Johnston MKT120 week 12 quiz

Question 1

1.

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

Answer

		Design
		Planning
		Implementation
		Control
		Benchmarking

5 points

Question 2

1.

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:

Answer

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

5 points

Question 3

1.

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

Answer

True

False

5 points

Question 4

1.

Cost analysis and performance analysis are the same thing.

Answer

True

False

5 points

Question 5

1.

Doug Selkirk is a sales manager for IBM. He has asked his assistant to prepare an analysis that shows what percent over or under quota each sales rep was during the last year. This is an example of

Answer

		using natural accounts.
		the contribution-margin approach.
		sales analysis.
		target market analysis.
		performance analysis.

5 points

Question 6

1.

Avon, Inc., has analyzed the market potential in its territories and set sales quotas for its salespeople. It is now in a good position to develop ______________ indexes at the end of the year.

Answer

		MIS
		performance
		PERT
		sales
		contribution

5 points

Question 7

1.

A _____ is a number like a baseball batting average that shows the relation of one value to another.

Answer

		benchmarking goal
		performance index
		performance quota
		benchmark ratio
		standard quota

5 points

Question 8

1.

A systematic, critical, and unbiased review and appraisal of the basic objectives and policies of the marketing function--and of the organization, methods, procedures, and people employed to implement the policies--is called a:

Answer

		MIS report.
		marketing audit.
		management review.
		marketing information system.
		marketing analysis survey.

5 points

Question 9

1.

When the "full-cost approach" to marketing cost analysis is used, allocating fixed costs on the basis of sales:

Answer

		may make low-volume customers appear more profitable than they are.
		increases each customer's contribution margin.
		decreases the profitability of the whole business.
		makes large-volume customers appear more profitable that they are.
		increases the profitability of the whole business.

5 points

Question 10

1.

A marketing audit should help determine if:

Answer

		current marketing strategies are good ones.
		the company's marketing objectives are reasonable.
		implementation of a marketing program was effective.
		All of the above.
		None of the above.

5 points

Question 11

1.

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

Answer

True

False

5 points

Question 12

1.

Marketing cost analysis shows that one of Buildco, Inc.'s customers is unprofitable, so Buildco should:

Answer

		refuse to sell to that customer.
		try to determine why this customer is unprofitable.
		drop the customer and shift all fixed costs to the other customers.
		assign a new salesperson to that account.
		immediately develop a plan to sell more to that customer.

5 points

Question 13

1.

A sales manager has just discovered that one of his sales reps has sales about 20 percent below his quota. The sales manager should conclude:

Answer

		that the sales rep's quota was set too high.
		that the sales rep lacks the desire to succeed.
		that "all is well" because other salespeople had sales that were at least 20 percent over their quotas.
		that the salesperson's performance index is 4 (i.e., 80:20).
		nothing thus far--because of the "iceberg principle."

5 points

Question 14

1.

The ____ approach shows operating managers and salespeople what they've actually contributed to covering general overhead and profit.

Answer

		net margin
		full-cost
		marketing overhead
		contribution margin
		net profit

5 points

Question 15

1.

A marketing audit is necessary because:

Answer

		it is a standard practice adopted by all companies worldwide.
		managers may pursue certain strategies blindly, when other strategies might be more effective.
		regulators require marketing audits at the same time as accounting audits.
		all of the above.

5 points

Question 16

1.

Performance analysis:

Answer

		is based on qualitative factors, as contrasted with sales and cost analysis which are based on quantitative data.
		is most useful in situations where the iceberg principal is not likely to be a concern.
		indicates why problems have occurred and how to solve them.
		may be based on several different performance indexes.
		All of the above are true.

5 points

Question 17

1.

The "contribution-margin approach" to marketing cost analysis:

Answer

		Focuses attention on the allocation of fixed costs.
		Is mainly concerned with the allocation of variable costs.
		Always leads to the same conclusions as the "full-cost approach."
		Is always preferred to the "full-cost approach."
		None of the above.

5 points

Question 18

1.

Detailed sales analysis is:

Answer

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

5 points

Question 19

1.

Compared with sales analysis, PERFORMANCE ANALYSIS:

Answer

		shows which customers should be dropped.
		looks for exceptions or variations from planned performance.
		does not do as much comparing against standards.
		shows how to improve performance.
		All of the above.

5 points

Question 20

1.

A _____ is a systematic, critical, and unbiased review and appraisal of the basic objectives and policies of the marketing function and of the organization, methods, procedures, and people employed to implement the policies.

Answer

		benchmarking study
		marketing audit
		sales analysis
		full-cost assessment
		marketing strategy survey