Deck 15: Evaluating Marketing Efforts

Question 1

An important output of the marketing program would be customer satisfaction.

Answer 1

True

Question 2

The choice of which accounting system to use may be determined by who is using the information.

Answer 2

True

Question 3

A value-based approach reinforces the fundamental assumption that costs represent the best way to manage inputs.

Answer 3

False

Question 4

A marketing audit is a comprehensive and systematic evaluation of the firm's marketing operation and the environment in which it operates.

Question 5

The marketing control system,measures actual performance against planned performance.

Question 6

Accounting systems measure financial performance: costs and revenue.

Question 7

Full costing allocates costs based on incremental costs along each step of the marketing process.

Question 8

Customer satisfaction can predict competitive action and leapfrogging technology that can hurt sales very accurately.

Question 9

When benchmarking is used,standards for specific areas/tasks are set with reference to the best performing firm in each area,regardless of its industry.

Question 10

Experimentation is research to measure causality by changing one or more variables in order to observe the effects on another variable.

Question 11

Information and control systems provide the feedback needed to adjust marketing programs.

Question 12

Cycle time,has value that cannot be adequately represented by cost

Question 13

External causes of variance involve making changes within a process in order to make the process more productive,by either reducing defects or increasing volume.

Question 14

The balanced scorecard is an attempt to identify today's outputs that are inputs for tomorrow's outputs.

Question 15

By definition,a quota is always the top of the tolerance range.

Question 16

An information system is the mechanism for storing,accessing and manipulating information.

Question 17

Output analysis can be in the form of performance evaluations for trade shows,the sales force and other marketing areas.

Question 18

When the total organization is undergoing evaluation,the level of control is macro.

Question 19

Price is considered an input variable because it is an input into the marketing process and must be managed.

Question 20

Micro control involves monitoring the progress of the overall marketing strategy.

Question 21

These are the measures of productivity,process effectiveness and other elements that impact customer satisfaction.

A) Economic measures
B) Comprehensive measures
C) Operational measures
D) Production measures
E) Job measures

Question 22

This is the goal against which performance is compared in the control process.

A) Output
B) Sensor
C) Standard
D) Variance
E) Deviation

Question 23

Which of the following attempts to narrow the existing range of variance?

A) Systematic change
B) Random variance
C) Tinkering
D) External variance
E) Judicious variance

Question 24

All of the following are four key areas for input,suggested by the balanced scorecard concept,EXCEPT:

A) Financial
B) Customer
C) Internal business processes
D) External environment
E) Learning and growth

Question 25

When the total organization is undergoing evaluation,the level of control is:

A) Macro
B) Total
C) Micro
D) Variable
E) Comprehensive

Question 26

The marketing control system:

A) Is just an income statement totaling revenue and subtracting costs
B) Is rapidly gaining recognition as having a value that can be adequately represented by cost
C) Is the level of the organization that is being evaluated
D) Is the system that measures actual performance against planned performance
E) Involves monitoring the progress of a subset of the overall marketing strategy

Question 27

The time required to complete an action is best known as:

A) Cycle time
B) Production time
C) Creation time
D) Periodic time
E) Input-output time

Question 28

Identify the INCORRECT statement about micro control.

A) It involves monitoring the progress of the overall marketing strategy
B) It can include evaluations of product lines, market segments or functional areas
C) Here, managers compare monthly or even weekly performance of specific areas against goals or standards
D) Tracking salesperson performance against quota is an example of micro control
E) Control systems flow from the macro to the micro level

Question 29

Input analysis usually includes:

A) Cycle time, price, marketing activities etc
B) The number of leads gathered
C) The number of demonstrations
D) The number of displays set up in distributors' locations
E) Satisfied customers but not satisfied employees

Question 30

_____,attempts to identify today's outputs that are inputs for tomorrow's outputs.

A) Net profit
B) A balanced scorecard
C) The budget
D) ROAM
E) Return on investment

Question 31

Which of the following is NOT a major cause of variance?

A) Tinkering variance
B) Systematic change
C) External causes
D) Random variance
E) Data input

Question 32

Tracking salesperson performance against quota best describes:

A) Major control
B) Variable analysis
C) Input analysis
D) Macro control
E) Micro control

Question 33

_____ is making changes within a process in order to make the process more productive,by either reducing defects or increasing volume.

A) Tinkering
B) Systematic change
C) External alteration
D) Random variance
E) Data input

Question 34

This is an important element of a control process and is used as a measuring tool.

A) Tolerance
B) Sensor
C) Standard
D) Variance
E) Benchmark

Question 35

If a company sums up the value of all its customers' future purchases,discounted back into today's dollar,the resultant picture of the value of the firm is called:

A) Customer tolerance
B) Customer equity
C) Operating profit
D) Gross value
E) Net value

Question 36

This is a customer measure used in the balanced scorecard.

A) Data availability
B) Return on assets managed
C) New products introduced
D) Credit approval cycle
E) Intent to repurchase

Question 37

Identify the INCORRECT statement pertaining to cycle time.

A) It is the time taken to complete an action
B) It has value that can be adequately represented by cost
C) JIT delivery is an example of how cycle time can be reduced
D) Firms can gain competitive advantage by reducing cycle time
E) It is becoming a significant factor in success for many firms

Question 38

Which of the following is a financial measure used in the balanced scorecard?

A) Account share
B) Revenue per customer
C) Return on assets managed
D) Customer satisfaction
E) Intent to repurchase

Question 39

Control standards can be in the form of a range of acceptable performance,called a:

A) Tolerance range
B) Deviation range
C) Standard range
D) Variable range
E) Macro range

Question 40

Important measures of effectiveness are usually those that measure:

A) Cycle time
B) Variable cost
C) Fixed cost
D) Revenues
E) Technology

Question 41

Which of the following statement about pricing plans is NOT true?

A) They act as limits on marketing activities
B) They optimizes sales
C) They look at maximizing profit
D) They provide guidance for salespeople when responding to customer requests
E) They set the minimum acceptable levels of performance

Question 42

This type of variance is caused by uncontrollable and unidentified causes.

A) Systematic variance
B) Tinkering
C) Deviation variance
D) Random variance
E) Data variance

Question 43

This is a comprehensive and systematic evaluation of the firm's marketing operation and the environment in which it operates.

A) Benchmark
B) Marketing audit
C) Customer satisfaction survey
D) SWOT analysis
E) Input-output analysis

Question 44

Quotas are:

A) Minimum levels of performance usually associated with sales performance
B) Tools of control systems that act as limits on marketing activities
C) Guidelines that can only be set for product development cycles
D) Maximum levels of performance usually associated with sales performance
E) The peak of the tolerance range

Question 45

Full costing,contribution analysis and activity-based costing (ABC).Are approaches to:

A) Cost allocation
B) Risk management
C) Input analysis
D) Output analysis
E) External variances

Question 46

Which are the types of variances that are within the manager's control?

A) Systematic and external sources
B) Random and external sources
C) Tinkering and systematic sources of variance
D) External and random sources
E) Tinkering and external sources

Question 47

Which of the following are measurement tools in the control process?

A) Benchmarking
B) Quotas and targets
C) Pricing plans
D) Marketing audits
E) Statistical analysis

Question 48

All of the following are standard setting tools in the control process EXCEPT:

A) Quotas
B) Budgets
C) Standards
D) Benchmarks
E) Targets

Question 49

Seasonality in purchasing habits would be an example of:

A) Systematic variance
B) Tinkering
C) Deviation variance
D) External variance
E) Data variance

Question 50

A _____ is the performance level of the best organization for that particular task.

A) Premier process
B) Goal
C) Target
D) Benchmark
E) Bulls eye

Question 51

The goal of _____ is changing existing ways of doing things and creating a new tolerance.

A) Systematic change
B) Tinkering
C) External variance
D) Random variance
E) Cyclic variance

Question 52

_____ allocates costs based on incremental costs along each step of the marketing process.

A) Input-output analysis
B) Activity-based cost accounting
C) Full costing
D) Benchmarking
E) Contribution analysis

Question 53

SWOT analysis unlike marketing audit:

A) Is necessarily a macroanalysis and can contribute that big-picture view to the marketing audit
B) Will only examine all of the internal processes that are part of the marketing function
C) Is a micro level analysis of internal factors affecting the marketing process
D) Examines only those processes which can be internally varied to improve performance
E) Provides a smaller picture of the firms strengths and weaknesses

Question 54

A(n)_____ analysis is necessarily a microanalyses and can contribute that big-picture view to the marketing audit.

A) Input
B) SWOT
C) Output
D) Contribution
E) Case

Question 55

This area,audited as part of the marketing audit,examines the marketing culture of a firm.

A) Marketing strategy
B) The environment
C) Marketing productivity
D) Marketing orientation
E) Marketing systems

Question 56

_____ is change due to the implementation of a new system.

A) Systematic variance
B) Tinkering
C) External variance
D) Random variance
E) Cyclic variance

Question 57

Identify the INCORRECT statement regarding random variance.

A) It is caused by unidentified causes
B) It is not affected by tinkering
C) Managers do not have control over it
D) A certain degree of randomness is there in every system
E) Managers can fix it with tinkering

Question 58

_____ is a form of value added,in that costs are added as they occur along the supply chain and profit can be calculated at any given point in the supply chain.

A) Full costing
B) Contribution costing
C) Activity-based costing
D) Input analysis
E) Absorption costing

Question 59

Which of the following is a standard setting tool in the control process?

A) Marketing audit
B) Pricing plan
C) Customer satisfaction measurement
D) Accounting system
E) Information system

Question 60

Fixed costs are allocated to products/other units according to what drives the cost through:

A) Activity-based accounting
B) Contribution analysis
C) Full costing
D) Benchmarking
E) Input-output analysis

Question 61

The ultimate objective of any accounting system is to produce:

A) Accurate benchmarks
B) Accurate income statements
C) Accurate tolerance ranges
D) Accurate quotas
E) Accurate trig points

Question 62

These represent the creation of information by gathering data,assembling them in a meaningful way and then sharing them.

A) Information systems
B) Reporting systems
C) Aggregating systems
D) Data systems
E) Input systems

Question 63

At the _____,reporting systems enable management to spot general trends,potential threats and opportunities.

A) Macro level
B) Micro level
C) Mid-level
D) System level
E) Sub-level

Question 64

_____ is incorrectly believed to be a form of experimentation.

A) Reporting
B) Target setting
C) Benchmarking
D) Tolerance
E) Tinkering

Question 65

Briefly describe the characteristics of data that help and hinder the marketer's decision-making efforts?

Question 66

_____ is used as a method of explaining success or failure after the fact.

A) Case analysis
B) Benchmarking
C) Statistical forecasting
D) Experimentation
E) Predictive modeling

Question 67

All of the following are types of search tools EXCEPT:

A) Reporting systems
B) Information systems
C) Case analysis
D) Benchmarking
E) Experimentation

Question 68

An advantage of statistical analysis is that:

A) It can inform forecasts, as well as explain past successes
B) It leads to innovative thinking
C) It does not promote incremental thinking
D) It is self-serve reporting
E) It helps to eliminate variance

Question 69

_____ is the statistic that is used to examine variance in performance.

A) Skewed distribution
B) Mean
C) Standard deviation
D) Mode
E) Median

Question 70

_____ reflects the fact that most processes have evolved over time serving objectives that may no longer be considered relevant.

A) Statistical analysis
B) Predictive modeling
C) Reengineering
D) Organizational learning
E) Strategic planning

Question 71

What are information systems? What is the role of data warehousing?

Question 72

_____ can lead to incremental rather than innovative thinking.

A) Reporting systems
B) Information systems
C) Experimentation
D) Statistical analysis
E) Case analysis

Question 73

Reporting and information systems are tools to assist management in their search for:

A) Variance
B) Sales
C) Profits
D) Accounting systems
E) Standards

Question 74

Discuss are the standard setting processes?

Question 75

_____ are mechanisms for sharing information across work groups.

A) Experimentations
B) Case analysis
C) Reporting systems
D) Information systems
E) CRM systems

Question 76

What are quotas? How are quotas related to performance ranges? How does this impact marketing?

Question 77

If a firm is seeking to evaluate an overall sales office with the goal of treating that office as a profit center,the best method would be:

A) Full-costing accounting
B) Benchmarking
C) Contribution analysis
D) Activity-based accounting
E) Absorption costing

Question 78

This is best defined as research to measure causality by changing one or more variables in order to see the effects on another variable.

A) Statistical analysis
B) Benchmarking
C) Experimentation
D) Predictive modeling
E) Tinkering

Question 79

If shared resources are involved,the best accounting method to use would be:

A) Benchmarking
B) Full-costing
C) Activity-based accounting
D) Contribution analysis
E) Direct costing

Question 80

Identify the four causes of variance.Why is it important to correctly identify the source of variation?