Download Marketing Management - 12th Edition

Chapter 22: Managing a Holistic Marketing Organization
GENERAL CONCEPT QUESTIONS
Multiple Choice
1. ________ is the appointment of teams to manage customer-value–building processes
and break down walls between departments.
a. Reengineering
b. Outsourcing
c. Benchmarking
d. Supplier partnering
e. Customer Partnering
Answer: a
Page: 696
Level of difficulty: Easy
2. ________ is the greater willingness to buy more goods and services from outside
domestic or foreign vendors.
a. Benchmarking
b. Merging
c. Globalizing
d. Outsourcing
e. Accelerating
Answer: d
Page: 696
Level of difficulty: Easy
3. ________ is the study of “best practice companies” to improve performance.
a. Empowering
b. Globalizing
c. Flattening
d. Focusing
e. Benchmarking
Answer: e
Page: 696
Level of difficulty: Easy
4. ________ is the trend to increase partnering with fewer but better value-adding
suppliers.
a. Supplier partnering
b. Benchmarking
c. Customer partnering
d. Flattening
e. Empowering
Answer: a
Page: 696
Level of difficulty: Easy
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Part 8: Creating Successful Long-Term Growth
5. ________ is working more closely with customers to add value to their operations.
a. Reengineering
b. Outsourcing
c. Customer partnering
d. Merging
e. Globalizing
Answer: c
Page: 696
Level of difficulty: Easy
6. ________ is the acquiring or merging with firms in the same or complementary
industries to gain economies of scale or scope.
a. Merging
b. Globalizing
c. Accelerating
d. Empowering
e. Outsourcing
Answer: a
Page: 696
Level of difficulty: Easy
7. Increasing the effort to “think global” and “act local” is ________.
a. flattening
b. benchmarking
c. globalizing
d. focusing
e. empowering
Answer: c
Page: 696
Level of difficulty: Easy
8.
________ is reducing the number of organizational levels to get closer to the
customer.
a. Flattening
b. Globalizing
c. Accelerating
d. Empowering
e. Draft the report
Answer: a
Page: 696
Level of difficulty: Easy
9. Determining the most profitable businesses and customers and focusing on them is
called ________.
a. empowering
b. focusing
c. flattening
d. merging
e. outsourcing
Answer: b
Page: 696
Level of difficulty: Easy
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Chapter 22: Managing a Holistic Marketing Organization
10. Designing the organization and setting up processes to respond more quickly to
changes in the environment is called ________.
a. flattening
b. reengineering
c. customer partnering
d. globalizing
e. accelerating
Answer: e
Page: 696
Level of difficulty: Easy
11. ________ encourages and empowers personnel to produce more ideas and take more
initiative.
a. Empowering
b. Accelerating
c. Benchmarking
d. Merging
e. Flattening
Answer: a
Page: 696
Level of difficulty: Easy
12. The role of marketing in the organization is changing. Traditionally marketers have
played the roles of ________.
a. middlemen
b. customers
c. clients
d. internal customers
e. external consumers
Answer: a
Page: 696
Level of difficulty: Medium
13. Today marketing no longer has sole ownership of customer interactions; rather
marketing needs to ________ all the customer-facing processes so that the customers
see a single face and hear a single voice when they interact with the firm.
a. collect
b. examine
c. review
d. integrate
e. distribute
Answer: d
Page: 696
Level of difficulty: Hard
14. _________ requires that everyone in the organization buy into the concepts and goals
of marketing and engage in choosing, providing, and communicating customer value.
a. Internal marketing
b. External marketing
c. Integrated marketing communications
d. Sales department
e. External relations
Answer: a
Page: 697
Level of difficulty: Medium
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Part 8: Creating Successful Long-Term Growth
15. The most common form of marketing organization consists of ________ reporting to a
marketing vice president.
a. sales staff
b. functional specialists
c. departmental head
d. interns
e. none of the above
Answer: b
Page: 697
Level of difficulty: Medium
16. The main advantage of a functional marketing organization is it ________.
a. ease of reporting
b. reduced staff requirements
c. administrative simplicity
d. overlapping responsibilities
e. increased work load requirements
Answer: c
Page: 697
Level of difficulty: Medium
17. A functional marketing organization can lose its ________ as products and markets
increase.
a. focus
b. effectiveness
c. leader
d. reporting relationships
e. vice president
Answer: b
Page: 697
Level of difficulty: Medium
18. A company selling in a national market often organizes its sales force along ________
lines.
a. territory
b. geographic
c. psychographic profiles
d. convenience
e. product lines
Answer: b
Page: 698
Level of difficulty: Easy
19. Several companies are new adding ________ to support the sales efforts in highvolume markets.
a. behavior specialists
b. consumer specialists
c. area market specialists
d. regional managers
e. district managers
Answer: c
Page: 698
Level of difficulty: Medium
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Chapter 22: Managing a Holistic Marketing Organization
20. Improved information and marketing research technologies have spurred
regionalization. This has allowed firms to produce more ________ aimed at
consumers in their cities and neighborhood.
a. national programs
b. multiple programs
c. local programs
d. product specific programs
e. brand specific programs
Answer: c
Page: 699
Level of difficulty: Medium
21. Product and brand management is sometimes characterized as a ________ system.
a. hub-and-spoke
b. wheel
c. flattening organization
d. layered organization
e. regional system
Answer: a
Page: 699
Level of difficulty: Easy
22. The product-management organization has several advantages. Which of the
following is NOT one of the advantages of the product-management system?
a. can concentrate on developing cost-effective marketing mix for the product.
b. he/she can react quickly to new products in the marketplace
c. the company’s smaller brands have a product advocate
d. the product manager is an expert in his/her category only
e. provides for management succession
Answer: d
Page: 699
Level of difficulty: Hard
23. A second alternative available to firms with a product-management organization is to
switch from product managers to ________.
a. brand managers
b. co-brand leaders
c. a flattening organization
d. hub-and-spoke system
e. product teams
Answer: e
Page: 700
Level of difficulty: Easy
24. There are three types of potential product-team structures. These are ________.
a. vertical, triangular, and horizontal product teams
b. vertical, horizontal, and circular product teams
c. horizontal, vertical, and rectangular product teams
d. horizontal, vertical, and flattened product teams
e. vertical, rectangular, and circular product teams
Answer: a
Page: 700
Level of difficulty: Hard
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Part 8: Creating Successful Long-Term Growth
25. A Brand-asset management team (BAMT) ________.
a. concerns itself with the brand only during the marketing audit
b. consists of key brand managers from other companies
c. consists of management personnel from other departments
d. consists of top evel mangers reviewing the brand during an audit
e. consists of key representatives from major functions affecting the brand’s
performance
Answer: e
Page: 700
Level of difficulty: Hard
26. When customers fall into different user groups with distinct buying preferences and
practices, a ________ is desirable.
a. market-management organization
b. product-management organization
c. brand-management organization
d. BAMT organization
e. flattened organization
Answer: a
Page: 701
Level of difficulty: Easy
27. ________ is when the marketing activity is organized to meet the needs of distinct
customer groups rather than being focused on marketing functions, regions, or
products.
a. Product-centered organization
b. Brand-centered organization
c. Customer-management organization
d. Market-centered organizations
e. Brand asset organization
Answer: d
Page: 702
Level of difficulty: Hard
28. In a ________, companies can organize themselves to understand and deal with
individual customers rather than with the mass market or even market segments.
a. market-centered organization
b. brand-centered organization
c. brand-asset organization
d. customer-management organization
e. product centered organization
Answer: d
Page: 702
Level of difficulty: Medium
29. Companies that product many products flowing into many markets may adopt a
________ marketing organization.
a. flat organization
b. brand organization
c. product organization
d. matrix organization
e. top-down organization
Answer: d
Page: 702
Level of difficulty: Medium
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Chapter 22: Managing a Holistic Marketing Organization
30. Several forces are driving companies to practice a higher level of corporate social
responsibility. These include ________.
a. rising customer expectations
b. changing employee expectations
c. government legislation
d. investor interests
e. all of the above
Answer: e
Page: 706
Level of difficulty: Hard
31. Raising the level of socially responsible marketing calls for a three-pronged attack
that relies on ________.
a. proper legal, ethical, and socially responsibility behavior
b. proper legal, ethical, and marketing communications
c. legal, ethical, and acceptable behavior
d. ethical, responsible, and clear behavior
e. none of the above
Answer: a
Page: 707
Level of difficulty: Medium
32. _________ is marketing that links the firm’s contributions to a designated cause to
customers’ engaging directly or indirectly in revenue-producing transactions with the
firm.
a. Asset marketing
b. Direct marketing
c. Multi-level marketing
d. Cause-related marketing
e. Socially-responsible marketing
Answer: d
Page: 709
Level of difficulty: Easy
33. Cause-related marketing has also been called a part of _________.
a. action marketing
b. corporate societal marketing (CSM)
c. socially-responsible marketing
d. trade marketing
e. pro-active marketing
Answer: b
Page: 709
Level of difficulty: Easy
34. Some of the specific means by which cause-marketing programs can build brand
equity withy consumers include _________.
a. building brand awareness and enhancing brand image
b. establishing brand credibility
c. evoking brand feelings and creating a sense of brand community
d. eliciting brand engagements
e. all of the above
Answer: e
Page: 710
Level of difficulty: Medium
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Part 8: Creating Successful Long-Term Growth
35. There are three potential options for branding a cause-marketing program. These are
_________.
a. self-branding, co-branding, jointly branding
b. self –branding, jointly branding, team branding
c. self-branding, team branding, co-branding
d. ethical branding, third-party branding, co-branding
e. cause branding, third-party branding, co-branding
Answer: a
Page: 711
Level of difficulty: Medium
36. ________ is done by a nonprofit or government organization to further a cause.
a. Issue marketing
b. Brand marketing
c. Causal marketing
d. Social marketing
e. Non-profit marketing
Answer: d
Page: 712
Level of difficulty: Easy
37. ________ is the process that turns marketing plans into action assignments and
ensures that such assignments are executed in a manner that accomplishes the plan’s
stated objectives.
a. Marketing implementation
b. Marketing research
c. Marketing management
d. Brand management
e. Product management
Answer: a
Page: 715
Level of difficulty: Easy
38. Thomas Bonoma identifies four sets of skills for implementing marketing programs.
These include ________.
a. diagnostic skills
b. people skills
c. listening skills
d. marketing skills
e. identification skills
Answer: a
Page: 715
Level of difficulty: Medium
39. One of the four types of marketing control needed by companies would be ________.
a. operational control
b. financial control
c. logistical control
d. annual plan control
e. inter-departmental control
Answer: d
Page: 717
Level of difficulty: Medium
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Chapter 22: Managing a Holistic Marketing Organization
40. A company’s or division’s marketing effectiveness is reflected in the degree to which
it exhibits the five major attributes of a marketing orientation. These five major
attributes include ________.
a. integrated marketing organization,
b. customer relationships
c. the customer is always right
d. advertising efficiency
e. none of the above
Answer: a
Page: 719
Level of difficulty: Hard
41. _________ is a comprehensive systematic, independent, and periodic examination of
a company’s or business unit’s marketing environment, objectives, strategies, and
activities with a view to determining problem areas and opportunities and
recommending a plan of action to improve the company’s marketing performance.
a. Marketing plan
b. Marketing management
c. Marketing audit
d. Marketing intelligence
e. Marketing metrics
Answer: c
Page: 719
Level of difficulty: Easy
42. The four characteristics of a marketing audit are ________.
a. product orientation, market orientation, innovation orientation, productivity
orientation
b. comprehensive, systematic, independent, periodic
c. comprehensive, systematic, periodic, corporate
d. systematic, as needed, comprehensive, independent
e. compartmentalized, systematic, periodic, independent
Answer: b
Page: 719
Level of difficulty: Hard
43. Four areas for efficiency control that firms must evaluate are ________.
a. personnel efficiency, distribution efficiency, advertising efficiency, brand
profitability
b. sales force efficiency, profitability efficiency, brand efficiency, distribution
efficiency
c. sales force efficiency, brand margin efficiency, distribution efficiency, advertising
efficiency
d. sales force efficiency, advertising efficiency, sales promotion efficiency,
distribution efficiency
e. sales force efficiency, advertising efficiency, brand profitability, distribution
efficiency
Answer: d
Pages: 717–718
Level of difficulty: Medium
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Part 8: Creating Successful Long-Term Growth
44. The control process includes the following ________.
a. goal setting, performance measurement, performance diagnosis, corrective action
b. goal setting, brand review, marketing audit, corrective action
c. brand audit, control review, efficiency control, corrective action
d. management scorecard, goal setting, marketing audit, corrective action
e. efficiency control, strategic control, goal setting, corrective action
Answer: a
Page: 717
Level of difficulty: Medium
45. Modern marketing departments may be organized in a number of different,
sometimes, overlapping ways by ________.
a. function, by brand, by product group, by customer, by matrix
b. design, by brand, by product, by territory, by matrix
c. matrix, by brand, by function, by geography, by customer
d. customer, by brand, by geography, by territory
e. functionally, geographically, by product or brand, by market, in a matrix, by
corporate/division
Answer: e
Page: 696
Level of difficulty: Easy
46. A fourth alternative available to a company that uses a product-management
organization is to introduce ________ in which a company focuses on product
________ to manage its brands.
a. product managers/categories
b. category specialists/managers
c. category management/categories
d. product brand managers/categories
e. category management/specialists
Answer: c
Page: 700
Level of difficulty: Medium
47. Another rationale for category management is the increasing power of the ________.
a. consumer
b. customer
c. trade
d. distribution partners
e. competition
Answer: c
Page: 701
Level of difficulty: Easy
48. In a typical organization, each business function has a potential impact on customer
satisfaction. Under the marketing concept, all departments need to _________ and
work together to satisfy_________ .
a. profits/customers
b. market share/customers
c. think customer/customer needs and expectations
d. think customer/corporate goals and objectives
e. think customer/short term bonuses
Answer: c
Page: 703
Level of difficulty: Medium
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Chapter 22: Managing a Holistic Marketing Organization
49. Market leaders tend to miss trends when they are risk-adverse, obsessed about
protecting their existing markets and physical resources, and more interested in
________ than innovation.
a. profits
b. efficiency
c. customer loyalty
d. customer selectivity
e. price selectivity
Answer: b
Page: 705
Level of difficulty: Medium
50. Effective _________ marketing must be matched by a strong sense of social
responsibility.
a. internal
b. social marketing
c. external
d. cause-marketing
e. ethical behavior
Answer: a
Page: 706
Level of difficulty: Easy
51. Cause-related marketing began in earnest in the _________.
a. 1940s
b. 1990s
c. 1980s
d. 1970s
e. 1960s
Answer: c
Page: 709
Level of difficulty: Medium
52. A successful cause marketing program can produce a number of benefits: improving
social welfare; creating differentiated brand positioning; building strong consumer
bonds; enhancing the company’s public image with government officials and other
decision makers; creating a reservoir of goodwill; boosting internal morale and
galvanizing employees; and _________.
a. increased profit margins
b. increased brand recognition
c. driving sales
d. increasing the rate of return on net worth
e. increased stock pricing
Answer: c
Page: 710
Level of difficulty: Medium
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Part 8: Creating Successful Long-Term Growth
53.
Some experts believe that the positive impact on a brand from cause-related
marketing may be lessened by __________.
a. sporadic involvement with numerous causes
b. involvement in “orphan causes”
c. involvement in popular causes
d. involvement in “unpopular causes”
e. involvement in politically unacceptable causes
Answer: a
Page: 710
Level of difficulty: Medium
54. _________ with an existing cause is a means for firms to complement their existing
brand image with specific associations that are “borrowed” or “transferred” from a
cause.
a. Promoting
b. Branding
c. Advertising
d. Co-branding
e. Sales promotions
Answer: d
Page: 711
Level of difficulty: Medium
55. Choosing the right goal or objective for a social marketing program is critical. Some
examples of the range of possible objectives include ________.
a. cognitive campaigns, action campaigns, behavioral campaigns, value campaigns
b. cognitive campaigns, behavioral campaigns, marketing campaigns, advertising
campaigns
c. cognitive campaigns, marketing campaigns, brand campaigns, value campaigns
d. “shock” campaigns, marketing campaigns, brand campaigns, action campaigns
e. behavioral campaigns, action campaigns, “shock” campaigns
Answer: a
Pages: 713–714
Level of difficulty: Hard
56. Strategy addresses the ________ and the _________ of marketing activities.
a. who/how
b. what/when
c. what/how
d. what/why
e. what/who
Answer: d
Page: 715
Level of difficulty: Medium
57. Implementation addresses the ________.
a. potential market, available markets, and target market
b. who, where, when, and how
c. who, when, the target market, and the price
d. the who, the where, the consumer, and the price
e. the who, the when, the how, and the product choices
Answer: b
Page: 715
Level of difficulty: Medium
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Chapter 22: Managing a Holistic Marketing Organization
58. To implement programs successfully, marketers need other skills. One additional
skill needed by marketers includes ________.
a. market skills
b. organizing skills
c. personality skills
d. analytical skills
e. interpersonal skills
Answer: b
Page: 715
Level of difficulty: Medium
59. Going forward, there are a number of imperatives to achieve marketing excellence.
Marketing must be _________ and less departmental.
a. holistic
b. comprehensive
c. integrated
d. developed
e. functional
Answer: a
Page: 721
Level of difficulty: Medium
60. One of the cardinal rules in conducting the marketing audit is ________.
a. it has to be independent
b. do not rely solely on company managers for data and opinions
c. it has to be conducted periodically and comprehensively
d. a “short version” of a marketing audit is satisfactory
e. a marketing audit is not necessary except when the company is in trouble
Answer: b
Page: 721
Level of difficulty: Hard
True/False
61. Reengineering is the appointment of teams to manage customer-value-building
processes and break down walls between departments.
Answer: True
Page: 696
Level of difficulty: Easy
62. Outsourcing is the greater willingness to buy more goods and services from outside
domestic or foreign vendors.
Answer: True
Page: 696
Level of difficulty: Easy
63. Benchmarking is studying “best practice companies” to improve performance.
Answer: True
Page: 696
Level of difficulty: Easy
64. Supplier partnering is increasing partnering with fewer but better value-adding
suppliers.
Answer: True
Page: 696
Level of difficulty: Easy
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Part 8: Creating Successful Long-Term Growth
65. Merging is acquiring or merging with firms in the same or complementary industries
to gain economies of scale and scope.
Answer: True
Page: 696
Level of difficulty: Easy
66. Globalizing is increasing the effort to “think global” and “act local.”
Answer: True
Page: 696
Level of difficulty: Easy
67. Flattening is reducing the number of organizational levels to get closer to the
customer.
Answer: True
Page: 696
Level of difficulty: Easy
68. Focusing is determining the most profitable businesses and customers and focusing
on them.
Answer: True
Page: 696
Level of difficulty: Easy
69. Accelerating is designing the organization and setting up processes to respond more
quickly to changes in the environment.
Answer: True
Page: 696
Level of difficulty: Easy
70. Empowering is encouraging and empowering personnel to produce more ideas and
take more initiative.
Answer: True
Page: 696
Level of difficulty: Easy
71. Internal marketing requires that everyone in the organization buy into the concepts
and goals of marketing and engage in choosing, providing, and communicating
customer value.
Answer: True
Page: 697
Level of difficulty: Medium
72. A company can have an excellent marketing department, however, and yet fail at
marketing because much depends on how other company departments view their
customers.
Answer: True
Page: 697
Level of difficulty: Easy
73. Marketing has sole ownership of customer interaction, which has existed from the
very beginning, when marketers played the role of middlemen between the firm and
the consumer.
Answer: False
Page: 696
Level of difficulty: Medium
74. The main advantage of a functional marketing organization is its administrative
simplicity.
Answer: True
Page: 697
Level of difficulty: Easy
75. To achieve customer-related outcomes, companies appoint process leaders who
manage cross-disciplinary teams.
Answer: True
Page: 697
Level of difficulty: Hard
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Chapter 22: Managing a Holistic Marketing Organization
76. A functional organization often leads to adequate planning for specific products and
markets.
Answer: False
Page: 697
Level of difficulty: Medium
77. Improved information and marketing research technologies have spurred
regionalization of marketing programs.
Answer: True
Page: 699
Level of difficulty: Medium
78. Companies producing a variety of products and brands often establish a product
management organization.
Answer: True
Page: 699
Level of difficulty: Medium
79. The product-management organization replaces the function organization in the firm
managing a variety of brands and products.
Answer: False
Page: 699
Level of difficulty: Medium
80. A product-management organization makes sense if the company’s products are quite
different, or if the sheer number of products is beyond the ability of a functional
organization to handle.
Answer: True
Page: 699
Level of difficulty: Hard
81. Product and brand management is sometimes characterized as a hub-and-spoke
system.
Answer: True
Page: 699
Level of difficulty: Easy
82. When customers fall into different user groups with distinct buying preferences and
practices, a market-management organization is desirable.
Answer: True
Page: 701
Level of difficulty: Easy
83. An alternative with a product-management organization is to switch from product
managers to product teams.
Answer: True
Page: 700
Level of difficulty: Medium
84. An advantage of the product manager is that he/she can concentrate on developing
cost-effective marketing mix for the product.
Answer: True
Page: 699
Level of difficulty: Medium
85. A disadvantage of product and brand managers is that they become experts in their
product area but rarely achieve functional expertise.
Answer: True
Page: 700
Level of difficulty: Medium
86. An advantage of the product and brand management system is that product and brand
managers cause the company to focus on building market share rather than on
building customer relationships.
Answer: False
Page: 700
Level of difficulty: Hard
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Part 8: Creating Successful Long-Term Growth
87. Category management is when a company focuses on product categories to mange its
brands.
Answer: True
Page: 700
Level of difficulty: Medium
88. Many companies are beginning to realize that they are not really market- and
customer-driven—they are product and sales driven.
Answer: True
Page: 704
Level of difficulty: Medium
89. Raising the level of socially responsible marketing calls for a three-pronged attack
that relies on proper legal, ethical, and social responsibility behavior.
Answer: True
Page: 707
Level of difficulty: Medium
90. Effective internal marketing must be matched by a strong sense of social
responsibility.
Answer: True
Page: 706
Level of difficulty: Medium
91. Cause-related marketing is done by a company to support a cause.
Answer: True
Page: 709
Level of difficulty: Easy
92. Social marketing is done by a nonprofit or government organization to further a
cause.
Answer: True
Page: 712
Level of difficulty: Easy
93. The four types of marketing controls are annual-plan, profitability, efficiency, and
strategic.
Answer: False
Page: 717
Level of difficulty: Hard
94. A marketing audit is a comprehensive, systematic, internal, and periodic examination
of a company’s or business units’ marketing environment.
Answer: False
Page: 719
Level of difficulty: Medium
95. The four characteristics of a marketing audit are comprehensive, systematic,
independent, and periodic.
Answer: True
Page: 719
Level of difficulty: Medium
96. Top management has recognized that past marketing has been highly effective and is
pleased with the accountability from marketing.
Answer: False
Page: 721
Level of difficulty: Medium
97. Strategy addresses the what, and why of marketing activities; implementation
addresses the who, where, when, and how.
Answer: True
Page: 715
Level of difficulty: Medium
98. The actual success of the social marketing program must be evaluated in terms of the
program objectives.
Answer: True
Page: 715
Level of difficulty: Medium
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Chapter 22: Managing a Holistic Marketing Organization
99. There are three types of potential product-teams structures: vertical, triangular, and
horizontal.
Answer: True
Page: 700
Level of difficulty: Medium
100. Companies must adopt and disseminate a written code of ethics, build a company
tradition of ethical behavior, and hold its people fully responsible for observing
ethics and legal guidelines if the firm wishes to demonstrate ethical behavior.
Answer: True
Page: 707
Level of difficulty: Medium
Essay
101.
In response to the rapidly changing environment, companies have restructured
their business and marketing practices in some ways. Please list and define these
practices.
Suggested Answer: Reengineering is the appointment of teams to manage
customer-value-building processes and break down walls between departments.
Outsourcing is the greater willingness to buy more goods and services from
outside domestic or foreign vendors. Benchmarking is studying “best practice
companies’ to improve performance. Supplier partnering is increasing partnering
with fewer but better value-adding suppliers. Customer partnering is working
more closely with customers to add value to their operations. Merging is
acquiring or merging with firms in the same or complementary industries to gain
economies of scale and scope. Globalizing is increasing the effort to “think
global” and “act local.” Flattening is reducing the number of organizational
levels to get closer to the customer. Focusing is determining the most profitable
businesses and customers and focusing on them. Accelerating is designing the
organization and setting up processes to respond more quickly to changes in the
environment. Empowering is encouraging and empowering personnel to produce
more ideas and take more initiative.
Page: 696
Level of difficulty: Hard
102.
Characterize the functional organizational marketing department in terms of its
structure, advantages, and disadvantages.
Suggested Answer: The most common form of marketing organization is the
functional organization consists of functional specialists reporting to a marketing
vice president. The main advantage of a functional marketing organization is it
administrative simplicity. This form can also lose its effectiveness as products and
markets increase. A functional organization often leads to inadequate planning for
specific products and markets.
Pages: 697–698
Level of difficulty: Medium
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Part 8: Creating Successful Long-Term Growth
103.
Explain the product or brand management organization and list its advantages and
disadvantages.
Suggested Answer: The product or brand organization does not replace the
functional organization, but serves as another layer of management. A product
management organization makes sense if the company’s products are quite
different or due to sheer number of brands. Product and brand management is
sometimes characterized as a hub-and-spoke system. The product-management
organization has several advantages. The product manager can concentrate on
developing a cost-effective marketing mix for the product; can react more quickly
to new products in the marketplace; the company’s smaller brands have a product
advocate. The disadvantages are the product managers are not given enough
authority; they become experts in their products but rarely achieve functional
expertise; the product management system is costly; brand managers normally
manage a brand only for a short time. The fragmentation of markets makes it
harder to develop a national strategy from corporate headquarters; product and
brand managers cause the company to focus on market share and not in building
customer relationships.
Pages: 699–700
Level of difficulty: Hard
104.
When would a firm choose to use a market-management organization in bringing
its products to market?
Suggested Answer: Many companies sell their products to differing markets.
When customers fall into different user groups with distinct buying preferences
and practices, a market-management organization is desirable.
Page: 701
Level of difficulty: Medium
105.
Many companies are beginning to realize that they are not really market and
customer driven they are product and sales driven. In the attempt to transform
themselves into true market-driven companies, it will require the firm to change.
Describe and explain what changes are going to be necessary.
Suggested Answer: The companies will be required to develop a company wide
passion for its customers, organize around customer segments instead of around
products; and develop a deep understanding of customers through qualitative and
quantitative research.
Additionally, the organization must be creative; the firm must build capability in
strategic innovation and imagination; to “think customer” and this will require a
change in job and department definitions, responsibilities, incentives, and
relationships. The company that is capable of generating more and better new
ideas than its competitors and watching and capitalizing on trends first will
survive.
Page: 704
Level of difficulty: Hard
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Chapter 22: Managing a Holistic Marketing Organization
106.
Describe the three potential options for branding a cause marketing program and
explain.
Suggested Answer: Self-branding: create your own cause program; co-branding:
link to existing cause programs; jointly branding: link to existing cause programs.
Co-branding with an existing cause is a means for firms to complement their
existing brand image with specific associations that are “borrowed” or
“transferred” from a cause. Self-branding can be useful when a firm is trying to
augment existing consumer associations via emotional and imagery appeals. Joint
branding may permit the best of both worlds by establishing a strong connection
with an existing cause but maintaining a distinct identity at the same time.
Page: 711
Level of difficulty: Hard
107.
Describe and summarize the characteristics of a great marketing company.
Suggested Answer: Table 22.3 on page 715 describes the characteristics of a
great marketing company. It selects its target markets in which it enjoys superior
advantage; the company’s employees are customer- and market-minded; good
working relationship between marketing and other departments; incentives to lead
to the right behaviors; the company continuously tracks customer satisfaction and
loyalty; manages a value-delivery system; skilled at building its brand names;
flexible in meeting customer’s varying requirements.
Page: 715
Level of difficulty: Hard
108.
For the proper implementation of marketing programs, Thomas Bonoma
identified four sets of skills needed. List these skills and briefly explain each one.
Suggested Answer: (1) Diagnostic skills—when marketing programs do not
fulfill expectations, was it the result of poor strategy or poor implementation? If
implementation, what went wrong? (2) Identification of company level—
implementation problems can occur in three levels: the marketing function, the
marketing program; and the marketing policy level. (3) Implementation skills—to
implement programs successfully, marketers need other skills: allocating skills for
budgeting resources, organizing skills to develop an effective organization, and
interaction skills to motivate others to get things done. (4) Evaluation skills—
marketers also need monitoring skills to track and evaluate marketing actions.
Page: 715
Level of difficulty: Hard
109.
Outline and explain the four types of marketing control needed by companies,
who is primarily responsible for these controls, and the overall purpose of the
controls.
Suggested Answer: The four types of marketing control are: (1) annual plan
control whose purpose is to examine whether the planned results are being
achieved and the prime responsibility is top and middle management; (2)
profitability control—marketing controller is the primary person and its purpose is
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to examine where the company is making and losing money; (3) efficiency
control which is line and staff management’s responsibility and marketing
controller and its purpose is to evaluate and improve the spending efficiency and
impact of marketing expenditures; and (4) strategic control, top management and
marketing auditor’s responsibility and the purpose is to examine whether the
company is pursing its best opportunities with respect to markets, products, and
channels.
Table 22.4 outlines these controls.
Page: 717
Level of difficulty: Hard
110.
Define a marketing audit.
Suggested Answer: A marketing audit is a comprehensive, systematic,
independent, and periodic examination of a company’s or business unit’s
marketing environment, objectives, strategies, and activities with a view to
determining problem areas and opportunities and recommending a plan of action
to improve the companies marketing performance.
Page: 719
Level of difficulty: Medium
APPLICATION QUESTIONS
Multiple Choice
111.
A company can have an excellent marketing department and yet fail at marketing.
Much depends on how other company departments view customers. Only when
all employees realize that their jobs are to________, ________, and ________
customers does the company become an effective marketer.
a. serve/listen/deliver
b. create/serve/satisfy
c. create/listen/deliver
d. listen/create/satisfy
e. deflect/monitor/listen
Answer: b
Page: 697
Level of difficulty: Medium
112.
Assume that your company’s products deal with individual customers rather than
with mass market or even market segments. Which marketing organization would
best serve your firm?
a. A customer-management organization.
b. A market-centered organization.
c. A matrix organization.
d. A functional organization.
e. A brand-management organization.
Answer: a
Page: 702
Level of difficulty: Medium
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Chapter 22: Managing a Holistic Marketing Organization
113.
Canon sells its fax machines to consumers, business, and government markets. As
a result it finds that a ________ is desirable because the market manager
supervises several market managers and market specialists.
a. triangular product team
b. market-management organization
c. matrix organization
d. brand-asset management team
e. circular management team
Answer: b
Page: 701
Level of difficulty: Medium
114.
Johnson & Johnson is the top-rated company for social responsibility. Social
responsibility marketing relies on the firm’s ________.
a. legal, ethical, and social responsibility behavior
b. legal, ethical, and fiduciary responsibility
c. ethical, good works, and giving part of profits to charity
d. legal, ethical, and charity works
e. ethical, legal, and demonstrative good works
Answer: a
Page: 707
Level of difficulty: Medium
115.
As the CMO of your firm, you interact with the other business disciplines on a
daily basis. One of your goals this year is to get the other departments to “think
customer” and work together to satisfy customer needs. Your two tasks then are to
_________.
a. coordinate the company’s internal marketing activities and coordinate
marketing with other company functions that serve the customer
b. convince the other departments that your “customer knowledge” best serves
their interests and that they should follow the lead of the marketing
department
c. increase internal marketing efforts and decrease external marketing efforts
until the other departments come around to your view point
d. ignore the other departments and concentrate on internal and external
marketing to the consumer; convince the CEO that your positions are in the
best interest of the firm
e. none of the above
Answer: a
Page: 703
Level of difficulty: Hard
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116.
P&G cites a number of advantages to a category-management structure. These are
increased internal competition among brand managers for example. This new
scheme is designed to _________.
a. ensure that all categories would be able to receive adequate resources
b. ensure that all brand mangers compete for limited dollars
c. ensure that all brand managers compete for the positions in the largest
categories
d. ensure that all brand managers compete amongst each other for new product
roll-outs and launches
e. ensure that all brand managers compete for upper-level management positions
by obtaining category leadership for their brands.
Answer: a
Page: 701
Level of difficulty: Medium
117.
You are the brand/product manager for a line of cake mixes. One of your tasks is
to prepare a long-range strategy for the product. Other tasks assigned to you
would include ________.
a. developing an annual budget
b. developing an sales forecast
c. work with agencies to develop an advertising campaign
d. initiate product improvements to meet changing needs
e. all of the above
Answer: e
Page: 699
Level of difficulty: Medium
118.
Dow Corning has been successful in its product teams. Dow’s product team
structure is ________ and consists of between five to eight people.
a. horizontal
b. vertical
c. triangular
d. hub-and-spoke
e. none of the above
Answer: a
Page: 701
Level of difficulty: Hard
119.
Your company believes that each major brand should be run by a ________
consisting of key representatives from the major functions affecting the brand’s
performance.
a. brand-asset management team
b. product teams
c. market-management organization team
d. market-centered organization team
e. customer-management organization team
Answer: a
Page: 700
Level of difficulty: Medium
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Chapter 22: Managing a Holistic Marketing Organization
120.
The main drawback to the ________ marketing organization is that it
in flat, lean team organizations.
a. vertical organization
b. horizontal organization
c. matrix organization
d. triangular organization
e. BAMTs
Answer: c
Page: 702
Level of difficulty: Medium
thrives
121.
You are the CMO for your firm and are having difficulty with your counterparts
in the other disciplines. According to the text, which of the following is the best
solution for you to take to foster cooperation among the senior staff?
a. Use to power of your office to “coerce “ your counterparts.
b. Get the CEO to support your position and then have the CEO convince the
others.
c. Propose a function-to-function meeting with the other departments to gain
greater understanding and collaboration.
d. Propose a visit to the other departments to gain an understanding of their
problems.
e. Communicate via e-mail and corporate newsletter your marketing position.
Answer: c
Page: 704
Level of difficulty: Medium
122.
If a CEO’s task is to create a market- and customer-focused company, some of the
tasks that he/she must avail themselves of include ________.
a. convince senior management of the need to become customer-focused
b. appoint a senior marketing officer and marketing task force
c. empower the employees
d. shift from a department focus to a process-outcome focus
e. all of the above
Answer: e
Page: 705
Level of difficulty: Medium
An example of a cause related marketing program defined as “that have at least
one non-economic objective related to social welfare and use the resources of the
company and/or of its partners” would be ________.
a. Nike’s work with Indian tribes by giving sneakers to those who test
themselves for type 2 diabetes
b. a cash donation to the American Red Cross
c. use of the corporate offices to help under-privileged children learn about
business operations
d. conducting a blood drive on the corporate campus
e. asking employees to donate time to their favorite charity
Answer: a
Page: 709
Level of difficulty: Medium
123.
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124.
Designing and marketing a cause-related program must be done carefully. For
example, Bristol-Meyers Squibb supports the Tour de Cure, which funds diabetes
research and prevention. On the official Web page of the tour, the BMS logo
includes a statement that BMS is “A leader in Type 2 Diabetes Care.” Why is this
statement potentially confusing to consumers?
a. It may lead some consumers to view BMS’s support for the Tour De Cure as
opportunistic.
b. It may lead some consumers to support BMS’s products for profit.
c. It is confusing because it does not say how much support BMS gives to the
Tour De Cure.
d. It does not allow the other sponsors of the Tour De Cure to have a role in
consumer advertising.
e. It does not allow consumer advocate groups to comment on the support BMS
is giving to the Tour De Cure.
Answer: a
Page: 710
Level of difficulty: Hard
125.
What is the danger from a firm limiting their cause-related marketing to one
particular cause?
a. It may limit the consumers or other stakeholders who could transfer positive
feelings from the cause to the firm.
b. The cause may go out of business as a cure is found or the problem(s) is(are)
eliminated.
c. The cause may be subject to government regulations or investigations thereby
embarrassing the firm.
d. The cause may not reach enough consumers for the firm to realize a profit
from the support.
e. The firm must cover “many” bases because they sell to “many consumers.”
Answer: a
Page: 711
Level of difficulty: Hard
The marketing excellence review of best practices includes as “excellent” firms
that are or have changed to become _________.
a. market-driven
b. niche orientated and customer orientated
c. value-driven
d. core-competency orientated
e. all of the above
Answer: e
Page: 724
Level of difficulty: Easy
126.
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Chapter 22: Managing a Holistic Marketing Organization
127.
Going forward there are a number of imperatives to achieving marketing
excellence. Marketing must be “holistic” and less departmental. Marketers must
achieve larger influence in the company if they are to be the main architects of
business strategy. In addition, marketers must ________.
a. create new ideas if the company is to prosper in a hypercompetitive market
b. marketers must strive for customer insight and treat customers differently but
appropriately
c. marketers must build strong brands through performance, more than through
promotion
d. marketers must go electronic and win through building superior information
and communications systems
e. all of the above
Answer: e
Page: 721
Level of difficulty: Hard
128.
Your firm has had three quarters of declining sales. You have traced the problems
to distribution efficiency shortcomings. Which of the following should you track
to ensure that the firm’s distribution efficiency is maximized?
a. Logistics as a percentage of sales.
b. Percentage of sales sold on deal.
c. Before and after measures of the product’s performance.
d. Number of lost customers per quarter.
e. Costs per inquiry.
Answer: a
Page: 718
Level of difficulty: Medium
129.
Sales managers need to monitor the following key indicators of efficiency in their
territories that include ________.
a. average number of calls per salesperson per day
b. average sales call time per contact
c. average revenue per sales call
d. average cost per sales call
e. all of the above
Answer: e
Page: 717
Level of difficulty: Easy
A number of “deadly sins” signal that the marketing program is in trouble. With
the following signs, identify the “sin.”
“Poor identification of market segments, poor prioritization of market segments,
no market segment managers, employees who think that it is the job of marketing
and sales to serve customers, no training program to create a customer culture, no
incentives to treat the customer especially well.”
a. The company is not sufficiently market-focused and customer-driven.
b. The company does not fully understand its target markets.
c. The company’s marketing planning process is deficient.
d. The company’s brand building and communications are weak.
e. The company needs to better define and monitor is competitors.
Answer: a
Page: 725
Level of difficulty: Hard
130.
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Short Answer
131.
Define empowering.
Suggested Answer: Empowering encourages and give more responsibility and
“power” to personnel to produce more ideas and take more initiative.
Page: 696
Level of difficulty: Easy
132. The text lists the functional marketing organization. Give an example and a flow
chart for a typical functional marketing organization.
Suggested Answer: The most common form of marketing organization consists
of functional specialists reporting to a marketing vice-president, who coordinates
their activities. Figure 22.1 shows a typical organizational chart.
Page: 697
Level of difficulty: Medium
133.
Discuss BAMT.
Suggested Answer: BAMT stands for brand-asset management team and it
consists of key representatives from major functions affecting the brand’s
performance.
Page: 700
Level of difficulty: Medium
134.
When would a firm prefer a market-management organization?
Suggested Answer: When customers fall into different user groups with distinct
buying preferences and practices, a market-management organization is desirable.
Page: 701
Level of difficulty: Medium
135.
Define a category management product-management organization.
Suggested Answer: A category management organization is where a company
focuses on product categories to manage its brands.
Page: 700
Level of difficulty: Easy
136.
What are the three types of product teams identified in the text?
Suggested Answer: The three types of product teams are vertical, triangular, and
horizontal.
Page: 700
Level of difficulty: Easy
137.
Several forces are driving companies to practice corporate social responsibility.
List and describe these forces.
Suggested Answer: These are rising customer expectations, changing employee
expectations, government legislation and pressures, investor interest in social
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Chapter 22: Managing a Holistic Marketing Organization
criteria, and changing business procurement practices all contribute to rising
corporate responsibility.
Page: 706
Level of difficulty: Hard
138.
Define cause-related marketing.
Suggested Answer: Cause-related marketing is marketing that links the firm’s
contributions to a designated cause to customer’s engaging directly or indirectly
in revenue-producing transactions with the firm.
Page: 709
Level of difficulty: Medium
139.
Define what is meant by “self-branding” a cause-related marketing program.
Suggested Answer: This is where the firm takes ownership of a cause and
develops an entirely new organization to deliver benefits associated with the
cause.
Page: 711
Level of difficulty: Medium
140.
Define what is meant by “co-branding” a cause-related marketing program.
Suggested Answer: The firm partners with an existing cause and the
identification of the brand affiliation with the cause is only in the form of its
designation as a sponsor or supporter.
Page: 711
Level of difficulty: Medium
141.
Define what is meant by “jointly branded” a cause-related marketing program.
Suggested Answer: In this hybrid approach, firms partner with an existing cause
but explicitly brand the program that links to the cause.
Page: 711
Level of difficulty: Medium
142.
Compare and contrast the differences between cause-related marketing and social
marketing.
Suggested Answer: Cause-related marketing is marketing that links the firm’s
contributions to a designated cause to customer’s engaging directly or indirectly
in revenue producing transactions. Social marketing is done by a nonprofit or
government organization to further a cause.
Page: 712
Level of difficulty: Medium
143.
Delineate the four types of marketing control needed by companies.
Suggested Answer: These four types are annual-plan control, profitability
control, efficiency control, and strategic control.
Page: 717
Level of difficulty: Medium
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144.
Define the four components of a marketing audit.
Suggested Answer: A marketing audit should be: (1)comprehensive—the
marketing audit covers all the major marketing activities of a business;
(2) systematic—the marketing audit is an orderly examination of the
organization’s macro and micromarketing environments, marketing objectives,
and strategies, marketing systems, and specific activities; (3) independent—a
marketing audit can be conducted in six ways: self-audit; audit from across, audit
from above, company auditing office, company task force audit, and outsider
audit; and (4) periodic—marketing audits are initiated only after sales have turn
down, sales force morale has fallen, and other problems have occurred.
Page: 719
Level of difficulty: Hard
145.
What are some of the campaigns that social marketing can undertake to get their
messages across?
Suggested Answer: Cognitive campaigns, action campaigns, behavioral
campaigns, and value campaigns.
Pages: 713–714
146.
Level of difficulty: Medium
A successful cause-marketing program can product a number of benefits of the
firm. List some of these benefits.
Suggested Answer: Some of the benefits are: improving social welfare; creating
differentiated brand positioning; building strong consumer bonds; enhancing the
company’s public image with government officials; creating a reservoir of
goodwill; boosting internal morale and galvanizing employees; and driving sales.
Page: 710
Level of difficulty: Medium
147.
What are some of the specific means by which cause-marketing programs can
build brand equity with consumers?
Suggested Answer: Building brand awareness; enhancing brand image;
establishing brand credibility; evoking brand feelings; creating a sense of brand
community; and eliciting brand engagement.
Page: 710
Level of difficulty: Medium
148. What are the two tasks specific to the CMO (chief marketing officer) with regards
to relations with the other functional business departments?
Suggested Answer: To coordinate the company’s internal marketing activities
and to coordinate marketing with finance, operations, and other company
functions to serve the customer
Page: 703
Level of difficulty: Medium
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Chapter 22: Managing a Holistic Marketing Organization
149.
One of the most accomplished cause marketing consulting firms is Boston’s
Cone, Inc. To help execute and communicate corporate social responsibility more
effectively, Cone offers the following some considerations. List one of these
considerations and explain.
Suggested Answer: The considerations include: define CSR for your company,
build a diverse team; analyze your current CSR-related activities and revamp
them if necessary; forge and strengthen NGO relationships; develop a cause
branding initiative; walk your talk; don’t be silent; beware.
Page: 713
Level of difficulty: Hard
150.
Define marketing implementation.
Suggested Answer: Marketing implementation is the process that turns
marketing plans into action assignments and ensures that such assignments are
executed in a manner that accomplishes the plan’s stated objectives.
Page: 715
Level of difficulty: Medium
649