Deck 15: Marketing Performance Measurement

Question 1

Which of the following are steps in the planning process that utilizes the Balanced Scorecard and a Strategy Map to build a tightly integrated marketing strategy?

A)Define Financial Objectives.
B)Define the Customer Value Proposition.
C)Identify the Critical Strategic Themes and Internal Processes.
D)All of the above.
E)Only (a)and (b).

Answer 1

D

Question 2

Which of the following could assume a role in the marketing strategy center?

A)technical service managers
B)physical distribution managers
C)research & development executives
D)manufacturing executives
E)all of the above

Answer 2

E

Question 3

____ is an assessment of how the firm is doing relative to competition.

A)Sales analysis
B)Expense-to-sales analysis
C)Profit analysis
D)Market share analysis
E)Segmental analysis

Answer 3

D

Question 4

Using this approach,the costs of producing a printed circuit board are determined by first evaluating the activities required to produce the board and then costing out each of the activities. This describes:

A)traditional cost accounting.
B)an activity-based cost system.
C)variable cost analysis.
D)direct traceable costing.
E)contribution costing.

Question 5

If marketing implementation is poor:

A)management may never become aware of the soundness of the strategy.
B)the cause of failure is hard to diagnose because poor strategy might be masked by the inability to execute.
C)management can usually see the problem immediately.
D)all of the above
E)(a)and (b)only

Question 6

Marketing managers who are flexible and intelligent in dealing with the firm's information and control systems are exhibiting good _____ skills.

A)monitoring
B)allocation
C)interacting
D)organizing

Question 7

When using strategy maps,shareholder value can be created via:

A)long-term revenues.
B)short-term productivity.
C)product differentiation.
D)All of the above.
E)Only (a)and (b).

Question 8

The process that translates marketing plans into action assignments and ensures that such assignments are executed in a manner to accomplish a plan's defined objectives is called:

A)marketing control.
B)marketing implementation.
C)strategic marketing.
D)marketing accountability.
E)competitive advantage.

Question 9

If a business marketer is concerned with how the firm is performing relative to competition,which of the following tools would be most useful?

A)expense-to-sales ratio analysis
B)market potential analysis
C)market share analysis
D)sales analysis
E)segmental analysis

Question 10

The balanced scorecard measures the performance of a business unit from:

A)a customer perspective.
B)a financial perspective.
C)a learning and growth perspective.
D)all of the above.
E)(a)and (b)only.

Question 11

The ____ is a comprehensive,periodic and systematic evaluation of the firm's marketing operation which analyzes the market environment and the firm's internal marketing activities.

A)environmental audit
B)marketing audit
C)profit audit
D)annual plan
E)competitive audit

Question 12

Which of the following statements concerning an activity-based cost (ABC)system is(are)correct?

A)ABC analysis illuminates exactly what activities are associated with a particular product or customer segment and how these activities are linked to the generation of revenues and the consumption of resources.
B)ABC analysis often relies on percentage allocations that are somewhat arbitrary.
C)ABC analysis segregates the expenses of indirect and support resources by activities.
D)all of the above
E)(a)and (c)only

Question 13

If a business marketer is particularly concerned with over- or under- spending on a particular marketing strategy element,such as advertising,which of the following tools would be most useful?

A)expense-to-sales ratio analysis
B)market share analysis
C)sales analysis
D)marketing audit
E)profit analysis

Question 14

_____ reveals the links between performing particular activities and the demands that those activities make on the organization's resources.

A)A logistical cost system
B)A supply-oriented cost system
C)A demand-oriented cost system
D)An activity-based cost system
E)A controllable element cost system

Question 15

Flagstaff Electrical Supply wonders whether they are spending too much or too little on various elements in their marketing program. Which of the following tools would appear to be most appropriate in examining the efficiency of operations?

A)sales analysis
B)market share analysis
C)expense-to-sales ratio analysis
D)price analysis
E)product analysis

Question 16

The purpose of annual plan control is to:

A)examine the general direction the company is pursuing.
B)examine how well resources have been utilized in each element of the marketing strategy.
C)examine where the company is making or losing money.
D)examine whether the planned performance standards are being achieved.
E)examine the general directions of industry demand.

Question 17

The level of marketing control that examines how well resources have been utilized in each element of the marketing strategy is:

A)strategic control.
B)annual plan control.
C)efficiency and effectiveness control.
D)profitability control.
E)incremental control.

Question 18

The level of marketing control that examines whether the strategy is being implemented as planned and whether it produces the intended results is termed:

A)strategic control.
B)annual plan control.
C)strategic component control.
D)profitability control.
E)incremental control.

Question 19

_____ provides a visual representation of the cause-and-effect relationships among the components of a company's strategy.

A)A Strategy Map
B)Market Sensing
C)Customer-Linking
D)Building Blocks

Question 20

St. Paul Equipment Company experienced a 15 percent sales gain that,on the surface,appears favorable. However,if total industry sales are up 30 percent,an analysis of ____ could suggest that the firm has not fared well relative to competitors.

A)expense-to-sales ratios
B)profit
C)market share
D)distribution costs
E)sales by channel type

Question 21

Research has shown that which of the following are important implementation skills for marketing managers?

A)Organizing.
B)Allocating.
C)Monitoring.
D)All of the above.
E)Only (a)and (b).

Question 22

Although the dividing line between strategy and execution is a bit fuzzy,it is often not difficult to diagnose implementation problems and to distinguish them from strategy deficiencies.

Question 23

One component of the balanced scorecard centers on customer satisfaction while another centers on employee satisfaction.

Question 24

The central focus of a marketing audit is on the firm's cost accounting system.

Question 25

The primary responsibility for strategic control typically lies with:

A)top management.
B)middle management.
C)salespeople.
D)buying organizations.
E)front-line employees.

Question 26

Examples of product measures for efficiency and effectiveness control include which of the following?

A)Sales by market segments.
B)Logistics costs by logistics activity by channel.
C)New accounts per time period.
D)All of the above.
E)Only (a)and (c).

Question 27

R&D,manufacturing,technical service,and other business functions play fundamental roles in the development and implementation of business marketing strategy.

Question 28

The goal of _____ is to describe where the firm is making or losing money in terms of the important segments of its business.

A)strategic control
B)annual plan control
C)efficiency and effectiveness control
D)profitability control

Question 29

The primary levels of marketing control include:

A)strategic control.
B)annual plan control.
C)efficiency and effectiveness control.
D)profitability control.
E)All of the above.

Question 30

_____ represents the portion of total purchases in a product and service category that a customer makes from the firm.

A)Share-of-wallet
B)Market share
C)Marketing reach
D)Feedforward control

Question 31

The _____ of the Balanced Scorecard describes the human capital,information capital,and organizational capital that must be aligned with strategy.

A)financial perspective
B)customer perspective
C)internal perspective
D)learning and growth perspective

Question 32

Which of the following are interrelated evaluations that are required to design a marketing strategy?

A)How much should be spent on marketing in the planning period?
B)How are marketing dollars to be allocated?
C)Within each element of the marketing strategy,how should dollars be allocated?
D)Which segments,products,and geographic areas are most profitable?
E)All of the above.

Question 33

The balanced scorecard attempts to keep the sales of a business unit in balance with profit growth.

Question 34

To be successful,successful business marketing managers:

A)must assume an active role in the marketing strategy center.
B)must negotiate with other functions.
C)must get advanced secondary education.
D)All of the above.
E)Only (a)and (b).

Question 35

Sales results provide an excellent benchmark against which to measure performance.

Question 36

Under an activity-based cost system,managers must refrain from allocating all expenses to individual units and,instead,separate the expenses and match them to the level of activity that consumes the resources.

Question 37

Warehousing costs fit into an activity-based cost system but advertising costs do not.

Question 38

The major forms of marketing control are:

A)control over the efficient allocation of marketing effort.
B)the comparison of planned and actual performance.
C)Both (a)and (b).
D)Neither (a)nor (b).

Question 39

Expense-to-sales ratios provide one measure of the efficiency of marketing operations.

Question 40

The ____ of the Balanced Scorecard describes the expected outcomes of strategy,such as revenue growth or productivity improvements.

A)financial perspective
B)customer perspective
C)internal perspective
D)learning and growth perspective

Question 41

The____________________coupled with the balanced scorecard provides a valuable framework by describing the strategy,detailing objectives for the processes that create value and the organizational assets needed to support them.

Question 42

Middle management typically has the primary responsibility for efficiency and effectiveness control.

Question 43

The strategy map provides a framework for highlighting the interdisciplinary role of marketing strategy and for exploring key implementation requirements.

Question 44

The Balanced Scorecard measures performance from a learning and growth perspective.

Question 45

The strategy map,when coupled with the measures and targets from the balanced scorecard,provides a valuable framework for the strategist.

Question 46

Strategic____________________focuses on assessing whether the strategy is being implemented as planned and whether it produces the intended results.

Question 47

In regard to profitability control,a segment can be a channel structure.

Question 48

For customers with a transactional focus,business marketers should discontinue the use of expensive customer databases and set revenue targets and profit goals.

Question 49

Good implementers struggle and wrestle with their markets and businesses until they can simply and powerfully express the "back of the envelope ratios necessary to run the business,regardless of formal control system inadequacies."

Question 50

Strategy maps can be used to align internal processes to support different marketing strategies.

Question 51

The second step of the strategy process is defining the customer____________________for target customer segments,in effort to generate revenue from existing customers.

Question 52

In annual plan control,the objectives specified in the annual plan become the performance standards that are compared to actual results.

Question 53

Important implementation skills for marketers include interacting,allocating,and monitoring.

Question 54

The efficiency of a marketing operation can be assessed via expense-to-sales ratios.

Question 55

In the balanced scorecard,the____________________perspective describes the business processes that have the greatest effect on the chosen strategy,such as customer relationship management,innovation management or supply-chain management.

Question 56

Market share analysis is an attempt to determine why actual sales varied from planned sales.

Question 57

Marketing control is a process whereby management generates information on performance,such as efficient allocation of marketing effort.

Question 58

Efficiency and effectiveness control is the primary responsibility of____________________management.

Question 59

Relating sales revenues and marketing costs to market segments improves decision making.

Question 60

The portion of the total purchases in a product and service category that a customer makes from the firm is known as ____________________.

Question 61

Dell Computer entered into a strategic alliance with Lexmark,a producer of printers and ink cartridges,to provide a more direct challenge to Hewlett-Packard (H-P)-the market leader in printer and cartridge sales. Clearly,this will take time and a well conceived strategy by Dell because H-P has about 50 percent market share in printer sales and a huge installed base of printer customers around the world. For this strategic initiative in the printer business,describe how Dell might use a strategy map to illustrate objectives,targets,and strategies as well as measures it might use to assess its performance in this new business.

Question 62

With the balanced scorecard,executives can now measure how their business units create value for current and future customers and how they must enhance internal capabilities and the investment in people,systems,and procedures necessary to improve future performance. Describe the four perspectives of organizational performance that are considered in the balanced scorecard approach.

Question 63

Many marketing plans fail because they are poorly implemented. Explain the special implementation challenges that emerge for managers operating in the business marketing environment.

Question 64

Expense-to-sales ratios are analyses of the____________________of marketing operations to determine whether the firm is overspending or underspending.

Question 65

Motorola plans to introduce an advanced personal communicator to the business market. They feel that the system is ideally suited for managers. While a broad marketing strategy has been sketched out,it is now time to put together the specific details of the marketing plan from start-to-finish. The planned introduction is six months away. Provide a comprehensive list of the key decisions the firm should make in the areas of pricing,channels,advertising,sales force training,segmentation,and related areas. Next,describe the specific types of information that might be gathered to facilitate each decision. Finally,once the product is introduced,what performance areas should be monitored to determine if strategy adjustments are required for the new product?

Question 66

Using any selling firm,product,and market of your choice,please illustrate how a strategy map that utilizes the balanced scorecard measures can be used to build an effective and efficient marketing strategy plan.

Question 67

____________________cost systems reveal the links between performing particular activities and the demands those activities make on the organization's resources.

Question 68

Illustrate how a business marketing manager might use a responsibility chart to pinpoint the roles that diverse functional specialists must perform in the implementation of marketing strategy.

Question 69

A firm that sells sophisticated equipment to paper manufacturers (for example,Mead Corporation)learned that the same technology may have important potential in the lucrative food-processing industry. Potential customers here would include firms such as General Foods and Sarah Lee. Suggest several critical issues that this firm should address before embarking on this new strategy course.

Question 70

Marketing control is a process business marketers can use to generate information on marketing performance. For each of the levels of marketing control,describe the purpose of the control,identify who is primarily responsible for that control in the organization,and provide examples of tools that can be used.