(Test Bank) Essentials of Marketing, A Marketing Strategy Planning Approach

Perreault,Cannon,Mccarthy, 17

Business

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17th Edition

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Test Bank for Essentials of Marketing, A Marketing Strategy Planning Approach, The downloadable file consists of 2547 pages, and the total size of the file is 9.45 MB. Purchase now only for highly discounted price.

Author(s): Perreault, Cannon, Mccarthy

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Study Note Preview

Version 1 1 BONUS TEST BANK: A TRUE/FALSE - Write 'T' if the statement is true and 'F' if the statement is false. 1) Implementation puts plans into operation, while control provides feedback. ⊚ true ⊚ false 2) Although marketing information can be gathered quickly, it is impossible to analyze and utilize the information in real time. ⊚ true ⊚ false 3) The use of metrics and analytical tools allow marketing managers to make timely adjustments to their marketing strategies. ⊚ true ⊚ false 4) The ideal of doing things better, faster, and at lower cost is easy to implement once it is accepted. ⊚ true ⊚ false 5) Implementing a strategy is straightforward; there are usually only a limited number of ways things can go wrong. ⊚ true ⊚ false 6) Traditional accounting reports are usually too general to be of much help to the marketing manager in controlling marketing plans. ⊚ true ⊚ false Version 1 2 7) Traditional accounting reports don't give sufficient information to managers who need to know what's happening, in detail, to improve the bottom line. ⊚ true ⊚ false 8) The "80/20 rule" describes the relationship that 80 percent of an organization's business often comes from only 20 percent of its products or customers. ⊚ true ⊚ false 9) According to the "80/20 rule," it is common to find that about 80 percent of a firm's business comes from only about 20 percent of its customers. ⊚ true ⊚ false 10) The best way to do a sales analysis is to first break down sales by customer type, and then geographic region. ⊚ true ⊚ false 11) Because too much sales data can drown a manager, it's best to start by asking only for breakdowns that involve customer type. ⊚ true ⊚ false 12) Statistical packages and information systems that produce graphs and charts can make it easier to see patterns that are hidden in a table of numbers. ⊚ true ⊚ false Version 1 3 13) Advances in computer software have accelerated the move to cost analysis and performance analysis. ⊚ true ⊚ false 14) Performance analysis permits the manager to compare actual performance against performance standards. ⊚ true ⊚ false 15) Sales analysis provides a simple listing of sales figures compared against standards. ⊚ true ⊚ false 16) Performance analysis looks for exceptions or variations from planned performance. ⊚ true ⊚ false 17) As with sales analysis, performance analysis is limited to sales data. ⊚ true ⊚ false 18) Marketing managers use performance indexes to compare what did happen with what ought to have happened. ⊚ true ⊚ false Version 1 4 19) The main advantage of performance indexes is that they make it easier to compare numbers in a performance analysis. ⊚ true ⊚ false 20) The iceberg principle says that looking at detailed breakdowns of data is not very useful, since most relevant information is revealed in good summaries. ⊚ true ⊚ false 21) Cost analysis and performance analysis are the same thing. ⊚ true ⊚ false 22) Experience shows that it doesn't make sense for marketing managers to allocate costs to specific market segments or products. ⊚ true ⊚ false 23) In general the more products a company has, the more difficult it will be to allocate costs. ⊚ true ⊚ false 24) With the full-cost approach to marketing cost analysis, all costs are allocated to products, customers, or other categories. ⊚ true ⊚ false 25) In the full-cost approach, all costs except fixed costs and common costs are allocated to products or customers.Version 1 5 ⊚ true ⊚ false 26) With the contribution-margin approach to marketing cost analysis, all costs are allocated to products, customers, or other categories. ⊚ true ⊚ false 27) The contribution-margin approach to marketing cost analysis focuses attention on variable costs rather than total costs. ⊚ true ⊚ false 28) The contribution-margin approach ignores some costs to simplify comparing among specific alternatives. ⊚ true ⊚ false 29) The contribution-margin and full-cost approaches to marketing cost analysis are different, but they should lead to the same action implications. ⊚ true ⊚ false 30) The full-cost approach and the contribution-margin approach always suggest the same outcome. ⊚ true ⊚ false 31) The full-cost approach to marketing cost analysis is likely to lead to arguments among product managers about how costs are to be allocated.Version 1 6 ⊚ true ⊚ false 32) When it comes to marketing cost analysis, a sales rep is likely to favor the full-cost approach over the contribution-margin approach. ⊚ true ⊚ false 33) Top management often finds contribution-margin analysis to be much more useful than full-cost analysis. ⊚ true ⊚ false 34) Sales and cost analyses should always be analyzed and reviewed separately. ⊚ true ⊚ false 35) By combining sales and cost analyses, a firm can compare actual sales with what is projected and take corrective action if necessary. ⊚ true ⊚ false 36) Marketing metrics are the numeric data that marketing managers use to evaluate a firm's marketing performance. ⊚ true ⊚ false 37) Marketing analytics are important because, as has been said, "What gets measured gets improved."Version 1 7 ⊚ true ⊚ false 38) One challenge that marketing analytics poses for marketing managers is that it is not possible to demonstrate the links between the various metrics and ultimate performance outcomes. ⊚ true ⊚ false 39) A marketing audit is similar to an accounting audit or a personnel audit, which businesses have used for some time. ⊚ true ⊚ false 40) A marketing audit is a systematic procedure for allocating the full costs of marketing to the appropriate functional accounts. ⊚ true ⊚ false 41) A marketing audit is a systematic, critical, and unbiased review and appraisal of the basic objectives and policies of the marketing function. ⊚ true ⊚ false 42) Marketing audits consider future marketing plans, so they are not concerned with a company's current marketing strategies. ⊚ true ⊚ false 43) In a marketing audit, the auditor evaluates the plans being implemented, but not the quality of the effort.Version 1 8 ⊚ true ⊚ false 44) A marketing audit evaluates the whole marketing program. ⊚ true ⊚ false 45) The accounting department should do a marketing audit, since they have access to the data. ⊚ true ⊚ false 46) Ideally, a marketing audit should not be necessary. ⊚ true ⊚ false MULTIPLE CHOICE - Choose the one alternative that best completes the statement or answers the question. 47) A good marketing plan helps managers make strategic planning decisions and provides a framework for effective implementation and A) analysis. B) control. C) organization. D) research. E) supervision. 48) Control helps marketing managers learn howVersion 1 9 A) to plan for the future. B) implementation is working. C) ongoing plans are working. D) All these answers are correct. 49) ________ is the feedback process that helps the marketing manager learn how ongoing plans are working and how to plan for the future. A) Design B) Planning C) Implementation D) Control E) Benchmarking 50) Ruth Boller, marketing manager at Hi Mountain Water, is looking to learn more about how ongoing plans and implementation are working and how she can plan for the future. This process is called A) design. B) forecasting. C) implementation. D) control. E) modeling. 51) Which of the following is true regarding marketing control?Version 1 10 A) Today's marketing managers have access to more information about the effectiveness of their strategies than in previous years. B) Fast feedback from the marketplace can be a source of competitive advantage. C) The marketing manager needs information that is captured as soon as it comes in. D) Fast feedback is not possible unless the necessary data can be quickly sorted and analyzed. E) All these answers are correct. 52) With respect to marketing control, A) all cost records should be kept in the marketing department. B) faster feedback can often be the basis for a competitive advantage. C) many advances have been made, but there is still no effective way for a manager to be sure that a product is actually selling to the intended target market rather than to some other group. D) All these answers are correct. 53) To improve the effectiveness of the marketing control process, the marketing manager should A) realize that most errors are made because managers react to detailed information too quickly—instead of waiting to see what patterns show up in summary reports. B) be the supervisor for the data-processing manager. C) have all necessary data captured as it comes in and kept in a form that can be quickly sorted and analyzed by computer. D) be certain that all cost records are kept in a central location controlled by the marketing department. E) All these answers are correct. 54) The basic objective of implementation is to do thingsVersion 1 11 A) better. B) faster. C) at lower cost. D) All of these are basic objectives of implementation. 55) 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 the patient 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 A) most companies don't pay any attention to customer surveys anyway. B) complaints can bring implementation problems to light so that the company can fix them. C) no one answers surveys that are sent through the mail. D) most customers are too nervous to record negative experiences, although they will pass them along through word-of-mouth. E) None of these answers are correct. 56) Which of the following statements about customer complaints is false? A) Customer complaints that are handled well by the company usually help it win new customers. B) In business markets, customer complaints are usually handled by the sales force. C) In consumer markets, customer complaints are usually handled by toll-free telephone lines, websites, and e-mail customer service reps. D) Customer complaints that are handled well by the company usually help it keep its customers. 57) Studies have shown that customers who aren't satisfied with a response to their complaintsVersion 1 12 A) tell one person, on average, about their experience. B) tell ten people, on average, about their experience. C) usually never speak about it. D) will typically make at least two more complaints. E) tend to speak about their experience only when prodded by researchers. 58) Whistler's Camping Supplies wants to identify its most frequent customers and offer them quantity discounts to increase their purchases and loyalty. Which of the following implementation approaches might address this problem? A) putting a toll-free telephone number and website address on the product label B) using bar code scanners, RFID tags, EDI, and inventory reorder software C) creating a "favored customer" club with an ID card D) setting different prices in similar markets and tracking sales, including sales of competing products E) setting up a video conference 59) Sam Reuter, marketing manager for Herbal Shampoo Company, has to choose one of three different proposed labels for a new herbal shampoo. How might Sam pretest the consumer response to the labels? A) by putting a toll-free telephone number and website address on the product label B) by checking the labels of competitors C) by launching the product with new labels and evaluating the response D) by preparing sample labels with graphics software and testing them on the Internet E) by setting up a video conference 60) Which of the following statements about implementation is false?Version 1 13 A) Good implementation builds relationships with customers. B) Implementation ignores external matters. C) Implementation is especially critical in mature and highly competitive markets. D) Effective implementation means that plans work as intended. E) Implementation has its own objectives. 61) Effective implementation of a marketing plan A) matters least in markets that are mature and highly competitive. B) usually does not make the difference between winning and losing a customer. C) can involve decisions related to both internal (invisible to the consumer) and external (visible to the consumer) matters. D) is unrelated to the overall objectives of the marketing strategy. E) None of these answers is correct. 62) A firm generates a monthly profit of $160,000 dollars. If the 80/20 rule applies to this firm's products, which of the following statements is true? A) The firm generates $160,000 in profit from 80 percent of its products. B) The firm generates $128,000 in profit from 80 percent of its products. C) The firm generates $128,000 in profit from 20 percent of its products. D) The firm generates $80,000 in profit from 20 percent of its products. E) The firm generates $64,000 in profit from 20 percent of its products. 63) While doing an analysis, Sara realizes that close to 80 percent of her company's revenues comes from only 20 percent of her customers. This finding substantiates the A) iceberg principle. B) sales paradox. C) 80/20 rule. D) standard markup rule. E) fishbone rule. Version 1 14 64) The 80/20 rule suggests that A) 20 percent of marketing efforts is wasted. B) 80 percent of marketing efforts is well implemented, but the remaining 20 percent is out of control. C) 80 percent of the business comes from 20 percent of the customers. D) it will take 80 percent more effort to get 20 percent more business. E) None of these answers is correct. 65) The 80/20 rule says that A) only 20 out of every 100 firms use formal accounting controls. B) a firm should hire 20 sales reps for every 80 customers. C) marketing accounts for 80 percent of a typical consumer's dollar. D) even though a firm is showing a profit, 80 percent of its business might be coming from only 20 percent of its customers. E) usually about 20 percent of a firm's customers are unprofitable. 66) According to the 80/20 rule, A) marketing accounts for 80 percent of the consumer's dollar. B) only 20 out of every 100 firms use formal marketing control programs. C) about 20 percent of a typical firm's customers are unprofitable to serve. D) even though a firm might be showing a profit, 80 percent of its business might be coming from only 20 percent of its products or customers. E) None of these answers is correct. 67) Which of the following statements illustrates the 80/20 rule?