MAC Financial Management & Budgeting 5

Question 1

A company's marketing efficiency ratio (MER) is calculated as total revenue divided by total marketing spend. An MER of 6 means:

Accepted Answer

Every dollar spent on marketing generates $6 in revenue

Answer

MER of 6 means $6 of revenue is generated for every $1 of marketing investment across all channels.

Question 2

Which approach to CLV calculation accounts for the time value of money?

Accepted Answer

Discounted CLV using a net present value formula

Answer

Discounted CLV applies a discount rate to future cash flows, reflecting that future revenue is worth less than current revenue.

Question 3

An analyst notices that email marketing consistently shows a high last-click ROI but contributes little when using data-driven attribution. This discrepancy most likely means email is:

Accepted Answer

Capturing credit for conversions driven by earlier touchpoints

Answer

Last-click over-credits email for closing conversions that were actually initiated by upstream channels like paid search or display.

Question 4

When setting a marketing budget using the 'objective-and-task' method, the correct sequence of steps is:

Accepted Answer

Define objectives → Determine tasks → Estimate costs

Answer

Objective-and-task budgeting starts with defining goals, then identifies required activities, and finally sums their costs to arrive at the budget.

Question 5

A brand's gross margin is 60% and its marketing-to-sales ratio target is 10%. If projected sales are $2,000,000, what is the target marketing budget?

Accepted Answer

$200,000

Answer

Marketing budget = Sales × Marketing-to-Sales Ratio = $2,000,000 × 10% = $200,000.

(MAC) Marketing Analytics Certification Practice Test

(MAC) Marketing Analytics Certification Practice Test

MAC Financial Management & Budgeting 5