Chapter 12 Implementation
1) Which of the following components of a project schedule refers to the actions to be
accomplished, including their name and description?
A) milestones
B) tasks
C) duration
D) resources
Answer: B
Rationale:
Tasks in a project schedule outline the specific actions that need to be accomplished,
including their names and descriptions. They break down the project into manageable units of
work and are essential for tracking progress and managing resources effectively.
2) A project schedule shows that a certain activity is to begin in June and end by August.
What information does the project schedule convey?
A) tasks
B) resources
C) duration
D) milestones
Answer: C
Rationale:
The duration of an activity, as conveyed in a project schedule, indicates the time required for
its completion. In this case, the schedule indicates that the activity will span from June to
August, implying a duration of time for its execution.
3) ________ are graphical tools to monitor and operate important marketing metrics.
A) Control charts
B) Box plots
C) Histograms
D) Scatter plots
Answer: A
Rationale:
Control charts are specifically designed graphical tools used in quality control and
management to monitor processes and track performance over time. In marketing, they can
be utilized to monitor and manage important metrics such as sales figures, customer
satisfaction scores, or marketing campaign effectiveness.
4) The upper control limit in a control chart represents ________.
A) the percentage of sales earmarked as marketing budget
B) the maximum permissible project extension
C) the volume of sales as a percentage of the marketing budget
D) the maximum spending limit
Answer: D
Rationale:
The upper control limit (UCL) in a control chart represents the highest value a process is
expected to reach under normal conditions. In the context of marketing, it could signify the
maximum spending limit set for a marketing campaign or initiative.
5) ________ are collections of multiple marketing-oriented measurements often portrayed
using a graphical format.
A) Control charts
B) Marketing dashboards
C) Metrics family tables
D) Contingency plans
Answer: B
Rationale:
Marketing dashboards are tools used to visualize and consolidate various marketing-oriented
measurements and key performance indicators (KPIs) into a single, easily accessible
interface. They provide a comprehensive overview of marketing performance and help in
making data-driven decisions.
6) Which of the following is automated using marketing automation systems?
A) sales forecasting
B) sales lead tracking
C) marketing research
D) campaign management
Answer: D
Rationale:
Marketing automation systems are designed to streamline and automate various marketing
processes, including campaign management. These systems help in creating, managing, and
tracking marketing campaigns across different channels, automating tasks such as email
marketing, social media posting, and lead nurturing.
7) Which of the following is automated using salesforce automation systems?
A) campaign management
B) sales forecasting
C) marketing measurement
D) contact management
Answer: B
Rationale:
Salesforce automation systems are primarily focused on automating tasks related to managing
the sales process and customer relationships. Sales forecasting, which involves predicting
future sales performance based on historical data and current trends, is a key aspect of
salesforce automation.
8) Which of the following is a metric of customer satisfaction?
A) partner recruitment by region
B) closed sales by product
C) net promoter score
D) top 10 Internet search keywords
Answer: C
Rationale:
The Net Promoter Score (NPS) is a widely used metric for measuring customer satisfaction
and loyalty. It is based on the likelihood of customers to recommend a company's product or
service to others. NPS provides insights into overall customer satisfaction and helps
businesses assess their performance and identify areas for improvement.
9) Which of the following is a metric of marketing channels?
A) partner recruitment status
B) closed sales by geography
C) net promoter score
D) closed sales by industry
Answer: A
Rationale:
Partner recruitment status is a metric related to marketing channels, specifically focusing on
the performance and effectiveness of partner programs or affiliate networks in driving sales
and generating leads for a company's products or services.
10) Which of the following is a metric of sales and pipeline?
A) partner recruitment status
B) net promoter score
C) customer referral score
D) closed sales by product
Answer: D
Rationale:
Closed sales by product is a metric related to sales and pipeline management, providing
insights into which products or services are generating revenue for the company. It helps in
analyzing sales performance, forecasting future sales, and optimizing product offerings to
meet customer demands.
11) Which of the following is a metric of lead generation?
A) top 10 ad headlines
B) key opportunities (pipeline)
C) net promoter score
D) partner recruitment by program
Answer: A
Rationale:
The effectiveness of lead generation efforts can be measured using metrics such as the
performance of ad headlines. Tracking the top-performing ad headlines provides insights into
which messages resonate best with the target audience and drive the most leads.
12) Which of the following courses of action is best suited for a company in the event of the
entry of a new competitor to the market?
A) re-estimating sales forecast
B) conducting competitive analysis
C) repositioning its existing product
D) arranging for a backup partner
Answer: B
Rationale:
In response to a new competitor entering the market, conducting competitive analysis is the
most appropriate course of action. This involves assessing the newcomer's strengths,
weaknesses, strategies, and market positioning to devise effective countermeasures and
maintain or enhance the company's competitive advantage.
13) Which of the following courses of action is best suited for a company in the event of the
economy entering a recession?
A) conducting a competitive analysis
B) arranging for a backup partner
C) predicting a competitor's target market
D) investigating new markets
Answer: D
Rationale:
During an economic recession, exploring new markets can help mitigate the impact of
reduced consumer spending in existing markets. Investigating new markets allows the
company to diversify its revenue streams and tap into areas less affected by the economic
downturn.
14) Which of the following courses of action is best suited for a company in the event of its
late entry into a market?
A) designing new products
B) arranging for a backup channel partner
C) repositioning the existing product
D) adjusting first-year sales downward
Answer: D
Rationale:
Adjusting first-year sales downward is a prudent course of action for a company entering a
market late. This adjustment reflects a realistic assessment of market conditions and
competition, ensuring that sales forecasts are aligned with the company's actual market
position and potential.
15) Which of the following courses of action is best suited for a company in the event of a
supplier pulling out a supply agreement?
A) repositioning the product
B) designing new products
C) arranging for backup partner
D) investigating new markets
Answer: C
Rationale:
When faced with a supplier pulling out of a supply agreement, arranging for a backup partner
is the most appropriate course of action. This ensures continuity of supply and minimizes
disruptions to the company's operations and ability to fulfill customer demand.
16) Which of the following courses of action is best suited for a company in the event of the
sales of its product dropping by a marginal amount?
A) investigating new markets
B) conducting customer survey and using feedback for future forecasts
C) repositioning or pulling the existing off the market
D) arranging for a backup partner
Answer: B
Rationale:
Conducting a customer survey and using feedback for future forecasts is the most suitable
course of action when facing a marginal drop in product sales. This approach allows the
company to gather insights directly from customers, understand the reasons behind the
decline, and make informed decisions to address any issues or concerns raised.
17) Which of the following courses of action is best suited for a company in the event of the
sales of its product increasing by a significant percentage?
A) determining competitive advantage to use in future designs
B) conducting a competitive analysis and predicting a competitor's target market
C) arranging for a backup channel partner and repositioning the product
D) investigating new target markets and designing new products
Answer: A
Rationale:
When experiencing a significant increase in product sales, determining competitive
advantage to use in future designs is the most appropriate course of action. This involves
analyzing the factors contributing to the sales growth, identifying the company's strengths
and unique selling points, and leveraging this information to enhance future product designs
and marketing strategies to maintain or further capitalize on the momentum.
18) Planning and control tools should reflect the culture of the organization to avoid potential
conflict.
Answer: True
Rationale:
Planning and control tools, including methodologies, processes, and systems, should be
aligned with the culture of the organization to ensure smooth implementation and acceptance
among employees. When these tools resonate with the organizational culture, they are more
likely to be embraced, reducing the likelihood of resistance or conflict.
19) Infrastructure activities are tasks that support the announcement and initiation of new
products or services.
Answer: False
Rationale:
Infrastructure activities typically refer to tasks related to the development, maintenance, and
improvement of organizational systems, processes, and resources. These activities are not
specifically tied to the announcement or initiation of new products or services but rather
focus on ensuring the efficiency and effectiveness of the overall organizational infrastructure.
20) Control charts are numerical records of performance of marketing metrics over time.
Answer: False
Rationale:
Control charts are graphical tools used to monitor the performance of processes or systems
over time. While they involve numerical data, control charts visually represent this data to
identify trends, variations, and patterns in performance. Control charts are commonly used in
quality control and process improvement but may not be specifically designed for marketing
metrics monitoring.
21) The consequences of underspending a marketing budget are negligible when compared to
those of exceeding the upper control limit.
Answer: False
Rationale:
Underspending a marketing budget can have significant consequences, including missed
opportunities for market penetration, decreased brand visibility, and reduced competitiveness.
While exceeding the upper control limit may incur penalties or resource misallocation,
underspending can hinder a company's growth and market presence, leading to long-term
negative impacts.
22) Budget creep has a tendency to edge up over time, results in excessive spending over
multiple months and once started, is difficult to correct.
Answer: True
Rationale:
Budget creep refers to the gradual and often unnoticed increase in spending over time,
leading to excessive expenditures beyond the initially planned budget. This phenomenon can
be challenging to control once it begins, as it may become ingrained in the organization's
spending habits and require significant efforts to reign in and correct.
23) Marketing automation systems are software tools that seek to automate tasks such as
tracking sales leads and forecasting sales.
Answer: False
Rationale:
Marketing automation systems primarily focus on automating marketing tasks such as email
marketing, social media management, lead nurturing, and campaign management. While
these systems may integrate with sales processes and CRM systems to some extent, their
main purpose is to streamline marketing workflows rather than forecasting sales.
24) A contingency plan describes alternative courses of action to be implemented if specific
conditions called "triggers" occur.
Answer: True
Rationale:
Contingency planning involves identifying potential risks or events (triggers) that could
impact the normal operations of a business and developing alternative strategies or responses
to mitigate these risks. Contingency plans outline specific actions to be taken in response to
unforeseen circumstances, ensuring business continuity and resilience.
25) Marketing in a time of prosperity is often easier than marketing in recessionary periods.
Answer: True
Rationale:
During periods of prosperity, consumers tend to have more disposable income, which can
lead to increased spending on goods and services. In such times, businesses may find it easier
to attract customers and generate sales through marketing efforts. In contrast, marketing
during recessionary periods can be more challenging as consumers become more budgetconscious, leading to reduced spending and heightened competition for market share.
26) If a new company enters the market with a compelling product or service, marketers
should conduct a new competitive analysis, with an emphasis on investigating new target
markets.
Answer: False
Rationale:
When a new competitor enters the market with a compelling product or service, it is crucial
for marketers to conduct a competitive analysis to assess the newcomer's strengths,
weaknesses, strategies, and market positioning. However, the emphasis should not solely be
on investigating new target markets. Instead, marketers should analyze how the new
competitor may impact existing target markets and adjust their strategies accordingly to
maintain or enhance their competitive edge. This may involve exploring new target markets
as one of the potential responses but should not be the sole focus of the competitive analysis.
27) Briefly explain the three marketing plan implementation factors which need to be taken
into consideration by organizations.
Answer: The three vital marketing plan implementation factors are:
1) Collaboration: Without buy-in from key stakeholders, even the most carefully developed
plan is doomed to failure.
2) Culture: Planning and control tools should reflect the culture of the organization to avoid
potential conflict.
3) Courses of Action: Schedules and other tools should make plans, processes, and personnel
responsibilities clear.
28) Write a note on control charts.
Answer: Control charts are graphical tools to monitor and control important marketing
metrics. The charts form a graphical record of performance over time and can signal if
corrective actions are required. Control charts can be used with many different types of
marketing-related variables, such as sales by product/service, sales by distribution channel,
sales leads, customer satisfaction, and many others.
29) Explain the "upper control limit" and "lower control limit" aspects of a control chart.
Answer: Upper Control Limit - The upper control limit represents the maximum spending
limit. Spending in excess of the upper control limit could get the marketing department in
trouble with the finance department of the organization.
Lower Control Limit - The lower control limit represents the minimum spending limit.
Underspending could be just as bad as overspending, because the company risks the loss of
market momentum by not spending enough to maintain its presence in the market.
30) Explain the "budget creep" aspect of a control chart.
Answer: While a one-time schedule excess is usually forgivable (such as an unusual large
expense), budget creep is not. Budget creep is particularly sinister because it has a tendency
to edge up over time. Budget creep can result in excessive spending over multiple months and
once started, is difficult to correct.
31) What are marketing dashboards? Explain their use in marketing automation systems and
salesforce automation systems.
Answer: Marketing dashboards help measure the effectiveness of marketing efforts by
aggregating key performance indicators in a graphical display. Dashboards are included in
marketing automation systems, such as Eloqua (eloqua.com) and Marketo (marketo.com),
which are software tools that seek to automate common marketing tasks, such as campaign
management, lead management, contact management, and marketing measurement.
Dashboards are also included in many salesforce automation systems, such as salesforce.com,
which are information systems used by sales and marketing organizations that seek to
coordinate sales efforts, such as tracking sales leads and forecasting sales.
32) Write a note on metrics family tables.
Answer: Metrics family tables are groups of related control metrics, presented in tabular
format. The tables provide diagnostic and predictive information on marketing efforts.
Typical metrics families include customers, products, customer service, brand equity, and
channel distribution. Each family includes essential metrics to describe performance, with the
data organized by geography, business unit, product, market segment, and other means.
33) Write a note on contingency plans.
Answer: Contingency plans are alternative courses of action to be implemented if (or when)
things go wrong. Some people refer to them as backup plans. Contingency plans should be
prepared as part of the overall marketing planning process, and approved by executive
management before the project launches. If disaster strikes, the resulting emotional and
turbulent environment will make it difficult to get alternative plans approved then, so it is
essential that plans be prepared and approved in advance.
34) Explain generic political and economic changes as triggers to initiate implementation of a
contingency plan.
Answer: Political Changes-New laws can cause dramatic effects on organizations. They can
benefit the organization (such as solar energy credits helping solar energy companies), or hurt
it (such as luxury taxes targeting high-priced automobiles).
Economic Changes-The economic climate can affect the success of a new product or service.
Marketing in a time of prosperity is often easier than marketing in recessionary periods.
35) Explain the role of partner support as a trigger for a contingency plan.
Answer: Many marketing plans count on the support by a key business partner, such as a
technology vendor or distribution channel member, for success of their plan. Contingency
plans should include sections describing actions to take if those partners fail to provide the
assumed level of support.
36) Explain the role of a sales increase as a trigger for a contingency plan.
Answer: If actual sales are more than predicted sales by a significant percentage, the
organization should find out why. Perhaps the market perceives a fundamental competitive
advantage with the product or service that is not readily evident to the company. If that is the
case, the offering should be positioned to strengthen that perception.
37) Write a note on the areas a marketer should consider while implementing a marketing
plan. What questions must the marketer consider in each area?
Answer: Well-crafted planning and control tools, such as schedules, control metrics, and
contingency plans, can assist marketing plan implementations, especially in large, complex
organizations. The prudent marketer considers the environment in which the marketing plan
is to be implemented, especially in the areas of collaboration (working with others and
getting buy-in), culture (the norms and values of the organization), and the courses of action
(gaining clarity into the hands-on management process).
Collaboration - Without buy-in from key stakeholders, even the most carefully developed
plan is doomed to failure - Which stakeholders must sign off on the plan? What are their
expectations? How much involvement do they expect to have with the implementation?
Culture - Planning and control tools should reflect the culture of the organization to avoid
potential conflict. How are decisions made—autocratically or by consensus? What are the
expectations of stakeholders? How is success measured in the organization?
Courses of Action - Schedules and other tools should make plans, processes, and personnel
responsibilities clear. Who will be in charge—a person or a committee? Which personnel will
be involved, and what will they be doing? What are the major milestones of the project?
38) What are control charts? Write a note on the important aspects of the chart.
Answer: Control charts are graphical tools to monitor and control important marketing
metrics. The charts form a graphical record of performance over time and can signal if
corrective actions are required. Control charts can be used with many different types of
marketing related variables, such as sales by product/service, sales by distribution channel,
sales leads, customer satisfaction, and many others. For example, a control chart can be used
to plot marketing expenses as a function of sales to determine if a company is overspending
to achieve its goals. The important components of such a control chart are:
Target Value - This is the targeted marketing expense/sales rate. The target value might
change over time.
Tolerance Band - Many organizations aim to control marketing spending within a tolerance
band centered about the target value.
Upper Control Limit - The upper control limit represents the maximum spending limit.
Spending in excess of the upper control limit could get the marketing department in trouble
with the company's finance department.
Lower Control Limit - The lower control limit represents the minimum spending limit.
Underspending could be just as bad as overspending, because the company risks the loss of
market momentum by not spending enough to maintain its presence in the market.
Budget Creep - While a one-time schedule excess is usually forgivable (such as an unusual
large expense), budget creep is not. Budget creep is particularly sinister because it has a
tendency to edge up over time. Budget creep can result in excessive spending over multiple
months and once started, is difficult to correct.
39) What are metrics family tables? Give examples of some typical example metrics families.
Answer: Metrics family tables are groups of related control metrics, presented in tabular
format. The tables provide diagnostic and predictive information on marketing efforts.
Typical metrics families include customers, products, customer service, brand equity, and
channel distribution. Each family includes essential metrics to describe performance, with the
data organized by geography, business unit, product, market segment, and other means.
Lead Generation: Shows effectiveness of lead generation. For every lead bought, how many
turn into sales opportunities?
Sales and Pipeline: Shows summary of sales, organized by various means.
Marketing Channels: Shows performance of marketing channel efforts, such as partner
recruitment.
Customer Satisfaction: Shows performance of efforts toward customer satisfaction.
40) Explain how social, economic, political, and technological changes may act as triggers
for the implementation of a contingency plan. Give examples to substantiate your answers.
Answer: Political Changes - New laws can cause dramatic effects on organizations. They can
benefit the organization (such as solar energy credits helping solar energy companies), or hurt
it (such as luxury taxes targeting high-priced automobiles).
Economic Changes - The economic climate can affect the success of a new product or
service. Marketing in a time of prosperity is often easier than marketing in recessionary
periods. For example, prices of used automobiles in the recessionary period of 2007––2010
actually rose, instead of dropping, due in part to people wanting to save money over
purchasing a new car.
Social Changes - Consumer's choices can change over time. For example, some of the fads of
the 2000s endured to become successful new categories (wireless camera phones turned to
smartphones) and others did not (LiveSTRONG yellow wristbands, once pervasive, are now
essentially gone).
Technology Changes - If a company's target market adopts a new type of technology that
threatens to make the company's technology obsolete, the consequences can be dire. An
example is the rapid boom and bust of e-learning tools in the early 2000s.
41) How do the following factors act as triggers for the implementation of a contingency
plan?
a) late entry into market
b) new competitors
c) sales drop
d) sales increase
Answer:
a) Late Entry into Market - If the company encounters a delay launching the project
represented by the marketing plan, the plan must be modified accordingly. In particular, the
projected sales for the first year must be reduced in proportion with the delay.
b) New Competitors - Perhaps a new company enters the market with a compelling product
or service. In that case, the marketer should conduct a new competitive analysis, with an
emphasis on predicting the target market for that competitor.
c) Sales Drop - Drops in actual sales of 10 percent, or even 20 percent, (compared to
predicted sales) could be due to an over-optimistic forecast or poorer-than-expected market
conditions. In either case, it pays to conduct market research on customers and competitors to
determine if the assumptions made in the plan are accurate.
d) Sales Increase - If actual sales are more than predicted sales by 10 percent, or even 20
percent, the organization should find out why. Perhaps the market perceives a fundamental
competitive advantage with the product or service that is not readily evident to the company.
If that is the case, the offering should be positioned to strengthen that perception.
Test Bank for Marketing Planning
Stephan Sorger
9780132544702
