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

Question 1

Everyone calculates ROMI the same,so when one corporate executive talks about the concept other people know what his or her measurement is.

Answer 1

False
Explanation: ROMI has become a fashionable surrogate for "marketing productivity" in executive suites and boardrooms, yet there is mounting evidence that firms interpret the appropriate calculation of ROMI quite differently.

Question 2

ROMI is the metric du jour for many firms' bottom line.

Answer 2

True
Explanation: ROMI is the metric du jour for many firms' marketing bottom line.

Question 3

The user expectations method of forecasting relies on answers from customers regarding their expected consumption or purchases of the product.

Answer 3

True

Question 4

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.

Question 5

One of the most important measurement issues is the measurement related to supply chain.The variables measured have to do with stock-outs,service levels due to on-time deliveries,and inventory turns.

Question 6

A wide range of organizational functions will have a stake in making a marketing plan successful.Even if the functions are outsourced,someone internally still must take responsibility for the outsourced aspect of the action plan.

Question 7

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

Question 8

One of the advantages of using time-series analysis to forecast sales is that it is objective and inexpensive.

Question 9

One of the disadvantages of using sales force composite to forecast sales is that potential customers must be few and well defined.

Question 10

The sales force composite is considered to be a subjective approach of the sales forecasting method.

Question 11

The Delphi method is based on the premise that,with repeated measurements (1)the range of responses will decrease and the estimates will converge,and (2)the total group response or median will move successively toward the "correct" or "true" answer.

Question 12

The dashboard must push beyond portrayal of what is happening to explain why it is happening,providing insight into where expectations were inaccurate and helping hone the process of setting expectations and forecast for the future.

Question 13

The decomposition method of forecasting is important to determine what portion of any changes in sales represents an overall,fundamental change in demand and what portion is due to seasonality in demand.

Question 14

About the only thing you know for certain about your first version of a marketing dashboard is that it will likely look the same in a year or two.

Question 15

The percent-of-sales method is the most popular approach for marketing plan budgeting but is constraining because sales are driving budget dollars rather than marketing investment leading to sales opportunities.

Question 16

A well-rounded dashboard tracks the skills and competencies of the marketing team against a clear set of proficiency goals.

Question 17

For a particular product,there is one market share rather than several market share numbers.

Question 18

Marketing dashboard is a comprehensive system providing managers with up-to-the-minute information necessary to run their operation.

Question 19

Sales forecasting methods can only be objective,not subjective.

Question 20

One of the most important measures for online measurement is click-through rate in that it measures the final sale in the process.

Question 21

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.

A)$1
B)$10
C)$100
D)$1,000
E)None of these

Question 22

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 ________.

A)Overreliance on "inside-out" measurement
B)Too many tactical metrics and not enough strategic insight
C)Forgetting to market the dashboard internally
D)All of these
E)Both overreliance on "inside-out" measurement and too many tactical metrics and not enough strategic insightThe pitfalls of using the dashboard approach include:1. Overreliance on "inside-out" measurement.2. Too many tactical metrics; not enough strategic insight.

Question 23

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

A)Communication
B)Tools
C)Goals and objectives
D)Predictive value
E)Efficiency

Question 24

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

A)Customers
B)Suppliers
C)Key stakeholders
D)The accounting group
E)The finance area

Question 25

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

A)Informational organization
B)Learning organization
C)Quantitative behavioral organization
D)Learn by doing organization
E)None of these

Question 26

Market share can be defined in terms of either _____________.

A)Utilities or profits
B)Revenue or profits
C)Units or profits
D)Units or revenue
E)None of these

Question 27

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

A)Measures of immediacy
B)Measures of tenacity
C)Measures of locus of control
D)Measures of strategic importance
E)All of these

Question 28

Two primary goals of any dashboard are ______________.

A)Diagnostic oversight and intuitive insight
B)Diagnostic ability and intuitive market focus
C)Diagnostic insight and predictive foresight
D)Diagnostics and future goals
E)None of these

Question 29

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

A)Inside-out measurement
B)Outside-in measurement
C)Total measurement
D)Partial measurement, leading to partial solutions
E)All of these

Question 30

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

A)Long-term decision perspective
B)Short-term decision perspective
C)Relationship marketing
D)Incremental authorization
E)None of these

Question 31

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

A)The stock price
B)The number of employees
C)The number of customers who write complaints during any period of time
D)Profits
E)None of these

Question 32

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

A)Desired customer value propositions
B)Elements of tactical numerology
C)Desirable elements of diagnostic mathematics
D)Suitable service message
E)All of these

Question 33

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

A)Leads to smaller marketing budgets
B)Leads to animosity among departments
C)Elevates marketing's perceived accountability and trust by others
D)Makes marketing look like the hero in the company
E)None of these

Question 34

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

A)Level of investment
B)Returns
C)Risks
D)Level of uncertainty
E)Hurdle rates

Question 35

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

A)The computer division's relationship to the iPhone group
B)The CEO's efficiency in marketing
C)How future new products will be accepted or rejected by the consumer market
D)How the assets have been growing and how they are likely to progress
E)None of these

Question 36

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

A)Risk factor
B)Suitability factor
C)Total rate
D)Hurdle rate
E)All of these

Question 37

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.

A)A variable
B)A total investment
C)An expense item
D)A lost cause
E)None of these

Question 38

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 ____________.

A)At least each week
B)At least each month
C)At least once a month
D)At all times
E)At decision-making times

Question 39

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

A)Estimated Total Market Revenue
B)Estimated Total Market Profit
C)Estimated Total Market Unit Sales
D)Estimated Market Penetration
E)None of these

Question 40

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 _________.

A)Accelerator
B)Matrix
C)Dashboard
D)Planning equation
E)Cockpit

Question 41

Rather than having only one goal or even several goals and objectives for a marketing plan,it is recommended that _____________.

A)Goals are quantified with real numbers
B)Each and every action plan be measured in some way
C)Goals be simple and to the point
D)Goals be realistic
E)None of these

Question 42

Margin on sales is the difference between ____________.

A)Selling price and unit sales
B)Unit sales and profit per unit
C)Selling price and cost
D)Unit margin and unit sales
E)None of these

Question 43

In a marketing plan,every strategy must include implementation elements.These are called ___________.

A)Vertical tactics
B)Action by design
C)Plans by scorecard
D)Action plans
E)All of these

Question 44

Customer lifetime value (CLV)is an important number in that it represents ___________.

A)What a customer spends in a year
B)An upper limit on spending to acquire a new customer
C)The importance of government contracts that have less risk
D)The loss one could expect from a new competitor
E)The discount rate of a given customer

Question 45

Sales force effectiveness is a measure of market performance by a company that focuses on how well the sales force does with respect to __________ in relationship to sales.

A)Number of calls made
B)Number of potential accounts
C)Number of active accounts
D)All of these
E)None of these

Question 46

Sam Marino,an accountant in the organization,says that marketing is always overbudget and not accountable.Sam suggests that marketing can avoid this difficulty by ____________.

A)Having a master budget for a plan
B)Tracking the budget throughout the implementation process
C)Reporting variances from the budget on a systematic basis
D)Noting budget overages and communicating these with accountable people
E)All of these

Question 47

Subjective methods of forecasting do not include _______.

A)User expectations
B)Sales force composite
C)Market test
D)Delphi technique
E)Jury of executive opinion

Question 48

Leo Bogart was talking about strategic marketing planning and said,"We plan all the time but nothing ever gets done around here." One way to avoid getting into Leo's situation is to __________.

A)Have a committee review the plan
B)Have human resources outsource the plan
C)Have a person in the organization be assigned specifically to each action plan with the idea that he or she owns the action plan
D)Have a list of the actions printed for everyone's desk
E)None of these

Question 49

A Gantt or PERT chart is used in planning to _________.

A)Visualize the timing and completion of action plans
B)Do time management studies of various activities
C)Time things to the second to know when they are to be done
D)Eliminate overages to maximize cost savings
E)All of these

Question 50

Customers Who Have Purchased the Brand (#)divided by Total Population (#)equals ____________.

A)Brand Awareness
B)Brand Peculiarity
C)Brand Prowess
D)Brand Penetration
E)Total Brand Accumulation

Question 51

Share of voice quantifies the ___________ that a specific product or brand enjoys.

A)Advertising
B)Promotion
C)Presence
D)Knowledge
E)None of these

Question 52

Cannibalization is the concept that describes __________.

A)The loss that occurs from a new product introduction on existing products
B)When revenue is lost to a competitor
C)The loss of unit sales to a new advertising campaign of a competitor
D)The loss that occurs from a brand maturing
E)None of these

Question 53

Revenue Market Share (%)= Sales Revenue ($)divided by ___________.

A)Estimated Total Market Revenue
B)Estimated Total Market Profit
C)Estimated Total Market Unit Sales
D)Estimated Market Penetration
E)None of these

Question 54

When New World Recycling does forecasting,it goes directly to customers and asks them what their anticipated needs are for the coming time period.This method is known as _________.

A)Sales force composite
B)Jury of executive opinion
C)User expectations
D)Delphi technique
E)None of these

Question 55

Market Penetration (%)= Customers Who Have Purchased a Product in the Category (#)divided by ___________.

A)Total Population
B)Customers Who Have Purchased the Brand
C)Brand Penetration
D)Estimated Market Penetration
E)None of these

Question 56

Click-through rates are a commonly used metric.Although these are useful,they do not indicate _________.

A)If a customer is interested in the product
B)That a customer is on the path toward a final sale
C)Who the clicker is
D)What a click means
E)None of these

Question 57

__________ is useful in comparing the relative efficiency of different advertising opportunities or media and in evaluating the costs of campaigns.

A)CPR-cost per repetition
B)CPM-cost per thousand
C)CPQ-cost per quantity bought
D)CPS-cost per solicitation
E)None of these

Question 58

Objective methods of forecasting do not include _______.

A)Market test
B)Time-series analysis
C)Sales force composite
D)Moving averages
E)Decomposition

Question 59

Outlets Where Brand or Product Is Listed but Unavailable (#)divided by Total Outlets Where Brand or Product Is Listed (#)equals ____________.

A)Stock-outs (%)
B)Service Level Re
C)Inventory turns
D)Percentage of sales on deal
E)Pass-through

Question 60

Electra Electrical Motors has salespeople all over the United States.The company asks each member of the sales team once a year to make a forecast of their expectations with respect to what they plan to sell.This is known as the ____________.

A)Sales economy method
B)Make easy sales method
C)Composite commercial method
D)Sales force composite method
E)All of these

Question 61

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.

A)The least dramatic impact
B)The average impact
C)The most dramatic impact
D)The Predictor impact
E)None of these

Question 62

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 _____________.

A)Tries to control for executive emotion
B)Uses an iterative approach with repeated measurement to control for direct confrontation
C)Uses consumers in a panel to discuss their planned purchases
D)Tries to make suppliers, buyers, users, and deciders part of the process
E)None of these

Question 63

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

A)Smoothing constant
B)Beta coefficient
C)Coefficient normal
D)High-value customers
E)None of these

Question 64

Most of the time _________________.

A)Subjective methods of forecasting are best
B)Quantitative methods of forecasting are best
C)One method of forecasting is best under all conditions
D)Multiple methods of forecasting should be used to cover all your bets
E)None of these

Question 65

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

A)Uncertainty of which methods to use and how accurate they are likely to be
B)The choice to use as many models as possible
C)The view that subjective methods are just as good
D)Uncertainty of which methods to use and how accurate they are likely to be, the choice to use as many models as possible, and the view that subjective methods are just as good
E)Both uncertainty of which methods to use and how accurate they are likely to be and the view that subjective methods are just as good

Question 66

Analytical factors include all except ____________.

A)The stability of the data series
B)The time horizon
C)The degree of structure imposed on the process
D)The manager's experience
E)The seasonality of information

Question 67

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

A)The market analytic method
B)The market test (or test market)
C)The go-to-market strategic method
D)The post hoc market method
E)None of these

Question 68

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

A)A simple average for the last two or four years is used
B)A smoothing technique is used to determine the forecast
C)A decomposition of the industry is used to average the sales
D)An average is calculated using the midpoint of the sales trend and then is computed by multiplying it by a beta coefficient to get the next year's forecast
E)None of these

Question 69

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

A)Objective-and-task
B)Whatever-the-boss-allows
C)Percent-of-sales
D)Comparative-parity
E)All-you-can-afford

Question 70

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

A)Zero-based
B)Objective-and-task
C)Percent-of-sales
D)Comparative-parity
E)All-you-can-afford

Question 71

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

A)Lightest
B)Multiplied by the frequency factor
C)Heaviest
D)Divided by the frequency factor
E)None of these

Question 72

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

A)Objective-and-task
B)Per-unit
C)Percent-of-sales
D)Comparative-parity
E)All-you-can-afford

Question 73

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

A)Per-unit
B)Objective-and-task
C)Percent-of-sales
D)Comparative-parity
E)All-you-can-afford

Question 74

Situational factors include all except ____________.

A)Marketplace volatility
B)The time horizon
C)Information accessibility
D)Number of people required to accomplish the forecasting
E)Expertise of the forecaster

Question 75

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

A)A consultant's decision
B)Al the models proposed by all participants
C)His or her own judgment after reviewing multiple input sources
D)All of these
E)None of these

Question 76

Market tests have several drawbacks such as ______.

A)They are costly to administer
B)They can be time-consuming
C)They could give an unrealistic picture of the product's potential
D)They may allow competitors to formulate a market response before full market introduction
E)All of theseMarket tests have several drawbacks:

Question 77

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

A)Time and money analysis
B)Trend by objective analysis
C)Task and objective technique
D)Time-series analysis
E)None of these

Question 78

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

A)Zero-based
B)Objective-and-task
C)Percent-of-sales
D)Comparative-parity
E)All-you-can-afford

Question 79

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

A)Per-unit
B)Objective-and-task
C)Percent-of-sales
D)Comparative-parity
E)All-you-can-afford

Question 80

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

A)The trend, numbers, fashions, and randomness
B)The trend, cyclical, seasonal, and random factors
C)The trend, effect, season, and random factors
D)The trend, forecast, smoothing, and decomposition
E)None of these