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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

Managing Marketing's Link with Other Functional Areas

Quiz Questions


1	A marketing plan is more likely to be funded if the marketing manager has included quantitative criteria when screening possible opportunities.
		A)	True
		B)	False


2	A firm's marketing manager and finance manager don't need to interact much.
		A)	True
		B)	False


3	It can be advantageous to have excess capacity if demand suddenly increases.
		A)	True
		B)	False


4	Mass customization serves individual needs.
		A)	True
		B)	False


5	Cost analysis is the same as performance analysis.
		A)	True
		B)	False


6	Which of the following would NOT be paid for using working capital?
		A)	what a firm owes suppliers
		B)	purchase of new facilities
		C)	advertising expense
		D)	employee salaries
		E)	what it costs to store inventory


7	Which of the following is NOT an external source of capital?
		A)	bank loan
		B)	money raised by selling stocks
		C)	money raised by selling bonds
		D)	cash from profits
		E)	credit extended by suppliers


8	Which of the following is NOT a way to stimulate profit growth?
		A)	pursue new market opportunities
		B)	be more efficient with current activities
		C)	get the marketing job done at a lower cost
		D)	do a better job of holding on to customers
		E)	All of the above are ways to stimulate profit growth.


9	Which of the following have should NOT have an impact on a company's production capacity?
		A)	anticipated scheduling of supply
		B)	amount of product variation
		C)	location of demand
		D)	profitability of production
		E)	whether a specific product can be produced


10	Which of the following statements is FALSE in regard to raising capital?
		A)	Institutions that loan money are usually more willing to take a risk than are investors who buy stock.
		B)	The firm may be able to sell stock to its own employees.
		C)	Interest expense on a loan may impact prices and profits.
		D)	A company with a successful marketing strategy has its own internal source of funds—profits.
		E)	None of the above is false.


11	A financial report that forecasts how much cash will be available after paying expenses is called a(n):
		A)	income statement.
		B)	statement of loss.
		C)	cash flow statement.
		D)	balance sheet.
		E)	expense schedule.


12	The problems of matching supply and demand are likely to be less severe when a marketing plan calls for:
		A)	quick expansion into many different market areas at once.
		B)	a national rollout instead of a regional rollout.
		C)	rapid penetration into many different types of channels.
		D)	the staged distribution of a new product.
		E)	a huge promotion budget.


13	A virtual corporation:
		A)	doesn't really exist.
		B)	looks for capable suppliers who can meet the specs it lays out.
		C)	acts primarily as a producer.
		D)	doesn't need a marketing plan.
		E)	does all of its production in-house.


14	The cost of carrying inventory:
		A)	causes stockouts.
		B)	may cause a firm to lose out to a competitor with flexible production.
		C)	is highest for firms in foreign-based service industries.
		D)	is closely related to the high cost of mass customization by innovative firms.
		E)	All of the above are true.


15	Some service firms are reducing their costs by:
		A)	having excess capacity.
		B)	using computers and telecommunications.
		C)	assigning costs to natural accounts.
		D)	hiring highly paid service professionals.
		E)	not paying suppliers.


16	A major purpose of marketing cost analysis is to:
		A)	divide costs into natural accounts.
		B)	show where costs occur in relation to serving particular customers.
		C)	avoid the pitfalls of the contribution-margin approach to allocating costs.
		D)	offset the limitations of performance analysis.
		E)	determine which costs are fixed and which are variable.


17	Natural accounts are:
		A)	usually named to show the purpose for which expenditures are made.
		B)	misleading for calculating a firm's total profitability.
		C)	accounts to which various costs are charged in the normal accounting cycle.
		D)	usually allocated to functional accounts by the MIS method.
		E)	all of the above.


18	Which of the following is NOT a functional cost account?
		A)	order entry
		B)	billing
		C)	rent
		D)	packaging
		E)	selling


19	Human resource issues include:
		A)	recruiting and hiring new employees.
		B)	deciding how people will be compensated.
		C)	deciding what to do when a job is no longer necessary.
		D)	items that can be important for a marketing manager to consider in decision making.
		E)	all of the above.


20	A marketing manager changes strategy to respond to changing customer needs. This will cause major changes in production. Which other area(s) of the company should be consulted prior to implementation?
		A)	cafeteria
		B)	legal department
		C)	human resources
		D)	production
		E)	both c and d


21	Any change in a marketing strategy:
		A)	should be imposed quickly to minimize dissent.
		B)	is an issue that the marketing department should decide on its own.
		C)	should be implemented in a way that allows people time to absorb it.
		D)	can be implemented by employees right away using their current knowledge.
		E)	won't affect anyone in the organization if it is done properly.

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