Question 1

The best way to break down and analyze sales data is:

Accepted Answer

A)  by order size. 
B)  by geographic region. 
C)  by customer type. 
D)  by product, package, size, grade or color. 
E)  any of the above, depending on the situation. 
A)  by order size. 
B)  by geographic region. 
C)  by customer type. 
D)  by product, package, size, grade or color. 
E)  any of the above, depending on the situation.

Question 2

Experience shows that it doesn't make sense for marketing managers to allocate costs to specific market segments or products.

Accepted Answer

A) True 
 B)False

Question 3

The 80/20 rule suggests that

Accepted Answer

A)  20 percent of marketing effort is wasted. 
B)  80 percent of marketing effort is well implemented, but the remaining 20 percent is out of control. 
C)  80 percent of the business comes from 20 percent of the customers. 
D)  it will take 80 percent more effort to get 20 percent more business. 
E)  None of the above is true. 
A)  20 percent of marketing effort is wasted. 
B)  80 percent of marketing effort is well implemented, but the remaining 20 percent is out of control. 
C)  80 percent of the business comes from 20 percent of the customers. 
D)  it will take 80 percent more effort to get 20 percent more business. 
E)  None of the above is true.

Question 4

Implementing a strategy is straightforward; there are usually only a limited number of ways things can go wrong.

Accepted Answer

A) True 
 B)False

Question 5

Sam Reuter, marketing manager for Herbal Shampoo Company, has to choose one of three different proposed labels for a new herbal shampoo. How might Sam pretest consumer response to the labels?

Accepted Answer

A)  Put a toll-free telephone number and Web site address on the product label. 
B)  Check the labels of competitors. 
C)  Launch the product with new labels and evaluate the response. 
D)  Prepare sample labels with graphics software and test them on the Internet. 
E)  Set up a televideo conference. 
A)  Put a toll-free telephone number and Web site address on the product label. 
B)  Check the labels of competitors. 
C)  Launch the product with new labels and evaluate the response. 
D)  Prepare sample labels with graphics software and test them on the Internet. 
E)  Set up a televideo conference.

Question 6

Marketing managers use performance indexes to compare what did happen with what ought to have happened.

Accepted Answer

A) True 
 B)False

Question 7

A ________ requires a detailed look at the company's current marketing plans to see if they are still the best plans the firm can offer.

Accepted Answer

A)  cost analysis 
B)  full-cost approach 
C)  sales analysis 
D)  marketing audit 
E)  strategic scenario review 
A)  cost analysis 
B)  full-cost approach 
C)  sales analysis 
D)  marketing audit 
E)  strategic scenario review

Question 8

With the "contribution-margin approach" to marketing cost analysis,

Accepted Answer

A)  all costs are allocated to products, customers, or other categories. 
B)  fixed costs are allocated based on the profit contribution to the firm. 
C)  variable costs are treated as common costs. 
D)  common costs which are hard to allocate are ignored. 
E)  None of the above is true. 
A)  all costs are allocated to products, customers, or other categories. 
B)  fixed costs are allocated based on the profit contribution to the firm. 
C)  variable costs are treated as common costs. 
D)  common costs which are hard to allocate are ignored. 
E)  None of the above is true.

Question 9

A marketing audit is:

Accepted Answer

A)  an evaluation of day-to-day marketing operations. 
B)  an analysis of the profitability of all profit centers. 
C)  a review of a marketing program during a crisis. 
D)  a detailed look by a CPA at how the company's marketing costs are allocated. 
E)  a systematic, critical, and unbiased review and appraisal of the objectives and policies of the marketing function. 
A)  an evaluation of day-to-day marketing operations. 
B)  an analysis of the profitability of all profit centers. 
C)  a review of a marketing program during a crisis. 
D)  a detailed look by a CPA at how the company's marketing costs are allocated. 
E)  a systematic, critical, and unbiased review and appraisal of the objectives and policies of the marketing function.

Question 10

Capitol Enterprises uses the cost-sales ratio to measure the performance of its salespeople. If, in the past year, a salesperson made $800,000 in sales, had travel expenses of $23,000, and received a base salary of $40,000 plus $6,000 in commissions, what was this sales rep's cost-sales ratio (to the nearest whole number percent)?

Accepted Answer

A)  3 percent 
B)  6 percent 
C)  9 percent 
D)  12 percent 
E)  15 percent 
A)  3 percent 
B)  6 percent 
C)  9 percent 
D)  12 percent 
E)  15 percent

Question 11

The full-cost approach to marketing cost analysis is likely to lead to arguments among product managers about how costs are to be allocated.

Accepted Answer

A) True 
 B)False

Question 12

Performance analysis permits the manager to compare actual performance against performance standards.

Accepted Answer

A) True 
 B)False

Question 13

If Salesperson X had a performance index of 80 and Salesperson Y had a performance index of 120, then:

Accepted Answer

A)  Salesperson X may be having some problems and his sales performance should be investigated. 
B)  the two would average out to 100--and this would suggest that "all is well." 
C)  Salesperson X's performance should be investigated as a guide to improving everyone's performance. 
D)  Salesperson Y probably should be fired. 
E)  Salesperson Y obviously had higher sales than Salesperson X. 
A)  Salesperson X may be having some problems and his sales performance should be investigated. 
B)  the two would average out to 100--and this would suggest that "all is well." 
C)  Salesperson X's performance should be investigated as a guide to improving everyone's performance. 
D)  Salesperson Y probably should be fired. 
E)  Salesperson Y obviously had higher sales than Salesperson X.

Question 14

Dell uses the sales-order ratio to measure the performance of its salespeople. If, in the past year, a salesperson made $2 million in sales, called on 5,250 potential business customers (either by phone or in person), and got 3,124 orders, what was this sales rep's sales-order ratio (to the nearest whole number amount)?

Accepted Answer

A)  $510 
B)  $540 
C)  $580 
D)  $640 
E)  $700 
A)  $510 
B)  $540 
C)  $580 
D)  $640 
E)  $700

Question 15

Marketing cost analysis is often not given enough importance because:

Accepted Answer

A)  accountants show little interest in their firm's marketing process. 
B)  marketing costs are rarely significant. 
C)  marketing costs don't have financial objectives. 
D)  marketing costs don't have a clear purpose. 
E)  IT managers don't understand the different marketing activities. 
A)  accountants show little interest in their firm's marketing process. 
B)  marketing costs are rarely significant. 
C)  marketing costs don't have financial objectives. 
D)  marketing costs don't have a clear purpose. 
E)  IT managers don't understand the different marketing activities.

Question 16

Marketing sales analysis:

Accepted Answer

A)  keeps track of whether a firm's sales are increasing or decreasing. 
B)  requires a detailed breakdown of a company's sales records. 
C)  is very hard to do--because computers must be involved. 
D)  looks for exceptions or variations from planned performance. 
E)  tries to avoid the 80/20 rule. 
A)  keeps track of whether a firm's sales are increasing or decreasing. 
B)  requires a detailed breakdown of a company's sales records. 
C)  is very hard to do--because computers must be involved. 
D)  looks for exceptions or variations from planned performance. 
E)  tries to avoid the 80/20 rule.

Question 17

The "iceberg principle" says that looking at detailed breakdowns of data is not very useful, since most relevant information is revealed in good summaries.

Accepted Answer

A) True 
 B)False

Question 18

Avon, Inc., has analyzed the market potential in its territories and set sales quotas for its salespeople. It is now in a good position to develop ______________ indexes at the end of the year.

Accepted Answer

A)  MIS 
B)  performance 
C)  PERT 
D)  sales 
E)  contribution 
A)  MIS 
B)  performance 
C)  PERT 
D)  sales 
E)  contribution

Question 19

If one were using the "full-cost" approach to marketing cost analysis, then allocating fixed costs on the basis of sales volume would:

Accepted Answer

A)  make some customers appear more profitable than they actually are. 
B)  not be done--because only variable costs would be analyzed. 
C)  make some products appear less profitable than they actually are. 
D)  decrease the profitability of the whole business. 
E)  Both A and C are true statements. 
A)  make some customers appear more profitable than they actually are. 
B)  not be done--because only variable costs would be analyzed. 
C)  make some products appear less profitable than they actually are. 
D)  decrease the profitability of the whole business. 
E)  Both A and C are true statements.

Question 20

Marketing audits consider future marketing plans, so they are not concerned with a company's current marketing strategies.

Accepted Answer

A) True 
 B)False

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

The best way to break down and analyze sales data is:

Experience shows that it doesn't make sense for marketing managers to allocate costs to specific market segments or products.

The 80/20 rule suggests that

Implementing a strategy is straightforward; there are usually only a limited number of ways things can go wrong.

Sam Reuter, marketing manager for Herbal Shampoo Company, has to choose one of three different proposed labels for a new herbal shampoo. How might Sam pretest consumer response to the labels?

Marketing managers use performance indexes to compare what did happen with what ought to have happened.

A ________ requires a detailed look at the company's current marketing plans to see if they are still the best plans the firm can offer.

With the "contribution-margin approach" to marketing cost analysis,

A marketing audit is:

The full-cost approach to marketing cost analysis is likely to lead to arguments among product managers about how costs are to be allocated.

Performance analysis permits the manager to compare actual performance against performance standards.

If Salesperson X had a performance index of 80 and Salesperson Y had a performance index of 120, then:

Marketing cost analysis is often not given enough importance because:

Marketing sales analysis:

The "iceberg principle" says that looking at detailed breakdowns of data is not very useful, since most relevant information is revealed in good summaries.

Avon, Inc., has analyzed the market potential in its territories and set sales quotas for its salespeople. It is now in a good position to develop ______________ indexes at the end of the year.

If one were using the "full-cost" approach to marketing cost analysis, then allocating fixed costs on the basis of sales volume would:

Marketing audits consider future marketing plans, so they are not concerned with a company's current marketing strategies.

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