Question 1

The budgeting method is constraining because it relies on gross revenue is known as the ______________ method.

Accepted Answer

The budgeting method that relies on gross revenue being known is the percent-of-sales method. This method determines the budgeted amount for marketing based on a percentage of the anticipated sales revenue. While it provides a clear guideline for budgeting, it can also be constraining as it limits the budgeted amount to a percentage of sales.

Question 2

Analytical factors include all except ____________.

Accepted Answer

The stability of the data series, the time horizon, the degree of structure imposed on the process, and seasonality of information are all analytical factors that must be considered when analyzing data. However, the manager's experience is not an analytical factor; it is a personal factor that may affect the interpretation or decision-making based on the analysis.

Question 3

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

Accepted Answer

The budgeting method that relies upon figuring out whatever is left over after all other expenses have been accounted for is known as the "All-you-can-afford" method. This method is not recommended because it does not take into account the company's goals, revenues, and expenses, and may lead to overspending or missed opportunities for investment. Other budgeting methods, such as zero-based budgeting, objective-and-task budgeting, and percent-of-sales budgeting, are more effective in aligning expenses with the company's goals and resources.

Question 4

Most marketing plan budgets are created and maintained by the use of ______________ that provide formulaic capabilities to perform scenario analysis on a variety of contingencies and see the impact on the budget.

Accepted Answer

Excel spreadsheets are commonly used for creating and maintaining marketing plan budgets because they offer formulaic capabilities and allow for scenario analysis on different contingencies, making it easy to see the impact on the budget. While custom software and CRM software can also be used, they may be more expensive and may not provide as much flexibility as an Excel spreadsheet.

Question 5

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

The emphasis in regression analysis is to identify those factors that have the most significant impact on sales and estimate the magnitude of such impact. This helps in understanding the key drivers of sales and enables businesses to make informed decisions to optimize sales.

Question 6

Effective controls should involve _________________.

Accepted Answer

Effective controls should provide a reliable picture of the situation without being overloaded with unnecessary information. The focus should be on key indicators and essential data that can inform decision-making and corrective actions.

Question 7

_______________ is the optimal budgeting method.

Accepted Answer

Objective-and-task budgeting is considered the most effective method as it involves identifying specific objectives, determining the tasks required to achieve those objectives, and estimating the costs associated with each task. This method ensures that the budget is aligned with the overall business objectives and can help in better tracking and planning of expenses. On the other hand, per unit, percent-of-sales, and comparative-parity methods may not consider specific business objectives and can lead to overspending or underspending in certain areas. The all-you-can-afford method is also not recommended as it does not consider the actual costs and can lead to a lack of resources in critical areas.

Question 8

________ must be in place from the outset of the planning process that specify the timing, procedure, and people who will monitor the progress towards the firm's marketing goals and objectives.

Accepted Answer

Controls are the mechanisms put in place to ensure that the marketing plan is executed effectively and efficiently. These controls should be established from the beginning of the planning process and should include specific timing, procedures, and designated personnel to monitor the progress towards the firm's marketing goals and objectives. These controls help to ensure that the plan stays on track and allows for adjustments to be made if necessary.

Question 9

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

Accepted Answer

The answer of Ultimately, the marketing manager must rely upon...

Question 10

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

Accepted Answer

Objective-and-task budgeting is based on the specific goals and objectives that have been established for a particular marketing plan, and the costs that will be required to achieve those objectives. This approach involves breaking down the marketing plan into specific activities or tasks, estimating the costs associated with each task, and then aggregating those costs to arrive at a total budget for the plan. This method allows for a more precise allocation of resources and can help ensure that each activity is properly funded to achieve its goals.

Question 11

When action plan budgets are aggregated into an overall marketing budget, you can assume the budgeting method used is ________________.

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. 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.

Question 12

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

Accepted Answer

Comparative-parity method involves setting the marketing budget based on what competitors are spending. This method aims to keep the company's marketing spending competitive with the industry average.

Question 13

____________ is the process by which significant deviations to the marketing plans are anticipated.

Accepted Answer

Contingency planning is the process by which significant deviations to the marketing plans are anticipated. Scenario planning is a technique used to identify and assess potential future events and their impact on the organization.

Question 14

Marketing plan controls involve _______________.

Accepted Answer

Marketing plan controls involve the entire organization, as it is important for all departments to be aligned to achieve marketing objectives. By involving the entire organization, there can be clear communication and collaboration between different departments. Additionally, involving key stakeholders outside of the marketing department can ensure that the marketing plan aligns with the overall goals and objectives of the organization.

Question 15

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 16

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

Accepted Answer

B, "Whatever the boss allows," is not a valid method for preparing an overall marketing budget as it is not based on any specific marketing goals or objectives, market research, or financial considerations. It is also not a sustainable approach as it does not ensure that the company is allocating resources efficiently or effectively. The other answer choices (A, C, D, and E) are all recognized methods for developing a marketing budget.

Question 17

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

Accepted Answer

The answer of Managers may try several methods of forecasting...

Question 18

You are responsible for contingency planning for your company's marketing plan.You should create _______________ options.

Accepted Answer

A convenient way to prepare for the possibility that controls will reveal significant deviations from the plan is through contingency planning, also called scenario planning. Contingency planning requires the establishment of different planning options depending on the expected case, best case, or worst case.

Question 19

Setting exceedingly high goals and objectives will result in _____________.

Accepted Answer

The answer of Setting exceedingly high goals and objectives will...

Question 20

Most of the time _________________.

Accepted Answer

While subjective and quantitative methods can each have their strengths in different situations, no single method can be universally applied to all forecasting scenarios. Therefore, it is recommended to use a combination of methods to achieve more accurate predictions.

Quiz 19: The Marketing Dashboard: Metrics for Measuring Marketing Performance