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Basic Marketing, 10th Canadian Edition
Basic Marketing: A Global Managerial Approach, 10/e
Stanley J. Shapiro
Kenneth B. Wong, Queens School of Business
William D. Perreault, University of North Carolina
E. Jerome McCarthy, Michigan State University

Implementing and Controlling Marketing Plans

Quiz Questions



1

Services that require special attention can often be made "routine" with training.
A)True
B)False
2

Total quality management only deals with production, not with marketing.
A)True
B)False
3

A manager shouldn't worry about making a financial return from money spent on a quality program as long as customers recognize that the quality is high.
A)True
B)False
4

Performance analysis looks for exceptions or variations from planned performance.
A)True
B)False
5

When it comes to marketing cost analysis, a sales rep is likely to favour the full cost approach over the contribution margin approach.
A)True
B)False
6

In measuring the performance of a marketing plan, all of the following are correct EXCEPT:
A)A marketing manager must accept ultimate responsibility for the conduct of the plan.
B)Use measures that are highly influenced by factors outside the control of the program.
C)Looking only at sales and profitability may not accurately determine if the plan is on track.
D)Other factors such as economic trends influence the level of sales.
E)A marketing manager should understand what each program is intended to contribute to overall performance.
7

According to a study cited in the text:
A)quality problems reduce costs and improve overall profitability.
B)the latest trend in quality management focuses entirely on reducing defects.
C)most consumers are lured away by a superior offering from a competitor.
D)it is easier to acquire a new account than to retain an existing account.
E)two-thirds of all customers who change suppliers do so due to dissatisfaction with their current supplier.
8

A marketing manager might use the total quality approach to:
A)improve customer service.
B)make delivery schedules more reliable.
C)ensure advertising appears on appropriate TV shows.
D)train better salespeople.
E)all of the above.
9

Building quality into services:
A)is not necessary unless the service is guaranteed.
B)can be easily accomplished with surprise quality inspections.
C)can be improved by giving employees the authority to correct a problem on their own.
D)is made easier by grouping services that require special attention with those that are routine.
E)can be accomplished by lowering customer expectations.
10

The 80/20 rule suggests that:
A)marketing accounts for 80 percent of a typical consumer's dollar.
B)80 percent of the business comes from 20 percent of the customers.
C)20 percent of marketing effort is wasted.
D)usually about 20 percent of a firm's customers are unprofitable.
E)a firm should hire 20 sales reps for every 80 customers.
11

Which of the following is NOT a method of feedback to improve plans and implementation?
A)customer analysis
B)sales analysis
C)performance analysis
D)cost analysis
E)All of them are methods to do this.
12

The major difference between a sales analysis and a performance analysis is that:
A)sales analysis is a control procedure, while performance analysis is part of implementation.
B)sales analysis is used to find profitable sales patterns, while performance analysis seeks unprofitable patterns.
C)performance analysis looks at variations from planned performance, while sales analysis shows what happened.
D)sales analysis looks at individual transactions, while performance analysis groups them into categories.
E)sales analysis is an overview, while performance analysis is in much greater detail.
13

A performance index:
A)is mainly used to eliminate lazy salespeople.
B)shows the relation of one value to another.
C)provides a qualitative measure of what ought to happen.
D)is calculated from the consumer price index.
E)is based on the iceberg principle.
14

The iceberg principle:
A)suggests that sales will vary from one territory to another.
B)suggests that much good information may be hidden in summary data.
C)says that sales reps should never make cold calls on customers.
D)explains why some firms' sales are "cooler" than others.
E)explains why some customers are more profitable than others.
15

The text's full cost approach to marketing cost analysis:
A)looks only at those costs that are directly related to particular alternatives.
B)is misleading and should be avoided.
C)looks only at each customer's or product's contribution margin.
D)allocates all costs to products, customers, or other categories.
E)All of the above are correct.
16

With the contribution margin approach to marketing cost analysis:
A)variable costs are treated as common costs.
B)all costs are allocated to products, customers, or other categories.
C)fixed costs are allocated based on the profit contribution to the firm.
D)common costs that are hard to allocate are ignored.
E)None of the above are correct.
17

When deciding how to evaluate costs, a marketing manager should realize that:
A)the full cost approach is misleading and should not be used.
B)the contribution-margin approach ignores necessary fixed costs and should not be used.
C)according to the iceberg principle, too much detail in cost analysis obscures the big problems by calling attention to the superficial problems.
D)the best method for dealing with fixed costs depends on the objective of the analysis.
E)it is not necessary to worry day-to-day about variable costs when using a marketing audit.
18

Which of the following would be the best reason to use the "full cost approach" when comparing the performance of several product managers?
A)It charges each product manager only for those expenses he or she controls.
B)It allows management to consider only the variable costs related to different products.
C)This approach is required by the Income Tax Act.
D)Unlike the "contribution margin approach," it charges managers only for the expenses that are directly related to their operations.
E)It makes each manager bear a share of the overhead expenses that were made for everyone's benefit.
19

A marketing audit should:
A)be conducted by the person most familiar with each of the firm's marketing plans.
B)evaluate a company's whole marketing program on a regular basis.
C)be done by someone in the finance department.
D)seek to justify large marketing expenses.
E)be conducted whenever fraud or theft occurs.
20

A marketing audit should help determine if:
A)implementation of a marketing program was effective.
B)current marketing strategies are good ones.
C)the company's marketing objectives are reasonable.
D)all of the above.
E)none of the above.




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