Question 1

The emphasis in regression analysis is not to isolate all factors that affect sales but simply to identify those that have _________ on sales and then to estimate the magnitude of the impact.

Accepted Answer

Typically, regression analysis is used to estimate the relationship. The emphasis is not to isolate all factors that affect sales but simply to identify those that have the most dramatic impact on sales and then to estimate the magnitude of the impact.

Question 2

The Delphi technique tries to use expert opinion to forecast market demand but it is distinctly different than other methods in as much as it _____________.

Accepted Answer

The Delphi technique differs from other methods as it uses an iterative approach with repeated measurement to control for direct confrontation. It aims to gather expert opinions anonymously and through multiple rounds of questioning, thereby reducing biases and groupthink. The other options (A, C, D, E) do not accurately describe the Delphi technique.

Question 3

One key decision affecting the use of exponential smoothing is the choice of the ___________.

Accepted Answer

The key decision affecting the use of exponential smoothing is the choice of the smoothing constant, referred to as alpha in the algorithm for calculating exponential smoothing, which is constrained to be between 0 and 1.

Question 4

Most of the time _________________.

Accepted Answer

Overall, the best approach is for marketing managers to utilize multiple methods of forecasting, including a combination of subjective and objective methods, compare the results, and then make a decision on what the actual final forecast will be.

Question 5

Managers may try several methods of forecasting that deliver different predictions.This leads to __________________.

Accepted Answer

Overall, the best approach is for marketing managers to utilize multiple methods of forecasting, including a combination of subjective and objective methods, compare the results, and then make a decision on what the actual final forecast will be.

Question 6

Analytical factors include all except ____________.

Accepted Answer

Analytical factors include the stability of the data series, the time horizon, the degree of structure imposed on the process, and the seasonal nature of the data.

Question 7

Many firms think that ___________ is the final gauge of consumer acceptance of a new product and ultimate measure of market potential.

Accepted Answer

Many firms consider the market test to be the final gauge of consumer acceptance of a new product and ultimate measure of market potential.

Question 8

One technique of forecasting is called the moving average.In this method,rather than using last year's sales as the forecast ___________.

Accepted Answer

The moving average method is conceptually quite simple. Consider the forecast that next year's sales will be equal to this year's sales. Such a forecast might be subject to large error if there is much fluctuation in sales from one year to the next. To allow for such randomness, we might consider using some kind of average of recent values. For example, we might average the last two years' sales, the last three years' sales, the last five years' sales, or any number of other periods.

Question 9

The ______________ method is not a valid method for preparing an overall marketing budget.

Accepted Answer

The four principal methods for preparing an overall market budget include:
1. Objective-and-task method, which takes an investment approach in that marketing goals and objectives are set for the upcoming year and then budget dollars are secured to support the achievement of those goals and objectives. This approach is also sometimes referred to as zero-based budgeting, because the marketing manager essentially starts the process with a blank slate and builds the budget based on the level of investment required.
2. Percent-of-sales method, which is the most popular approach but is constraining because sales are driving budget dollars rather than marketing investment leading to sales opportunities.
3.Comparative-parity method, in which marketing expenditures across key competitors are assessed to arrive at a budget number.
4. All-you-can-afford method, which simply sets the marketing budget as whatever funds are left over after other "necessities" are funded.

Question 10

The budgeting method that relies on figuring out whatever is left over is known as the ______________ method.

Accepted Answer

With the all-you-can-afford method, the marketing budget is simply set as whatever funds are left over after other "necessities" are funded.

Question 11

Exponential smoothing is a type of moving average that,instead of weighting all observations equally in generating the forecast,weights the most recent observations __________.

Accepted Answer

Exponential smoothing is a type of moving average that, instead of weighting all observations equally in generating the forecast, weights the most recent observations heaviest. The reasoning behind this strategy is that the most recent observations contain the most information about what is likely to happen in the future, and they should therefore be given more weight.

Question 12

_____________ budgeting is based on the budget requirements of individual action plans.

Accepted Answer

The objective-and-task method takes an investment approach in that marketing goals and objectives are set for the upcoming year and then budget dollars are secured to support the achievement of those goals and objectives.

Question 13

The ______________ method is also sometimes referred to as zero-based budgeting.

Accepted Answer

The objective-and-task method is also sometimes referred to as zero-based budgeting, because the marketing manager essentially starts the process with a blank slate and builds the budget based on the level of investment required.

Question 14

Situational factors include all except ____________.

Accepted Answer

Situational factors include the volatility of the external marketplace, experience and expertise of the marketing manager in forecasting, and access to the necessary information and people required to accomplish the chosen forecasting approach.

Question 15

Ultimately,the marketing manager must rely on _________ in making the forecasting decision.

Accepted Answer

Ultimately, in marketing planning the marketing manager cannot expect a final forecast to pop directly out of a statistical model, ready for use in developing strategies, action plans, and budgets. Instead, the manager must create the forecast based on multiple forms of input, ultimately relying on his or her judgment.

Question 16

Market tests have several drawbacks such as ______.

Accepted Answer

Market tests can be costly to administer and time-consuming, which may not be feasible for all companies. Additionally, the results of such tests could give an unrealistic picture of the product's potential since the conditions in the test environment may differ from the actual market environment. Moreover, market tests may allow competitors to formulate a market response before full market introduction, which could give them an advantage. Hence, all of the given options are drawbacks of market tests.

Question 17

The forecasting method that relies on the analysis of historical data to develop a prediction of the future is called _________.

Accepted Answer

Approaches to forecasting using time-series analysis rely on the analysis of historical data to develop a prediction for the future.

Question 18

The budgeting method that relies on figuring out what competitors spend on marketing is known as the ______________ method.

Accepted Answer

With the comparative-parity method, marketing expenditures across key competitors are assessed to arrive at a budget number.

Question 19

The budgeting method that relies on gross revenue is known as the ______________ method.

Accepted Answer

With the percent-of-sales method, sales drive budget dollars rather than marketing investment leading to sales opportunities.

Question 20

The decomposition method attempts to isolate four separate portions of a time series,which are __________.

Accepted Answer

The decomposition method attempts to isolate four separate portions of a time series: the trend, cyclical, seasonal, and random factors.

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