Quiz 10

Due Jul 29 at 11:59pm Points 10 Questions 10 Available Jul 24 at 5pm - Jul 29 at 11:59pm 5 days Time Limit 60 Minutes
Allowed Attempts 3

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Attempt History Attempt Time Score

LATEST Attempt 1 31 minutes 4 out of 10

Score for this attempt: 4 out of 10

Submitted Jul 27 at 8:18pm
This attempt took 31 minutes.

Question 1 0 / 1 pts

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Which marketing strategy using the product-market grid involves targeting separate product lines for

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unique segments?

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You Answered market specialization

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market-product concentration

Correct Answer selective specialization

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full coverage
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product specialization
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Text page 591-92

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1 / 1 pts
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Question 2
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A company that uses an organizational structure based on _____ uses functional groupings.

method of distribution

Correct! business activities such as marketing, finance, and R&D

product type

a specific type of customer

areas of geographic location

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 Text page 600

Question 3 0 / 1 pts

Mark owns "All About Sports", which manufactures NFL, NBA, and college logo merchandise. The sports merchandise industry has sales of
$70 million. "All About Sports" sales are $14 million with a gross margin $8 million. Assume each "share of voice" point costs $275,000. Is it
advisable for Mark to pursue four (4) additional market share points?

Yes, because the additional gross margin would be $1.6 million, while the additional marketing expense would be only
$1.1 million.

No, because the additional marketing expense would be $2.2 million, while the additional gross margin would be only
$1.6 million.

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You Answered

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Yes, because the additional revenues would be $2.8 million, while the additional marketing expense would be only $2.2
million.

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Correct Answer
No, because the additional marketing expense would be $1.65 million, while the additional gross margin would be only
$1.6 million.
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Yes, because the additional revenues would be $2.8 million, while the additional marketing expense would be only $1.1
million.
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“All About Sports” wants to pursue 4 additional market share points. Due to competitive
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factors “All About Sports’ can not simply buy 4 additional market share points at $275,000
apiece. In order to compensate for this we apply the “1.5 Rule” from competitive parity
budgeting. 1.5 x 4= 6
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So in order to gain 4 market share points they will need to spend enough for 6. So they will
need to spend … 6 x $275,000 = $1.65 million in additional marketing expense
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This is the cost.

In order to calculate the benefit from pursing 4 additional market share points we need to
find the gross margin per share point and multiply it by 4.
“All About Sports” currently has 20 market share points. Firms Sales / Industry Sales. (14 /
70) = 20% = 20 share points
The firm’s gross margin is $8 million therefore the gross margin per share point is $400,000.
The benefit to pursing 4 additional share points is … $400,000 x 4 = $1.6 million
As a result the costs outweigh the benefits and it is not advisable to pursue 4 additional
share points.

Question 4 0 / 1 pts

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 Gary has decided he needs to improve implementation in his small manufacturing business that sells sunglasses to retailers. He has taken
the initiative and decided he will be personally and solely responsible for his company's performance this month. He purchased new cell
phones for each of his salespeople with a direct connect feature so that he is able to easily keep in contact with them. Gary implemented a
sales contest, the grand prize being a week's paid vacation, for the greatest increase in sales in the month of May. Gary also posted a
bulletin boad with each salesperson's territories and even specified the dates they were supposed to make sales calls in each. Gary omitted
which of the following tools to improve implementation in his business?

You Answered Rewarding performance

Schedule Tasks

Communication

Leadership

Correct Answer None of the above

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Lecture page 124

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Question 5 0 / 1 pts

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The brand manager wishes to know how soon the new Cafe Pepsi can be launched. After a critical path analysis, he determines that the
earliest Cafe Pepsi can hit the market is in:
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14 months.
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26 months.
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Correct Answer 17 months.

You Answered 13 months.

15 months.

Lecture page 122

Question 6 1 / 1 pts

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 The S-shaped curve of a sales response function is due to:

reduced cost and increasing marginal returns.

rising production costs and diminishing demand.

increasing costs associated with attaining additional market share.

Correct! initially increasing and then diminishing marginal returns of additional marketing expenditures.

decreasing costs as a result of marketing economies of scale.

Text page 585: A) As you move along the sales response function curve the cost is not
reduced. Marginal returns increases at first and then experiences diminishing returns. B)
Production costs and demand are not part of the sales response function. In the sales
response function the firm’s annual marketing effort is plotted on the horizontal axis. As the
annual marketing effort increases so does the resulting annual sales revenue, which is potted

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on the vertical axis. C) Increasing costs associated with attaining additional market share
would not form an S-shaped curve. D) The sales response function is S-shaped because at

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first marginal returns from additional marketing expenditures are increasing and then eventual
experience diminishing marginal returns. E) Decreasing costs as a result of marketing

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economies of scale would not form an S-shaped curve.

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Question 7 0 / 1 pts
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Typically, the _____ marketing plan covers marketing activities over a period of two to five years in the
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future. The _____ marketing plan, which is highly structured and detailed, is usually developed by a
product manager and begins with marketing research and ends after 48 weeks with the approval of the
general manager.
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annual; new product

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new product; annual

Correct Answer long-range; annual

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new product; long-range

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You Answered long-range; new product

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 Text page 589. A) The annual marketing plan only covers marketing activities for one year.
B) A new product marketing plan, which is not discussed in either the book or the lectures,
would not have any particular length. The length would vary with the nature of the producing
being launched. C) The long-range marketing plan usually covers a period of two to five
years. The annual marketing plan typically starts with a detailed marketing research study of
current users and ends after 48 weeks with the approval of the plan by the division general
manager. D) There is no set time period of the length of a new product marketing plan. Also,
the first plan described is the long-range plan, not the second one. E) The first plan is
indeed a long-range marketing plan but, the second plan described is the annual marketing
plan for already existing products.

Question 8 1 / 1 pts

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After being overwhelmed throughout college, Jenna read Seven Habits of Highly Effective People by Steven Covey. She discovered that if she

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learned to say "no" to the many little demands in life that made her inefficient, she could say "yes" to the actions that would lead her to
becoming truly effective. What habit of the seven that Covey introduces does this fall under?

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Habit 2 - "Begin with the End in Mind"

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Habit 4 - "Think Win/Win"
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Correct! Habit 3 - "Put first things first"

Habit 6 - "Synergize"
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Habit 1 - "Be Proactive"

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Lecture page 126. A) Habit 2 is known as the leadership habit. Covey encourages people to
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develop a personal mission statement in this habit. B) Habit 4 deals with making decisions.
People should look for win/win situations or there should be “no deal.” Covey says people
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should agree to communicate until a mutually agreeable decision is reached for both parties.
C) A major part of Habit 3 is to learn how to say “no” so you can say “yes.” Covey says we
should distinguish importance and urgency. Jenna learned to schedule her priorities, instead
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of prioritizing her schedule. In other words, she learned how to be effective instead of trying
to be efficient. D) Habit 6 is the habit of creative cooperation. The idea is that if you work
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together 1 +1 = 3 or 4. E) Habit 1 is about being proactive versus reactive. W e either act or

be acted upon. Covey discusses breaking our usual stimulus-response connections in this
habit.

Question 9 0 / 1 pts

Your company currently holds 20% market share of the tennis equipment industry, with a gross margin of $6,000,000. Your new goal is to
expand the company's market share to 22%. Suppose the overall industry generates $70,000,000 in sales revenue and has a marketing
effort of $16,000,000. Using a competitive parity approach, how much money should you add to your firm's marketing effort to gain two more
market share points?

You Answered $1,000,000

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 $500,000

$20,000

Correct Answer $480,000

$600,000

lecture pg 123. A. $1,000,000 ≠ $480,000 B. $500,000 ≠ $480,000 C. $20,000 ≠ $480,000

D. To gain 2 points of market share for the company, use the “1.5 Rule” from Competitive
Parity budgeting to determine that the firm would have to capture 3 additional share of voice
points.
Industry share of voice point = Industry Marketing Efforts / 100 = $16,000,000 / 100 =
$160,000
Company must earn 3 points = $160,000 x 3 = $480,000 required add. marketing effort E.
$600,000 ≠ $480,000

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Question 10 1 / 1 pts

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Consider the following PERT chart. What is the critical path?
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ABEF
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Correct! ACDF
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ABDF

ACEBDF

ACEF

Lecture page 122. A) 4 + 2 + 4 = 10 B) 6 + 5 + 3 = 14, This is the critical path because

this is the longest path. C) 4 + 5 + 3 = 12 D) You cannot go backwards on a PERT chart. E)
6 + 3+ 4 = 13

Quiz Score: 4 out of 10

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