Question 1

To OBJECTIVELY estimate how sales to present customers may change because of possible marketing mix changes, a marketing manager should use:

Accepted Answer

A)  a jury of executive opinion. 
B)  a market test. 
C)  trend extension. 
D)  a sales force estimate. 
A)  a jury of executive opinion. 
B)  a market test. 
C)  trend extension. 
D)  a sales force estimate.

Question 2

Developing a sales forecast for a broad industry:

Accepted Answer

A)  is easier when a firm segments its product-markets very carefully. 
B)  is often very similar to developing a national income forecast. 
C)  is usually done by a marketing manager. 
D)  is relatively easy because computers can eliminate the "guess" work. 
E)  All of these alternatives are correct. 
A)  is easier when a firm segments its product-markets very carefully. 
B)  is often very similar to developing a national income forecast. 
C)  is usually done by a marketing manager. 
D)  is relatively easy because computers can eliminate the "guess" work. 
E)  All of these alternatives are correct.

Question 3

The "jury-of-executive-opinion" approach to sales forecasting

Accepted Answer

A)  is less accurate than trend extension. 
B)  can be done quickly. 
C)  is effective even if the individual executives aren't very well informed. 
D)  combines the opinions of experienced executives from marketing and sales, but not purchasing and finance. 
E)  None of these alternatives is correct. 
A)  is less accurate than trend extension. 
B)  can be done quickly. 
C)  is effective even if the individual executives aren't very well informed. 
D)  combines the opinions of experienced executives from marketing and sales, but not purchasing and finance. 
E)  None of these alternatives is correct.

Question 4

A national income forecast:

Accepted Answer

A)  eliminates the need for making industry sales forecasts. 
B)  usually shows very little about an individual firm's sales prospects. 
C)  usually must be developed by a marketing manager. 
D)  is a good starting point for forecasting industry and company sales. 
E)  All of these alternatives are correct. 
A)  eliminates the need for making industry sales forecasts. 
B)  usually shows very little about an individual firm's sales prospects. 
C)  usually must be developed by a marketing manager. 
D)  is a good starting point for forecasting industry and company sales. 
E)  All of these alternatives are correct.

Question 5

The likely reaction of customers to possible changes in a marketing mix can sometimes be estimated using market tests and surveys of final buyers.

Accepted Answer

A) True 
 B)False

Question 6

Given the following information, calculate the firm's NET PROFIT (or LOSS). $$\begin{array} { l l } 
\text { Returns and allowances } & \$ 60,000 \
\text { Gross sales } & \$ 460,000 \
\text { Cost of sales } & \$ 200,000 \
\text { Expenses } & \$ 100,000 \
\text { Gross margin } & \$ 200,000
\end{array}$$

Accepted Answer

A)  $85,000 
B)  $100,000 
C)  $50,000 
D)  $160,000 
E)  a loss of $200,000 
A)  $85,000 
B)  $100,000 
C)  $50,000 
D)  $160,000 
E)  a loss of $200,000

Question 7

A marketing manager who uses SALES AND MARKETING MANAGEMENT'S "Buying Power Index" (BPI) to forecast sales is using the:

Accepted Answer

A)  factor method (using several factors). 
B)  NAICS code method. 
C)  factor method (using one factor). 
D)  trend management method. 
E)  substitute method. 
A)  factor method (using several factors). 
B)  NAICS code method. 
C)  factor method (using one factor). 
D)  trend management method. 
E)  substitute method.

Question 8

The factor method of sales forecasting tries to find a relation between the company's sales and:

Accepted Answer

A)  industry sales. 
B)  how much working capital it needs. 
C)  national income. 
D)  some other factor (or factors). 
E)  the company's marketing mix. 
A)  industry sales. 
B)  how much working capital it needs. 
C)  national income. 
D)  some other factor (or factors). 
E)  the company's marketing mix.

Question 9

The basic components of an operating statement are:

Accepted Answer

A)  net sales, cost of sales, profit. 
B)  gross sales, gross margin, expenses, net profit. 
C)  sales, costs, and profit or loss. 
D)  sales, costs, and expenses. 
E)  gross sales, gross margin, net profit. 
A)  net sales, cost of sales, profit. 
B)  gross sales, gross margin, expenses, net profit. 
C)  sales, costs, and profit or loss. 
D)  sales, costs, and expenses. 
E)  gross sales, gross margin, net profit.

Question 10

Other things equal, a firm can increase return on investment (ROI) by:

Accepted Answer

A)  decreasing investment. 
B)  reducing expenses. 
C)  increasing profit margins. 
D)  increasing net sales. 
E)  Any of these will increase ROI. 
A)  decreasing investment. 
B)  reducing expenses. 
C)  increasing profit margins. 
D)  increasing net sales. 
E)  Any of these will increase ROI.

Question 11

Sales and Marketing Management magazine's "Buying Power Index" is based on:

Accepted Answer

A)  each market's share of the total U.S. population. 
B)  each market's share of the total income in the United States. 
C)  each market's share of the total retail sales in the United States. 
D)  All of these alternatives are correct. 
A)  each market's share of the total U.S. population. 
B)  each market's share of the total income in the United States. 
C)  each market's share of the total retail sales in the United States. 
D)  All of these alternatives are correct.

Question 12

The three main components of an operating statement are sales, costs, and profit or loss.

Accepted Answer

A) True 
 B)False

Question 13

Regarding markdowns, which of the following statements is TRUE?

Accepted Answer

A)  The markdown ratio is calculated by dividing the sum of markdowns and allowances by net sales. 
B)  Markdowns are required because customers will not buy at the original marked-up price. 
C)  Markdowns are generally considered to be due to "business errors." 
D)  All of these alternatives for markdowns are TRUE. 
A)  The markdown ratio is calculated by dividing the sum of markdowns and allowances by net sales. 
B)  Markdowns are required because customers will not buy at the original marked-up price. 
C)  Markdowns are generally considered to be due to "business errors." 
D)  All of these alternatives for markdowns are TRUE.

Question 14

A company which wants to objectively estimate the reaction of customers to possible changes in its marketing mix should use:

Accepted Answer

A)  trend extension. 
B)  jury of executive opinion. 
C)  sales force estimates. 
D)  surveys, panels, and market tests. 
E)  None of these is a good answer. 
A)  trend extension. 
B)  jury of executive opinion. 
C)  sales force estimates. 
D)  surveys, panels, and market tests. 
E)  None of these is a good answer.

Question 15

"Cost of sales" equals the total value of all the products purchased during an operating period plus freight-in.

Accepted Answer

A) True 
 B)False

Question 16

Net sales is the total value at cost of all the products sold during an operating period.

Accepted Answer

A) True 
 B)False

Question 17

Which of the following sales forecasting techniques would be most useful for the marketing manager of a business products manufacturer that already faces intense competition?

Accepted Answer

A)  Sales force estimates 
B)  Jury of executive opinion 
C)  Use of a national economic forecast 
D)  Trend extension of past sales 
E)  Multiple-factor method 
A)  Sales force estimates 
B)  Jury of executive opinion 
C)  Use of a national economic forecast 
D)  Trend extension of past sales 
E)  Multiple-factor method

Question 18

Use the information below to answer the following questions that refer to Table B-1. Based on the information in Table B-1, the gross margin is:
$$\begin{array} { l c } 
 { \text { Table B-1 } } \
\text { Gross sales } & \$ 650,000 \
\text { Returns } & \$ 40,000 \
\text { Allowances } & \$ 10,000 \
\text { Markdowns } & \$ 20,000 \
\text { Beginning inventory } & \$ 50,000 \
\text { Ending inventory } & \$ 30,000 \
\text { Expenses } & 25 \% \
\text { Stockturn rate } & 10 \
\text { Investment } & \$ 250,000
\end{array}$$

Accepted Answer

A)  $200,000. 
B)  $175,000. 
C)  $250,000. 
D)  $320,000. 
E)  $130,000. 
A)  $200,000. 
B)  $175,000. 
C)  $250,000. 
D)  $320,000. 
E)  $130,000.

Question 19

A drugstore buys toothpaste from its wholesaler for $30.00 a case. This retailer uses a 25 percent markup. The retail selling price for a case of the toothpaste will be:

Accepted Answer

A)  $37.50 
B)  $120.00 
C)  $40.00 
D)  $22.50 
E)  There is not enough information to tell. 
A)  $37.50 
B)  $120.00 
C)  $40.00 
D)  $22.50 
E)  There is not enough information to tell.

Question 20

Regarding "operating statements," which of the following statements is FALSE?

Accepted Answer

A)  Stockturn rate can be calculated directly from a detailed operating statement. 
B)  Gross margin must be larger than expenses for a business to make a profit. 
C)  By comparing the results from one statement to another, management can see trends. 
D)  The markdown ratio cannot be calculated directly from a detailed operating statement. 
E)  The purpose of the operating statement is to determine the firm's ROI and ROA. 
A)  Stockturn rate can be calculated directly from a detailed operating statement. 
B)  Gross margin must be larger than expenses for a business to make a profit. 
C)  By comparing the results from one statement to another, management can see trends. 
D)  The markdown ratio cannot be calculated directly from a detailed operating statement. 
E)  The purpose of the operating statement is to determine the firm's ROI and ROA.

To OBJECTIVELY estimate how sales to present customers may change because of possible marketing mix changes, a marketing manager should use:

Developing a sales forecast for a broad industry:

The "jury-of-executive-opinion" approach to sales forecasting

A national income forecast:

The likely reaction of customers to possible changes in a marketing mix can sometimes be estimated using market tests and surveys of final buyers.

Given the following information, calculate the firm's NET PROFIT (or LOSS). Returns and allowances \ 60,000 Gross sales \ 460,000 Cost of sales \ 200,000 Expenses \ 100,000 Gross margin \ 200,000

A marketing manager who uses SALES AND MARKETING MANAGEMENT'S "Buying Power Index" (BPI) to forecast sales is using the:

The factor method of sales forecasting tries to find a relation between the company's sales and:

The basic components of an operating statement are:

Other things equal, a firm can increase return on investment (ROI) by:

Sales and Marketing Management magazine's "Buying Power Index" is based on:

The three main components of an operating statement are sales, costs, and profit or loss.

Regarding markdowns, which of the following statements is TRUE?

A company which wants to objectively estimate the reaction of customers to possible changes in its marketing mix should use:

"Cost of sales" equals the total value of all the products purchased during an operating period plus freight-in.

Net sales is the total value at cost of all the products sold during an operating period.

Which of the following sales forecasting techniques would be most useful for the marketing manager of a business products manufacturer that already faces intense competition?

A drugstore buys toothpaste from its wholesaler for $30.00 a case. This retailer uses a 25 percent markup. The retail selling price for a case of the toothpaste will be:

Regarding "operating statements," which of the following statements is FALSE?

Marketing39s 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

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

Ethical Marketing in a Consumer-Oriented World: Appraisal and Challenges

Economics Fundamentals

Filters

Exam 20: Marketing Arithmetic

To OBJECTIVELY estimate how sales to present customers may change because of possible marketing mix changes, a marketing manager should use:

Developing a sales forecast for a broad industry:

The "jury-of-executive-opinion" approach to sales forecasting

A national income forecast:

The likely reaction of customers to possible changes in a marketing mix can sometimes be estimated using market tests and surveys of final buyers.

Given the following information, calculate the firm's NET PROFIT (or LOSS). Returns and allowances \ 60,000 Gross sales \ 460,000 Cost of sales \ 200,000 Expenses \ 100,000 Gross margin \ 200,000

A marketing manager who uses SALES AND MARKETING MANAGEMENT'S "Buying Power Index" (BPI) to forecast sales is using the:

The factor method of sales forecasting tries to find a relation between the company's sales and:

The basic components of an operating statement are:

Other things equal, a firm can increase return on investment (ROI) by:

Sales and Marketing Management magazine's "Buying Power Index" is based on:

The three main components of an operating statement are sales, costs, and profit or loss.

Regarding markdowns, which of the following statements is TRUE?

A company which wants to objectively estimate the reaction of customers to possible changes in its marketing mix should use:

"Cost of sales" equals the total value of all the products purchased during an operating period plus freight-in.

Net sales is the total value at cost of all the products sold during an operating period.

Which of the following sales forecasting techniques would be most useful for the marketing manager of a business products manufacturer that already faces intense competition?

A drugstore buys toothpaste from its wholesaler for $30.00 a case. This retailer uses a 25 percent markup. The retail selling price for a case of the toothpaste will be:

Regarding "operating statements," which of the following statements is FALSE?

Marketing39s 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

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

Ethical Marketing in a Consumer-Oriented World: Appraisal and Challenges

Economics Fundamentals

Filters