Question 1

A marketing audit is necessary because:

Accepted Answer

A)  it is a standard practice adopted by all companies worldwide. 
B)  managers may pursue certain strategies blindly, when other strategies might be more effective. 
C)  regulators require marketing audits at the same time as accounting audits. 
D)  All of these are correct. 
A)  it is a standard practice adopted by all companies worldwide. 
B)  managers may pursue certain strategies blindly, when other strategies might be more effective. 
C)  regulators require marketing audits at the same time as accounting audits. 
D)  All of these are correct.

Question 2

A marketing audit is a systematic procedure for allocating the full costs of marketing to the appropriate functional accounts.

Accepted Answer

A) True 
 B)False

Question 3

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 4

Ruth Boller, marketing manager at Hi Mountain Water is looking to learn more about ongoing plans and implantation are working and how she can plan for the future. This process is called _____.

Accepted Answer

A)  design 
B)  forecasting 
C)  implementation 
D)  control 
E)  modeling 
A)  design 
B)  forecasting 
C)  implementation 
D)  control 
E)  modeling

Question 5

In the full-cost approach, all costs except fixed costs and common costs are allocated to products or customers.

Accepted Answer

A) True 
 B)False

Question 6

In general, the more products a company has the more difficult it will be to allocate costs.

Accepted Answer

A) True 
 B)False

Question 7

Worldwide Applicance Co. put together data to measure sales performance by region of the United States. The Western region included 30% of the U.S. population and was expected to deliver a similar share of Worldwide's sales. This region ended up delivering 30% of the company's overall sales. The performance index for the Western region would be:

Accepted Answer

A)  .90. 
B)  1.30. 
C)  130. 
D)  100. 
A)  .90. 
B)  1.30. 
C)  130. 
D)  100.

Question 8

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 9

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 10

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 11

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 12

When it comes to marketing cost analysis, a sales rep is likely to favor the full-cost approach over the contribution-margin approach.

Accepted Answer

A) True 
 B)False

Question 13

Statistical packages and information systems that produce graphs and charts can make it easier to see patterns that are hidden in a table of numbers.

Accepted Answer

A) True 
 B)False

Question 14

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

Accepted Answer

A)  considers only those costs which are directly related to particular alternatives. 
B)  is especially useful for estimating the long-run profit of a proposed strategy. 
C)  allocates variable costs which are hard to measure to overhead. 
D)  is especially useful for determining if there should be more controls on fixed costs. 
E)  All of these are correct. 
A)  considers only those costs which are directly related to particular alternatives. 
B)  is especially useful for estimating the long-run profit of a proposed strategy. 
C)  allocates variable costs which are hard to measure to overhead. 
D)  is especially useful for determining if there should be more controls on fixed costs. 
E)  All of these are correct.

Question 15

A firm generates a monthly profit of $160,000 dollars. If the 80/20 rule applies to this firm's products, which of the following statement is true?

Accepted Answer

A)  The firm generates $160,000 in profit from 80% of its products. 
B)  The firm generates $128,000 in profit from 80% of its products. 
C)  The firm generates $128,000 in profit from 20% of its products. 
D)  The firm generates $80,000 in profit from 20% of its products. 
E)  The firm generates $64,000 in profit from 20% of its products. 
A)  The firm generates $160,000 in profit from 80% of its products. 
B)  The firm generates $128,000 in profit from 80% of its products. 
C)  The firm generates $128,000 in profit from 20% of its products. 
D)  The firm generates $80,000 in profit from 20% of its products. 
E)  The firm generates $64,000 in profit from 20% of its products.

Question 16

Which of the following statements about a "marketing audit" is true?

Accepted Answer

A)  A marketing audit should be conducted only when some crisis arises. 
B)  It probably should be conducted by someone inside the marketing department who is familiar with the whole program. 
C)  A marketing audit should evaluate the company's whole marketing program-not just some parts of it. 
D)  A marketing audit should be handled by the specialist most familiar with each of the marketing plans in the program. 
E)  All of these are true statements. 
A)  A marketing audit should be conducted only when some crisis arises. 
B)  It probably should be conducted by someone inside the marketing department who is familiar with the whole program. 
C)  A marketing audit should evaluate the company's whole marketing program-not just some parts of it. 
D)  A marketing audit should be handled by the specialist most familiar with each of the marketing plans in the program. 
E)  All of these are true statements.

Question 17

Regarding sales analysis:

Accepted Answer

A)  Sales data should be broken down according to customer characteristics such as demographics, because those are the only relevant dimensions. 
B)  There is only one best way for analyzing sales data. 
C)  Sales analysis is difficult and expensive because the data are difficult to obtain. 
D)  Sales analysis can highlight important trends and help managers develop more accurate sales forecasts. 
E)  A detailed sales analysis is most effectively presented with tables containing rows and columns of numbers as opposed to charts and graphs. 
A)  Sales data should be broken down according to customer characteristics such as demographics, because those are the only relevant dimensions. 
B)  There is only one best way for analyzing sales data. 
C)  Sales analysis is difficult and expensive because the data are difficult to obtain. 
D)  Sales analysis can highlight important trends and help managers develop more accurate sales forecasts. 
E)  A detailed sales analysis is most effectively presented with tables containing rows and columns of numbers as opposed to charts and graphs.

Question 18

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

Accepted Answer

A) True 
 B)False

Question 19

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 these 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 these is true.

Question 20

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

A marketing audit is necessary because:

A marketing audit is a systematic procedure for allocating the full costs of marketing to the appropriate functional accounts.

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

Ruth Boller, marketing manager at Hi Mountain Water is looking to learn more about ongoing plans and implantation are working and how she can plan for the future. This process is called _____.

In the full-cost approach, all costs except fixed costs and common costs are allocated to products or customers.

In general, the more products a company has the more difficult it will be to allocate costs.

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

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

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

The "80/20 rule" says that:

When it comes to marketing cost analysis, a sales rep is likely to favor the full-cost approach over the contribution-margin approach.

Statistical packages and information systems that produce graphs and charts can make it easier to see patterns that are hidden in a table of numbers.

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

A firm generates a monthly profit of $160,000 dollars. If the 80/20 rule applies to this firm's products, which of the following statement is true?

Which of the following statements about a "marketing audit" is true?

Regarding sales analysis:

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

Detailed sales analysis is:

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

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

A marketing audit is necessary because:

A marketing audit is a systematic procedure for allocating the full costs of marketing to the appropriate functional accounts.

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

Ruth Boller, marketing manager at Hi Mountain Water is looking to learn more about ongoing plans and implantation are working and how she can plan for the future. This process is called _____.

In the full-cost approach, all costs except fixed costs and common costs are allocated to products or customers.

In general, the more products a company has the more difficult it will be to allocate costs.

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

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

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

The "80/20 rule" says that:

When it comes to marketing cost analysis, a sales rep is likely to favor the full-cost approach over the contribution-margin approach.

Statistical packages and information systems that produce graphs and charts can make it easier to see patterns that are hidden in a table of numbers.

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

A firm generates a monthly profit of $160,000 dollars. If the 80/20 rule applies to this firm's products, which of the following statement is true?

Which of the following statements about a "marketing audit" is true?

Regarding sales analysis:

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

Detailed sales analysis is:

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

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