Deck 15: Marketing Metrics,performance,and Strategy Implementation

Question 1

The forward-looking marketing metrics signal aspects of the marketing plan that
may be failing.

Answer 1

True

Question 2

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

Answer 2

False

Question 3

Marketing plans should not be aggressively communicated either internally or externally to protect competitive position.

Answer 3

False

Question 4

Without backward-looking metrics,the business has only an internal measure of performance.

Question 5

Variance analysis allows the company to isolate the components of marketing performance to understand better how each component contributes to the actual net marketing contribution.

Question 6

The degree to which a marketing strategy is successful will be detected first by ________.

A)gains or losses in revenue
B)market metrics that track customer satisfaction,retention and perceptions of value
C)the financial performance measure of cash flow
D)shareholder value
E)net profit

Question 7

Poor customer retention has a powerful impact on financial performance only if a business is losing market share.

Question 8

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.

Question 9

Customer awareness,interest,product trial,and customer satisfaction and dissatisfaction,along with perceptions of relative product quality,service quality,and customer value,all serve as forward-looking marketing metrics.

Question 10

Forward-looking marketing metrics are particularly important because they correspond more closely to internal financial-performance metrics.

Question 11

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

Question 12

What are the two broad categories of market metrics?

A)process metrics and product metrics
B)forward-looking metrics and backward-looking metrics
C)marketing profitability metrics and customer metrics
D)customer metrics and competitiveness metrics
E)revenue metrics and cost metrics

Question 13

The whole purpose of backward-looking marketing metrics is to track customer perceptions and attitudes that precede changes in customer behavior and financial performance.

Question 14

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

Question 15

Successful implementation of a marketing plan is directly related to the structure of a business's marketing effort.

Question 16

A market-based business with a strong competitor orientation across job functions has a lower level of market sensitivity.

Question 17

The whole purpose of ________ market metrics is to track customer perceptions and attitudes that precede changes in customer behavior and a business's financial performance.

A)financial
B)static
C)competitiveness
D)forward-looking
E)backward-looking

Question 18

Forward-looking marketing metrics are particularly important because ________.

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 19

Which of the following statements is true about market metrics?

A)They involve using uniform benchmarks across all industries.
B)They provide qualitative data,and not quantitative data.
C)They always express the measurements as pie charts.
D)They measure market conditions and a business's performance in that market.
E)They are more advanced product-market metrics for companies that are dealing with pricing issues.

Question 20

Marketing metrics are too important to be simply an add-on to the marketing or product
manager's responsibilities.

Question 21

The overall goal of compensation tied to market metrics is to immediately create ________.

A)motivation and responsibility
B)satisfaction
C)accountability
D)persistence
E)harmony

Question 22

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.

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

Question 23

Which of the following terms refers to an incremental implementation of a marketing plan that allows for feedback and corrective adjustments early in the implementation process?

A)adaptive persistence
B)adaptive rollout
C)channel strategy
D)marketing mix
E)benchmarking

Question 24

Calculate the number of units produced by a business if the net marketing contribution and marketing and sales expenses are $625,000 and $175,000,respectively.The margin per unit is estimated to be $25.

A)50,000
B)25,000
C)32,000
D)76,000
E)43,000

Question 25

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.

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

Question 26

________ market metrics include customer retention and revenue per customer.

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

Question 27

Which of the following statements is true?

A)American managers are more likely than Japanese managers to drop a marketing plan when it meets resistance.
B)The concept of continuous improvement is implicit in American marketing plan implementation,unlike Japanese marketing plan implementation.
C)The term adaptive persistence has been used to describe the success of many Japanese marketing plans.
D)One of Japanese management's greatest assets is the ability to abandon a marketing plan quickly when it is not working.
E)Japanese managers are not as determined as American managers to make their marketing plans work.

Question 28

Owning the marketing plan,a force that contributes to the successful implementation of a marketing plan,involves ________.

A)developing and using detailed action plans
B)using an adaptive rollout
C)using feedback measurements
D)promoting the business-as-usual routine
E)adapting to changing market conditions

Question 29

Which of the following is a backward-looking market metric?

A)customer awareness
B)market share
C)product trial
D)customer satisfaction
E)perceptions of relative product quality

Question 30

Which of the following statements regarding customer satisfaction is true?

A)Very satisfied customers usually switch back and forth with competitors' products.
B)Over 90 percent of dissatisfied customers lodge complaints.
C)Very satisfied customers often buy higher margin products and extra services.
D)Dissatisfied customers who complain cannot usually be retained.
E)Satisfied customers are very loyal and buy in relatively large amounts.

Question 31

Which of the following refers to a person who is highly devoted to the action plan and can lead its successful implementation?

A)an entrepreneur
B)a champion
C)an intrapreneur
D)a scapegoat
E)an in-process manager

Question 32

Which of the following allows a company to isolate the components of marketing performance to understand better how each component contributes to the actual net marketing contribution?

A)a SWOT analysis
B)a situation analysis
C)a performance analysis
D)a post-hoc analysis
E)a variance analysis

Question 33

Calculate the total volume of units sold by a business if there is a market demand of 550,000 units and the business has a market share of 25%.

A)292,560
B)440,650
C)137,500
D)325,000
E)110,190

Question 34

Net marketing contribution equals ________.

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 35

Calculate the net marketing contribution,if a business produces 25,000 units at $10 margin per unit,with total marketing and sales expenses of $100,000.

A)$50,000
B)$350,000
C)$100,000
D)$250,000
E)$150,000

Question 36

Backward-looking marketing performance metrics ________.

A)are leading indicators of a business's future performance
B)include in-process measures of customer thinking and attitudes
C)include the metrics that measure market share,customer retention,and revenue per customer
D)involve using uniform benchmarks across all industries
E)are more advanced product-market metrics for companies that are dealing with pricing issues

Question 37

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

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 38

Margin per unit equals ________

A)demand x sales
B)total sales contribution - marketing and sales expenses
C)price - fixed unit cost
D)price - variable unit cost
E)price - total unit cost

Question 39

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?

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

Question 40

Adapting the marketing plan,a force that contributes to the successful implementation of a marketing plan,involves ________.

A)conducting a variance analysis
B)using an adaptive rollout
C)creating ownership teams
D)promoting the business-as-usual routine
E)developing and using detailed action plans

Question 41

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%.

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

Question 42

The fundamental marketing profitability metric for planning purposes is the ________ equation.

A)gross profit
B)market share
C)market demand
D)net marketing contribution
E)variable unit cost

Question 43

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%.

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

Question 44

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

Question 45

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

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

Question 46

Calculate the total market demand if a business sells 48,000 units,which represents a market share of 32%.

A)224,500
B)265,000
C)196,000
D)150,000
E)125,300

Question 47

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.

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

Question 48

Calculate the price per unit if the variable cost per customer is $6 and the margin per unit is $24.

A)$30
B)$4
C)$18
D)$15
E)$9

Question 49

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.

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

Question 50

Explain the importance of market metrics,and name and describe the two types of market metrics,providing examples of specific metrics for each.

Question 51

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

Question 52

If a business produces 800,000 units and the market demand for the product is 4 million units,what is its percentage of market share?

A)8%
B)20%
C)16%
D)40%
E)80%

Question 53

If a business produces 400,000 units and the market demand for the product is 2 million units,what is its percentage of market share?

A)8%
B)20%
C)16%
D)40%
E)80%

Question 54

Calculate the total volume of units produced if there is a market demand of 50,000 units at a market share of 10%.

A)292,560
B)440,650
C)500,000
D)325,000
E)100,000

Question 55

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 net marketing contribution variance of the business.

A)-$20,000
B)$20,000
C)$140,000
D)-$26,000
E)$26,000

Question 56

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 margin variance of the business.

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

Question 57

If the price per unit is $34 and the variable cost per customer is $17,calculate the margin per unit.

A)$2
B)$51
C)$25.5
D)$8.5
E)$17

Question 58

A business has a market demand of 300,000 units at a market share of 20%.The price per unit and variable cost per customer are $25 and $10,respectively.If the net marketing contribution of the business is $450,000,calculate the total marketing and sales expenses incurred by the business.

A)$250,000
B)$160,000
C)$520,000
D)$300,000
E)$450,000

Question 59

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.

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

Question 60

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?

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