Managing a Holistic Marketing Organization for the Long Run

1. TOP 10 Learning Questions
for
Chapter 22
Managing a Holistic Marketing
Organization for the Long Run
Boni Regis
December 15, 2011
Marketing Management Class of
Prof. Remigio Joseph De Ungria
http://botchingkoy.blogspot.com

2. 1. What is the correct process in
conducting a marketing profitability
analysis?
A.
C.
Prepare profit-and-loss statement for each
marketing entity Identify Functional Expenses
Identify Functional Expenses
Assign Functional Expenses
Assign Functional Expenses to Marketing to Marketing
Prepare profit-and-loss
B. statement for each
marketing entity
Assign Functional Expenses to Marketing
Identify Functional Expenses
Prepare profit-and-loss statement for each
marketing entity

3. STEPS IN
MARKETING PROFITABILITY ANALYSIS
STEP 1: Identifying Functional Expenses
Determine the expenses incurred to sell the product
(advertisements, packaging, delivery, etc.). Measure how much
each activity cost.
STEP 2: Assigning Functional Expenses to Marketing
Entities
Measure how much functional expense was used to sell in each
entity (e.g. per store)
STEP 3: Preparing a Profit-and-Loss Statement for Each
Marketing Entity
Prepare the statement for each marketing entity (e.g. per store)

4. 1. What is the correct process in
conducting a marketing profitability
analysis?
A.
C.
Prepare profit-and-loss statement for each
marketing entity Identify Functional
Expenses
Identify Functional Expenses
Assign Functional Expenses to Marketing Assign Functional
Expenses to Marketing
B. Prepare profit-and-loss
statement for each
Assign Functional Expenses to Marketing
marketing entity
Identify Functional Expenses
Prepare profit-and-loss statement for each
marketing entity

5. 2. Which of the following is true?
A. Overall market share is the largest market share of
the company.
B. Served market share is the company’s sales as a
percentage of total market sales.
C. Relative Market Share is the percentage of total
sales to the market.
D. Served Market Share is always larger than the
overall market share.

6. MARKET SHARE ANALYSIS
OVER ALL MARKET SHARE is the company’s sales
as a percentage of total market sales.
SERVED MARKET SHARE is the percentage of total
sales to the market; always larger than over all
market share
RELATIVE MARKET SHARE is the market share in
relationship to the largest competitor.

7. MARKET SHARE ANALYSIS
SERVED MARKET
– all the buyers are
willing and able to buy
the product
SERVED MARKET (Market Share
SHARE (sure sale) of company A)
RELATIVE
MARKET SHARE
OVER ALL MARKET
SHARE
(not sure if all INDUSTRY market (all
customers would buy) competitors share in this
market)
COMPANY A

8. 2. Which of the following is true?
A. Overall market share is the largest market share of
the company.
B. Served market share is the company’s sales as a
percentage of total market sales.
C. Relative Market Share is the percentage of total
sales to the market.
D. Served Market Share is always larger than
the overall market share.

9. 3. Which of the following components
measures the number of customers who
buy from the company?
A.Customer Selectivity
B. Customer Loyalty
C.Price Selectivity
D.Customer Penetration
E. Overall Market Share

10. MARKET SHARE ANALYSIS
CUSTOMER PENETRATION – percentage of all
customers who buy from the company
CUSTOMER LOYALTY – purchases from the company by
its customers as a percentage of their total purchases
from all suppliers of the same products

11. MARKET SHARE ANALYSIS
CUSTOMER SELECTIVITY – size of the average customer
purchase from the company as a percentage of the size
of the average customer purchase from an average
company.
PRICE SELECTIVITY – average price charged by the
company as a percentage of the average price charged
by all companies

12. 3. Which of the following components
measures the number of customers who
buy from the company?
A.Customer Selectivity
B. Customer Loyalty
C.Price Selectivity
D.Customer Penetration
E. Overall Market Share

13. 4. Which of the following is used to
measure the gap in sales
performance?
A.Marketing Expense-to-sales
Analysis
B. Marketing Profitability Analysis
C.Sales-variance Analysis
D.Sales Analysis

14. EVALUATION AND CONTROL
SALES-VARIANCE ANALYSIS measures the relative
contribution of different factors to a gap in sales
performance.
SALES
VARIANCE
ACTUAL
?
GOAL
SALES

15. 4. Which of the following is used to
measure the gap in sales
performance?
A.Marketing Expense-to-sales
Analysis
B. Marketing Profitability Analysis
C.Sales-variance Analysis
D.Sales Analysis

16. 5. Which of the following product-
management organization alternatives
use “brand-asset management team”?
A. Hub and Spoke Team System
B. Product Teams
C. Customer Management Organization
D. Market Centered Organization
E. Matrix Management Organization

17. PRODUCT TEAMS
(Brand-asset Management Team)
BRAND-ASSET MANAGEMENT TEAM consists of representatives
from functions that directly affects the brand’s performance
TYPES OF BRAND-ASSET MANAGEMENT TEAM
A) Triangular B) Horizontal
Product Manager
Product
Manager
Communica Distribution Market
tion Finance Engineer Specialist Sales Researcher
Specialist Manager
Market Communication
Researcher Specialist

18. 5. Which of the following product-
management organization alternatives
use “brand-asset management team”?
A. Hub and Spoke Team System
B. Product Teams
C. Customer Management Organization
D. Market Centered Organization
E. Matrix Management Organization

19. 6. “Coca-Cola - Soft drink” is what kind
of brand management organization?
A. Category Management
B. Vertical Product Team
C. Internal Marketing Organization
D. Market Management Organization
E. Creative Marketing Management

20. PRODUCT-MANAGEMENT
ORGANIZATION
CATEGORY MANAGEMENT is a method in which a
company focuses on product categories to manage its
brands.
Colgate – Toothpaste
Gardenia - Bread
Tide – Detergent Soap
Safeguard – Body Soap

21. 6. “Coca-Cola - Soft drink” is what kind
of brand management organization?
A. Category Management
B. Vertical Product Team
C. Internal Marketing Organization
D. Market Management Organization
E. Creative Marketing Management

22. 7. Which of the following is a factor in
creating a Corporate Social
Responsibility activity?
A. Sustainability
B. Cause-related Marketing
C. Firms of Endearment
D. Inter-departmental Relationships
E. Legal Behavior

23. CORPORATE SOCIAL
RESPONSIBILITY
LEGAL BEHAVIOR – Companies ensure that their
employees are aware and observes the laws
ETHICAL BEHAVIOR – Companies should have a strong
set of ethics and someone that would enforce it. It is
advised that everything should be in writing
SOCIAL RESPONSIBILITY BEHAVIOR – People want
information about a company’s record on social and
environmental responsibility

24. 7. Which of the following is a factor in
creating a Corporate Social
Responsibility activity?
A. Sustainability
B. Cause-related Marketing
C. Firms of Endearment
D. Inter-departmental Relationships
E. Legal Behavior

25. 8. ___ are indirect costs but are still
related to the selling of the products.
A. Non-traceable common costs
B. Traceable Common costs
C. Direct costs

26. DIRECT VS. FULL COSTING
DIRECT COSTS – assign direct costs to the proper
marketing entities
TRACEABLE COSTS – assign traceable costs only
indirectly but on a reasonable basis and it still affects
the product
NON TRACEABLE COSTS – common costs whose
allocation to the marketing entities is highly arbitrary

27. 8. ___ are indirect costs but are still
related to the selling of the products.
A. Non-traceable common costs
B. Traceable Common costs
C. Direct costs

28. 9. A marketing audit is _____.
A. sustainable, efficient, strategic & profitable
B. comprehensive, systematic, independent &
periodic
C. sustainable, comprehensive, strategic &
periodic
D. efficient, systematic, independent & profitable

29. MARKETING AUDIT
COMPREHENSIVE – should cover all the
major marketing activities of a business
SYSTEMATIC – follows a procedure and
a template so as not to miss anything

30. MARKETING AUDIT
INDEPENDENT – the audit of the other
person/group should not be influenced by
another person/group who also audited
the same procedure
PERIODIC – should be done on a monthly,
quarterly, bi-annually and/or annually to
determine changes and what caused it

31. 9. A marketing audit is _____.
A. sustainable, efficient, strategic & profitable
B. comprehensive, systematic, independent
& periodic
C. sustainable, comprehensive, strategic &
periodic
D. efficient, systematic, independent & profitable

32. 10. Which of the following is true
about microsales analysis?
A. Annual plan control requires making sure the
company is not overspending to achieve sales
goals.
B. Identifies the factors that affects the
company’s rate of return on net worth.
C. Checks at the products, territories and other
factors that contributes to the production of
sales.

33. MICROSALES ANALYSIS
MICROSALES ANALYSIS conducts analysis
to determine which factors contributed to
the increase or decrease in sales. This
study would later be beneficial to the
company. This study should include the
recommendations and the solutions
implemented.

34. 10. Which of the following is true
about microsales analysis?
A. Annual plan control requires making sure the
company is not overspending to achieve sales
goals.
B. Identifies the factors that affects the
company’s rate of return on net worth.
C. Checks at the products, territories and
other factors that contributes to the
production of sales.

35. TOP 10 Learning Questions
for
Chapter 22
Managing a Holistic Marketing
Organization for the Long Run
Boni Regis
December 15, 2011
Marketing Management Class of
Prof. Remigio Joseph De Ungria