Question 1

Digital communication and e-commerce offer speed and detail in obtaining information needed for better control.

Accepted Answer

A) True 
 B)False

Question 2

Advances in computer software have accelerated the move to cost analysis and performance analysis.

Accepted Answer

A) True 
 B)False

Question 3

Charter Communications uses the order-call ratio to measure the performance of its salespeople. If, in the past year, a salesperson made $13 million in sales, called on 4,312 potential business customers (either by phone or in person), and got 1,216 orders, what was this sales rep's order-call ratio (to the nearest whole number percent)?

Accepted Answer

A)  12 percent 
B)  18 percent 
C)  28 percent 
D)  36 percent 
E)  355 percent 
A)  12 percent 
B)  18 percent 
C)  28 percent 
D)  36 percent 
E)  355 percent

Question 4

A systematic, critical, and unbiased review and appraisal of the basic objectives and policies of the marketing function--and of the organization, methods, procedures, and people employed to implement the policies--is called a:

Accepted Answer

A)  MIS report. 
B)  marketing audit. 
C)  management review. 
D)  marketing information system. 
E)  marketing analysis survey. 
A)  MIS report. 
B)  marketing audit. 
C)  management review. 
D)  marketing information system. 
E)  marketing analysis survey.

Question 5

Performance analysis looks for exceptions or variations from planned performance.

Accepted Answer

A) True 
 B)False

Question 6

When involved in the control process, the marketing manager should view company profit

Accepted Answer

A)  as a gross index of performance that should be further broken down into smaller components. 
B)  as a guide to future operations. 
C)  as the test of whether or not the marketing mix is successful. 
D)  All of the above are true. 
E)  None of the above is true. 
A)  as a gross index of performance that should be further broken down into smaller components. 
B)  as a guide to future operations. 
C)  as the test of whether or not the marketing mix is successful. 
D)  All of the above are true. 
E)  None of the above is true.

Question 7

Doug Selkirk is a sales manager for IBM. He has asked his assistant to prepare an analysis that shows what percent over or under quota each sales rep was during the last year. This is an example of

Accepted Answer

A)  using natural accounts. 
B)  the contribution-margin approach. 
C)  sales analysis. 
D)  target market analysis. 
E)  performance analysis. 
A)  using natural accounts. 
B)  the contribution-margin approach. 
C)  sales analysis. 
D)  target market analysis. 
E)  performance analysis.

Question 8

Traditional accounting reports are usually too general to be of much help to the marketing manager in controlling marketing plans.

Accepted Answer

A) True 
 B)False

Question 9

Consider the performance data about the four sales regions shown below. Which of the four regions has the highest performance index?

Accepted Answer

A)  North. 
B)  South. 
C)  East. 
D)  West. 
E)  Cannot be determined from the information given. 
A)  North. 
B)  South. 
C)  East. 
D)  West. 
E)  Cannot be determined from the information given.

Question 10

With respect to marketing control,

Accepted Answer

A)  all cost records should be kept in the marketing department. 
B)  faster feedback can often be the basis for a competitive advantage. 
C)  many advances have been made, but there is still no effective way for a manager to be sure that a product is actually selling to the intended target market rather than to some other group. 
D)  All of the above are true. 
E)  None of the above is true. 
A)  all cost records should be kept in the marketing department. 
B)  faster feedback can often be the basis for a competitive advantage. 
C)  many advances have been made, but there is still no effective way for a manager to be sure that a product is actually selling to the intended target market rather than to some other group. 
D)  All of the above are true. 
E)  None of the above is true.

Question 11

The accounting department should do a marketing audit since they have access to the data.

Accepted Answer

A) True 
 B)False

Question 12

The full-cost approach and the contribution-margin approach always suggest the same outcome.

Accepted Answer

A) True 
 B)False

Question 13

Whistler's Camping Supplies wants to identify its most frequent customers and offer them quantity discounts to increase their purchases and loyalty. Which of the following implementation approaches might address that problem?

Accepted Answer

A)  Put a toll-free telephone number and Web site address on the product label. 
B)  Use bar code scanners, RFID tags, EDI, and inventory reorder software. 
C)  Create a "favored customer" club with an ID card. 
D)  Set different prices in similar markets and track sales, including sales of competing products. 
E)  Set up a televideo conference. 
A)  Put a toll-free telephone number and Web site address on the product label. 
B)  Use bar code scanners, RFID tags, EDI, and inventory reorder software. 
C)  Create a "favored customer" club with an ID card. 
D)  Set different prices in similar markets and track sales, including sales of competing products. 
E)  Set up a televideo conference.

Question 14

The contribution-margin approach ignores some costs to simplify comparing among specific alternatives

Accepted Answer

A) True 
 B)False

Question 15

Cost analysis and performance analysis are the same thing.

Accepted Answer

A) True 
 B)False

Question 16

Regarding the choice between the "full-cost approach" and the "contribution margin approach" to marketing cost analysis:

Accepted Answer

A)  Top management tends to prefer the "full-cost approach." 
B)  The "full-cost" approach often leads to arguments within a company. 
C)  The choice of the method depends on the objectives of the analysis. 
D)  All of the above. 
A)  Top management tends to prefer the "full-cost approach." 
B)  The "full-cost" approach often leads to arguments within a company. 
C)  The choice of the method depends on the objectives of the analysis. 
D)  All of the above.

Question 17

As with sales analysis, performance analysis is limited to sales data.

Accepted Answer

A) True 
 B)False

Question 18

The "full-cost approach" to marketing cost analysis:

Accepted Answer

A)  Allocates all costs, except fixed costs, to products, customers, or other categories. 
B)  Is designed so that customers, products, or other categories are always allocated an equal amount of costs. 
C)  Requires that difficult-to-allocate costs be split in some way. 
D)  Should always be avoided. 
E)  None of the above. 
A)  Allocates all costs, except fixed costs, to products, customers, or other categories. 
B)  Is designed so that customers, products, or other categories are always allocated an equal amount of costs. 
C)  Requires that difficult-to-allocate costs be split in some way. 
D)  Should always be avoided. 
E)  None of the above.

Question 19

Premier Bank considers population an effective measure of sales potential for its safe deposit boxes. It has broken down the population of the U.S. by region and assigned 30 percent of the total population to the Northeastern region. If Premier has a planned sales goal of $2.5 million nationwide, and actual sales in the Northeastern region last year were $650,000, what was the Northeastern region's performance index (to the nearest whole number percent)?

Accepted Answer

A)  33 percent 
B)  50 percent 
C)  66 percent 
D)  75 percent 
E)  87 percent 
A)  33 percent 
B)  50 percent 
C)  66 percent 
D)  75 percent 
E)  87 percent

Question 20

The main difference between the full-cost approach and the contribution-margin approach to marketing cost analysis is:

Accepted Answer

A)  The contribution-margin approach uses both mechanical and logical reasoning to allocate marketing costs. 
B)  The full-cost approach allocates all costs--even fixed costs--to products, customers, or other categories. 
C)  The contribution-margin approach allocates all costs to show how profitable various customers are. 
D)  The full-cost approach focuses on variable costs rather than total costs. 
A)  The contribution-margin approach uses both mechanical and logical reasoning to allocate marketing costs. 
B)  The full-cost approach allocates all costs--even fixed costs--to products, customers, or other categories. 
C)  The contribution-margin approach allocates all costs to show how profitable various customers are. 
D)  The full-cost approach focuses on variable costs rather than total costs.

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

Digital communication and e-commerce offer speed and detail in obtaining information needed for better control.

Advances in computer software have accelerated the move to cost analysis and performance analysis.

A systematic, critical, and unbiased review and appraisal of the basic objectives and policies of the marketing function--and of the organization, methods, procedures, and people employed to implement the policies--is called a:

Performance analysis looks for exceptions or variations from planned performance.

When involved in the control process, the marketing manager should view company profit

Doug Selkirk is a sales manager for IBM. He has asked his assistant to prepare an analysis that shows what percent over or under quota each sales rep was during the last year. This is an example of

Traditional accounting reports are usually too general to be of much help to the marketing manager in controlling marketing plans.

Consider the performance data about the four sales regions shown below. Which of the four regions has the highest performance index?

With respect to marketing control,

The accounting department should do a marketing audit since they have access to the data.

The full-cost approach and the contribution-margin approach always suggest the same outcome.

Whistler's Camping Supplies wants to identify its most frequent customers and offer them quantity discounts to increase their purchases and loyalty. Which of the following implementation approaches might address that problem?

The contribution-margin approach ignores some costs to simplify comparing among specific alternatives

Cost analysis and performance analysis are the same thing.

Regarding the choice between the "full-cost approach" and the "contribution margin approach" to marketing cost analysis:

As with sales analysis, performance analysis is limited to sales data.

The "full-cost approach" to marketing cost analysis:

The main difference between the full-cost approach and the contribution-margin approach to marketing cost analysis is:

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

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