Question 1

Discuss the three major forces that contribute to success or failure in implementing a marketing plan.

Accepted Answer

The three major forces that contribute to success or failure in implementing a marketing plan are:
(1)Owning the Marketing Plan.Perhaps the most common reason a marketing plan fails is a lack of ownership.Ownership of a market plan can be enhanced with detailed action plans,a champion and ownership team,compensation based on performance metrics,and top management involvement.
(2)Supporting the Marketing Plan.Though there are potentially many factors that could affect the degree to which a business is committed to a marketing plan,time to succeed,resource allocation,communication,and skills to succeed are critical.
(3)Adapting the Marketing Plan.The marketing planning process does not stop when marketing plan implementation begins;it continues through strategy implementation.As do all systems,a marketing plan needs to be adapted to survive changing or unanticipated conditions.Four factors that contribute to the adaptive nature of a marketing plan are continuous improvement,feedback measurements,persistence,and adaptive roll out of the marketing plan.

Question 2

One of the most common reasons a marketing plan fails is because of a lack of ownership.

Accepted Answer

A) True 
 B)False  True

Question 3

Which of the following terms is used to describe the success of many Japanese marketing plans because of the Japanese management's ability to adapt when a marketing plan is not working and to stick with the plan?

Accepted Answer

A)  vertical integration
B)  adaptive persistence
C)  horizontal integration
D)  decentralization
E)  standardization B

Question 4

The actual volume and volume estimated in a business plan are 60,000 units and 55,000 units,respectively.If the volume variance of the business works out to $30,000,calculate the margin per unit estimated in the plan.

Accepted Answer

A)  $6
B)  $10
C)  $15
D)  $18.5
E)  $24.5

Question 5

Which of the following is true of backward-looking market metrics?

Accepted Answer

A)  They are applied simultaneously with financial performance metrics,normally at the end of a reporting period.
B)  They include relative product and service quality.
C)  Their purpose is to track customer perceptions and attitudes that precede actual changes in customer behavior.
D)  They are the indicators of future financial performance.
E)  The absence of these metrics can result in customer-dissatisfaction problems being undetected.

Question 6

Net marketing contribution equals ________.

Accepted Answer

A)  (volume/margin per unit) - marketing and sales expenses
B)  volume x margin per unit x marketing and sales expenses
C)  (volume x margin per unit) - marketing and sales expenses
D)  (volume x marketing and sales expenses) - margin per unit
E)  (margin per unit/volume) - marketing and sales expenses

Question 7

The actual variable cost per customer and variable cost per customer estimated in the plan are $3 and $8,respectively.The actual volume and the volume estimated in the plan are 30,000 units and 20,000 units,respectively.Calculate the cost variance.

Accepted Answer

A)  $250,000
B)  $100,000
C)  -$100,000
D)  -$150,000
E)  $150,000

Question 8

To get started,a company should adopt marketing metrics that are intuitive and complex.

Accepted Answer

A) True 
 B)False

Question 9

The actual margin per unit and margin per unit estimated in the plan are $6 and $8,respectively.The actual volume and the volume estimated in the plan are 5,000 units and 10,000 units,respectively.What is the margin variance of the business?

Accepted Answer

A)  -$10,000
B)  $10,000
C)  -$20,000
D)  $20,000
E)  $5,000

Question 10

Calculate the total marketing and sales expenses incurred by a business if it produces 30,000 units at $15 per unit and its net marketing contribution is $225,000.

Accepted Answer

A)  $300,000
B)  $150,000
C)  $625,000
D)  $225,000
E)  $450,000

Question 11

Variance in volume reflects any difference in actual versus planned market demand plus any difference in actual versus planned ________.

Accepted Answer

A)  customer satisfaction
B)  market share
C)  selling price
D)  profit margin
E)  marketing expense

Question 12

Forward-looking marketing metrics are particularly important because ________.

Accepted Answer

A)  they focus on the past performance of a company
B)  they are leading indicators of a business's future performance
C)  they include both customer metrics and competitiveness metrics
D)  they allow a business to measure the revenue per customer
E)  they are more advanced product-market metrics for companies that are dealing with pricing issues

Question 13

The actual price per unit and price per unit estimated in the plan are $15 and $20,respectively.The actual volume of units produced is 25,000 units.Calculate the price variance.

Accepted Answer

A)  $125,000
B)  -$125,000
C)  $500,000
D)  -$375,000
E)  $375,000

Question 14

A share-penetration strategy in an existing market generally takes more time to succeed than
a strategy to enter a new,undeveloped market.

Accepted Answer

A) True 
 B)False

Question 15

Using an ownership team keeps the implementation process on track even when some members of the team are away for extended periods because of business trips,training programs,illness,or vacations.

Accepted Answer

A) True 
 B)False

Question 16

Calculate the net marketing contribution variance,if the actual net marketing contribution and net marketing contribution estimated in the plan are $450,000 and $900,000,respectively.The actual percentage of market share is 25%.

Accepted Answer

A)  $450,000
B)  $11,250
C)  -$450,000
D)  -$11,250
E)  $225,000

Question 17

________ market metrics include customer retention and revenue per customer.

Accepted Answer

A)  Competitiveness
B)  Forward-looking
C)  Backward-looking
D)  Digital-media
E)  Ongoing

Question 18

Calculate the marketing expense variance,if the actual marketing expense and marketing expenses estimated in the plan are $98,000 and $80,000,respectively.The actual percentage of sales is 15%.

Accepted Answer

A)  $27,000
B)  $1,800
C)  $2,700
D)  $18,000
E)  $270,000

Question 19

The net marketing contribution and marketing and sales expenses of a business are $2 million and $725,000,respectively.Calculate the margin per unit if the business produces 100,000 units.

Accepted Answer

A)  27.2%
B)  13%
C)  31.6%
D)  8.9%
E)  22%

Question 20

MINI-CASE
AVB Inc.is a business that produces automobile parts.The plan and the actual performance of the business are shown in the table.
 
-Mini-Case Question.Calculate the volume variance of the business.

Accepted Answer

A)  -$72,000
B)  $72,000
C)  $80,000
D)  -$80,000
E)  $64,000

Exam 15: Marketing Metrics,performance,and Strategy Implementation

Discuss the three major forces that contribute to success or failure in implementing a marketing plan.

One of the most common reasons a marketing plan fails is because of a lack of ownership.

Which of the following terms is used to describe the success of many Japanese marketing plans because of the Japanese management's ability to adapt when a marketing plan is not working and to stick with the plan?

The actual volume and volume estimated in a business plan are 60,000 units and 55,000 units,respectively.If the volume variance of the business works out to $30,000,calculate the margin per unit estimated in the plan.

Which of the following is true of backward-looking market metrics?

Net marketing contribution equals ________.

The actual variable cost per customer and variable cost per customer estimated in the plan are $3 and $8,respectively.The actual volume and the volume estimated in the plan are 30,000 units and 20,000 units,respectively.Calculate the cost variance.

To get started,a company should adopt marketing metrics that are intuitive and complex.

The actual margin per unit and margin per unit estimated in the plan are $6 and $8,respectively.The actual volume and the volume estimated in the plan are 5,000 units and 10,000 units,respectively.What is the margin variance of the business?

Calculate the total marketing and sales expenses incurred by a business if it produces 30,000 units at $15 per unit and its net marketing contribution is $225,000.

Variance in volume reflects any difference in actual versus planned market demand plus any difference in actual versus planned ________.

Forward-looking marketing metrics are particularly important because ________.

The actual price per unit and price per unit estimated in the plan are $15 and $20,respectively.The actual volume of units produced is 25,000 units.Calculate the price variance.

A share-penetration strategy in an existing market generally takes more time to succeed than a strategy to enter a new,undeveloped market.

Using an ownership team keeps the implementation process on track even when some members of the team are away for extended periods because of business trips,training programs,illness,or vacations.

Calculate the net marketing contribution variance,if the actual net marketing contribution and net marketing contribution estimated in the plan are $450,000 and $900,000,respectively.The actual percentage of market share is 25%.

________ market metrics include customer retention and revenue per customer.

Calculate the marketing expense variance,if the actual marketing expense and marketing expenses estimated in the plan are $98,000 and $80,000,respectively.The actual percentage of sales is 15%.

The net marketing contribution and marketing and sales expenses of a business are $2 million and $725,000,respectively.Calculate the margin per unit if the business produces 100,000 units.

MINI-CASE AVB Inc.is a business that produces automobile parts.The plan and the actual performance of the business are shown in the table. -Mini-Case Question.Calculate the volume variance of the business.