Question 1

If a low-risk marketing program has a return on marketing investment (ROMI)of 4.0,this means that any marketing program must generate at a minimum $4 in revenue for every _____ in marketing expenditure.

Accepted Answer

If the company has a marketing budget of $5 million and needs to generate $20 million in revenue, then the ROMI hurdle rate for any low-risk marketing program is 4.0. This means that any marketing program must generate at a minimum $4 in revenue for every $1 in marketing expenditure.

Question 2

Taking a dashboard approach to marketing metrics goes a long way toward enabling successful marketing planning.However,several potential pitfalls exist in its execution such as ________.

Accepted Answer

3. Forgetting to market the dashboard internally.

Question 3

A great dashboard is comprised of the following elements except ________.

Accepted Answer

The answer of A great dashboard is comprised of the...

Question 4

There are times when marketers forget that marketing is not just a department and they fail to market the dashboard to __________.

Accepted Answer

Marketing is not just a department, but rather a part of the strategic and cultural fabric of the enterprise. As such, it is important to market the dashboard internally to key stakeholders, not just to marketers.

Question 5

One of the benefits of a marketing dashboard is that it fosters an organization that can be called a(n)_____________.

Accepted Answer

A marketing dashboard not only provides real-time data but also allows for data analysis and interpretation. By regularly reviewing and reflecting on the data displayed on the dashboard, organizations can identify patterns and insights that can help inform future marketing strategies. This creates a culture of learning within the organization, where data-driven decision-making is emphasized and encouraged.

Question 6

Market share can be defined in terms of either _____________.

Accepted Answer

Market share is the percentage of a market (defined in terms of units or revenue) accounted for by a specific product, product line, or brand.

Question 7

There is a danger in the use of dashboards that the company becomes too focused on tactical measures that may overshadow ____________.

Accepted Answer

The use of dashboards may lead to too many tactical metrics; not enough strategic insight. Because of the focus over the past decade on holding marketing accountable for financial results, tactical, or "intermediary," metrics have proliferated. Numerous books and articles provide list after list of calculations and ratios to assess all sorts of marketing programmatic results (brand awareness, customer trial, lead conversion, etc.). Although these are valuable and having the right set of intermediary metrics on the dashboard is important, it is critical that they do not overshadow measures of strategic importance to the firm.

Question 8

Two primary goals of any dashboard are ______________.

Accepted Answer

Two primary goals of any dashboard are diagnostic insight and predictive foresight-with a special emphasis on the latter. Some dashboard metrics are diagnostic, looking at what has happened and trying to discern why. Probably the most important metrics you'll come to rely on, however, are predictive, using the diagnostic experience to better forecast results under various assumptions of circumstances and resource allocations.

Question 9

In some cases a marketing dashboard can overly rely on _________.

Accepted Answer

A marketing dashboard may lead to overreliance on "inside-out" measurement. Having too many internal measures puts the focus on what you already know instead of on the unpredictably dynamic external marketplace. A focus on monitoring external factors likely to cause significant changes to the marketing plan is what makes a dashboard especially valuable.

Question 10

One of the problems with ROMI is that it often focuses on __________ rather than looking at the effects or changes in brand equity.

Accepted Answer

ROMI by nature ignores the effect of the marketing assets of the firm (for example, its brands) and tends to lead managers toward a more short-term decision perspective. That is, it typically considers only short-term incremental profits and expenditures without looking at longer-term effects or any change in brand equity.

Question 11

A dashboard should establish the links between marketing spending and ___________.

Accepted Answer

A dashboard for marketing should establish the links between marketing spending and profits. This helps measure the effectiveness of marketing campaigns and strategies and make data-driven decisions to optimize marketing spending. The other options are not directly related or relevant to marketing spending.

Question 12

The dashboard provides insight into the execution of critical business processes required to deliver on the _______________.

Accepted Answer

The dashboard also provides insight into the execution of critical business processes required to deliver on the desired customer value propositions.

Question 13

A dashboard creates transparency in marketing's goals,operations,and performance.This in turn _____________.

Accepted Answer

A dashboard provides a clear view of marketing activities and outcomes, which leads to higher accountability and trust from other departments and stakeholders. It does not necessarily lead to smaller marketing budgets or animosity among departments, nor does it make marketing look like a hero in the company.

Question 14

Investment decisions in marketing must consider the following elements except ____________.

Accepted Answer

Similar to other investment decisions, investment decisions in marketing must consider four basic elements: level of investment, returns, risks, and hurdle rates.

Question 15

The dashboard for Apple Computers should be able to provide a read of ____________.

Accepted Answer

The Apple Computer dashboard should be able to provide a read of how the assets have been growing and how they are likely to progress. This can help in assessing the financial health of the company and making informed decisions regarding investments and future strategies. The other options are not directly relevant to the dashboard of Apple Computers.

Question 16

When your boss,Fernando,says that you need a ROMI of 5.0,he is describing the __________ for the marketing investment.

Accepted Answer

If the company has a marketing budget of $5 million and needs to generate $20 million in revenue, then the ROMI hurdle rate for any low-risk marketing program is 4.0.

Question 17

While many firms "talk the talk" about marketing as an investment and not _____________,marketing expenditures are not treated as an investment in a company's accounting system.

Accepted Answer

While a firm may "talk the talk" of marketing as an investment and not an expense, typically marketing expenditures are not treated as an investment in a company's accounting system.

Question 18

To compete in today's market,firms must focus on marketing planning so that managers and executives have the core information about progress toward relevant goals and metrics at their fingertips ____________.

Accepted Answer

To successfully compete in today's market, firms must focus on marketing planning so that managers and executives have the core information about progress toward relevant goals and metrics at their fingertips at all times. This is what a dashboard approach delivers.

Question 19

Unit Market Share (%)= Unit Sales (#)divided by ___________.

Accepted Answer

Unit Market Share (%) = Unit Sales (#) ÷ Estimated Total Market Unit Sales (#).

Question 20

The concept that marketing information should be presented in a format that is easy to use in real time and consisting of crucial information is the marketing _________.

Accepted Answer

The marketing dashboard is a comprehensive system providing managers with up-to-the-minute information necessary to run their operation including data on actual sales versus forecast, progress on marketing plan objectives, distribution channel effectiveness, sales force productivity, brand equity evolution, and whatever metrics and information are uniquely relevant to the role of the marketing manager in a particular organization.

Quiz 16: The Marketing Dashboard: Metrics for Measuring Marketing Performance

If a low-risk marketing program has a return on marketing investment (ROMI) of 4.0,this means that any marketing program must generate at a minimum $4 in revenue for every _____ in marketing expenditure.