What are control charts? Write a note on the important aspects of the chart
What will be an ideal response?
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.
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Which of the following is true of a sense of calling?
A) People generally only feel a sense of calling when others respect their work. B) Work must be intrinsically interesting for someone to feel it is meaningful C) A sense of calling increases performance at the individual level, but scholars have not found that a collective sense of calling increases an organization's performance D) A sense of calling directly relates to decreased conflict at work.
A business plan performs a number of functions including:
A) identifying how many employees will be needed in the business start-up phase. B) attracting capital for the start-up. C) providing the entrepreneur with a plan for managing inventory. D) providing the basis for purchasing property and casualty insurance for the new company.