Deck 2: Implementing and Controlling Marketing Plans: Evolution and Revolution

Question 1

Digital communication and e-commerce offer speed and detail in obtaining information needed for better control.

Answer 1

True
Explanation: Fast feedback is not possible unless data are in a form that can be quickly sorted and analyzed by computer. Digital communication and e-commerce help solve these problems. Many companies use the Internet to immediately share data among locations. A sales manager with a notebook computer can pull data off the firm's intranet from anywhere in the world.

Question 2

According to the "80/20 rule," it is common to find that about 80 percent of a firm's business comes from only about 20 percent of its customers.

Answer 2

True
Explanation: A company may be showing a profit, while 80 percent of its business comes from only 20 percent of its products-or customers. The other 80 percent may be unprofitable. But without special analyses, managers won't know it. This 80/20 relationship is fairly common-and it is often referred to as the 80/20 rule.

Question 3

The "iceberg principle" says that looking at detailed breakdowns of data is not very useful,since most relevant information is revealed in good summaries.

Answer 3

False
Explanation: The "iceberg principle" says that much good information is hidden in summary data.

Question 4

As with sales analysis,performance analysis is limited to sales data.

Question 5

Implementing a strategy is straightforward; there are usually only a limited number of ways things can go wrong.

Question 6

Traditional accounting reports are usually too general to be of much help to the marketing manager in controlling marketing plans.

Question 7

Because too much sales data can drown a manager,it's best to start by asking only for breakdowns that involve customer type.

Question 8

Traditional accounting reports don't give sufficient information to managers who need to know what's happening,in detail,to improve the bottom line.

Question 9

Sales analysis provides a simple listing of sales figures compared against standards.

Question 10

The best way to do a sales analysis is to first break down sales by customer type,and then geographic region.

Question 11

The ideal of doing things better,faster,and at lower cost is easy to implement once it is accepted.

Question 12

The "80/20 rule" describes the relationship that 80 percent of an organization's business often comes from only 20 percent of its products or customers.

Question 13

Performance analysis permits the manager to compare actual performance against performance standards.

Question 14

Implementation puts plans into operation while control provides feedback.

Question 15

Statistical packages and information systems that produce graphs and charts can make it easier to see patterns that are hidden in a table of numbers.

Question 16

The main advantage of performance indexes is that they make it easier to compare numbers in a performance analysis.

Question 17

Performance analysis looks for exceptions or variations from planned performance.

Question 18

Marketing managers use performance indexes to compare what did happen with what ought to have happened.

Question 19

Advances in computer software have accelerated the move to cost analysis and performance analysis.

Question 20

The development of electronic pipelines and inexpensive computer software has helped small and large companies control their marketing strategies.

Question 21

The contribution-margin and the full-cost approaches to marketing cost analysis are different,but they should lead to the same action implications.

Question 22

A marketing audit is a systematic,critical,and unbiased review and appraisal of the basic objectives and policies of the marketing function.

Question 23

Experience shows that it doesn't make sense for marketing managers to allocate costs to specific market segments or products.

Question 24

In a marketing audit,the auditor evaluates the plans being implemented,but not the quality of the effort.

Question 25

The full-cost approach to marketing cost analysis is likely to lead to arguments among product managers about how costs are to be allocated.

Question 26

The accounting department should do a marketing audit since they have access to the data.

Question 27

With the contribution-margin approach to marketing cost analysis,all costs are allocated to products,customers,or other categories.

Question 28

Marketing audits consider future marketing plans,so they are not concerned with a company's current marketing strategies.

Question 29

The contribution-margin approach to marketing cost analysis focuses attention on variable costs rather than total costs.

Question 30

In general,the more products a company has the more difficult it will be to allocate costs.

Question 31

With the full-cost approach to marketing cost analysis,all costs are allocated to products,customers,or other categories.

Question 32

Top management often finds contribution margin analysis to be much more useful than full-cost analysis.

Question 33

In the full-cost approach,all costs except fixed costs and common costs are allocated to products or customers.

Question 34

The contribution-margin approach ignores some costs to simplify comparing among specific alternatives

Question 35

A marketing audit is a systematic procedure for allocating the full costs of marketing to the appropriate functional accounts.

Question 36

The full-cost approach and the contribution-margin approach always suggest the same outcome.

Question 37

A marketing audit is similar to an accounting audit or a personnel audit,which businesses have used for some time.

Question 38

When it comes to marketing cost analysis,a sales rep is likely to favor the full-cost approach over the contribution-margin approach.

Question 39

A marketing audit evaluates the whole marketing program.

Question 40

Cost analysis and performance analysis are the same thing.

Question 41

To improve the effectiveness of the marketing control process,the marketing manager should:

A) realize that most errors are made because managers react to detailed information too quickly-instead of waiting to see what patterns show up in summary reports.
B) be the supervisor for the data-processing manager.
C) have all necessary data captured as it comes in and in a form that can be quickly sorted and analyzed by computer.
D) be certain that all cost records are kept in a central location controlled by the marketing department.
E) All of these are true.

Question 42

Top executives of a health maintenance organization (HMO)were discussing a proposal to start providing each patient with a short customer satisfaction survey that would be on a card given to the patient when he/she left one of the HMO's clinics.All the patient had to do was to complete the survey items and drop the card in a mailbox; the HMO would pay the return postage.After several minutes,one of the executives said,"I don't like this idea at all,because the only people who will respond to the survey are people who want to complain about something." Apparently,this executive doesn't understand that:

A) Most companies don't pay any attention to customer surveys anyway.
B) Complaints can bring implementation problems to light so that the company can fix them.
C) No one answers surveys that are sent through the mail.
D) Implementation problems that are unresolved often result in dissatisfied patients who may choose other health care providers.
E) Both Complaints can bring implementation problems to light so that the company can fix them; and Implementation problems that are unresolved often result in dissatisfied patients who may choose other health care providers.

Question 43

Which of the following statements is NOT TRUE?

A) Good implementation builds relationships with customers.
B) Implementation ignores external matters.
C) Implementation is especially critical in mature and highly competitive markets.
D) Effective implementation means that plans work as intended.
E) Implementation has its own objectives.

Question 44

The 80/20 rule suggests that

A) 20 percent of marketing effort is wasted.
B) 80 percent of marketing effort is well implemented, but the remaining 20 percent is out of control.
C) 80 percent of the business comes from 20 percent of the customers.
D) it will take 80 percent more effort to get 20 percent more business.
E) None of these is true.

Question 45

Ruth Boller,marketing manager at Hi Mountain Water is looking to learn more about ongoing plans and implantation are working and how she can plan for the future.This process is called _____.

A) design
B) forecasting
C) implementation
D) control
E) modeling

Question 46

With respect to marketing control,

A) all cost records should be kept in the marketing department.
B) faster feedback can often be the basis for a competitive advantage.
C) many advances have been made, but there is still no effective way for a manager to be sure that a product is actually selling to the intended target market rather than to some other group.
D) All of these are true.

Question 47

Studies have shown that customers who weren't satisfied with response to their complaints

A) on average told one person about their experience.
B) on average told ten people about their experience.
C) usually never spoke about it.
D) will make at least two more complaints.
E) spoke about their experience only when prodded by researchers.

Question 48

Which of the following statements about customer complaints is FALSE?

A) Customer complaints that are handled well by the company usually help it win new customers.
B) In business markets, customer complaints are usually handled by the sales force.
C) In consumer markets, customer complaints are usually handled by toll-free telephone lines, Web sites, and e-mail customer service reps.
D) Customer complaints that are handled well by the company usually help it keep its customers.
E) None of these is false.

Question 49

While doing an analysis,Sara realizes that close to 80 percent of her company's revenues comes from only 20 percent of her customers.This finding substantiates

A) the iceberg principle.
B) the sales paradox.
C) the 80/20 rule.
D) the standard markup rule.
E) the fishbone rule.

Question 50

The basic objectives of implementation are to do things:

A) better.
B) faster.
C) at lower cost.
D) All of these are true.

Question 51

A good marketing plan helps managers make strategic planning decisions and provides a framework for effective implementation and _________________.

A) analysis
B) control
C) organization
D) research
E) supervision

Question 52

A firm generates a monthly profit of $160,000 dollars.If the 80/20 rule applies to this firm's products,which of the following statement is true?

A) The firm generates $160,000 in profit from 80% of its products.
B) The firm generates $128,000 in profit from 80% of its products.
C) The firm generates $128,000 in profit from 20% of its products.
D) The firm generates $80,000 in profit from 20% of its products.
E) The firm generates $64,000 in profit from 20% of its products.

Question 53

Regarding marketing control:

A) Today's marketing managers have access to more information about the effectiveness of their strategies than in previous years.
B) Fast feedback from the marketplace can be a source of competitive advantage.
C) The marketing manager needs information that is captured as soon as it comes in.
D) Fast feedback is not possible unless the necessary data can be quickly sorted and analyzed.
E) All of these are correct.

Question 54

Control helps marketing managers learn how:

A) to plan for the future.
B) implementation is working.
C) ongoing plans are working.
D) All of these are correct.
E) None of these are correct.

Question 55

Sam Reuter,marketing manager for Herbal Shampoo Company,has to choose one of three different proposed labels for a new herbal shampoo.How might Sam pretest consumer response to the labels?

A) Put a toll-free telephone number and Web site address on the product label.
B) Check the labels of competitors.
C) Launch the product with new labels and evaluate the response.
D) Prepare sample labels with graphics software and test them on the Internet.
E) Set up a televideo conference.

Question 56

Ideally,a marketing audit should not be necessary.

Question 57

Whistler's Camping Supplies wants to identify its most frequent customers and offer them quantity discounts to increase their purchases and loyalty.Which of the following implementation approaches might address that problem?

A) Put a toll-free telephone number and Web site address on the product label.
B) Use bar code scanners, RFID tags, EDI, and inventory reorder software.
C) Create a "favored customer" club with an ID card.
D) Set different prices in similar markets and track sales, including sales of competing products.
E) Set up a televideo conference.

Question 58

Effective implementation of a marketing plan:

A) Matters least in markets that are mature and highly competitive.
B) Usually does not make the difference between winning and losing a customer.
C) Can involve decisions related to both internal (invisible to the consumer) and external (visible to the consumer) matters.
D) Is unrelated to the overall objectives of the marketing strategy.
E) None of these are true.

Question 59

_____ is the feedback process that helps the marketing manager learn how ongoing plans are working and how to plan for the future.

A) Design
B) Planning
C) Implementation
D) Control
E) Benchmarking

Question 60

The "80/20 rule" says that:

A) only 20 out of every 100 firms use formal accounting controls.
B) a firm should hire 20 sales reps for every 80 customers.
C) marketing accounts for 80 percent of a typical consumer's dollar.
D) even though a firm is showing a profit, 80 percent of its business might be coming from only 20 percent of its customers.
E) usually about 20 percent of a firm's customers are unprofitable.

Question 61

Performance analysis differs from sales analysis in that performance analysis involves:

A) detailed breakdowns of a company's sales records.
B) analyzing only the performance of sales representatives.
C) comparing performance against standards-looking for exceptions or variations.
D) analyzing only people-not products or territories.
E) budgeting for marketing expenditures on the basis of contribution margins.

Question 62

Sales analysis is a:

A) well-accepted trend analysis method.
B) necessity for making all important marketing decisions.
C) way of assuring that future sales will be profitable.
D) detailed report of likely profitability.
E) detailed breakdown of a company's sales records.

Question 63

Regarding sales analysis:

A) Sales data should be broken down according to customer characteristics such as demographics, because those are the only relevant dimensions.
B) There is only one best way for analyzing sales data.
C) Sales analysis is difficult and expensive because the data are difficult to obtain.
D) Sales analysis can highlight important trends and help managers develop more accurate sales forecasts.
E) A detailed sales analysis is most effectively presented with tables containing rows and columns of numbers as opposed to charts and graphs.

Question 64

Which of the following statements illustrates the 80/20 rule?

A) "80 percent of our target market doesn't respond to our marketing mix, and we only have a 20 percent market share."
B) "Of the hundred retailers who carry our products, the top twenty account for nearly 80 percent of our total business."
C) "20 percent of our marketing effort is wasted, but we don't know which 20 percent."
D) "We don't know whether our profits are 20 percent higher than we deserve, or only 80 percent of what might be easily obtained."
E) None of these is correct.

Question 65

According to the "80/20 rule":

A) marketing accounts for 80 percent of the consumer's dollar.
B) only 20 out of every 100 firms use formal marketing control programs.
C) about 20 percent of a typical firm's customers are unprofitable to serve.
D) even though a firm might be showing a profit, 80 percent of its business might be coming from only 20 percent of its products or customers.
E) None of these is correct.

Question 66

Worldwide Applicance Co.put together data to measure sales performance by region of the United States.The Western region included 30% of the U.S.population and was expected to deliver a similar share of Worldwide's sales.This region ended up delivering 30% of the company's overall sales.The performance index for the Western region would be:

A) .90.
B) 1.30.
C) 130.
D) 100.
E) 90.

Question 67

_____ involves a detailed breakdown and analysis of customer purchases but does not compare these figures against standards.

A) Sales analysis
B) Performance analysis
C) Cost analysis
D) A performance index
E) A marketing audit

Question 68

Sales analysis:

A) typically involves reorganizing existing information rather than gathering new information.
B) may involve analyzing many different breakdowns of overall sales.
C) is usually a good first step when setting up a control system.
D) All of these are true.

Question 69

Regarding controlling marketing programs:

A) "sales analysis" and "performance analysis" mean the same thing.
B) traditional accounting reports are very useful for controlling marketing programs.
C) sales analysis is so revealing that there is no such thing as having TOO MUCH data.
D) the control process helps marketing managers learn how ongoing plans are working.
E) All of these are true.

Question 70

When involved in the control process,the marketing manager should view company profit

A) as a gross index of performance that should be further broken down into smaller components.
B) as a guide to future operations.
C) as the test of whether or not the marketing mix is successful.
D) All of these are true.

Question 71

Marketing sales analysis:

A) keeps track of whether a firm's sales are increasing or decreasing.
B) requires a detailed breakdown of a company's sales records.
C) is very hard to do-because computers must be involved.
D) looks for exceptions or variations from planned performance.
E) tries to avoid the 80/20 rule.

Question 72

The best way to break down and analyze sales data is:

A) by order size.
B) by geographic region.
C) by customer type.
D) by product, package, size, grade or color.
E) any of these are correct, depending on the situation.

Question 73

Detailed sales analysis is:

A) not worth the cost unless the firm is very unprofitable.
B) based on the information available on traditional accounting reports.
C) important for producers, but usually not that valuable for retailers.
D) most useful when it analyzes costs from different possible target markets.
E) None of these is true.

Question 74

Wiz Bang Foods put together data to measure sales performance by region of the United States.The Southern region included 25% of the U.S.population and was expected to deliver a similar share of Wiz Bang Foods' sales.This region ended up delivering 30% of the company's overall sales.The performance index for the Southern region would be:

A) 120.
B) 83.
C) 117.
D) 1.17.
E) .90.

Question 75

A marketing manager who wants to analyze the firm's sales should be aware that:

A) sales invoice files contain little useful information.
B) the best way to analyze sales data is according to geographic regions.
C) sales analysis involves a detailed breakdown of a company's sales forecasts.
D) sales analysis may not be possible unless the manager has made arrangements for the company to capture identifying information about each sale.
E) a manager can never have too much data.

Question 76

The most useful breakdown of data in a sales analysis is by:

A) size of order.
B) product, package size, grade, or color.
C) customer type.
D) geographic region.
E) any or all of these-depending on the situation.

Question 77

Compared with sales analysis,PERFORMANCE ANALYSIS:

A) shows which customers should be dropped.
B) looks for exceptions or variations from planned performance.
C) does not do as much comparing against standards.
D) shows how to improve performance.
E) All of these are correct.

Question 78

A _____ looks for exceptions or variations from planned performance.

A) performance analysis
B) break-even analysis
C) Pareto chart
D) fishbone diagram
E) pie chart

Question 79

Sales analysis:

A) requires more information than is available from traditional accounting reports.
B) can be done in different ways-there is no single "best way."
C) often studies how sales patterns change over time.
D) All of these are true.

Question 80

Which of the following observations concerning sales analysis is NOT correct?

A) It is a detailed breakdown of a company's sales records.
B) Product category is the best way to analyze sales data.
C) Data can easily be obtained from basic billing and accounts receivable procedures.
D) It is easy to do, and usually it's inexpensive.
E) There is no one best way to break down sales data.