Marketing Chapter 19 – Baleja

With respect to marketing control
faster feedback can often be the basis for a competitive advantage.
According to the “80/20 rule
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
Which of the following statements illustrates the 80/20 rule?
“Of the hundred retailers who carry our products, the top twenty account for nearly 80 percent of our total business.”
When involved in the control process, the marketing manager should view company profit
as a gross index of performance that should be further broken down into smaller components.
A marketing manager who wants to analyze the firm’s sales should be aware that:
sales analysis may not be possible unless the manager has made arrangements for the company to capture identifying information about each sale.
The major difference between a sales analysis and a performance analysis is that:
performance analysis looks at variations from planned performance, while sales analysis shows what happened.
Performance analysis differs from sales analysis in that performance analysis involves:
comparing performance against standards—looking for exceptions or variations
The main purpose of a performance analysis is to:
uncover variations in performance that may be hidden in summary information.
Which of the following statements might result from a performance analysis?
Pele Ruiz’s sales are over his quota.
If Salesperson X had a performance index of 80 and Salesperson Y had a performance index of 120, then
Salesperson X may be having some problems and his sales performance should be investigated.
A sales manager has just discovered that one of his sales reps has sales about 20 percent below his quota. The sales manager should conclude:
nothing thus far—because of the “iceberg principle.”
Which of the following statements best describes the “iceberg principle”?
Problems in one area may be offset by good performances in other areas—and thus the problems may not be visible on the surface.
Which of the following statements by a sales manager best reflects an understanding of the iceberg principle?
“Let’s not dwell on sales data summaries—let’s get below the surface and study the details.”
Regarding marketing cost analysis,
the contribution-margin approach focuses attention on variable costs.
The main difference between the full-cost approach and the contribution-margin approach to marketing cost analysis is:
The full-cost approach allocates all costs—even fixed costs—to products, customers, or other categories.
If one were using the “full-cost” approach to marketing cost analysis, then allocating fixed costs on the basis of sales volume would:
-make some customers appear more profitable than they actually are.
-make some products appear less profitable than they actually are.
A company produces three product lines and a different marketing manager is responsible for each line. Most marketing expenses are specific to each line, but a common sales force sells all three lines. Sales reps are paid by commission, with a different commission for each product line. In this case, in a marketing cost analysis,
the contribution-margin approach would probably divide personal selling expense based on commission expense for each product line.
Which of the following statements about the contribution-margin approach is FALSE?
Top management almost always finds this approach more useful than full-cost analysis.
A “marketing audit” should:
evaluate a company’s whole marketing program on a regular basis.
Which of the following statements about a “marketing audit” is true?
A marketing audit should evaluate the company’s whole marketing program—not just some parts of it.