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

Question 1

In an integrated marketing plan, all of that plan's parts are

A) unified, consistent, and coordinated.
B) overseen by marketing personnel.
C) based on comprehensive short-term goals.
D) based on comprehensive long-term goals.

Answer 1

unified, consistent, and coordinated.

Question 2

Which of these is NOT a characteristic of a well-integrated marketing plan?

A) Long-term competitive advantages
B) Short-run profits made at the expense of long-term profits
C) Clear organizational mission
D) Precisely defined target market

Answer 2

Short-run profits made at the expense of long-term profits

Question 3

A firm's commitment to a type of business and a place in the market is its

A) long-term objective.
B) long-term competitive advantage.
C) organizational mission.
D) marketing orientation.

Answer 3

organizational mission.

Question 4

A firm should reappraise its organizational mission if

A) its industry undergoes rapid change.
B) customer loyalty is stable.
C) new brands are introduced.
D) competitors lower prices.

Question 5

In which part of a well-integrated marketing plan should a firm determine the product attributes most important to customers?

A) Precisely defining its target market
B) Long-term competitive advantages
C) Organizational mission
D) Coordination among SBUs

Question 6

Small firms often seek competitive advantages on the basis of

A) low prices.
B) unique offerings.
C) high capital investment.
D) wide product assortment.

Question 7

Which statement concerning the competitive advantages of a small firm is NOT correct?

A) Small firms can effectively target underserved market niches.
B) Small firms can effectively emphasize relationship marketing.
C) Small firms should concentrate on economies of scale as a competitive advantage.
D) Small firms can effectively provide superior customer service through such services as delivery and installation.

Question 8

Which statement concerning the defining of a target market is correct?

A) A statement of a firm's target market should be as flexible as possible so as to take advantage of growth opportunities.
B) Differences between segments in a differentiation marketing strategy can be ignored.
C) A firm's target market may have to be fine-tuned due to changing demographics and lifestyles.
D) A firm should seek an image as a specialist.

Question 9

Which of these strategic marketing plans contains the most specific strategies?

A) Horizontal
B) Short term
C) Moderate term
D) Long term

Question 10

The coordination of SBUs is particularly complex when

A) long-term plans are outlined.
B) competition is intense.
C) short-term plans are outlined.
D) the firm is a large multinational.

Question 11

The components of the marketing mix need to be coordinated and

A) short term, rather than long term, in orientation.
B) the same for each SBU.
C) inflexible in the face of intensive competition.
D) consistent with the firm's organizational mission.

Question 12

Over time, a marketing plan should be

A) relatively stable.
B) unstable (to respond to the environment).
C) inflexible.
D) flexible in the long run, but not in the short run.

Question 13

Marketing plan analysis involves

A) analyzing changes in target market characteristics.
B) comparing actual performance with planned or expected performance for a specified period of time.
C) coordinating SBU strategies and measuring their success.
D) being responsive to the tactics used by competitors.

Question 14

Which of these is NOT one of the major techniques for assessing marketing plans?

A) The marketing audit
B) Functional cost allocation
C) Marketing cost analysis
D) Sales analysis

Question 15

In benchmarking, a firm

A) sets marketing performance standards on its own performance and that of others.
B) sets cost standards on the basis of the world's most efficient firms.
C) attempts to reduce channel conflict through negotiation.
D) sets up formal practices to evaluate its important customers.

Question 16

Which of these is NOT a stage in a good benchmarking process?

A) Researching others' practices and potential partners
B) Lowering marketing costs
C) Identifying best practices
D) Pinpointing improvement areas

Question 17

Which of these is NOT an experience level in benchmarking?

A) Apprentice
B) Novice
C) Journeyman
D) Master

Question 18

The largest ongoing research project on customer satisfaction is

A) the American Customer Satisfaction Index (ACSI).
B) the benchmarking index.
C) the Malcolm Baldrige National Quality Award.
D) Fortune's corporate reputation surveys.

Question 19

Which statement concerning the American Customer Satisfaction Index (ACSI) is NOT correct?

A) The ACSI computes an annual measure of customer satisfaction.
B) The ACSI model links customer expectations, perceived quality, and perceived value to customer satisfaction.
C) The ACSI model does not take customer loyalty into consideration.
D) The ACSI model is a joint effort by the University of Michigan, the American Society for Quality Control, and CFI Group.

Question 20

Marketing cost analysis is used to

A) assess the performance of one element of the marketing mix.
B) determine the efficiency of various marketing factors.
C) compare actual and expected sales for a specific time period.
D) assess the effectiveness of the overall marketing mix.

Question 21

Marketing cost analysis can provide information for use in substantiating compliance with the

A) Sherman Act.
B) Robinson-Patman Act.
C) Clayton Act.
D) FTC Improvement Act.

Question 22

For marketing cost analysis to work properly, a company needs continuous and accurate

A) sales forecasts.
B) consumer surveys.
C) marketing audits.
D) accounting data.

Question 23

With what type of marketing plan analysis are natural accounts reclassified into functional accounts, which are then allocated by marketing classification?

A) A vertical marketing audit
B) A horizontal marketing audit
C) Sales analysis
D) Marketing cost analysis

Question 24

The first step in marketing cost analysis is to

A) audit cost data for accuracy.
B) assign costs by functional account.
C) determine the level of expenses for all natural accounts.
D) compare actual and planned performance.

Question 25

Natural account expenses are reported by

A) the purposes of the expenditures.
B) profit center.
C) product, distribution method, channel member, or other classification.
D) the names of the expenses.

Question 26

Salaries, advertising, insurance, and interest are examples of

A) natural account expenses.
B) functional account expenses.
C) functional accounts classified by marketing activity.
D) allocated marketing expenses.

Question 27

Which of these represents the cost categories normally entered in a company's accounting records?

A) Functional account expenses
B) Natural account expenses
C) Allocated marketing expenses
D) Functional account expenses classified by marketing activity

Question 28

The purposes or activities for which expenditures have been made are indicated with ___ accounts.

A) functional
B) natural
C) profit center
D) allocated

Question 29

Which of these is an example of a functional account classification?

A) Rent
B) Salaries
C) Marketing research
D) Supplies

Question 30

A company can determine which areas of marketing have higher than average costs when

A) basic marketing expenses are cumulated.
B) natural accounts are established.
C) natural accounts are classified into functional accounts.
D) natural accounts are allocated by month.

Question 31

In marketing cost analysis, profit centers are developed when

A) natural accounts are studied.
B) natural accounts are reclassified into functional accounts.
C) functional accounts are assigned by product, distribution method, sales territory, and so on.
D) functional accounts are reclassified as natural accounts.

Question 32

In marketing cost analysis, what type of expense is directly associated with a particular classification category and can be eliminated if that category is discontinued?

A) Separable
B) Common
C) Joint
D) Natural

Question 33

In marketing cost analysis, what type of expense is shared by various categories and CANNOT be eliminated if one category is discontinued?

A) Common
B) Separable
C) Natural
D) Overhead

Question 34

The detailed study of sales data for the purpose of appraising the appropriateness and effectiveness of a marketing strategy involves

A) the 80-20 principle.
B) the marketing audit.
C) marketing cost analysis.
D) sales analysis.

Question 35

Which form of marketing analysis compares actual revenues with planned revenues?

A) Natural account analysis
B) Functional account analysis
C) Sales analysis
D) Classification analysis

Question 36

The main source of sales analysis data is the

A) profit-and-loss statement.
B) sales invoice.
C) marketing audit.
D) control unit.

Question 37

The timeliness and accuracy of sales analysis data can be improved by

A) allocating sales invoice data by territory.
B) summarizing functional cost figures.
C) using natural account information.
D) using computerized marking and inventory systems.

Question 38

Control units

A) are the categories for which data are gathered.
B) allocate sales by functional account.
C) treat each transaction as a profit center.
D) present data in overly narrow categories.

Question 39

Which of these represents the most important potential problem when using control units?

A) Computerized marking and coding systems may be hard to use.
B) Classifications may not be functionally oriented.
C) Specific problem areas and opportunities may not be isolated because control unit categories are too broad.
D) Too many categories may result.

Question 40

To properly compare its own performance over several time periods, a company needs a(n)

A) wide control-unit system.
B) narrow control-unit system.
C) stable control-unit system.
D) industry-approved control-unit system.

Question 41

As applied to sales analysis, the 80-20 principle states that

A) superficial data are insufficient to make sound evaluations.
B) most important data are submerged.
C) a large proportion of total sales (profit) is likely to come from a small proportion of customers, products, or territories.
D) functional account data are better to examine than natural account data.

Question 42

According to which of these concepts are superficial data insufficient to make sound evaluations?

A) Marketing inertia
B) The iceberg principle
C) Sales exception reporting
D) The 80-20 principle

Question 43

When sales analysis focuses on situations where sales goals have not been met or sales opportunities are present, it is known as

A) a horizontal marketing audit.
B) a vertical marketing audit.
C) sales exception reporting.
D) the 80-20 principle.

Question 44

Which of these techniques best enables a firm to evaluate the validity of its credit analysis system by highlighting slow paying accounts?

A) The 80-20 principle
B) Sales exception reporting
C) Marketing cost analysis
D) Benefit segmentation

Question 45

A systematic, critical, impartial review and appraisal of the basic goals and policies of the marketing function, and of the organization, methods, procedures, and personnel employed to implement the policies and achieve the goals, is

A) marketing cost analysis.
B) sales exception reporting.
C) the marketing audit.
D) marketing research.

Question 46

Which statement concerning the marketing audit is NOT correct?

A) Audits should be conducted on a regular basis.
B) An audit should be performed at least annually.
C) An audit can be either horizontal or vertical.
D) The auditor should determine management's response to the audit.

Question 47

Which type of marketing audit studies the overall marketing performance of a firm with particular emphasis on the interrelationship of marketing-mix variables and their relative importance?

A) Sales audit
B) Vertical audit
C) Horizontal audit
D) Channel audit

Question 48

Which type of marketing audit involves an in-depth analysis of one aspect of a firm's marketing strategy?

A) Vertical audit
B) Horizontal audit
C) Sales exception audit
D) 80-20 sales audit

Question 49

Long-range marketing plans must take into account both the external variables facing a firm and

A) the impact of government actions.
B) the firm's capacity for change.
C) economic forces.
D) competitors' actions.

Question 50

A firm that does not anticipate and respond to future trends can fall victim to

A) a sales orientation.
B) a short-sighted viewpoint.
C) poor benchmarking performance.
D) marketing myopia.

Question 51

A firm can produce short-run profits at the expense of long-term profitability by

A) cutting back on new product planning expenditures.
B) having a blurred image.
C) introducing major new product innovations.
D) allocating more resources to the SBUs having the greatest opportunities.

Question 52

Too rapid a change in marketing plans can lead to

A) high integration among product, distribution, promotion, and pricing plans.
B) a long-term orientation.
C) a blurred image among consumers and a lack of focus for executives.
D) an excellent allocation of resources.

Question 53

For an organizational mission to be most effective,

A) it should have a short-run focus.
B) it must be properly communicated to resellers, employees, and customers.
C) it should identify appropriate target markets.
D) a firm should always be responsive to competitors' tactical changes.

Question 54

When Kohl's says that it is "a family-oriented, value-oriented, specialty department store offering moderately-priced, national-brand apparel, shoes, accessories, and home products," it is referring to its

A) long-term competitive advantages.
B) compatible long-, moderate-, and short-term subplans.
C) organizational mission.
D) SBU strategy.

Question 55

When KitchenAid enacted a strategy offering pots and major appliances in addition to its original product line of mixers, it was involved with

A) target marketing.
B) long-term competitive advantages.
C) coordination among its SBUs.
D) organizational mission.

Question 56

A company should reassess its organizational mission if

A) a new competitor enters the marketplace.
B) there are mergers/acquisitions in the industry.
C) the inflation rate exceeds 2 percent.
D) its industry undergoes rapid changes.

Question 57

Prior to product screening, a firm should determine if an idea for a major innovation

A) is compatible with its organizational mission.
B) can be patented.
C) is acceptable to consumers.
D) meets return-on-investment goals.

Question 58

Stone Container markets paperboard and packaging products, white paper and pulp products, and wood products. Each product category is used by different markets. It

A) functions as a conglomerate.
B) has precise target markets.
C) has unclear market segments.
D) uses concentrated marketing.

Question 59

The Following Questions are linked to this scenario: A firm markets innovative products at above-average prices, distributes these products through upscale stores, and emphasizes personal selling rather than advertising.

-This firm has

A) a clear organizational mission.
B) a well-coordinated marketing mix.
C) short- and long-run objectives.
D) coordination among its SBUs.

Question 60

The Following Questions are linked to this scenario: A firm markets innovative products at above-average prices, distributes these products through upscale stores, and emphasizes personal selling rather than advertising.

-After learning that a new competitor is entering the market, the firm decides to slash prices by 50 percent and leave the rest of its strategy alone. The firm now has

A) a clear organizational mission.
B) a poorly coordinated marketing mix.
C) focused long-run objectives.
D) focused short-run objectives.

Question 61

A marketing plan with the proper level of stability over time will

A) be flexible enough so as to take advantage of emerging opportunities.
B) be relatively nonresponsive to environmental changes.
C) require high levels of advertising to reinforce a company's image.
D) concentrate on long-term, rather than short-term, marketing activities.

Question 62

Benchmarking, customer satisfaction research, marketing cost analysis, sales analysis, and the marketing audit are all components of

A) regional marketing plans.
B) decentralized marketing plans.
C) marketing plan analysis.
D) exception reporting.

Question 63

In a total quality management approach to marketing, a firm should set its quality standards on the basis of

A) benchmarking against the best companies.
B) benchmarking against the lowest-cost providers.
C) sales analysis.
D) marketing cost analysis.

Question 64

The Following Questions are linked to this scenario: A firm sets performance standards for itself based on Lands' End's performance.

-A home improvement center sets performance standards for customer support based on Lands' End's performance via specific standards for courtesy, product knowledge, speed in picking up the phone, etc. These standards are an example of

A) exception reporting.
B) horizontal marketing audits.
C) best practice benchmarking.
D) competitive benchmarking.

Question 65

The Following Questions are linked to this scenario: A firm sets performance standards for itself based on Lands' End's performance.

-A mail order apparel retailer sets performance standards for customer support based on Lands' End's overall strategic planning process. These standards are

A) strategic benchmarks.
B) horizontal marketing audits.
C) best practice benchmarking.
D) competitive benchmarking.

Question 66

Which of these most closely resembles a horizontal marketing audit?

A) Sales exception reporting
B) Customer satisfaction research
C) Strategic benchmarks
D) Process benchmarks

Question 67

Which statement concerning customer satisfaction is NOT correct?

A) The largest ongoing research project on customer satisfaction is run by Coca-Cola.
B) Customer satisfaction is related to brand loyalty.
C) A customer's satisfaction rating is based on his/her expectations.
D) A firm should consider developing customer satisfaction programs based on the needs of its customers.

Question 68

Which of these is NOT usually part of marketing cost analysis?

A) Functional account analysis
B) Natural account analysis
C) Profit center analysis
D) Sales invoice analysis

Question 69

Via what type of marketing plan analysis would a firm be best able to evaluate order-processing and order-generating expenses?

A) Marketing cost analysis
B) JIT analysis
C) Sales analysis
D) Vertical marketing audit

Question 70

A firm wants to study the efficiency of its various distribution channels (in terms of computing gross profit as a percentage of revenues). What technique should it use?

A) Marketing cost analysis
B) A horizontal marketing audit
C) Sales exception reporting
D) The 80-20 principle

Question 71

What stage of marketing cost analysis is involved when a firm evaluates such costs as salaries, rent, insurance, and interest?

A) Natural account analysis
B) Functional account analysis
C) Profit center analysis
D) Factor analysis

Question 72

What type of information could a company receive by analyzing natural account expenses?

A) Net profit before taxes
B) Personal selling expenses as a percent of sales
C) Marketing research as a percent of sales
D) Gross profit by product

Question 73

Which of these expense categories may be viewed as both natural and functional?

A) Salaries
B) Advertising
C) Rent
D) Supplies

Question 74

Which of these is the most important difficulty in allocating functional expenses by marketing classification?

A) Some sales credited to salespeople may really be due to advertising expenditures in these markets.
B) Sales invoices may not specify geographic areas.
C) Functional accounts may be improperly considered as natural accounts.
D) The allocation of some costs may be arbitrary.

Question 75

When evaluating profitability by marketing classification, a firm should be careful about

A) using sales exception reporting.
B) reducing order-processing expenses.
C) using the correct control units.
D) distinguishing between separable and common expenses.

Question 76

An example of a separable expense for a product is

A) a salesperson's commission. .
B) institutional advertising.
C) a salesperson's salary
D) marketing overhead.

Question 77

Which statement concerning common or separable costs is NOT correct?

A) Common costs are related to overhead expenses.
B) A product category with a profit after reflecting its separable costs contributes to the firm's overhead costs.
C) Common costs are typically allocated.
D) Common costs can be eliminated if a category is discontinued.

Question 78

An example of a natural account expense is

A) personal selling.
B) salaries.
C) warehousing.
D) transportation.

Question 79

While marketing cost analysis involves the study of a firm's expenses, sales analysis involves the study of its

A) functions.
B) SBUs.
C) target market.
D) revenues.

Question 80

Which of these statements is correct?

A) In sales analysis, the main data source is the control unit.
B) The terms "sales analysis" and "sales exception reporting" are synonymous.
C) Sales analysis includes the study of order-processing costs.
D) More firms do sales analysis than marketing cost analysis.