Question 1

In the context of overall market share, customer loyalty refers to the percentage of all customers who buy from the company.

Accepted Answer

Customer loyalty refers to the likelihood of existing customers to continue buying from the same company, rather than the percentage of all customers who buy from the company.

Question 2

Profitability control is the prime responsibility of line and staff management.

Accepted Answer

Profitability control is primarily the responsibility of line management, as they are directly involved in operations that affect the company's profits. Staff management provides support, advice, and assistance in this process.

Question 3

Cabot's CEO's annual compensation is an example of a ________ cost.

Accepted Answer

The CEO's annual compensation is considered a nontraceable common cost because it cannot be directly traced to a specific department or product within the company. It is a general expense that supports the entire organization.

Question 4

The cost of operating the common manufacturing facility is a(n) ________ cost.

Accepted Answer

The answer of The cost of operating the common manufacturing...

Question 5

Desktop marketing gives marketers information and decision structures on computer dashboards.

Accepted Answer

Desktop marketing involves using computer dashboards to gather and analyze data in order to make more informed marketing decisions.

Question 6

The cost of land where a plant that manufactures common parts is set up falls under ________ costs.

Accepted Answer

The cost of land is a nontraceable common cost because it cannot be attributed solely to the production of a specific product or service. It is a shared expense that benefits the overall operation of the company.

Question 7

In the future, there will be greater emphasis on precision marketing as opposed to mass marketing.

Accepted Answer

With the rise of big data and advanced targeting techniques, companies are able to specifically target and tailor their marketing efforts towards individual consumers or niche markets rather than attempting to reach a broad audience through mass marketing strategies. This allows for greater efficiency and effectiveness in reaching the desired audience.

Question 8

The manufacturer launches a brand building advertising campaign. The campaign does not promote any one specific car but is aimed at promoting the company as a whole. Which type of cost does this fall under?

Accepted Answer

This type of advertising campaign falls under nontraceable costs because it cannot be directly linked to the production of any one specific car. It is a general brand building campaign aimed at promoting the company as a whole.

Question 9

A(n) ________ market share of exactly 100 percent means that a company is tied for the market lead. A rise in relative market share means the company is gaining on its leading competitor.

Accepted Answer

A relative market share compares a company's market share to that of its closest competitor, so a relative market share of 100 percent means that the company is tied with its closest competitor. A rise in relative market share indicates that the company is gaining ground on that competitor. The other options (overall, served, potential, actual) do not accurately describe or measure market share in relation to competitors.

Question 10

Annual-plan control involves the use of financial analysis to evaluate the performance of marketing plans.

Accepted Answer

Annual-plan control does involve the use of financial analysis to evaluate the performance of marketing plans.

Question 11

The annual plan control process begins with measuring performance.

Accepted Answer

The annual plan control process begins with setting objectives, against which performance will be measured.

Question 12

Annual-plan control requires making sure the company isn't overspending to achieve sales goals. The key ratio to watch is ________.

Accepted Answer

Annual-plan control requires making sure the company isn't overspending to achieve sales goals, and the marketing expense-to-sales ratio is the key ratio to monitor in this aspect. It indicates the efficiency of the company's marketing efforts and their ability to translate into sales. A higher ratio indicates overspending and a lower ratio indicates underinvestment in marketing.

Question 13

Suppose the manufacturer pays a commission on every car sold. Then, the salesperson's commission is classified as a(n) ________.

Accepted Answer

The salesperson's commission is directly related to the sale of each car, therefore it is a direct cost.

Question 14

To succeed in the future, marketing must be more holistic and less departmental.

Accepted Answer

In today's interconnected world, marketing cannot function in isolation. It must be viewed as a strategic, cross-functional endeavor that involves all departments and stakeholders within an organization. This approach, which is also known as holistic marketing, involves integrating and coordinating all marketing activities across the entire enterprise in order to deliver a consistent and harmonious customer experience.

Question 15

________ approach advocates argue that all costs must ultimately be imputed in order to determine true profitability.

Accepted Answer

Full-cost approach advocates for the inclusion of all costs, both direct and indirect, in the calculation of true profitability. This includes overhead costs that may not be traced to a specific product or service, but are still incurred by the organization. Therefore, option B is the correct answer.

Question 16

Self-audits tend to provide more objective information than audits conducted by external consultants.

Accepted Answer

This statement is not necessarily true. Self-audits may be biased or lack the experience and expertise of external consultants. Additionally, internal biases and conflicts of interest may affect the accuracy of self-audits.

Question 17

The ratio of promoters to detractors is a customer metric that is used to evaluate the performance of marketing plans.

Accepted Answer

This statement is true. The ratio of promoters to detractors is a commonly used metric in marketing to measure customer loyalty and satisfaction. A high ratio indicates that more customers are likely to recommend a brand or product, whereas a low ratio indicates that more customers are likely to have negative experiences and detract others from using the brand or product.

Question 18

A marketing audit is an orderly examination of the organization's macro- and micromarketing environments, marketing objectives and strategies, marketing systems, and specific activities.

Accepted Answer

This statement defines what a marketing audit is.

Question 19

A marketing audit only benefits a company that is in trouble; companies in good health do not need to conduct them.

Accepted Answer

A marketing audit can benefit any company, regardless of its current financial health. Conducting a marketing audit can help a company identify strengths and weaknesses, identify opportunities for growth, and adjust strategies to better meet the needs of customers and the market. It is a proactive approach to ensuring ongoing success, rather than a reactive response to a problem.

Question 20

Repurchase rate is a sales metric that is used to evaluate the performance of marketing plans.

Accepted Answer

The answer of Repurchase rate is a sales metric that...

Quiz 23: Managing a Holistic Marketing Organization for the Long Run