Deck 13: Measuring Marketing Effectiveness Through Metrics

Question 1

Which are the short-term, narrow, operational decisions and actions that are used as part of larger marketing strategies?

A) Operational strategies
B) Metrics
C) Tactics
D) Promotions

Answer 1

Tactics

Question 2

From where do tactical objectives flow?

A) Strategic objectives
B) Operational objectives
C) Tactical strategies
D) Tactical metrics

Answer 2

Strategic objectives

Question 3

Which is the percentage of the total sales in a product category going to a particular brand?

A) Category sales
B) Sales penetration
C) Brand metrics
D) Market share

Answer 3

Market share

Question 4

Which indicates returns attributable directly to marketing investment?

A) Return on investment
B) Return on marketing investment
C) Advertising-to-sales return
D) Sales-to-spending return

Question 5

Which gives the percentage of a particular target group that purchases a brand for the first time?

A) Brand trial rate
B) Market penetration rate
C) Brand growth rate
D) Brand development index

Question 6

Which metric compares a brand's performance in a target group to brand performance among all target groups?

A) Brand trial rate
B) Market penetration rate
C) Brand growth rate
D) Brand development index

Question 7

Which measures the number of times the inventory for a product is completely replenished in a given period?

A) Stockturn rate
B) Stockout rate
C) Stockout days
D) Stock metric

Question 8

Which measures how well-exposed a brand is within retail stores?

A) Relevant outlet rate
B) Category shelf facings
C) Category volume
D) All of these

Question 9

Which shows the ratio of the percentage change in quantity to the percentage change in price?

A) Quantity elasticity
B) Percentage change in price
C) Percentage change in quantity
D) Price elasticity

Question 10

Which indicates the number of units that must be sold at a specified price to just cover costs?

A) Breakeven revenue
B) Breakeven quantity
C) Breakeven sales
D) Variable cost quantity

Question 11

Which measures schedule intensity and is the product of reach and average frequency?

A) Gross impressions
B) Average frequency
C) Gross ratings points
D) Cost-per-thousand

Question 12

Which is used to compare media costs?

A) CPM
B) CPI
C) CPC
D) CPK

Question 13

Which indicates browser contacts with a website?

A) Visitors
B) Page views
C) Impressions
D) Hits

Question 14

Which indicates an estimate of the percentage of visitors to a site who navigate away quickly without venturing beyond the landing page?

A) Clickthrough rate
B) Abandonment rate
C) Bounce rate
D) Visitor rate

Question 15

Which inidicates the number of people who go to a website and view at least some of the information it contains?

A) Visitors
B) Hits
C) Page views
D) Conversions

Question 16

Which is common of all marketing objectives?

A) They are short-term and used as part of a larger marketing strategy.
B) They relate to sales and profits.
C) They specific how marketing managers want the future to look in some way.
D) They are open-ended in terms of time frames.

Question 17

Why is consistency between strategic and tactical objectives important?

A) Because strategy naturally flows from tactics.
B) Consistency assures that tactics do not work against strategies.
C) Because they are develop simultaneously.
D) Consistency is a key component of measurement.

Question 18

Why is it necessary that data relating to tactical outcomes be readily available?

A) Tactical outcomes typically have short time horizons.
B) Because the data is typically, and preferably, external.
C) Because they normally relate to qualitative data.
D) All of these.

Question 19

Managers should abide by these principles in interpreting metrics for purposes of measuring marketing effectiveness.

A) Use absolutes versus ranges for outcomes.
B) Stick strictly to the numbers.
C) Ignore their instincts.
D) None of these.

Question 20

What is a key benefit of receiving sales data in near real time?

A) You can provide daily reports to senior management on tactical results.
B) You can make daily adjustments to your tactics.
C) You can use metrics previously reserved for strategic level planning to make tactical decisions.
D) You can compare your results to your competitors' results.

Question 21

Which metric do marketing managers rely on most heavily to gauge overall success?

A) Return on investment
B) Market share
C) Relative market share
D) Return on marketing investment

Question 22

Which is the most relevant metric for comparing tactical objectives relative to competitors?

A) Market share
B) Relative market share
C) Return on investment
D) Return on marketing investment

Question 23

Why must metrics of financial performance be taken in context?

A) Short-term losses are common and relate to normal business cycles.
B) Products often have evolved into the next stage of the product life cycle.
C) They are heavily weighted by interest rates and financial markets.
D) Sometimes a company's financial metrics to not reflect the company's true outlook.

Question 24

Which metric for product-related tactical success does NOT relate directly to the target market?

A) Brand trial rate
B) Market penetration rate
C) Brand growth rate
D) Brand development index

Question 25

Which metric for product-related tactical success is NOT measured in percentage terms?

A) Brand trial rate
B) Market penetration rate
C) Brand growth rate
D) Brand development index

Question 26

What is required to make meaningful comparisons using BDI?

A) three or more distinct target markets
B) information on competitive sales
C) previously-specified objectives
D) the percentage of brand sales to total market sales

Question 27

Market penetration is the percentage of the total target market to

A) members of the target market who are aware of the product.
B) members of the target market who are purchasing on a continuous (at least one re-buy) basis.
C) members of the target market who have switched from a competitive brand.
D) members of the target market who have tried the product at least once.

Question 28

Which of the following is NOT a metric used to assess the logistical performance of distribution channels?

A) Stockturn rate
B) Stockout rate
C) Stock keeping unit rate
D) Stockout days

Question 29

Which of the following metrics is NOT expressed in percentage terms?

A) Stockturn rate
B) Stockout rate
C) Stockout days
D) All are expressed in percentage terms.

Question 30

How do marketers view frequent stockouts?

A) Positively, as they indicate strong consumer demand.
B) Positively, as they reflect the potential for higher factory capacity utilization.
C) Negatively, as they represent lost sales and poor supply-chain efficiency.
D) Neither positively nor negatively, as they're a given in business.

Question 31

Marketing managers want the optimal level of distribution intensity consistent with

A) maximizing stockturn rates.
B) brand image.
C) minimizing stockouts.
D) competitive forces.

Question 32

Marketers must not only balance the revenue and cost perspectives of pricing, but must also

A) the competitive and consumer dimensions.
B) the learning curve effects on pricing.
C) the stage of the product life cycle.
D) research and development costs.

Question 33

When in a situation with relatively elastic demand, marketing managers sometimes reduce price as an effective competitive tool. What is the potential downside of this approach?

A) Reduced price may not result in sufficient incremental unit sales to increase total revenue.
B) It can lead to potentially damaging price wars.
C) It may negatively impact brand image.
D) All of these

Question 34

What is the primary intent of performing a breakeven analysis?

A) To maximize productivity
B) To provide a rough idea of the level below which prices cannot fall
C) To facilitate the allocation of fixed costs
D) To determine price elasticity

Question 35

In a breakeven analysis, when the total cost curve intersects the total revenue curve, profits will be zero. What is also true at the point of intersection?

A) Losses will also be zero.
B) Losses will be at their maximum level.
C) A price increase is justified.
D) The product has moved into the decline stage of the PLC.

Question 36

Which are the two components of schedule intensity that give an indication of how heavy a brand's media exposure is?

A) Gross ratings points and targeted ratings points
B) Gross impressions and targeted impressions
C) Gross impressions and frequency
D) Reach and frequency

Question 37

Which of the following statements regarding Gross Ratings Points (GRPs) is true?

A) They do not depend on the size of the target market.
B) They are the product of reach and frequency.
C) Reach is the sum of the ratings expressed as percentages in the calculation.
D) All three statements are true.

Question 38

Why is it dangerous to evaluate media solely based on CPM?

A) Most media don't have accurate information on how many people they reach.
B) Media differ vastly in their abilities to communicate information.
C) It doesn't take into account the circulation of the media.
D) Costs can vary among different advertisers, based on the number of buys.

Question 39

What can we say about evaluating outdoor advertising based on CPM?

A) It doesn't take into account the size of the ad.
B) It can vary significantly based on the location of the advertising.
C) It is inexpensive but probably less effective in delivering creative impact compared to other media like television.
D) It cannot be evaluated using CPM as a metric.

Question 40

Why is it more difficult to estimate frequency with magazine advertising?

A) Magazines may be picked-up and read many times.
B) It does not take into account pass-along readership.
C) Readers are more likely to ignore advertisements.
D) Some magazines are monthly and others are bi-monthly.

Question 41

What is the primary advantage found in digital media metrics versus those for traditional media?

A) nearly real-time data
B) big data contains a lot more relevant information
C) it is easier to connect meeting objectives to digital advertising versus traditional advertising
D) All of these

Question 42

Why are page views of greater interest to marketing managers than hits?

A) Not all hits are from current or potential customers.
B) Many hits come from automated searches.
C) Page views represent people who go to a website and view at least some of the information.
D) All of these

Question 43

Why are unique visitors more important to a marketing manager than total visitors?

A) Because the number of unique visitors is always larger.
B) Because some people visit the site multiple times.
C) Because visitors who visit the site multiple times are less likely to purchase.
D) Because unique visitors are all driven to the site by promotional activities.

Question 44

What is a primary cause for high abandonment rates?

A) A webpage may load too slowly.
B) The webpage may require information the visitor is unwilling to provide.
C) The interaction may become too long or complicated.
D) All of these.

Question 45

Do conversion rates relate strictly to sales?

A) Yes. It means that you've converted a visitor to a buyer.
B) No. A conversion can be to any target behavior.
C) Yes. There can be, however, interim steps where the visitor becomes a prospect.
D) No. Conversion just means you've moved from the landing page to another page in the website.

Question 46

What do we mean when we say that the metrics we use for measuring the effectiveness of marketing tactics be appropriate?

A) They must be suitable for assessing the objectives at hand and should pertain to the objectives as precisely as possible.
B) They must be easily implemented and clearly understood.
C) They must be explicitly outlined as part of the marketing strategy statement.
D) They must be relevant to the objective.

Question 47

Why should marketing managers look beyond sales in many cases when assessing results of marketing tactics?

A) It is difficult to relate sales changes directly to most types of promotional efforts.
B) Market share is typically a more accurate measure of performance.
C) Sales figures do not exist in isolation but in the context of many other factors.
D) Sales is not the ultimate objective of marketing.

Question 48

Why is it important for managers to understand how consumers respond to changes in price for a product?

A) Because if pricing is relatively inelastic, they can use price as a competitive tactic.
B) Prices may change frequently in response to changing costs, competition, or other factors.
C) Because if pricing is relative elastic, profits may be increased by increasing price.
D) Because price is always the most important element of the marketing mix.

Question 49

Why does measuring effectiveness in traditional media advertising focus on exposure of advertising versus its creative content?

A) Content is judged based on its efficiency versus its effectiveness.
B) It is typically very difficult to change content once it's completed.
C) There is no standard for measuring creative content.
D) Because content can vary greatly depending on your target audience.

Question 50

How does the bounce rate give context to clickthrough rates?

A) The bounce rate is deducted from the clickthrough rate when advertisers pay for traffic driven to their website.
B) The bounce rate is important in robotic bidding for search engine marketing (SEM).
C) It identifies customers who decided to visit a competitive website.
D) It sets aside site visitors who reached a website by mistake or found the content uninteresting.

Question 51

Why is it important that we consider spending toward marketing objectives as investments rather than expenses?

Question 52

Why is it difficult to use metrics like CPM, frequency, and quality of exposure in comparing one medium to another?

Question 53

Why is it important for marketing managers to track abandonment? What actions might it lead to?