Marketing Chapter 19 – Baleja – Flashcards
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With respect to marketing control
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faster feedback can often be the basis for a competitive advantage.
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According to the "80/20 rule
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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
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Which of the following statements illustrates the 80/20 rule?
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"Of the hundred retailers who carry our products, the top twenty account for nearly 80 percent of our total business."
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When involved in the control process, the marketing manager should view company profit
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as a gross index of performance that should be further broken down into smaller components.
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A marketing manager who wants to analyze the firm's sales should be aware that:
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sales analysis may not be possible unless the manager has made arrangements for the company to capture identifying information about each sale.
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The major difference between a sales analysis and a performance analysis is that:
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performance analysis looks at variations from planned performance, while sales analysis shows what happened.
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Performance analysis differs from sales analysis in that performance analysis involves:
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comparing performance against standards—looking for exceptions or variations
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The main purpose of a performance analysis is to:
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uncover variations in performance that may be hidden in summary information.
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Which of the following statements might result from a performance analysis?
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Pele Ruiz's sales are over his quota.
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If Salesperson X had a performance index of 80 and Salesperson Y had a performance index of 120, then
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Salesperson X may be having some problems and his sales performance should be investigated.
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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:
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nothing thus far—because of the "iceberg principle."
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Which of the following statements best describes the "iceberg principle"?
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Problems in one area may be offset by good performances in other areas—and thus the problems may not be visible on the surface.
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Which of the following statements by a sales manager best reflects an understanding of the iceberg principle?
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"Let's not dwell on sales data summaries—let's get below the surface and study the details."
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Regarding marketing cost analysis,
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the contribution-margin approach focuses attention on variable costs.
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The main difference between the full-cost approach and the contribution-margin approach to marketing cost analysis is:
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The full-cost approach allocates all costs—even fixed costs—to products, customers, or other categories.
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If one were using the "full-cost" approach to marketing cost analysis, then allocating fixed costs on the basis of sales volume would:
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-make some customers appear more profitable than they actually are. -make some products appear less profitable than they actually are.
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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,
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the contribution-margin approach would probably divide personal selling expense based on commission expense for each product line.
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Which of the following statements about the contribution-margin approach is FALSE?
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Top management almost always finds this approach more useful than full-cost analysis.
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A "marketing audit" should:
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evaluate a company's whole marketing program on a regular basis.
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Which of the following statements about a "marketing audit" is true?
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A marketing audit should evaluate the company's whole marketing program—not just some parts of it.
