Question 1

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

Accepted Answer

Compensation tied to market metrics aims to motivate employees to increase their performance and take responsibility for their work. This is achieved through aligning their compensation with the performance of the market, which creates a sense of ownership and accountability. Satisfaction, persistence, and harmony may be by-products of this strategy, but they are not the overall goal.

Question 2

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

The net marketing contribution is the difference between sales revenue and variable costs, which in this case is $2 million. Marketing and sales expenses are fixed costs amounting to $725,000. The margin per unit can be calculated by subtracting the fixed costs from the net marketing contribution and then dividing by the number of units. So, ($2,000,000 - $725,000) / 100,000 = $12.75 per unit. To find the percentage, we divide the margin per unit by the sales price per unit. However, since the sales price per unit is not provided, we assume the calculation is based on the margin per unit in dollar terms, which was a misunderstanding in the question's phrasing. The correct calculation for the margin percentage should involve the net marketing contribution margin, which is ($2,000,000 - $725,000) / $2,000,000 = 63.75%. However, none of the options match this calculation, indicating a misunderstanding in the question's setup or the expected calculation method. Given the options and the information provided, calculating the exact margin per unit percentage as per the options is not straightforward without additional information on sales price per unit.

Question 3

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?

Accepted Answer

Adaptive rollout refers to an incremental implementation of a marketing plan that allows for feedback and corrective adjustments early in the implementation process. This approach involves rolling out the marketing plan in small phases, testing and evaluating each phase, and making necessary adjustments before moving on to the next phase. This allows companies to be flexible and responsive to changing market conditions and customer needs.

Question 4

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.

Accepted Answer

First, we need to calculate the contribution margin per unit:

Contribution Margin Per Unit = Margin Per Unit - Marketing and Sales Expenses
Contribution Margin Per Unit = $25 - $175,000/Units Produced

We know the net marketing contribution is $625,000, so we can use the following formula to find the number of units:

Net Marketing Contribution = Contribution Margin Per Unit x Units Produced
$625,000 = ($25 - $175,000/Units Produced) x Units Produced
$625,000 = $25Units Produced - $175,000
$800,000 = $25Units Produced
Units Produced = $800,000/$25
Units Produced = 32,000

Therefore, the answer is C) 32,000.

Question 5

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

The answer of Calculate the total marketing and sales expenses...

Question 6

________ market metrics include customer retention and revenue per customer.

Accepted Answer

Customer retention and revenue per customer are measures that look back at past performance, making them backward-looking metrics.

Question 7

Which of the following statements is true?

Accepted Answer

The statement that "The term adaptive persistence has been used to describe the success of many Japanese marketing plans" is true, according to the information given in the question. The other statements are either false or unsupported.

Question 8

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

Accepted Answer

The answer of Owning the marketing plan,a force that contributes...

Question 9

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

Accepted Answer

Market share refers to the proportion of the market that a company holds and is a backward-looking metric as it focuses on past sales and performance. Customer awareness, product trial, customer satisfaction, and perceptions of relative product quality are forward-looking metrics as they focus on potential future behavior and attitudes of customers.

Question 10

Which of the following statements regarding customer satisfaction is true?

Accepted Answer

Very satisfied customers often have a higher willingness to spend and are more likely to purchase higher margin products and additional services, leading to increased revenue for the company. The other options are not necessarily true.

Question 11

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

Accepted Answer

A champion is a person who is highly devoted to the action plan and can lead its successful implementation. An entrepreneur is a person who starts, runs, and grows a new business. An intrapreneur is an employee who acts like an entrepreneur within a larger organization. A scapegoat is a person who is unfairly blamed for the mistakes or failures of others. An in-process manager is not a commonly used term in business.

Question 12

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?

Accepted Answer

Variance analysis allows a company to isolate the components of marketing performance by analyzing the difference between the actual net marketing contribution and the expected net marketing contribution. By understanding these variances, a company can identify which components contributed positively or negatively to overall performance.

Question 13

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%.

Accepted Answer

The total volume of units sold by the business is calculated by taking 25% of the market demand of 550,000 units. This is done by multiplying 550,000 by 0.25, which equals 137,500 units.

Question 14

Net marketing contribution equals ________.

Accepted Answer

Net marketing contribution is calculated by subtracting the marketing and sales expenses from the total contribution generated by sales. The total contribution generated by sales can be calculated by multiplying the volume of sales by the margin per unit. Therefore, the correct formula for net marketing contribution is (volume x margin per unit) - marketing and sales expenses, which is option C.

Question 15

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.

Accepted Answer

The answer of Calculate the net marketing contribution,if a business...

Question 16

Backward-looking marketing performance metrics ________.

Accepted Answer

Backward-looking marketing performance metrics include metrics such as market share, customer retention and revenue per customer, which reflect past performance and do not necessarily indicate future performance. Option A is incorrect because backward-looking metrics are not leading indicators; they are historical in nature. Option B is incorrect because in-process measures focus on ongoing performance and not necessarily past performance. Option D is incorrect because benchmarks are not uniform across industries. Option E is incorrect because advanced product-market metrics are not specifically related to pricing issues.

Question 17

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

Accepted Answer

Backward-looking market metrics are typically applied at the end of a reporting period, alongside financial performance metrics, to assess past performance.

Question 18

Margin per unit equals ________

Accepted Answer

Margin per unit is calculated as the selling price minus the variable cost per unit. The fixed costs are already covered by the selling price, so the difference between the selling price and the variable cost is the contribution margin per unit. Therefore, choice D, price minus variable unit cost, is the correct formula for calculating margin per unit.

Question 19

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

The term 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 is adaptive persistence. This approach allows companies to adjust their strategies as needed while still maintaining a clear focus on their long-term objectives.

Question 20

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

Accepted Answer

Using an adaptive rollout allows for flexibility and adjustments in the marketing plan, which is crucial for successful implementation in response to changing market conditions.

Quiz 15: Marketing Metrics,performance,and Strategy Implementation