Question 1

Performance analysis:

Accepted Answer

A)  is based on qualitative factors, as contrasted with sales and cost analysis which are based on quantitative data. 
B)  is most useful in situations where the iceberg principal is not likely to be a concern. 
C)  indicates why problems have occurred and how to solve them. 
D)  may be based on several different performance indexes. 
E)  All of the above are true. 
A)  is based on qualitative factors, as contrasted with sales and cost analysis which are based on quantitative data. 
B)  is most useful in situations where the iceberg principal is not likely to be a concern. 
C)  indicates why problems have occurred and how to solve them. 
D)  may be based on several different performance indexes. 
E)  All of the above are true.

Question 2

A marketing audit is a systematic, critical, and unbiased review and appraisal of the basic objectives and policies of the marketing function.

Accepted Answer

A) True 
 B)False

Question 3

Which of the following statements is NOT TRUE?

Accepted Answer

A)  Good implementation builds relationships with customers. 
B)  Implementation ignores external matters. 
C)  Implementation is especially critical in mature and highly competitive markets. 
D)  Effective implementation means that plans work as intended. 
E)  Implementation has its own objectives. 
A)  Good implementation builds relationships with customers. 
B)  Implementation ignores external matters. 
C)  Implementation is especially critical in mature and highly competitive markets. 
D)  Effective implementation means that plans work as intended. 
E)  Implementation has its own objectives.

Question 4

In the _____ approach, all costs are allocated to products, customers, or other categories.

Accepted Answer

A)  contribution margin 
B)  full-cost 
C)  marketing overheads 
D)  gross margin 
E)  overhead 
A)  contribution margin 
B)  full-cost 
C)  marketing overheads 
D)  gross margin 
E)  overhead

Question 5

Regarding controlling marketing programs:

Accepted Answer

A)  "sales analysis" and "performance analysis" mean the same thing. 
B)  traditional accounting reports are very useful for controlling marketing programs. 
C)  sales analysis is so revealing that there is no such thing as having TOO MUCH data. 
D)  the control process helps marketing managers learn how ongoing plans are working. 
E)  All of the above are true. 
A)  "sales analysis" and "performance analysis" mean the same thing. 
B)  traditional accounting reports are very useful for controlling marketing programs. 
C)  sales analysis is so revealing that there is no such thing as having TOO MUCH data. 
D)  the control process helps marketing managers learn how ongoing plans are working. 
E)  All of the above are true.

Question 6

Which of the following statements by a sales manager best reflects an understanding of the iceberg principle?

Accepted Answer

A)  "Detailed cost analysis gets you focused on small parts of the problem, whereas general summaries make it easier to see the really big problems." 
B)  "Most costs that look like they're fixed are actually changing all of the time." 
C)  "Don't tell me that you're certain we're going to increase sales. They were certain that an iceberg couldn't sink the Titanic!" 
D)  "Let's not dwell on sales data summaries--let's get below the surface and study the details." 
E)  "Cost problems always show up first--but controlling expenses doesn't mean that you won't run into revenue problems." 
A)  "Detailed cost analysis gets you focused on small parts of the problem, whereas general summaries make it easier to see the really big problems." 
B)  "Most costs that look like they're fixed are actually changing all of the time." 
C)  "Don't tell me that you're certain we're going to increase sales. They were certain that an iceberg couldn't sink the Titanic!" 
D)  "Let's not dwell on sales data summaries--let's get below the surface and study the details." 
E)  "Cost problems always show up first--but controlling expenses doesn't mean that you won't run into revenue problems."

Question 7

A good marketing plan helps managers make strategic planning decisions and provides a framework for effective implementation and _________________.

Accepted Answer

A)  analysis 
B)  control 
C)  organization 
D)  research 
E)  supervision 
A)  analysis 
B)  control 
C)  organization 
D)  research 
E)  supervision

Question 8

_____ is the feedback process that helps the marketing manager learn how ongoing plans are working and how to plan for the future.

Accepted Answer

A)  Design 
B)  Planning 
C)  Implementation 
D)  Control 
E)  Benchmarking 
A)  Design 
B)  Planning 
C)  Implementation 
D)  Control 
E)  Benchmarking

Question 9

Regarding the "contribution-margin approach" to marketing cost analysis, which of the following statements is TRUE?

Accepted Answer

A)  The total net profit obtained with this approach is different from that obtained using the "full-cost approach." 
B)  It is concerned with the amount contributed by a product or customer toward covering variable costs--after fixed costs have been covered. 
C)  This approach stresses the need for evaluating fixed costs. 
D)  This approach may suggest a different action than the "full-cost approach." 
E)  All of the above are true. 
A)  The total net profit obtained with this approach is different from that obtained using the "full-cost approach." 
B)  It is concerned with the amount contributed by a product or customer toward covering variable costs--after fixed costs have been covered. 
C)  This approach stresses the need for evaluating fixed costs. 
D)  This approach may suggest a different action than the "full-cost approach." 
E)  All of the above are true.

Question 10

A marketing audit:

Accepted Answer

A)  takes a big view of the business. 
B)  evaluates the whole marketing program. 
C)  may be done internally or externally. 
D)  requires a detailed look at the company's current marketing plans. 
E)  all of the above. 
A)  takes a big view of the business. 
B)  evaluates the whole marketing program. 
C)  may be done internally or externally. 
D)  requires a detailed look at the company's current marketing plans. 
E)  all of the above.

Question 11

The "iceberg principle":

Accepted Answer

A)  explains why some firm's sales are "cooler" that others. 
B)  explains why some customers are more profitable than others. 
C)  suggests that sales will vary from one territory to another. 
D)  suggests that much good information may be hidden in summary data. 
E)  says that sales reps should never make "cold calls" on customers. 
A)  explains why some firm's sales are "cooler" that others. 
B)  explains why some customers are more profitable than others. 
C)  suggests that sales will vary from one territory to another. 
D)  suggests that much good information may be hidden in summary data. 
E)  says that sales reps should never make "cold calls" on customers.

Question 12

The major difference between a sales analysis and a performance analysis is that:

Accepted Answer

A)  performance analysis looks at variations from planned performance, while sales analysis shows what happened. 
B)  sales analysis looks at individual transactions, while performance analysis groups them into categories. 
C)  sales analysis is a control procedure, while performance analysis is part of implementation. 
D)  sales analysis is concerned with expected sales, while performance analysis is concerned with past sales. 
E)  sales analysis is used to find profitable sales patterns, while performance analysis seeks unprofitable patterns. 
A)  performance analysis looks at variations from planned performance, while sales analysis shows what happened. 
B)  sales analysis looks at individual transactions, while performance analysis groups them into categories. 
C)  sales analysis is a control procedure, while performance analysis is part of implementation. 
D)  sales analysis is concerned with expected sales, while performance analysis is concerned with past sales. 
E)  sales analysis is used to find profitable sales patterns, while performance analysis seeks unprofitable patterns.

Question 13

The main advantage of performance indexes is that they make it easier to compare numbers in a performance analysis.

Accepted Answer

A) True 
 B)False

Question 14

Sales analysis is a:

Accepted Answer

A)  well-accepted trend analysis method. 
B)  necessity for making all important marketing decisions. 
C)  way of assuring that future sales will be profitable. 
D)  detailed report of likely profitability. 
E)  detailed breakdown of a company's sales records. 
A)  well-accepted trend analysis method. 
B)  necessity for making all important marketing decisions. 
C)  way of assuring that future sales will be profitable. 
D)  detailed report of likely profitability. 
E)  detailed breakdown of a company's sales records.

Question 15

Because too much sales data can drown a manager, it's best to start by asking only for breakdowns that involve customer type.

Accepted Answer

A) True 
 B)False

Question 16

Traditional accounting reports don't give sufficient information to managers who need to know what's happening, in detail, to improve the bottom line.

Accepted Answer

A) True 
 B)False

Question 17

The "80/20 rule" describes the relationship that 80 percent of an organization's business often comes from only 20 percent of its products or customers.

Accepted Answer

A) True 
 B)False

Question 18

Detailed sales analysis is:

Accepted Answer

A)  not worth the cost unless the firm is very unprofitable. 
B)  based on the information available on traditional accounting reports. 
C)  important for producers, but usually not that valuable for retailers. 
D)  most useful when it analyzes costs from different possible target markets. 
E)  None of the above is true. 
A)  not worth the cost unless the firm is very unprofitable. 
B)  based on the information available on traditional accounting reports. 
C)  important for producers, but usually not that valuable for retailers. 
D)  most useful when it analyzes costs from different possible target markets. 
E)  None of the above is true.

Question 19

In a marketing audit, the auditor evaluates the plans being implemented, but not the quality of the effort.

Accepted Answer

A) True 
 B)False

Question 20

The contribution-margin and the full-cost approaches to marketing cost analysis are different, but they should lead to the same action implications.

Accepted Answer

A) True 
 B)False

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

Performance analysis:

A marketing audit is a systematic, critical, and unbiased review and appraisal of the basic objectives and policies of the marketing function.

Which of the following statements is NOT TRUE?

In the _____ approach, all costs are allocated to products, customers, or other categories.

Regarding controlling marketing programs:

Which of the following statements by a sales manager best reflects an understanding of the iceberg principle?

A good marketing plan helps managers make strategic planning decisions and provides a framework for effective implementation and _________________.

_____ is the feedback process that helps the marketing manager learn how ongoing plans are working and how to plan for the future.

Regarding the "contribution-margin approach" to marketing cost analysis, which of the following statements is TRUE?

A marketing audit:

The "iceberg principle":

The major difference between a sales analysis and a performance analysis is that:

The main advantage of performance indexes is that they make it easier to compare numbers in a performance analysis.

Sales analysis is a:

Because too much sales data can drown a manager, it's best to start by asking only for breakdowns that involve customer type.

Traditional accounting reports don't give sufficient information to managers who need to know what's happening, in detail, to improve the bottom line.

The "80/20 rule" describes the relationship that 80 percent of an organization's business often comes from only 20 percent of its products or customers.

Detailed sales analysis is:

In a marketing audit, the auditor evaluates the plans being implemented, but not the quality of the effort.

The contribution-margin and the full-cost approaches to marketing cost analysis are different, but they should lead to the same action implications.

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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