. 
B)  Production department. 
C)  Finance department. 
D)  Accounting department. 
E)  Human resources department. 
A)  Marketing department. 
B)  Production department. 
C)  Finance department. 
D)  Accounting department. 
E)  Human resources department.

Question 11

Working capital would be used to pay for:

Accepted Answer

A)  employee salaries 
B)  marketing research 
C)  advertising 
D)  storing 
E)  all of the above 
A)  employee salaries 
B)  marketing research 
C)  advertising 
D)  storing 
E)  all of the above

Question 12

A widespread shift to mass customization has not occurred because firms found that

Accepted Answer

A)  production costs were still high. 
B)  the Internet offered a low-cost way to get a lot of orders. 
C)  mass production is always better. 
D)  economies of scale provides a better alternative. 
E)  technology introduces a new set of problems. 
A)  production costs were still high. 
B)  the Internet offered a low-cost way to get a lot of orders. 
C)  mass production is always better. 
D)  economies of scale provides a better alternative. 
E)  technology introduces a new set of problems.

Question 13

Human resource issues can be especially important when there is a need to implement a new marketing plan that involves major changes in the organization.

Accepted Answer

A) True 
 B)False

Question 14

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

Accepted Answer

A)  In general, the greater the risk associated with a loan the greater the interest rate charge will be. 
B)  Interest expense on a loan may impact prices and profits. 
C)  Borrowing money is usually less expensive than reinvesting cash generated from operations. 
D)  A company with a successful marketing strategy has its own internal source of funds--profits. 
E)  None of the above is false. 
A)  In general, the greater the risk associated with a loan the greater the interest rate charge will be. 
B)  Interest expense on a loan may impact prices and profits. 
C)  Borrowing money is usually less expensive than reinvesting cash generated from operations. 
D)  A company with a successful marketing strategy has its own internal source of funds--profits. 
E)  None of the above is false.

Question 15

Production flexibility allows a firm to provide business customers with the just-in-time delivery service or rapid-response replenishment of inventories that they expect.

Accepted Answer

A) True 
 B)False

Question 16

Advertising costs can often be allocated to specific products, just as the cost of labor in the factory can be allocated to specific products.

Accepted Answer

A) True 
 B)False

Question 17

The titles of functional cost accounts show the purpose for which expenditures are made.

Accepted Answer

A) True 
 B)False

Question 18

Working capital would not be used to pay for:

Accepted Answer

A)  advertising expense 
B)  what it costs to store inventory 
C)  what a firm owes suppliers 
D)  employee salaries 
E)  the cost of new facilities 
A)  advertising expense 
B)  what it costs to store inventory 
C)  what a firm owes suppliers 
D)  employee salaries 
E)  the cost of new facilities

Question 19

A firm needs _____ to pay for short-term expenses such as employee salaries, advertising, marketing research, inventory storing costs, and what the firm owes suppliers.

Accepted Answer

A)  debt financing 
B)  current asset 
C)  prepaid expense 
D)  working capital 
E)  overhead 
A)  debt financing 
B)  current asset 
C)  prepaid expense 
D)  working capital 
E)  overhead

Question 20

It's not sensible for a firm to implement a marketing plan if the plan doesn't generate at least enough initial revenue to cover working capital needs.

Accepted Answer

A) True 
 B)False

Exam 20: Managing Marketings Link With Other Functional Areas

When a new marketing plan is more successful than expected,

In planning a new strategy or reorganization, it's important to keep in mind that each change may require several other changes, and each change may take time.

In marketing cost analysis, all of the following are considered functional accounts EXCEPT:

Indirect distribution usually requires less investment capital than direct approaches.

_____ refers to the money invested in a firm.

Which of the following is an example of a FUNCTIONAL cost account?

In marketing cost analyis, all of the following are considered natural accounts EXCEPT:

With the mass customization approach, a firm

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

The department within a company that is typically concerned with providing money to invest in marketing plans and meet ongoing expenses is the:

Working capital would be used to pay for:

A widespread shift to mass customization has not occurred because firms found that

Human resource issues can be especially important when there is a need to implement a new marketing plan that involves major changes in the organization.

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

Production flexibility allows a firm to provide business customers with the just-in-time delivery service or rapid-response replenishment of inventories that they expect.

Advertising costs can often be allocated to specific products, just as the cost of labor in the factory can be allocated to specific products.

The titles of functional cost accounts show the purpose for which expenditures are made.

Working capital would not be used to pay for:

A firm needs _____ to pay for short-term expenses such as employee salaries, advertising, marketing research, inventory storing costs, and what the firm owes suppliers.

It's not sensible for a firm to implement a marketing plan if the plan doesn't generate at least enough initial revenue to cover working capital needs.

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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