Question 1

Figure 22-1
-According to Figure 22-1 above,the result of spending an additional $1 million in annual marketing effort from $3 million to $4 million resulted in increased revenues of __________.

Accepted Answer

Figure 22-1 shows that an additional $1 million in annual marketing effort from $3 million to $4 million,results in an increase in sales revenue of $20 million.

Question 2

Which of the following pieces of information is used in market-product focus and goal setting,the second step of the planning phase of the strategic marketing process?

Accepted Answer

The answer of Which of the following pieces of information...

Question 3

Lockheed Martin's Skunk Works is a leader in delivering world-class aircraft.About 50 engineers and designers and 100 expert machinists closely follow this guideline for organizational structure and implementation: Use a small number of good people who

Accepted Answer

The answer of Lockheed Martin's Skunk Works is a leader...

Question 4

Which of the following pieces of information is used in market-product focus and goal setting,the second step of the planning phase of the strategic marketing process?

Accepted Answer

Market-product grids with target segments and product groupings are used in market-product focus and goal setting. This step involves identifying and evaluating different market segments and product offerings to determine which ones are most attractive and align with the company's overall goals and objectives. Market-product grids help to organize and visualize this information, making it easier to identify opportunities for growth and set specific goals for each target segment and product grouping.

Question 5

have been told that a company increased its marketing effort from $3 million to $5 million,resulting in increased sales revenue from $10 million to $20 million.Calculate the company's ratio of incremental sales revenue to incremental marketing effort.

Accepted Answer

The ratio of incremental sales revenue to incremental marketing effort can be calculated by dividing the change in sales revenue by the change in marketing effort.

Change in sales revenue = $20 million - $10 million = $10 million 
Change in marketing effort = $5 million - $3 million = $2 million

Ratio of incremental sales revenue to incremental marketing effort = Change in sales revenue / Change in marketing effort 
= $10 million / $2 million 
= 5

Therefore, the ratio is 5:1, which is option C.

Question 6

Economists would most likely recommend that marketing managers allocate the firm's marketing resources to the markets and products where

Accepted Answer

Economists would recommend that marketing managers allocate the firm's marketing resources to the markets and products where the excess of incremental revenues over incremental costs is greatest. This approach will maximize the firm's profits and overall financial performance. The other options, such as greatest sales, cash cow SBUs, current market share, and industry growth rate, may not necessarily result in the highest profit margins for the firm. Total revenue equaling total cost would result in zero profits, so it is not a desirable outcome for the firm.

Question 7

Which of the following pieces of information is used in a SWOT analysis,the first step of the planning phase of the strategic marketing process?

Accepted Answer

SWOT analysis evaluates the strengths, weaknesses, opportunities, and threats in the industry and among competitors, so trends for industry and competitors are important pieces of information for this analysis. The other options are more relevant to other aspects of the strategic marketing process.

Question 8

________ relates the expense of the marketing effort to the marketing results obtained.

Accepted Answer

The answer of ________ relates the expense of the marketing...

Question 9

Percentage points of market share used in analysis as the common basis of comparison to allocate marketing resources effectively for different product lines within the same firm are referred to as

Accepted Answer

Share points are the percentage points of market share used for comparison and allocation of marketing resources. Options A, B, and C are not relevant to the description given. Option D refers to a curve used to describe the rate of adoption of a new product, and is also not relevant to the given description.

Question 10

Which of the following pieces of information is used in market-product focus and goal setting,the second step of the planning phase of the strategic marketing process?

Accepted Answer

Market potential studies are used in market-product focus and goal setting. They provide information on the size and potential of a market, which helps in determining the goals and focus for a company's marketing efforts. The other options may be used in other steps of the strategic marketing process, but not specifically in market-product focus and goal setting.

Question 11

share point refers to

Accepted Answer

SharePoint is a web-based collaborative platform that is used to manage and store documents and web content. It is not related to options A, C, D, or E. Option B defines the concept of market share percentage points, which is commonly used in the analysis of marketing strategies and the allocation of resources.

Question 12

using share points to make marketing resource allocation decisions,marketing managers must estimate: (1)__________, (2)the revenues associated with each point of market, (3)the contribution to overhead and profit (or gross margin)of each share point,and (4)possible cannibalization effects on other products in the line.

Accepted Answer

Marketing managers must estimate the market share for the product to make informed marketing resource allocation decisions using share points.

Question 13

Figure 22-1
-According to Figure 22-1 above,an additional annual marketing effort of $1 million is best spent after having already spent how much in marketing effort to date?

Accepted Answer

Figure 22-1 shows that an additional $1 million of marketing effort,from $3 million to $4 million,results in far greater increases of sales revenue ($20 million)in the midrange of the curve than at either end.An increase from $2 million to $3 million in spending yields only an increase of $10 million in sales;and an increase from $6 million to $7 million in spending leads to only a $3 million increase in sales.

Question 14

using share points to make marketing resource allocation decisions,marketing managers must estimate: (1)the market share for the product, (2)the revenues associated with each point of market share, (3)__________,and (4)possible cannibalization effects on other products in the line.

Accepted Answer

Marketing managers need to estimate the contribution to overhead and profit of each share point to make informed resource allocation decisions.

Question 15

relationship of annual marketing effort to annual sales revenue is assumed to be __________ of the sales response function.

Accepted Answer

The S-shaped curve is the most common representation of the sales response function, which shows that an additional marketing effort in the midrange of the curve results in far greater increases of sales revenue than at either end of the curve. This is because at the low end, there is little awareness of the product, while at the high end, most of the potential customers have already been reached. The optimal level of marketing effort is in the middle of the curve, where the marginal return on investment is highest.

Question 16

is the assumed shape of the graph of the sales response function?

Accepted Answer

The assumed shape of the sales response function is S-shaped because it suggests that sales initially increase at a slow rate, then increase rapidly, and eventually reach a point of saturation where further increases in advertising will have little to no effect on sales.

Question 17

using share points to make marketing resource allocation decisions,marketing managers must estimate: (1)the market share for the product, (2)__________, (3)the contribution to overhead and profit (or gross margin)of each share point,and (4)possible cannibalization effects on other products in the line.

Accepted Answer

Share points are essentially a measure of market share, so in order to use them for marketing resource allocation decisions, managers need to estimate the revenues associated with each share point. This will help them determine the potential return on investment for any given marketing initiative. Factors such as total production costs, number of market segments, stage of the product life cycle, and financial resources available are important considerations as well, but they are not directly related to share points. Cannibalization effects on other products in the line are also an important consideration, but this is not something that needs to be estimated. Rather, it should be analyzed based on existing data and market trends.

Question 18

have been told that a company increased its marketing effort from $2 million to $5 million,resulting in increased sales revenue from $12 million to $21 million.Calculate the company's ratio of incremental sales revenue to incremental marketing effort.

Accepted Answer

The incremental sales revenue is $21 million - $12 million = $9 million. The incremental marketing effort is $5 million - $2 million = $3 million. The ratio of incremental sales revenue to incremental marketing effort is $9 million : $3 million, which simplifies to 3:1.

Question 19

Balance has no celebrity endorsers and does minimal advertising,yet the athletic shoe brand has 11 percent of the sales in the athletic footwear market.The marketing team at New Balance estimates that increasing sales to 12 percent of the market will require an increase of $10 million in marketing effort and will result in an increase of its footwear sales of an additional $12 million.This 1 percent incremental increase from 11 to 12 percent is referred to as __________.

Accepted Answer

The 1 percent incremental increase from 11 to 12 percent is referred to as a "share point".

Question 20

Which of the following pieces of information is used in a SWOT analysis,the first step of the planning phase of the strategic marketing process?

Accepted Answer

The answer of Which of the following pieces of information...

Quiz 22: Pulling It All Together: The Strategic Marketing Process

Figure 22-1 -According to Figure 22-1 above,the result of spending an additional $1 million in annual marketing effort from $3 million to $4 million resulted in increased revenues of __________.

Which of the following pieces of information is used in market-product focus and goal setting,the second step of the planning phase of the strategic marketing process?

Lockheed Martin's Skunk Works is a leader in delivering world-class aircraft.About 50 engineers and designers and 100 expert machinists closely follow this guideline for organizational structure and implementation: Use a small number of good people who

Which of the following pieces of information is used in market-product focus and goal setting,the second step of the planning phase of the strategic marketing process?

have been told that a company increased its marketing effort from $3 million to $5 million,resulting in increased sales revenue from $10 million to $20 million.Calculate the company's ratio of incremental sales revenue to incremental marketing effort.

Economists would most likely recommend that marketing managers allocate the firm's marketing resources to the markets and products where

Which of the following pieces of information is used in a SWOT analysis,the first step of the planning phase of the strategic marketing process?

________ relates the expense of the marketing effort to the marketing results obtained.

Percentage points of market share used in analysis as the common basis of comparison to allocate marketing resources effectively for different product lines within the same firm are referred to as

Which of the following pieces of information is used in market-product focus and goal setting,the second step of the planning phase of the strategic marketing process?

share point refers to

Figure 22-1 -According to Figure 22-1 above,an additional annual marketing effort of $1 million is best spent after having already spent how much in marketing effort to date?

using share points to make marketing resource allocation decisions,marketing managers must estimate: (1) the market share for the product, (2) the revenues associated with each point of market share, (3) __________,and (4) possible cannibalization effects on other products in the line.

relationship of annual marketing effort to annual sales revenue is assumed to be __________ of the sales response function.

is the assumed shape of the graph of the sales response function?

have been told that a company increased its marketing effort from $2 million to $5 million,resulting in increased sales revenue from $12 million to $21 million.Calculate the company's ratio of incremental sales revenue to incremental marketing effort.

Which of the following pieces of information is used in a SWOT analysis,the first step of the planning phase of the strategic marketing process?