Question 1

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 these 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 these is true.

Question 2

Every graduating senior at State University is required to answer the following survey question: "Please use the following scale to indicate your degree of overall satisfaction or dissatisfaction with your educational experience at this university." The response choices are: dissatisfied, slightly satisfied, somewhat satisfied, very satisfied, and extremely satisfied. After collecting the data, analysts at the university found that only 5 percent of the students chose "dissatisfied," while 40 percent chose "slightly satisfied," 35 percent chose "somewhat satisfied," 15 percent chose "very satisfied," and only 5 percent chose "extremely satisfied." In its brochures used to recruit new students, these results were summarized as follows: "The annual survey of student satisfaction indicates that an astounding 95 percent of our graduating seniors reported that they were satisfied with their educational experience at this university." This is an example of:

Accepted Answer

A)  A Pareto chart. 
B)  The iceberg principle. 
C)  A fishbone diagram. 
D)  Sales analysis. 
E)  The ostrich principle. 
A)  A Pareto chart. 
B)  The iceberg principle. 
C)  A fishbone diagram. 
D)  Sales analysis. 
E)  The ostrich principle.

Question 3

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)  All of these are correct. 
A)  the contribution-margin approach. 
B)  the full-cost approach. 
C)  the marketing audit approach. 
D)  All of these are correct.

Question 4

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 5

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

Accepted Answer

A) True 
 B)False

Question 6

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 7

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 these 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 these is true.

Question 8

The iceberg principle suggests that:

Accepted Answer

A)  most competitors' strategies are not obvious on the surface. 
B)  small customers usually have the most hidden profit potential. 
C)  conclusions based on summary information are often misleading. 
D)  no matter what control procedure is used, most major problems are impossible to detect until it is too late. 
E)  None of these is true. 
A)  most competitors' strategies are not obvious on the surface. 
B)  small customers usually have the most hidden profit potential. 
C)  conclusions based on summary information are often misleading. 
D)  no matter what control procedure is used, most major problems are impossible to detect until it is too late. 
E)  None of these is true.

Question 9

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

Accepted Answer

A) True 
 B)False

Question 10

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 11

The development of electronic pipelines and inexpensive computer software has helped small and large companies control their marketing strategies.

Accepted Answer

A) True 
 B)False

Question 12

The main purpose of a performance analysis is to:

Accepted Answer

A)  see whether or not the 80/20 rule applies in a particular situation. 
B)  uncover variations in performance that may be hidden in summary information. 
C)  determine who should receive a performance bonus when profit is greater than expected. 
D)  determine if the marketing budget is large enough to achieve the expected sales performance. 
E)  provide a detailed breakdown of a company's sales records. 
A)  see whether or not the 80/20 rule applies in a particular situation. 
B)  uncover variations in performance that may be hidden in summary information. 
C)  determine who should receive a performance bonus when profit is greater than expected. 
D)  determine if the marketing budget is large enough to achieve the expected sales performance. 
E)  provide a detailed breakdown of a company's sales records.

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

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

Accepted Answer

A) True 
 B)False

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

Ideally, a marketing audit should not be necessary.

Accepted Answer

A) True 
 B)False

Question 17

The "contribution-margin approach" to marketing cost analysis:

Accepted Answer

A)  Focuses attention on the allocation of fixed costs. 
B)  Is mainly concerned with the allocation of variable costs. 
C)  Always leads to the same conclusions as the "full-cost approach." 
D)  Is always preferred to the "full-cost approach." 
E)  None of these are correct. 
A)  Focuses attention on the allocation of fixed costs. 
B)  Is mainly concerned with the allocation of variable costs. 
C)  Always leads to the same conclusions as the "full-cost approach." 
D)  Is always preferred to the "full-cost approach." 
E)  None of these are correct.

Question 18

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 19

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 these 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 these are true.

Question 20

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.

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

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

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

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.

The 80/20 rule suggests that

The iceberg principle suggests that:

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

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 development of electronic pipelines and inexpensive computer software has helped small and large companies control their marketing strategies.

The main purpose of a performance analysis is to:

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

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

Marketing cost analysis is often not given enough importance because:

Ideally, a marketing audit should not be necessary.

The "contribution-margin approach" to marketing cost analysis:

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

Regarding controlling marketing programs:

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:

Marketings Value to Consumers, Firms, and Society

Marketing Strategy Planning

Evaluating Opportunities in the Changing Marketing Environment

Focusing Marketing Strategy With Segmentation and Positioning

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

Promotionintroduction 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

Filters

Exam 18: Implementing and Controlling Marketing Plans: Evolution and Revolution

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

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

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

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.

The 80/20 rule suggests that

The iceberg principle suggests that:

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

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 development of electronic pipelines and inexpensive computer software has helped small and large companies control their marketing strategies.

The main purpose of a performance analysis is to:

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

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

Marketing cost analysis is often not given enough importance because:

Ideally, a marketing audit should not be necessary.

The "contribution-margin approach" to marketing cost analysis:

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

Regarding controlling marketing programs:

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:

Marketings Value to Consumers, Firms, and Society

Marketing Strategy Planning

Evaluating Opportunities in the Changing Marketing Environment

Focusing Marketing Strategy With Segmentation and Positioning

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

Promotionintroduction 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

Filters