Reference no: EM13523802

Question 1

Misdirected marketing effort occurs in many firms because:

a)sales budgets are not prepared.

b)management is profit-conscious, rather than being volume-conscious.

c)management often lacks reliable standards for determining what should be spent on various marketing activities.

d)marketing and accounting executives do not sufficiently align their efforts.

Question 2
Generally speaking, accounting records are ____________; whereas a marketing cost analysis is ____________.

a)for accountants; for salespeople

b)highly accurate; a guesstimate

c)to keep track of past financial information; for the purpose of future planning

d)complex; simple

Question 3
In our company the figure for total sales is quite satisfactory, but it does not show that sales are declining in a certain product line or territory. This situation:

a)is an example of the 80-20 principle.

b)indicates a well-managed company.

c)tells us that we did a poor job of sales forecasting.

d)illustrates the need for detailed sales information.

Question 4
A marketing audit is:

a)a concept that includes in its scope a company''s financial audit.

b)a systematic, comprehensive review of the marketing function in an organization.

c)the main activity in sales force planning.

d)a wrap-up of this period''s operations, but does not affect next period''s work.

Question 5
In a marketing cost analysis, ledger expenses:

a)are expense categories taken from the company''s regular accounting system.

b)are deducted from gross margins to get contributed margins.

c)are derived by allocating activity costs to the various ledger categories.

d)cannot be used in their present form.

Question 6
ABC Company''s total sales volume is $10 million, with a cost of goods sold equal to 50% of sales, and total indirect expenses of $2 million. The Eastern territory has sales volume that equals $1 million and direct expenses of $200,000. In a full-cost, marketing cost analysis that uses the proportion of sales volume to allocate indirect expenses, the net profit of the Eastern territory is:

a)zero (no profit).

b)$100,000.

c)$300,000.

d)$500,000.

Question 7
In the management process in a sales department:

a)operational activities usually precede planning.

b)planning tells us what really was done.

c)planning and evaluation are interdependent activities.

d)evaluation in this year''s cycle is not related to any activities in next year''s management process.

Question 8
The "80-20" principle exists in many companies because:

a)marketing efforts and costs follow the number of territories, products, and customers, rather than actual sales or profit from these units.

b)management does not evaluate the marketing performance.

c)all sales generate about the same rate of profit.

d)most marketing executives are sales-oriented and not profit-oriented.

Question 9
When a marketing cost analysis by territories shows that a given territory is unprofitable, which of the following courses of action should be adopted as a last resort?

a)Adjust territorial boundaries

b)Use telephone selling instead of personal calls by salespeople in that district

c)Adjust the promotional program for that district

d)Abandon the territory entirely

Question 10
Which of the following is true about salespeople and SFA?

a)Most SFA systems are so user-friendly that training for representatives is not necessary.

b)SFA adds value to an organization only when representatives regularly enter data.

c)Relative to management, salespeople tend to be more eager to adopt SFA.

d)SFA provides helpful information to top management, but not to salespeople. Course Textbook

Spiro, R. L., Rich, G.A., & Stanton, W. J. (2008). Management of a sales force (12th ed.). New York, NY: McGraw-Hill/Irwin.