Deck 19: Implementing and Controlling Marketing Plans: Evolution and Revolution

Question 1

Implementing a strategy is straightforward; there are usually only a limited number of ways things can go wrong.

Answer 1

False

Question 2

The best way to do a sales analysis is to first break down sales by customer type, and then geographic region.

Answer 2

False

Question 3

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

Answer 3

True

Question 4

The "80/20 rule" describes the relationship that 80 percent of an organization's business often comes from only 20 percent of its products or customers.

Question 5

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

Question 6

The ideal of doing things better, faster, and at lower cost is easy to implement once it is accepted.

Question 7

Traditional accounting reports are usually too general to be of much help to the marketing manager in controlling marketing plans.

Question 8

Marketing managers use performance indexes to compare what did happen with what ought to have happened.

Question 9

Performance analysis looks for exceptions or variations from planned performance.

Question 10

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

Question 11

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

Question 12

Implementation puts plans into operation while control provides feedback.

Question 13

According to the "80/20 rule," it is common to find that about 80 percent of a firm's business comes from only about 20 percent of its customers.

Question 14

Advances in computer software have accelerated the move to cost analysis and performance analysis.

Question 15

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

Question 16

Traditional accounting reports don't give sufficient information to managers who need to know what's happening, in detail, to improve the bottom line.

Question 17

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

Question 18

The "iceberg principle" says that looking at detailed breakdowns of data is not very useful, since most relevant information is revealed in good summaries.

Question 19

Digital communication and e-commerce offer speed and detail in obtaining information needed for better control.

Question 20

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.

Question 21

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

Question 22

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

Question 23

Marketing audits consider future marketing plans, so they are not concerned with a company's current marketing strategies.

Question 24

A marketing audit evaluates the whole marketing program as well as individual plans.

Question 25

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

Question 26

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

Question 27

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

Question 28

The contribution-margin approach to marketing cost analysis focuses attention on variable costs rather than total costs.

Question 29

In a marketing audit, the auditor evaluates the plans being implemented, but not the quality of the effort.

Question 30

The full-cost approach and the contribution-margin approach always suggest the same outcome.

Question 31

The contribution-margin approach ignores some costs to simplify comparing among specific alternatives

Question 32

The accounting department should do a marketing audit since they have access to the data.

Question 33

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

Question 34

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

Question 35

Top management often finds contribution margin analysis to be much more useful than full-cost analysis.

Question 36

Cost analysis and performance analysis are the same thing.

Question 37

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

Question 38

A marketing audit is a systematic, critical, and unbiased review and appraisal of the basic objectives and policies of the marketing function.

Question 39

The contribution-margin and the full-cost approaches to marketing cost analysis are different, but they should lead to the same action implications.

Question 40

The full-cost approach to marketing cost analysis is likely to lead to arguments among product managers about how costs are to be allocated.

Question 41

With respect to marketing control,

A) all cost records should be kept in the marketing department.
B) faster feedback can often be the basis for a competitive advantage.
C) many advances have been made, but there is still no effective way for a manager to be sure that a product is actually selling to the intended target market rather than to some other group.
D) All of the above are true.
E) None of the above is true.

Question 42

Regarding marketing control:

A) Today's marketing managers have access to more information about the effectiveness of their strategies than in previous years.
B) Fast feedback from the marketplace can be a source of competitive advantage.
C) The marketing manager needs information that is captured as soon as it comes in.
D) Fast feedback is not possible unless the necessary data can be quickly sorted and analyzed.
E) All of the above.

Question 43

Ideally, a marketing audit should not be necessary.

Question 44

The 80/20 rule suggests that

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 the above is true.

Question 45

The "80/20 rule" says that:

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 46

Which of the following statements about customer complaints is FALSE?

A) Customer complaints that are handled well by the company usually help it win new customers.
B) In business markets, customer complaints are usually handled by the sales force.
C) In consumer markets, customer complaints are usually handled by toll-free telephone lines, Web sites, and e-mail customer service reps.
D) Customer complaints that are handled well by the company usually help it keep its customers.
E) None of the above is false.

Question 47

Control helps marketing managers learn how:

A) to plan for the future.
B) implementation is working.
C) ongoing plans are working.
D) All of the above.
E) None of the above.

Question 48

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

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 49

A good marketing plan helps managers make strategic planning decisions and provides a framework for effective implementation and _________________.

A) analysis
B) control
C) organization
D) research
E) supervision

Question 50

_____ is the feedback process that helps the marketing manager learn how ongoing plans are working and how to plan for the future.

A) Design
B) Planning
C) Implementation
D) Control
E) Benchmarking

Question 51

When involved in the control process, the marketing manager should view company profit

A) as a gross index of performance that should be further broken down into smaller components.
B) as a guide to future operations.
C) as the test of whether or not the marketing mix is successful.
D) All of the above are true.
E) None of the above is true.

Question 52

To improve the effectiveness of the marketing control process, the marketing manager should:

A) realize that most errors are made because managers react to detailed information too quickly--instead of waiting to see what patterns show up in summary reports.
B) be the supervisor for the data-processing manager.
C) have all necessary data captured as it comes in and in a form that can be quickly sorted and analyzed by computer.
D) be certain that all cost records are kept in a central location controlled by the marketing department.
E) All of the above.

Question 53

While doing an analysis, Sara realizes that close to 80 percent of her company's revenues comes from only 20 percent of her customers. This finding substantiates

A) the iceberg principle.
B) the sales paradox.
C) the 80/20 rule.
D) the standard markup rule.
E) the fishbone rule.

Question 54

Which of the following statements illustrates the 80/20 rule?

A) "80 percent of our target market doesn't respond to our marketing mix, and we only have a 20 percent market share."
B) "Of the hundred retailers who carry our products, the top twenty account for nearly 80 percent of our total business."
C) "20 percent of our marketing effort is wasted, but we don't know which 20 percent."
D) "We don't know whether our profits are 20 percent higher than we deserve, or only 80 percent of what might be easily obtained."
E) None of the above.

Question 55

Effective implementation of a marketing plan:

A) Matters least in markets that are mature and highly competitive.
B) Usually does not make the difference between winning and losing a customer.
C) Can involve decisions related to both internal (invisible to the consumer) and external (visible to the consumer) matters.
D) Is unrelated to the overall objectives of the marketing strategy.
E) None of the above.

Question 56

Regarding controlling marketing programs:

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 the above are true.

Question 57

According to the "80/20 rule":

A) marketing accounts for 80 percent of the consumer's dollar.
B) only 20 out of every 100 firms use formal marketing control programs.
C) about 20 percent of a typical firm's customers are unprofitable to serve.
D) even though a firm might be showing a profit, 80 percent of its business might be coming from only 20 percent of its products or customers.
E) None of the above is correct.

Question 58

Sam Reuter, marketing manager for Herbal Shampoo Company, has to choose one of three different proposed labels for a new herbal shampoo. How might Sam pretest consumer response to the labels?

A) Put a toll-free telephone number and Web site address on the product label.
B) Check the labels of competitors.
C) Launch the product with new labels and evaluate the response.
D) Prepare sample labels with graphics software and test them on the Internet.
E) Set up a televideo conference.

Question 59

Which of the following statements is NOT TRUE?

A) Good implementation builds relationships with customers.
B) Implementation ignores external matters.
C) Implementation is especially critical in mature and highly competitive markets.
D) Effective implementation means that plans work as intended.
E) Implementation has its own objectives.

Question 60

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?

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 61

A marketing manager who wants to analyze the firm's sales should be aware that:

A) sales invoice files contain little useful information.
B) the best way to analyze sales data is according to geographic regions.
C) sales analysis involves a detailed breakdown of a company's sales forecasts.
D) sales analysis may not be possible unless the manager has made arrangements for the company to capture identifying information about each sale.
E) a manager can never have too much data.

Question 62

Doug Selkirk is a sales manager for IBM. He has asked his assistant to prepare an analysis that shows what percent over or under quota each sales rep was during the last year. This is an example of

A) using natural accounts.
B) the contribution-margin approach.
C) sales analysis.
D) target market analysis.
E) performance analysis.

Question 63

Which of the following statements might result from a performance analysis?

A) Our California salesman sold more aluminum tubing than any of our other reps.
B) Sophia Sanchez calls on two of our three biggest customers.
C) Joshua Voigt sold less tubing to wholesalers than to manufacturers.
D) Walker Brown sold more aluminum tubing than steel tubing.
E) Pele Ruiz's sales are over his quota.

Question 64

Performance analysis differs from sales analysis in that performance analysis involves:

A) detailed breakdowns of a company's sales records.
B) analyzing only the performance of sales representatives.
C) comparing performance against standards--looking for exceptions or variations.
D) analyzing only people--not products or territories.
E) budgeting for marketing expenditures on the basis of contribution margins.

Question 65

Which of the following observations concerning performance analysis is true?

A) It doesn't help identify what data is most relevant.
B) It merely lists figures, but doesn't compare them against standards.
C) It doesn't look for differences or exceptions.
D) It doesn't have to be limited to sales.
E) None of the above is true.

Question 66

The best way to break down and analyze sales data is:

A) by order size.
B) by geographic region.
C) by customer type.
D) by product, package, size, grade or color.
E) any of the above, depending on the situation.

Question 67

Sales analysis is a:

A) well-accepted trend analysis method.
B) necessity for making all important marketing decisions.
C) way of assuring that future sales will be profitable.
D) detailed report of likely profitability.
E) detailed breakdown of a company's sales records.

Question 68

A _____ looks for exceptions or variations from planned performance.

A) performance analysis
B) break-even analysis
C) Pareto chart
D) fishbone diagram
E) pie chart

Question 69

Marketing sales analysis:

A) keeps track of whether a firm's sales are increasing or decreasing.
B) requires a detailed breakdown of a company's sales records.
C) is very hard to do--because computers must be involved.
D) looks for exceptions or variations from planned performance.
E) tries to avoid the 80/20 rule.

Question 70

Compared with sales analysis, PERFORMANCE ANALYSIS:

A) shows which customers should be dropped.
B) looks for exceptions or variations from planned performance.
C) does not do as much comparing against standards.
D) shows how to improve performance.
E) All of the above.

Question 71

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

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 72

Charter Communications uses the order-call ratio to measure the performance of its salespeople. If, in the past year, a salesperson made $13 million in sales, called on 4,312 potential business customers (either by phone or in person), and got 1,216 orders, what was this sales rep's order-call ratio (to the nearest whole number percent)?

A) 12 percent
B) 18 percent
C) 28 percent
D) 36 percent
E) 355 percent

Question 73

Sales analysis:

A) requires more information than is available from traditional accounting reports.
B) can be done in different ways--there is no single "best way."
C) often studies how sales patterns change over time.
D) All of the above are true.
E) None of the above is true.

Question 74

Sales analysis:

A) typically involves reorganizing existing information rather than gathering new information.
B) may involve analyzing many different breakdowns of overall sales.
C) is usually a good first step when setting up a control system.
D) All of the above are true.
E) None of the above is true.

Question 75

Detailed sales analysis is:

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 the above is true.

Question 76

Regarding sales analysis:

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 77

The main purpose of a performance analysis is to:

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 78

The most useful breakdown of data in a sales analysis is by:

A) size of order.
B) product, package size, grade, or color.
C) customer type.
D) geographic region.
E) any or all of the above--depending on the situation.

Question 79

A marketing "performance analysis" is most likely to compare:

A) an individual sales rep's performance to total company sales.
B) a firm's sales with its competitors' sales.
C) sales by product to sales by territory.
D) advertising cost to sales.
E) planned sales with actual sales.

Question 80

Which of the following observations concerning sales analysis is NOT correct?

A) It is a detailed breakdown of a company's sales records.
B) Product category is the best way to analyze sales data.
C) Data can easily be obtained from basic billing and accounts receivable procedures.
D) It is easy to do, and usually it's inexpensive.
E) There is no one best way to break down sales data.