Question 1

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.

Accepted Answer

The 80-20 principle, also known as the Pareto Principle, suggests that a small percentage of causes, inputs, or effort usually leads to a large percentage of the results, outputs, or rewards. Specifically, in sales analysis, it posits that a large proportion of total sales or profits is likely to come from a small proportion of customers, products, or territories.

Question 2

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

Accepted Answer

The iceberg principle suggests that the most important aspects or causes of an issue are often hidden from view, implying that superficial data are insufficient for sound evaluations.

Question 3

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.

Accepted Answer

Sales exception reporting specifically focuses on identifying and analyzing situations where sales performance deviates from goals or where there are significant opportunities, allowing for targeted actions to improve sales outcomes.

Question 4

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

Accepted Answer

Sales exception reporting is specifically designed to highlight anomalies or exceptions in sales data, such as slow-paying accounts. This allows a firm to evaluate the effectiveness of its credit analysis system by identifying accounts that are not paying according to terms, thereby enabling targeted actions to address these issues.

Question 5

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.

Accepted Answer

The marketing audit is a comprehensive, systematic, independent, and periodic examination of a company's or business unit's marketing environment, objectives, strategies, and activities with a view to determine problem areas and opportunities and recommending a plan of action to improve the company's marketing performance.

Question 6

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.

Accepted Answer

The auditor's role in a marketing audit is to objectively assess the marketing strategies and operations of the organization, not to determine management's response to the audit findings. Management's response is their responsibility, based on the insights and recommendations provided by the audit.

Question 7

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

Accepted Answer

A horizontal audit focuses on the overall marketing performance of a firm, emphasizing the interrelationship of marketing-mix variables (product, price, place, promotion) and their relative importance. It looks across all marketing activities to assess how well they work together.

Question 8

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

Accepted Answer

A vertical audit focuses on a deep dive into one specific aspect of a firm's marketing strategy, allowing for a detailed analysis and understanding of that particular area.

Question 9

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.

Accepted Answer

Long-range marketing plans must consider the firm's capacity for change to ensure that the organization can adapt and implement strategies effectively over time.

Question 10

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.

Accepted Answer

Marketing myopia refers to a firm's narrow focus on selling products rather than understanding and adapting to future market trends and consumer needs, which can lead to its downfall.

Question 11

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.

Accepted Answer

Cutting back on new product planning expenditures can lead to short-term profits as it reduces immediate costs. However, this strategy can harm long-term profitability by hindering the firm's ability to innovate and stay competitive.

Question 12

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.

Accepted Answer

Too rapid a change in marketing plans can confuse consumers about the brand's image and make it difficult for executives to maintain a clear focus and direction, leading to a blurred image among consumers and a lack of focus for executives.

Question 13

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.

Accepted Answer

An organizational mission is most effective when it is properly communicated to all stakeholders, including resellers, employees, and customers, as this ensures alignment and shared goals across the organization.

Question 14

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.

Accepted Answer

This statement is describing Kohl's organizational mission, which outlines the company's purpose, target market, and core values, focusing on what it aims to provide to its customers.

Question 15

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.

Accepted Answer

KitchenAid's strategy of expanding its product line aligns with its organizational mission to grow and diversify its offerings, rather than focusing on target marketing, competitive advantages, or coordination among SBUs.

Question 16

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.

Accepted Answer

A company should reassess its organizational mission if its industry undergoes rapid changes to ensure its goals and strategies remain relevant and effective in the new environment.

Question 17

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.

Accepted Answer

Determining if an idea for a major innovation is compatible with its organizational mission is crucial before proceeding to product screening. This ensures that the innovation aligns with the company's core values, objectives, and strategic direction, providing a solid foundation for further development and evaluation.

Question 18

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.

Accepted Answer

Stone Container has precise target markets because each product category is used by different markets, indicating a clear segmentation and targeting strategy.

Question 19

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.

Accepted Answer

The firm's strategy of marketing innovative products at premium prices, distributing through upscale stores, and focusing on personal selling over advertising indicates a well-coordinated marketing mix. This mix aligns product, price, place, and promotion strategies to target a specific market segment effectively.

Question 20

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.

Accepted Answer

The firm's decision to drastically reduce prices while maintaining its upscale distribution and personal selling approach results in a poorly coordinated marketing mix. This is because the elements of the marketing mix (product, price, place, promotion) are no longer aligned with the firm's original strategy of targeting the upscale market with innovative products at above-average prices.

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

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

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

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

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

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

Which statement concerning the marketing audit is NOT correct?

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?

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

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

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

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

Too rapid a change in marketing plans can lead to

For an organizational mission to be most effective,

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

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

A company should reassess its organizational mission if

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

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

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