Question 1

Which of the following statements about a marketing audit is False?

Accepted Answer

A)  A marketing audit takes a detailed looks at the firm's current marketing plans to see if they are still the best plans the firm can offer. 
B)  A marketing audit should be done on a regular basis. 
C)  The marketing strategy planning framework is useful in conducting a marketing audit. 
D)  A good audit is internal and is not concerned with gathering information from outside the firm. 
E)  Ideally, a marketing audit should not be necessary, but it often is. 
A)  A marketing audit takes a detailed looks at the firm's current marketing plans to see if they are still the best plans the firm can offer. 
B)  A marketing audit should be done on a regular basis. 
C)  The marketing strategy planning framework is useful in conducting a marketing audit. 
D)  A good audit is internal and is not concerned with gathering information from outside the firm. 
E)  Ideally, a marketing audit should not be necessary, but it often is. D

Question 2

A "marketing audit" should:

Accepted Answer

A)  be done by someone inside the finance department. 
B)  be conducted whenever a crisis arises. 
C)  be conducted by the person most familiar with each of the firm's marketing plans. 
D)  evaluate a company's whole marketing program on a regular basis. 
E)  All of the above. 
A)  be done by someone inside the finance department. 
B)  be conducted whenever a crisis arises. 
C)  be conducted by the person most familiar with each of the firm's marketing plans. 
D)  evaluate a company's whole marketing program on a regular basis. 
E)  All of the above. D

Question 3

With the full-cost approach to marketing cost analysis, all costs are allocated to products, customers, or other categories.

Accepted Answer

A) True 
 B)False  True

Question 4

Studies have shown that customers who weren't satisfied with response to their complaints

Accepted Answer

A)  on average told one person about their experience. 
B)  on average told ten people about their experience. 
C)  usually never spoke about it. 
D)  will make at least two more complaints. 
E)  spoke about their experience only when prodded by researchers. 
A)  on average told one person about their experience. 
B)  on average told ten people about their experience. 
C)  usually never spoke about it. 
D)  will make at least two more complaints. 
E)  spoke about their experience only when prodded by researchers.

Question 5

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 the above. 
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 the above.

Question 6

The "80/20 rule" says that:

Accepted Answer

A)  only 20 out of every 100 firms use formal accounting controls. 
B)  a firm should hire 20 sales reps for every 80 customers. 
C)  marketing accounts for 80 percent of a typical consumer's dollar. 
D)  even though a firm is showing a profit, 80 percent of its business might be coming from only 20 percent of its customers. 
E)  usually about 20 percent of a firm's customers are unprofitable. 
A)  only 20 out of every 100 firms use formal accounting controls. 
B)  a firm should hire 20 sales reps for every 80 customers. 
C)  marketing accounts for 80 percent of a typical consumer's dollar. 
D)  even though a firm is showing a profit, 80 percent of its business might be coming from only 20 percent of its customers. 
E)  usually about 20 percent of a firm's customers are unprofitable.

Question 7

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 8

Which of the following would be the BEST reason to use the "full-cost approach" when comparing the performance of several product managers?

Accepted Answer

A)  Unlike the "contribution-margin approach," it charges managers only for the expenses which are directly related to their operations. 
B)  This approach is required by Federal tax laws. 
C)  It charges each product manager only for those expenses which he controls. 
D)  It allows management to consider only the variable costs related to different products. 
E)  It makes each manager bear a share of the overhead expenses which were made for everyone's benefit. 
A)  Unlike the "contribution-margin approach," it charges managers only for the expenses which are directly related to their operations. 
B)  This approach is required by Federal tax laws. 
C)  It charges each product manager only for those expenses which he controls. 
D)  It allows management to consider only the variable costs related to different products. 
E)  It makes each manager bear a share of the overhead expenses which were made for everyone's benefit.

Question 9

A good reason for using performance indexes is to:

Accepted Answer

A)  convert sales data to profit data. 
B)  make it easier to compare situations. 
C)  find territories where actual sales are very high or low. 
D)  direct management attention to territories where the market potential is greatest. 
E)  None of the above is true. 
A)  convert sales data to profit data. 
B)  make it easier to compare situations. 
C)  find territories where actual sales are very high or low. 
D)  direct management attention to territories where the market potential is greatest. 
E)  None of the above is true.

Question 10

A marketing audit is similar to an accounting audit or a personnel audit, which businesses have used for some time.

Accepted Answer

A) True 
 B)False

Question 11

Using cost analysis to analyze the money being spent by a firm is analogous to using ____________ to analyze the money coming into the firm.

Accepted Answer

A)  sales analysis 
B)  traditional accounting reports 
C)  performance analysis 
D)  the iceberg principle 
E)  TQM methods 
A)  sales analysis 
B)  traditional accounting reports 
C)  performance analysis 
D)  the iceberg principle 
E)  TQM methods

Question 12

Control helps marketing managers learn how:

Accepted Answer

A)  to plan for the future. 
B)  implementation is working. 
C)  ongoing plans are working. 
D)  All of the above. 
E)  None of the above. 
A)  to plan for the future. 
B)  implementation is working. 
C)  ongoing plans are working. 
D)  All of the above. 
E)  None of the above.

Question 13

Lori Winters, a regional sales manager, is interested in the profitability of the different sales reps in her region. She has used a variety of different approaches for allocating fixed sales expenses to the different sales reps, but she reaches very different conclusions depending on which allocation approach is used. In this case, it would be wise for Ms. Winters to supplement her other analyses with an analysis based on

Accepted Answer

A)  the contribution-margin approach. 
B)  the full-cost approach. 
C)  the marketing audit approach. 
D)  none of the above. 
E)  all of the above. 
A)  the contribution-margin approach. 
B)  the full-cost approach. 
C)  the marketing audit approach. 
D)  none of the above. 
E)  all of the above.

Question 14

According to the "80/20 rule," it is common to find that about 80 percent of a firm's business comes from only about 20 percent of its customers.

Accepted Answer

A) True 
 B)False

Question 15

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 the above. 
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 the above.

Question 16

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 17

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 18

_________ are the two basic approaches to handling marketing cost allocation problems.

Accepted Answer

A)  The average-cost approach and the break-even approach 
B)  The performance-analysis approach and the sales-analysis approach 
C)  The revenues approach and the expenses approach 
D)  The gross margin approach and the net margin approach 
E)  The full-cost approach and the contribution-margin approach 
A)  The average-cost approach and the break-even approach 
B)  The performance-analysis approach and the sales-analysis approach 
C)  The revenues approach and the expenses approach 
D)  The gross margin approach and the net margin approach 
E)  The full-cost approach and the contribution-margin approach

Question 19

A sales manager has just discovered that one of his sales reps has sales about 20 percent below his quota. The sales manager should conclude:

Accepted Answer

A)  that the sales rep's quota was set too high. 
B)  that the sales rep lacks the desire to succeed. 
C)  that "all is well" because other salespeople had sales that were at least 20 percent over their quotas. 
D)  that the salesperson's performance index is 4 . 
E)  nothing thus far--because of the "iceberg principle." 
A)  that the sales rep's quota was set too high. 
B)  that the sales rep lacks the desire to succeed. 
C)  that "all is well" because other salespeople had sales that were at least 20 percent over their quotas. 
D)  that the salesperson's performance index is 4 . 
E)  nothing thus far--because of the "iceberg principle."

Question 20

Sales analysis provides a simple listing of sales figures compared against standards.

Accepted Answer

A) True 
 B)False

Exam 19: Implementing and Controlling Marketing Plans: Evolution and Revolution

Which of the following statements about a marketing audit is False?

A "marketing audit" should:

With the full-cost approach to marketing cost analysis, all costs are allocated to products, customers, or other categories.

Studies have shown that customers who weren't satisfied with response to their complaints

Compared with sales analysis, PERFORMANCE ANALYSIS:

The "80/20 rule" says that:

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

Which of the following would be the BEST reason to use the "full-cost approach" when comparing the performance of several product managers?

A good reason for using performance indexes is to:

A marketing audit is similar to an accounting audit or a personnel audit, which businesses have used for some time.

Using cost analysis to analyze the money being spent by a firm is analogous to using ____________ to analyze the money coming into the firm.

Control helps marketing managers learn how:

According to the "80/20 rule," it is common to find that about 80 percent of a firm's business comes from only about 20 percent of its customers.

Effective implementation of a marketing plan:

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

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

_________ are the two basic approaches to handling marketing cost allocation problems.

A sales manager has just discovered that one of his sales reps has sales about 20 percent below his quota. The sales manager should conclude:

Sales analysis provides a simple listing of sales figures compared against standards.

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

Managing Marketings Link With Other Functional Areas

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

Economics Fundamentals

Marketing Arithmetic

Filters

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