The last meeting between the marketing and operations directors of TTF was very heated. They each blamed the other for the disappointing rise in customer complaints and the fall in unit sales. The marketing director had complained that 'The number of faulty tractors leaving our factory has increased. Our reputation is being damaged by these faults and many former customers are now buying imported tractors. We have just lost a government order for $15$ tractors as our competitor was able to boast about their ISO $9000$ certificate.' The operations director had replied by saying that customers were becoming much more demanding and it was up to the marketing department to provide good after-sales service. ‘I have increased the number of quality-control engineers from five to eight and we are correcting more faults in finished products than ever before.’

$$\begin{array}{|c|c|c|} \hline & \textbf { TTF customer complaints } & \textbf { TTF sales in units } \\ \hline 2012 & 53 & 2345 \\ \hline 2013 & 78 & 2124 \\ \hline \end{array}$$

Describe two problems TTF experiences because of low-quality products.

Refer to the previous Self-Study Question. Recall that Santiago Pants has a sales forecast of 150,000 units and new target ending inventories as follows:

In addition, you learn that income tax expense is $500,000. Variable marketing costs change proportionately with volume; that is, the amount now is (150,000  160,000) of the amount in the text example.

Prepare a budgeted schedule of marketing and administrative costs and a budgeted income statement.

Google Inc. divides its total costs and expenses into five classifications: Costs of Revenues, Research and Development, Sales and Marketing, General and Administrative, and Dept of Justice charges (amounts in $Millions).

b) Find what percent of total costs and expenses were due to research and development in 2008? In 2012?

Why is pricing such an important part of the marketing mix?

Define social marketing, and give an example of this technique.

Google Inc. divides its total costs and expenses into five classifications: Costs of Revenues, Research and Development, Sales and Marketing, General and Administrative, and Dept of Justice charges (amounts in $Millions).

c) Have general and administrative costs grown as a percentage of total costs and expenses over this period?

Explain the values which underlie green marketing.

Name three benefits of a career in marketing.

How does the marketing mix for Domino’s Pizza in Japan differ from that in the United States? How does that in India differ from the U.S. marketing mix?

The following select account data is taken from the records of Reese Industries for 2019.

Sales                                       $640,363
Merchandise inventory                        582,620
Sales discounts                               58,040
Interest expense                               3,677
Sales returns and allowances                  90,232
Interest revenue                              10,268
Cost of goods sold                           224,598
Rent expense                                  15,080
Depreciation expense: office equipment         3,200
Insurance expense                              2,450
Advertising expense                           12,906
Accounts receivable                          100,440
Office supplies expense                        1,600
Rent revenue                                  23,622
Sales salaries expense                        30,410
Accounts payable                             135,404
Common stock                                  59,419
Marketing expense                             31,000

B. Prepare a simple income statement for the year ended December 31, 2019.

A marketing firm wishes to find a function that relates the sales S of a product and A, the amount spent on advertising the product. The data are obtained from past experience. Advertising and sales are measured in thousands of dollars.

$$\begin{matrix} \text{Advertising Expenditures, A} & \text{Sales, S}\\ \text{20} & \text{335}\\ \text{22} & \text{339}\\ \text{22.5} & \text{338}\\ \text{24} & \text{343}\\ \text{24} & \text{341}\\ \text{27} & \text{350}\\ \text{28.3} & \text{351}\\ \end{matrix}$$

What is the domain of the function?

Ethics of salespeople. Within marketing, the area of personal sales has long suffered from a poor ethical image, particularly in the eyes of college students. An article in the Journal of Business Ethics (Vol. 15, 1996) investigated whether such opinions by college students are a function of the type of sales job (high tech vs. low tech) and the sales task (new account development vs. account maintenance). Four different samples of college students were confronted with four different situations (new account development in a high-tech sales task, new account development in a low-tech sales task, account maintenance in a high-tech sales task, and account maintenance in a low-tech sales task) and were asked to evaluate the ethical behavior of the salesperson on a 7-point scale ranging from 1 (not a severe ethical violation) to 7 (a severe ethical violation). Determine each of the following elements of the experiment:

a. Response.

When have you been influenced by marketing?