Question 1

A stakeholder-performance scorecard tracks the satisfaction with the company and its products and services among such entities as suppliers,banks,and stockholders.

Accepted Answer

A stakeholder-performance scorecard is designed to measure and monitor how well a company is meeting the needs and expectations of various stakeholders, including suppliers, banks, and stockholders. It provides a way to track satisfaction levels and identify areas for improvement.

Question 2

Especially popular with such companies as Procter & Gamble,marketing-mix modeling is used to allocate or reallocate expenditures.

Accepted Answer

Marketing-mix modeling is indeed used by companies like Procter & Gamble to allocate or reallocate their marketing expenditures. It helps these companies to optimize their marketing spend and measure the effectiveness of each element of their marketing mix.

Question 3

With respect to past-sales analysis,econometric analysis consists of projecting the next period's sales by combining an average of past sales and the most recent sales,giving more weight to the latter.

Accepted Answer

Econometric analysis involves using statistical methods to model the relationship between a dependent variable, like sales, and one or more independent variables, such as price or advertising spend, rather than simply averaging past sales with more weight on recent sales.

Question 4

The production department is responsible for preparing sales forecasts because they have the most data about production schedules and the ability to meet orders.

Accepted Answer

Sales forecasts are typically prepared by the sales or marketing department, as they have the expertise and data related to market trends, customer demand, and sales strategies. The production department uses these forecasts to plan production schedules.

Question 5

A sales quota is a conservative estimate of the expected volume of sales,primarily for making current purchasing,production,and cash flow decisions.

Accepted Answer

A sales quota is not a conservative estimate, but rather a specific numerical goal or target set for salespeople to achieve in a given period of time. It is used as a performance management tool to motivate and evaluate sales performance, rather than for making purchasing, production, or cash flow decisions.

Question 6

Market demand is not a fixed number,but rather a function of the stated conditions.

Accepted Answer

Market demand depends on factors such as price, consumer preferences, market trends, and economic conditions. It can vary over time and can be influenced by external factors. Therefore, it is not a fixed number but rather a function of the stated conditions.

Question 7

Few companies use sales-force estimates without making some adjustments because of both deliberate and inadvertent estimation error on the part of salespeople.

Accepted Answer

Sales-force estimates are often based on the opinions and judgments of individual salespeople, which can be influenced by a variety of factors. Companies typically make adjustments to these estimates to account for potential errors, such as biases or incomplete information, that may affect the accuracy of the sales forecast. This allows companies to better allocate resources and make informed decisions based on more reliable data.

Question 8

One of the characteristics of good marketing research is that it uses multiple methods.

Accepted Answer

Good marketing research often uses a combination of quantitative and qualitative methods, as well as primary and secondary data sources, to gather a comprehensive understanding of a market or target audience. Using multiple methods helps to ensure the validity and reliability of the research findings.

Question 9

The distance between the market minimum and the market potential shows the overall marketing sensitivity of demand.

Accepted Answer

The distance between the market minimum and the market potential is known as the market gap, and it represents the untapped market demand. The market sensitivity of demand refers to how responsive consumers are to changes in marketing variables such as price, product features, or promotional activities. Therefore, the market gap does not directly measure marketing sensitivity of demand.

Question 10

A set of measures that helps firms to quantify,compare,and interpret their marketing performance is called marketing metrics.

Accepted Answer

This statement is true. Marketing metrics refer to a set of quantifiable measures that help firms to track, analyze, and evaluate their marketing performance over time. These metrics can be used to compare different marketing campaigns or initiatives, identify areas for improvement, and ultimately make more informed and data-driven decisions about how to allocate marketing resources. Examples of commonly used marketing metrics include customer acquisition cost, customer lifetime value, conversion rates, and return on investment (ROI).

Question 11

A low market share-penetration index indicates substantial growth potential for all the firms.

Accepted Answer

A low market share-penetration index indicates that there is still a large portion of the market that the firms have not yet reached, which means there is room for significant growth potential.

Question 12

Estimating area market potential,as a subset of total market potential,facilitates effective marketing budget allocation.

Accepted Answer

Estimating the potential market size for a specific area can help a business allocate their marketing budget effectively and efficiently to target the potential customers within that market. It allows the business to focus their resources and efforts on the areas with the highest potential for success, rather than just targeting the total market potential without any specific strategy. Therefore, the statement is true.

Question 13

All the buyers who are able and willing to buy a company's products or services are called the overall market share.

Accepted Answer

The group of buyers who are able and willing to buy a company's products or services is called the target market. Overall market share refers to the percentage of total sales within a particular industry that a company holds.

Question 14

A target market is the set of consumers who profess a sufficient level of interest in a market offer.

Accepted Answer

The answer of A target market is the set of...

Question 15

Companies interested in market potential have a special interest in the product-penetration percentage,which is the percentage of ownership or use of a product or service in a population.

Accepted Answer

The statement is true. Companies interested in market potential are particularly concerned with the product-penetration percentage, which reflects the extent to which a product or service has been embraced by a given population. This metric provides insight into market penetration and potential growth, which are essential considerations for companies looking to expand their customer bases and increase revenue.

Question 16

Marketing-mix modeling is used to estimate causal relationships and measure how marketing activity affects outcomes.

Accepted Answer

Marketing-mix modeling is indeed used to estimate causal relationships and measure the impact of marketing activities on outcomes. It is a quantitative approach to assess the contribution of different marketing tactics in driving sales and other desirable outcomes. This involves analyzing data on various variables such as advertising spend, promotional campaigns, pricing strategies, distribution channels, and product features, among others, to determine how they affect sales, market share, brand equity, and other metrics. By understanding the impact of marketing on business performance, companies can optimize marketing investment and allocate resources more effectively to achieve their business goals.

Question 17

A common way to estimate total market potential is to multiply the potential number of buyers by the average quantity each purchases,times the price.

Accepted Answer

This is a commonly used formula for estimating market potential. By multiplying the potential number of buyers by the average quantity each purchases and the price, we can get an estimate of the total market potential. However, it's important to keep in mind that this is just an estimate and may not always be accurate. Other factors such as market saturation, competition, and consumer behavior also need to be taken into consideration when estimating market potential.

Question 18

When buyers don't plan their purchases carefully,or experts are unavailable or unreliable,exponential smoothing can help forecast new-product sales.

Accepted Answer

The answer of When buyers don't plan their purchases carefully,or...

Question 19

The multiple-factor index method for assessing area market potential is most commonly used by those interested in consumer markets.

Accepted Answer

The multiple-factor index method is a popular tool used by marketers to determine market potential in consumer markets. It takes into account various factors such as population demographics, income levels, and consumer preferences to assess the potential of an area.

Question 20

Marketing researchers should have a healthy skepticism toward glib assumptions made by managers about how a market works.

Accepted Answer

Marketing researchers should approach their work objectively and critically evaluate all assumptions and hypotheses, including those put forward by managers. Blindly accepting assumptions without evidence can lead to flawed research and misguided strategies. It is important for researchers to question assumptions and seek supporting evidence before making any conclusions.

Quiz 4: Conducting Marketing Research and Forecasting Demand