Question 1

What sales analysis data would a firm generally NOT receive from a sales invoice?
A) The minimum order size that is profitable to the firm
B) The number of different items purchased at the same time
C) The geographic location of the purchase
D) Purchase terms

Accepted Answer

Sales invoices typically include details such as the number of items purchased, the geographic location of the purchase (through billing or shipping address), and the purchase terms (payment terms, discounts, etc.). However, they do not directly provide information on the minimum order size that is profitable to the firm, as this requires additional internal cost analysis.

Question 2

A jeweler categorizes sales by product category: clocks, watches, jewelry, and antiques. In conducting a sales analysis, each category represents a
A) functional account.
B) natural account.
C) control unit.
D) stock-keeping unit.

Accepted Answer

The answer of A jeweler categorizes sales by product category:...

Question 3

A key principle in sales analysis is that
A) summary data are quite helpful in assessing organizational performance.
B) summary data are often insufficient to diagnose a firm's areas of strength and weakness.
C) control units should be broad.
D) control units should be flexible.

Accepted Answer

Summary data often lack the detail needed to identify specific areas of strength and weakness, making them insufficient for thorough diagnosis.

Question 4

When related to consumer analysis, the 80-20 principle is most similar to what market segmentation concept?
A) Benefit segmentation
B) The heavy-half theory
C) Differentiated marketing
D) Concentrated marketing

Accepted Answer

The 80-20 principle, also known as the Pareto Principle, suggests that 80% of effects come from 20% of causes. In consumer analysis, this often translates to 80% of a company's sales coming from 20% of its customers. The heavy-half theory is most similar to this concept, as it focuses on targeting the smaller group of consumers who are responsible for a large portion of sales or consumption.

Question 5

In sales analysis, a firm understanding the iceberg principle would use
A) sales per product category as a control unit.
B) narrow control units.
C) wide control units.
D) total sales as a control unit.

Accepted Answer

The iceberg principle suggests that only a small portion of information is visible, while the majority is hidden. Using narrow control units allows for a deeper analysis of specific areas, uncovering underlying issues or opportunities that may not be apparent with broader measures.

Question 6

The major advantage of sales exception reporting is that reports
A) are always accurate.
B) focus on weaknesses.
C) are related to the 80-20 principle.
D) highlight both problems and opportunities.

Accepted Answer

Sales exception reporting highlights both problems and opportunities by identifying deviations from expected performance, allowing management to address issues and capitalize on potential opportunities.

Question 7

Which is NOT a sales exception report for a parts supplier?
A) A list of out-of-stock items
B) A list of items held in inventory for at least three months
C) A list of total sales per week
D) A list of fast-selling items (5 or more units per week)

Accepted Answer

Sales exception reports typically highlight anomalies or specific conditions that deviate from the norm, such as out-of-stock items, items held in inventory for too long, or fast-selling items. A list of total sales per week is a standard sales report, not an exception report, as it does not focus on deviations or exceptions in sales or inventory status.

Question 8

An advantage to having a company division manager conduct a marketing audit is his/her
A) knowledge of the company and its environment.
B) impartial nature.
C) time availability for a prolonged audit.
D) concentration on this responsibility.

Accepted Answer

The division manager's intimate knowledge of the company and its environment is a clear advantage in conducting a marketing audit, as it allows for a more nuanced and informed analysis.

Question 9

A firm comprehensively and regularly studies its new-product planning efforts, product-management organization structure, branding philosophy, and product deletion decisions. It is involved with a
A) sales analysis.
B) horizontal marketing audit.
C) vertical marketing audit.
D) strategic plan.

Accepted Answer

A vertical marketing audit involves a thorough and regular examination of a company's various marketing aspects, including new-product planning, product-management organization, branding philosophy, and product deletion decisions, to ensure they align with the company's overall strategy and objectives.

Question 10

A firm does not anticipate and respond to future trends. Which analysis technique would most likely detect this?
A) Horizontal marketing audit
B) Allocating functional accounts by marketing classification
C) Marketing cost analysis
D) Sales analysis

Accepted Answer

A horizontal marketing audit is designed to evaluate the strategic aspects of a firm's marketing efforts, including its ability to anticipate and respond to market trends, making it the most likely technique to detect a firm's failure in this area.

Question 11

Marketing analysis is necessary if a firm wants to appraise performance, capitalize on strengths, minimize weaknesses, and plan for the future.

Accepted Answer

Marketing analysis helps a firm understand its position in the market, evaluate its performance, identify its strengths and weaknesses, and make informed decisions for future planning and strategy development.

Question 12

An overall marketing plan would be well integrated if a firm concentrates on short-term profits rather than long-term ones.

Accepted Answer

A well-integrated marketing plan focuses on long-term goals and sustainability rather than prioritizing short-term profits, ensuring consistency in brand messaging and strategic alignment across all marketing efforts.

Question 13

A firm's organizational mission should be re-evaluated if it acquires another company or sells one or more of its existing divisions.

Accepted Answer

When a firm acquires another company or sells one of its divisions, its strategic direction, scope of operations, and resource allocation may change significantly, necessitating a re-evaluation of its organizational mission to ensure it aligns with the new business structure and goals.

Question 14

When developing long-term competitive advantages, a company should focus on the product attributes that are most important to its target market.

Accepted Answer

Focusing on the product attributes most important to the target market ensures that the company meets customer needs and preferences, which is crucial for developing sustainable competitive advantages.

Question 15

To be sustainable, a competitive advantage must be linked to a capability gap that competitors will have trouble closing (such as a patent or superior marketing skills).

Accepted Answer

A sustainable competitive advantage is one that is difficult for competitors to imitate or overcome, and linking it to a capability gap that is hard for others to close, like a patent or superior marketing skills, ensures that the advantage can be maintained over time.

Question 16

Whatever their long-term competitive advantages, small firms should try to match the prices of their larger competitors.

Accepted Answer

Small firms often cannot achieve the same economies of scale as larger competitors, making it difficult to match their prices without sacrificing margins. Instead, they may focus on differentiation, customer service, or niche markets to compete.

Question 17

Because a company needs to precisely define its target market before devising a marketing mix, differentiated marketing should be avoided.

Accepted Answer

Differentiated marketing, where a company targets several market segments with a unique marketing strategy for each, can be highly effective. It allows a company to cater to the specific needs of different customer groups, potentially increasing market share and customer satisfaction.

Question 18

Short-term marketing subplans are the most general and set a broad framework for moderate-term ones.

Accepted Answer

Short-term marketing subplans are more specific and detailed, focusing on immediate actions and objectives, while long-term plans set a broad framework for the overall marketing strategy.

Question 19

Coordination among a firm's SBUs is enhanced if the functions, strategies, and resources allotted to each are fully outlined in short-, moderate-, and long-term marketing plans.

Accepted Answer

Having detailed marketing plans for short-, moderate-, and long-term periods helps in clearly defining the functions, strategies, and resources for each Strategic Business Unit (SBU), thereby enhancing coordination among them. This is because such plans provide a roadmap and align efforts towards common goals.

Question 20

The components of a firm's marketing mix need to be coordinated, but they do not have to be consistent with that firm's long-term organizational mission.

Accepted Answer

The components of a firm's marketing mix should be consistent with the firm's long-term organizational mission to ensure a unified direction and strategy across all marketing activities and organizational goals.

Quiz 22: Pulling It All Together: Integrating and Analyzing the Marketing Plan

What sales analysis data would a firm generally NOT receive from a sales invoice?

A jeweler categorizes sales by product category: clocks, watches, jewelry, and antiques. In conducting a sales analysis, each category represents a

A key principle in sales analysis is that

When related to consumer analysis, the 80-20 principle is most similar to what market segmentation concept?

In sales analysis, a firm understanding the iceberg principle would use

The major advantage of sales exception reporting is that reports

Which is NOT a sales exception report for a parts supplier?

An advantage to having a company division manager conduct a marketing audit is his/her

A firm comprehensively and regularly studies its new-product planning efforts, product-management organization structure, branding philosophy, and product deletion decisions. It is involved with a

A firm does not anticipate and respond to future trends. Which analysis technique would most likely detect this?