Deck 20: Marketing Performance Measurement

Question 1

Which of the following is NOT an important factor in marketing accountability?

A) complying with legal requirements
B) managing resources
C) increasing return on marketing investment
D) decreasing marketing expenses
E) increasing marketing efficiency

Answer 1

D

Question 2

Through marketing accountability, marketing is treated more as a(n) ________ than as a(n) ________.

A) effect; cause
B) indicator; art
C) process; art
D) art; process
E) art; science

Answer 2

C

Question 3

As more organizations increase their focus on corporate responsibility, marketing accountability is likely to become ________.

A) more creative
B) more challenging
C) more important
D) less technical
E) less expensive

Answer 3

C

Question 4

The Sarbanes-Oxley Act of 2002 is primarily focused on ________ reform.

A) accounting
B) direct marketing
C) advertising
D) channel communication
E) promotions

Question 5

Accounts payable and accounts receivable are both examples of ________.

A) financial statements
B) copy tests
C) CRM metrics
D) marketing metrics
E) data analytics

Question 6

In general, organizations should identify which marketing activities to measure based on which of the following?

A) creative influences
B) artistic direction
C) marketing objectives
D) competitors' activities
E) previously measured activities

Question 7

Through marketing accountability, traditional opinion-based marketing practices are being replaced with practices that are ________.

A) less competitive
B) less interdependent
C) more qualitative
D) more quantitative
E) more artistic

Question 8

Which of the following is an inference-based process of transforming data into useful information?

A) data analytics
B) marketing measurement
C) marketing metrics
D) advertising measurement
E) key performance indicators

Question 9

Marketing measurement has both process and structural implications for a business. Which of the following is a structural implication?

A) the need to assign staff to perform the necessary measurement tasks
B) the need to understand how marketing information is generated
C) the need to determine how employees are rewarded for using measurement data
D) the need to determine how marketing information will be analyzed
E) the need to determine how management will be rewarded for using measurement data

Question 10

When management of an organization decides to measure the organization's marketing activities, management is necessarily also committing to which of the following?

A) using copy testing
B) using an advertising report card
C) moving from a customer relationship model to a transactional model
D) relating marketing activities to specific marketing objectives
E) purchasing a CRM program

Question 11

Which of the following is NOT a tool used to help manage marketing accountability?

A) optimization models
B) planning
C) interval scales
D) CRM software
E) forecasting

Question 12

Brand awareness and market share are both examples of ________.

A) data analytics
B) hurdle rates
C) marketing metrics
D) CRM indicators
E) return on marketing investment rates

Question 13

Which of the following would most likely appear on a company's balance sheet?

A) KPI metrics
B) ROMI factors
C) CRM metrics
D) accounts payable amounts
E) data analytics

Question 14

Which of the following is an example of a business investment?

A) net revenue
B) operating profit
C) gross rating points
D) marketing budget
E) profit margin

Question 15

The management of resources and processes to achieve measurable increases in both return on marketing investment and efficiency is known as ________.

A) data analytics
B) marketing accountability
C) marketing metrics
D) advertising measurement
E) brand health

Question 16

Which of the following is most closely associated with the Sarbanes-Oxley Act of 2002?

A) Publicly traded companies must identify when they are using puffery in marketing communications.
B) Publicly traded companies are not allowed to suppress competition.
C) Publicly traded companies must publish results of their marketing accountability processes.
D) Employees of publicly traded companies cannot be held responsible for the business practices of their companies.
E) Leaders of publicly traded companies are responsible for the business practices of their companies.

Question 17

Early marketing measurement efforts tended to focus on ________, while current efforts are moving toward ________.

A) quantitative metrics; qualitative metrics
B) process metrics; financial metrics
C) consumer attitudes; linking sales performance and marketing activities
D) channel member attitudes; consumer attitudes
E) brand health; brand attributes

Question 18

The alignment of marketing goals with financial performance requires increasing the ________ of marketing activities.

A) creativity
B) subjectivity
C) qualification
D) funding
E) quantification

Question 19

Which of the following is NOT a type of traditional financial data?

A) profit margin
B) brand awareness
C) accounts payable
D) accounts receivable
E) revenue

Question 20

Marketing ________ is collecting and evaluating marketing metrics to determine the effectiveness of marketing activities in fulfilling customer, organizational, and marketing objectives.

A) measurement
B) accountability
C) testing
D) synthesis
E) return

Question 21

Copy testing is often referred to as a ________.

A) hurdle rate
B) report card
C) balance card
D) brand model
E) communication objective

Question 22

Based on customer loyalty rankings for product categories, marketers could reasonably expect consumers to be most loyal to which of the following?

A) canned soup
B) canned vegetables
C) pet food
D) soft drinks
E) canned fruit

Question 23

Cost to retain a customer is an example of a(n) ________.

A) brand awareness measurement
B) brand health measurement
C) advertising report card category
D) key performance indicator
E) purchase intention measurement

Question 24

It would take the shortest amount of time to determine the success of an advertising campaign with which of the following communication objectives?

A) persuading consumers to act
B) changing brand perceptions
C) increasing brand loyalty
D) building brand awareness
E) building brand relationships

Question 25

Which of the following is the focus of the first step in a typical brand tracking model?

A) brand personality
B) brand attributes
C) brand recognition
D) media recognition
E) media footprint

Question 26

________ is collecting and evaluating advertising metrics to determine the effectiveness of an advertisement or advertising campaign in fulfilling customer, organizational, and marketing objectives.

A) Brand health measurement
B) Return on marketing investment
C) Advertising measurement
D) Media planning
E) Marketing accountability

Question 27

The lower the level of customer loyalty is for a product, the ________ .

A) stronger the existing brand relationships are
B) stronger the media plans are
C) stronger the copy tests are
D) more opportunity there is to gain sales
E) more opportunity there is to integrate marketing

Question 28

Direct mail offers are examples of ________.

A) short-term advertising actions
B) long-term advertising actions
C) brand awareness advertising actions
D) advertising metrics
E) brand health metrics

Question 29

Which of the following is a true statement about advertising?

A) For most organizations, advertising is one of the smallest marketing expenditures.
B) The most important measure of advertising is its entertainment value.
C) Informing consumers about a brand is typically a short-term advertising effort.
D) The construction of an advertising campaign should be guided by communication objectives.
E) Call-to-action advertising asks for a long-term response from consumers.

Question 30

Of the following criteria, which would be best suited for evaluating new product introduction advertising?

A) brand loyalty
B) shopping intention
C) basic enjoyment
D) purchase intention
E) brand preference

Question 31

Brand tracking studies measure the interplay between ________ and ________.

A) brand personality; brand health
B) brand attributes; brand personality
C) marketing communications; revenue
D) marketing communications; brand health
E) brand health; revenue

Question 32

Advertising copy tests, brand health tracking studies, and return on marketing investment models are all examples of ________.

A) brand awareness measurements
B) marketing measurement tools
C) advertising report card categories
D) balanced report card categories
E) types of customer surveys

Question 33

Which of the following is an example of a KPI?

A) reach
B) frequency
C) media engagement
D) media footprint
E) average revenue per customer

Question 34

Increasing market share and changing brand perceptions are both examples of ________.

A) qualitative metrics
B) quantitative metrics
C) qualitative analytics
D) quantitative analytics
E) marketing objectives

Question 35

The survey-based process known as ________ is designed to explore advertising effectiveness.

A) brand awareness
B) brand health
C) return on investment
D) key performance indication
E) copy testing

Question 36

The measurement of the effectiveness of new media is becoming ________.

A) standardized
B) more important
C) less important
D) impossible to analyze quantitatively
E) impossible to analyze qualitatively

Question 37

Key performance indicators are measurements that help an organization do which of the following?

A) create marketing strategies for new products
B) quantify progress toward the achievement of marketing objectives
C) analyze competitors' media strategies
D) determine employee compensation packages
E) analyze the artistic value of marketing communications

Question 38

Quality and convenience are both examples of ________.

A) advertising measurements
B) brand awareness levels
C) brand attributes
D) behavioral advertising objectives
E) brand loyalty levels

Question 39

Which of the following is the focus of the final step in a typical brand tracking model?

A) brand personality
B) brand attributes
C) brand recognition
D) media recognition
E) media footprint

Question 40

________ is the collective consumer perceptions, attitudes, and expectations for a brand resulting from historical and current brand experiences.

A) Brand personality
B) Brand recognition
C) Brand health
D) Brand trending
E) Brand image

Question 41

Which of the following is NOT a stage in the purchase funnel associated with the advertising objectives of gaining interest and differentiating?

A) awareness
B) familiarity
C) intention
D) opinion
E) consideration

Question 42

________ is the impact on business performance resulting from executing specific marketing activities.

A) Return on marketing investment
B) Market assessment
C) Marketing accountability
D) Brand health
E) Brand attribute

Question 43

Which of the following is the best example of a long-term advertising action?

A) a local newspaper ad announcing a department store's spring sale starting on Saturday
B) a national newspaper insert of coupons for a company's line of household cleaning supplies
C) a direct-response television commercial with a 1-800 number for consumers to call to order the featured product
D) a national magazine advertisement introducing a new line of low-fat frozen yogurt
E) a catalog company offering 15% off one item for consumers who order by a given date

Question 44

Data that is trended is collected ________.

A) at specific time intervals
B) at random time intervals
C) from specific demographic groups
D) from randomly selected consumers
E) by consumer relationship management systems

Question 45

A regional restaurant chain spends $90,000 for a local television advertising campaign that delivers $450,000 in incremental revenue. What is the ROMI factor?

A) 4
B) 5
C) 50%
D) $360,000
E) $450,000

Question 46

Which of the following best describes a purchase funnel?

A) an assessment of advertising effectiveness
B) a sequential consumer decision-making model
C) a measure of return on investment
D) a customer relationship management model
E) an advertising copy test

Question 47

A company's ________ is the minimum amount of financial return it requires before it will make a financial investment.

A) copy test
B) score card
C) report card
D) hurdle rate
E) tipping point

Question 48

Which of the following is the best example of trended data?

A) responses from surveys about current fashions and fads collected from 100 teenagers over the period of a weekend
B) responses from surveys about packaged goods brand attributes collected every six months from the same set of 100 parents ages 29-39
C) telephone responses from a direct response television ad aired on different channels at different times over the course of a month
D) comparisons of competitors' sales performance in a single business quarter
E) interview responses that have been adjusted to compensate for bias from the interviewers

Question 49

ROMI helps marketers allocate marketing funds based on ________ rather than on ________.

A) instinct; data
B) budgetary limitations; guesswork
C) creativity; accountability
D) metrics; analytics
E) qualitative measures; quantitative measures

Question 50

Consider a situation in which there is 10% unaided awareness for a brand of athletic shoes, with purchases of 75%. Which of the following best describes the purchase funnel for this scenario?

A) very wide at the top and narrow at the bottom
B) very narrow at the top and wide at the bottom
C) very narrow and vertical
D) very wide and vertical
E) very wide and horizontal

Question 51

Consider a situation in which there is 90% unaided awareness for a brand of athletic shoes, with purchases of 10%. Which of the following best describes the purchase funnel for this scenario?

A) very wide at the top and narrow at the bottom
B) very narrow at the top and wide at the bottom
C) very narrow and vertical
D) very wide and vertical
E) very wide and horizontal

Question 52

Consider a situation in which there is 90% unaided awareness for a brand of athletic shoes, with purchases of 75%. Which of the following best describes the purchase funnel for this scenario?

A) very wide at the top and narrow at the bottom
B) very narrow at the top and wide at the bottom
C) very narrow and vertical
D) very wide and vertical
E) very wide and horizontal

Question 53

Of the following, which purchase funnel stage is the narrowest?

A) shopping
B) familiarity
C) intention
D) loyalty
E) purchase

Question 54

Paul DeMairo is identifying key performance indicators to be tracked and analyzed through his company's CRM program. Which of the following would Paul be LEAST likely to include as a key performance indicator?

A) average revenue per customer
B) customer lifetime value
C) cost to acquire a new customer
D) cost to retain a channel member
E) cost to retain a current customer

Question 55

Sharada Jones led her marketing team in developing a new advertising campaign. Before placing and running the advertisements, she wants to assess whether the campaign will effectively work toward her company's marketing objective of increasing brand awareness. Which of the following tools should Sharada choose?

A) hurdle rating
B) copy testing
C) a purchase funnel
D) return on key performance indicators
E) return on marketing investment

Question 56

Of the following, which purchase funnel stage is the broadest?

A) shopping
B) familiarity
C) intention
D) loyalty
E) purchase

Question 57

It is logical that ________ should return something better than a 1-to-1 relationship between expected revenue and the amount to be invested in a marketing program.

A) ROMI
B) KPI
C) a purchase funnel
D) a copy test
E) an advertising report card

Question 58

Jason Schmidt is a top executive Solutions Unlimited, a rapidly growing information technology company. Currently Jason is focusing on creating and implementing marketing accountability processes throughout the company. Which of the following laws or regulations is likely most closely related to Jason's current activities?

A) the Clayton Act
B) the Magnum-Moss Act
C) the Sarbanes-Oxley Act
D) the National Do Not Call Registry
E) the Lanham Trademark Act

Question 59

At Kearns, Inc., the management team has decided to improve its use of marketing measurement. Rachel Brown has been charged with overseeing the process issues related to marketing measurement. Which of the following is Rachel most likely responsible for?

A) assigning sales people to key customers
B) creating the media plan
C) determining a bonus structure for effective use of measurement data
D) assigning members of the IT department to manage the CRM program
E) hiring researchers to analyze data and develop insights

Question 60

Different marketing activities are appropriate for different marketing objectives and different stages of the purchase funnel. Which of the following activities would be most appropriate at the loyalty stage of the purchase funnel?

A) reward programs
B) mail-in rebates
C) direct mail offers
D) banner advertisements
E) search engine advertisements

Question 61

Typically, advertising and other marketing activities do not have a cumulative effect on consumer attitudes toward a brand.

Question 62

Companies that have been more successful at implementing marketing accountability practices have relied on top-down direction from management rather than cross-disciplinary teams.

Question 63

When measured topics are changed on a regular basis, data trending is possible.

Question 64

A regional restaurant chain spends $90,000 for a local television advertising campaign that delivers $450,000 in incremental revenue. If the incremental contribution margin based on the incremental revenue for this campaign is 75%, then how much would the program return for each additional marketing dollar invested?

A) $2.70
B) $3.00
C) $3.75
D) $5.00
E) $7.50

Question 65

The purpose of a CRM program is to identify new potential customers.

Question 66

Many customer KPIs are identified and managed through CRM programs.

Question 67

A brand is essentially a promise to consumers.

Question 68

Marketing accountability is practiced in a wide variety of ways from company to company.

Question 69

Copy testing is a tool for measuring the effectiveness of a completed advertising campaign that cannot be used as a diagnostic tool in the creative development stage of a campaign.

Question 70

Marketing accountability processes play a negligible role in determining a company's compliance with the Sarbanes-Oxley Act.

Question 71

An integrated marketing campaign that uses different media should have consistent messaging.

Question 72

Use the following passage to answer the questions below.
Essentials is a rapidly growing brand of women's make-up, perfumes, and nail care products. The company has established itself as a high-end cosmetic product available at most national drug stores. In the past, almost all of the advertising for Essentials has been in women's fashion magazines.
Essentials is now launching a new line of skin care products, ranging from facial cleansers to body lotion. These products are designed to be marketed to a broader audience, so the marketing team is exploring the effectiveness of different promotional mixes.
Sarah Burnes, the brand manager for Essentials, has decided to implement a marketing accountability process as her team develops and places marketing communications that meet the company's objectives. Sarah is concerned with achieving significant return on marketing investment and using the marketing resources efficiently.
Because the team has opted to increase its use of marketing measurements, additional staff needs to be hired and trained to analyze data and develop insights based on the data. This is an example of a ________ issue.

A) qualitative
B) process
C) structural
D) brand health
E) legal

Question 73

It is logical to expect that management would choose to implement the marketing campaign with the lowest financial return that meets marketing objectives.

Question 74

Use the following passage to answer the questions below.
Essentials is a rapidly growing brand of women's make-up, perfumes, and nail care products. The company has established itself as a high-end cosmetic product available at most national drug stores. In the past, almost all of the advertising for Essentials has been in women's fashion magazines.
Essentials is now launching a new line of skin care products, ranging from facial cleansers to body lotion. These products are designed to be marketed to a broader audience, so the marketing team is exploring the effectiveness of different promotional mixes.
Sarah Burnes, the brand manager for Essentials, has decided to implement a marketing accountability process as her team develops and places marketing communications that meet the company's objectives. Sarah is concerned with achieving significant return on marketing investment and using the marketing resources efficiently.
The new Essentials line of skin care products is targeted at a broader market than other Essentials products are. Based on this, the marketing team for Essentials is likely most interested in which of the following key performance indicators?

A) hurdle rate
B) loyalty program participation
C) frequency
D) cost to reposition a product
E) cost to acquire a new customer

Question 75

There is no specific industry standard for ROMI.

Question 76

Currently there is no standard tool to copy test advertisements on the the wide range of new media platforms.

Question 77

Early marketing measurement efforts tended to evaluate consumer attitudes by linking sales performance to activities such as advertising.

Question 78

Fab Fabrics is a medium-sized chain of sewing and home craft stores. The company has committed to improving how it uses marketing measurements. Management of Fab Fabrics has determined that the minimum expected return on marketing dollars it requires in order to invest in a marketing activity is five dollars additional profit for every one marketing dollar spent. This is Fab Fabrics' ________.

A) key performance indicator
B) customer relationship factor
C) hurdle rate
D) copy test
E) advertising report card

Question 79

Use the following passage to answer the questions below.
Essentials is a rapidly growing brand of women's make-up, perfumes, and nail care products. The company has established itself as a high-end cosmetic product available at most national drug stores. In the past, almost all of the advertising for Essentials has been in women's fashion magazines.
Essentials is now launching a new line of skin care products, ranging from facial cleansers to body lotion. These products are designed to be marketed to a broader audience, so the marketing team is exploring the effectiveness of different promotional mixes.
Sarah Burnes, the brand manager for Essentials, has decided to implement a marketing accountability process as her team develops and places marketing communications that meet the company's objectives. Sarah is concerned with achieving significant return on marketing investment and using the marketing resources efficiently.
The Essentials marketing team has approved the development of a television advertising campaign to launch the new product line. The team wants to assess which elements of the advertisements are most effective before the advertisements are aired. The marketing team is most likely to use which of the following?

A) CRM indicators
B) copy testing
C) a purchase funnel
D) a brand tracking model
E) hurdle rating

Question 80

ROMI models are developed over limited time periods, usually less than 18 months.