Marketing Management - 12th Edition - Kotler/Keller



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

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

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

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 high-volume 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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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 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

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

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

a. developing an sales forecast

b. work with agencies to develop an advertising campaign

c. initiate product improvements to meet changing needs

d. 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

120. The main drawback to the ________ marketing organization is that it thrives 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

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

123. 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

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

126. 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

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

130. 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

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 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

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 Level of difficulty: Medium

146. 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

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

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