Deck 23: Managing a Holistic Marketing Organization for the Long Run

Question 1

Which of the following observations is true?

A) In today's business environment, marketers are mainly middlemen.
B) Marketing has the sole ownership of customer interactions.
C) Only when all employees realize their job is to create, serve, and satisfy customers does the company become an effective marketer.
D) Marketers must clearly differentiate all customer-facing processes, such that every customer receives a personalized marketing message.
E) Marketers must avoid collaborating with other organizational departments, as it blurs functional responsibilities.

Answer 1

C

Question 2

List and define some of the important shifts that have taken place in business and marketing practices.

Answer 2

Student answers will vary. Some possible answers include:
• Reengineering is the appointment of teams to manage customer-value-building processes and break down walls between departments.
• Outsourcing involves buying more goods and services from outside domestic or foreign vendors.
• Benchmarking is the study of "best practice companies" to improve performance.
• Supplier partnering focuses on partnering with fewer but better value-adding suppliers.
• Customer partnering entails working more closely with customers to add value to their operations.
• Merging involves acquiring or merging with firms in the same or complementary industries to gain economies of scale and scope.
• Globalizing focuses on increasing the effort to "think global" and "act local."
• Flattening refers to reducing the number of organizational levels to get closer to the customer.
• Focusing involves determining the most profitable businesses and customers and focusing on them.
• Accelerating involves designing the organization and setting up processes to respond more quickly to changes in the environment.
• Empowering means encouraging and empowering personnel to produce more ideas and take more initiative.
• Justifying means becoming more accountable by measuring, analyzing, and documenting the effects of marketing actions.
• Broadening involves factoring the interests of customers, employees, shareholders, and other stakeholders into the activities of the enterprise.
• Monitoring involves tracking what is said online and elsewhere and studying customers, competitors, and others to improve business practices.

Question 3

A product-management organization ________.

A) often proves to be cost-effective
B) simplifies the process of developing a national strategy
C) focuses on building market share rather than customer relationships
D) reduces an organization's staffing requirements
E) allows product managers to achieve functional expertise

Answer 3

C

Question 4

Which of the following is the main advantage of a functional marketing organization?

A) easy coordination
B) lower staff requirements
C) administrative simplicity
D) reduced competition between functional groups
E) smooth working relationships

Question 5

________ involves buying more goods and services from external domestic or foreign vendors.

A) Merging
B) Broadening
C) Outsourcing
D) Globalizing
E) Accelerating

Question 6

As a business practice, broadening involves ________.

A) acquiring or merging with firms in the same or complementary industries to gain economies of scale and scope
B) factoring the interests of customers, employees, shareholders, and other stakeholders into the activities of the enterprise
C) buying more goods and services from outside domestic or foreign vendors
D) appointing teams to manage customer-value-building processes and break down walls between departments
E) becoming more accountable by measuring, analyzing, and documenting the effects of marketing actions

Question 7

________, or reducing the number of organizational levels to get closer to the customer, is one of the important shifts in marketing and business practices.

A) Merging
B) Flattening
C) Globalizing
D) Focusing
E) Justifying

Question 8

As a marketing practice, monitoring involves ________.

A) designing the organization and setting up processes to respond quickly to changes in the environment
B) becoming more accountable by measuring, analyzing, and documenting the effects of marketing actions
C) tracking what is said online and elsewhere and studying customers, competitors, and others to improve business practices
D) determining the most profitable businesses and customers and expending greater organizational resources to capitalize on them
E) factoring the interests of customers, employees, shareholders, and other stakeholders into the activities of the enterprise

Question 9

Merging involves ________.

A) reducing the number of organizational levels to get closer to the customer
B) removing barriers that separate organizational departments
C) partnering with fewer but better value-adding suppliers
D) working more closely with customers to add value to their operations
E) acquiring firms in the same or complementary industries

Question 10

A product- or brand-management organization is characterized as a(n) ________ system.

A) hub-and-spoke
B) waterfall
C) internal marketing
D) top-down
E) lateral

Question 11

A product-management organization makes sense if ________.

A) the company's products are quite varied
B) there are very few products in the company's portfolio
C) the company is pursuing a low cost strategy
D) the company's products satisfy similar customer needs
E) the company is vertically integrated

Question 12

A disadvantage of the product-management organization is that ________.

A) it marginalizes a company's smaller brands
B) it reduces organizational responsiveness to new products in the marketplace
C) product managers generally exercise authority outside their areas of responsibility
D) it prevents product managers from gaining sufficient expertise in their product areas
E) it fails to build long-term strengths as brand managers normally manage brands for only short periods

Question 13

________ requires that everyone in the organization accept the concepts and goals of marketing and engage in choosing, providing, and communicating customer value.

A) Internal marketing
B) Corporate communications
C) Integrated marketing communications
D) Supply chain management
E) Employee engagement

Question 14

________ involves studying "best practice companies" to improve performance.

A) Empowering
B) Globalizing
C) Flattening
D) Benchmarking
E) Focusing

Question 15

The role of marketing in the organization is changing. Traditionally marketers have played the roles of ________, charged with understanding customers' needs and transmitting their voice to various functional areas.

A) middlemen
B) opinion leaders
C) clients
D) influencers
E) end consumers

Question 16

Which of the following business practices involves reducing the number of organizational levels to get closer to the customer?

A) flattening
B) globalizing
C) decentralization
D) merging
E) justifying

Question 17

A company selling in a national market often organizes its sales force along ________.

A) functional groups
B) geographic lines
C) product teams
D) brand groups
E) product categories

Question 18

The most common form of marketing organization consists of ________ reporting to a marketing vice president who coordinates their activities.

A) zonal managers
B) functional specialists
C) product managers
D) area market specialists
E) brand managers

Question 19

Appointing teams to manage customer-value-building processes and break down walls between departments is part of which of the following shifts in business practices?

A) reengineering
B) outsourcing
C) benchmarking
D) supplier partnering
E) customer partnering

Question 20

Which of the following business practices focuses specifically on designing the organization and setting up processes to respond quickly to changes in the environment?

A) benchmarking
B) outsourcing
C) focusing
D) accelerating
E) globalizing

Question 21

A customer-management organization deals with individual customers rather than the mass market or market segments.

Question 22

There are three types of 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

Question 23

One of the options in a product-management organization is to eliminate product manager positions for minor products and assign two or more products to each remaining manager. Under what conditions is this alternative feasible?

A) when the product mix is highly diverse
B) when there are very few products in the company's portfolio
C) when two or more products serve a similar set of needs
D) when customers fall into different user groups
E) when the company produces many products for many markets

Question 24

An advantage of the product- and brand-management system is that product and brand managers focus the company on building market share rather than customer relationships.

Question 25

Which of the following is true of building a creative marketing organization?

A) It is enough if firms are customer-oriented.
B) Companies must watch trends and be ready to capitalize on them.
C) Firms should focus more on efficiency rather than innovation.
D) Companies should attempt to minimize risks as much as possible.
E) Firms should focus on protecting their existing markets and physical resources.

Question 26

When customers fall into different user groups with distinct buying preferences and practices, a ________ organization is desirable.

A) market-management
B) product-management
C) brand-management
D) geographic
E) functional

Question 27

Which of the following is true about a brand-asset management team (BAMT)?

A) A BAMT is part of the triangular and vertical product team structures.
B) BAMTs often report directly to the organization's chief branding officer.
C) BAMTs are a traditional, tried and tested means of managing brands.
D) Companies with a product-management organization often have only one BAMT.
E) The BAMT consists of key representatives from functions affecting the brand's performance.

Question 28

Market managers are staff people, with duties like those of a product manager.

Question 29

When customers fall into different user groups with distinct buying preferences and practices, a product team structure is desirable.

Question 30

Which of the following is true regarding a matrix-management organization?

A) It proves to be cost-effective in the long run.
B) It often creates conflicts regarding authority and responsibility for marketing activities.
C) It hampers the flow of information among marketing personnel.
D) It fosters a strong sense of accountability for performance among product and market managers.
E) It is best suited to companies that offer a small range of products to niche markets.

Question 31

Many companies now focus on departments as opposed to processes, because processes can be a barrier to smooth performance.

Question 32

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.

Question 33

Marketing has sole ownership of customer interaction.

Question 34

Companies that produce many products for many markets may adopt a ________ marketing organization.

A) flat
B) brand
C) product
D) matrix
E) top-down

Question 35

There are three types of product-team structures: vertical, triangular, and horizontal.

Question 36

Because the retail trade tends to think of profitability in terms of product categories, some companies are switching to a category management organizational model.

Question 37

Transforming into a true market-driven company requires organizing around ________.

A) sales
B) customer segments
C) products
D) functions
E) brands

Question 38

A functional organization allows for adequate planning as the number of products and markets of a firm increases.

Question 39

The product-management organization replaces the functional organization in the firm.

Question 40

Companies producing a variety of products and brands often establish a product- (or brand-) management organization.

Question 41

In order to promote ethical cultures, companies should do all of the following EXCEPT ________.

A) disseminate a written code of ethics
B) build a company tradition of ethical behavior
C) hold people responsible for observing ethical and legal guidelines
D) ensure every employee knows and observes relevant laws
E) encourage business practices that are not clearly ethical or unethical

Question 42

Cadbury's "Sports for Schools" promotion offered sports and fitness equipment for schools in exchange for vouchers. The problem was that the public and media saw a perverse incentive for children to eat more chocolate, a product associated with obesity. Which of the following best summarizes Cadbury's problem?

A) Customers felt that the cause was not in sync with the company's brand image.
B) Consumers did not value the cause Cadbury was promoting.
C) Customers questioned the link between the product and the cause and saw the firm as self-serving and exploitive.
D) Consumers resented being sold an inferior product on the back of a cause-marketing program.
E) Consumers felt that the campaign did not make a sufficient attempt to change the target audience's behavior.

Question 43

Which of the following is true regarding cause-related marketing?

A) The positive impact of cause-related marketing can be increased through sporadic involvement with numerous causes.
B) Many companies focus on multiple causes to simplify execution and maximize impact.
C) Limiting support to a single cause increases the pool of stakeholders who can transfer positive feelings from the cause to the firm.
D) Most firms choose causes that fit their corporate or brand image and matter to their employees and shareholders.
E) In order to avoid public backlash, firms are advised to adopt a hard-sell approach to their cause efforts.

Question 44

Transforming into a true market-driven company involves organizing around products.

Question 45

________ marketing by nonprofit or government organizations furthers a cause.

A) Corporate societal
B) Brand
C) Causal
D) Social
E) Place

Question 46

Cause-related marketing is part of ________.

A) sustainability
B) corporate societal marketing
C) social media
D) global marketing
E) community marketing

Question 47

What is a market-management organization?

Question 48

What is a brand-asset management team (BAMT)?

Question 49

What is a customer-management organization? When should a customer-management organization be adopted?

Question 50

________ gives products the appearance of being more environmentally friendly without living up to that promise.

A) Ambush marketing
B) Greenwashing
C) Astroturfing
D) Viral marketing
E) Green politics

Question 51

A social marketing program which aims to alter ideas about abortion is an example of a(n) ________ campaign.

A) cognitive
B) active
C) behavioral
D) value
E) normative

Question 52

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, many firms must change. Describe and explain what changes are necessary.

Question 53

Social marketing programs designed to discourage cigarette smoking or excessive consumption of alcohol are examples of ________ campaigns.

A) cognitive
B) active
C) behavioral
D) value
E) normative

Question 54

________ refers to the ability to meet humanity's needs without harming future generations.

A) Greenwashing
B) Sustainability
C) Ecological footprinting
D) Scalability
E) Legal practice

Question 55

Cause marketing has a particularly interested audience in civic-minded ________.

A) Millennial consumers
B) baby boomers
C) Gen Xers
D) Gen Yers
E) shadow boomers

Question 56

Rising customer expectations, evolving employee goals and ambitions, and tighter government legislation and pressure are driving companies to ________.

A) operate leaner manufacturing facilities
B) manage shorter supply chains
C) operate flatter organizations
D) practice a higher level of corporate social responsibility
E) vertically integrate

Question 57

Explain the product- or brand-management organization and list its advantages and disadvantages.

Question 58

Define a category-management organization.

Question 59

Describe the functional organization of a marketing department in terms of its structure, advantages, and disadvantages.

Question 60

One opportunity for designing a cause program so the sponsoring company is not overlooked among other corporate sponsors is to support a(n) ________, or a disease that afflicts fewer than 200,000 people.

A) orphan cause
B) overlooked calamity
C) behavioral campaign
D) social marketing plan
E) value campaign

Question 61

Although salespeople are legally prohibited from saying things about their products that are not true, they may legally suggest things about competitors' products that are not true.

Question 62

Which of the following represents the objective of a social marketing campaign aimed at changing people's behavior?

A) Motivate people with obesity to eat healthy and exercise more often.
B) Change public attitudes and stereotypes associated with people who are obese.
C) Explain the different causes of obesity and how it can be prevented.
D) Encourage people to participate in a walkathon aimed at promoting awareness about obesity.
E) Attract people with obesity to sign up for a one-time free medical check up.

Question 63

Which of the following represents the objective of a social marketing campaign aimed at changing people's actions?

A) Motivate people with obesity to eat healthy and exercise more often.
B) Change public attitudes and stereotypes associated with people who are obese.
C) Explain the different causes of obesity and how it can be prevented.
D) Encourage people to participate in a walkathon aimed at promoting awareness about obesity.
E) Help people with obesity to implement lifestyle changes.

Question 64

Firms that are viewed as being socially responsible have the added benefit of being able to attract employees.

Question 65

Social marketing programs designed to motivate people to donate blood or attract people for mass immunization are examples of cognitive campaigns.

Question 66

Some business practices, such as deceptive advertising, exclusive dealing, and predatory competition, sharply divide critics regarding whether they are clearly unethical or illegal.

Question 67

The first step in the social marketing planning process is ________.

A) determining the focus of the program
B) selecting the target audience
C) setting objectives and goals
D) designing the market offering
E) finding a source of funding

Question 68

Many companies focus on multiple cause-related marketing programs to simplify execution and maximize impact.

Question 69

Sustainability ratings exist, but there is no consistent agreement about what metrics are appropriate.

Question 70

Which of the following represents the objective of a social marketing campaign aimed at changing people's values?

A) Motivate people with obesity to eat healthy and exercise more often.
B) Change public attitudes and stereotypes associated with people who are obese.
C) Explain the different causes of obesity and how it can be prevented.
D) Encourage people to participate in a walkathon aimed at promoting awareness about obesity.
E) Help people with obesity to implement lifestyle changes.

Question 71

Which of the following should be done to increase the likelihood that social marketing programs will be successful?

A) Choose target markets that are the least ready to respond.
B) Promote multiple, doable behaviors in clear, simple terms.
C) Make it easy to adopt the behavior.
D) Adopt a soft sell approach, as opposed to attention grabbing messages.
E) Explain the benefits in an exaggerated manner.

Question 72

Which of the following represents the objective of a cognitive social marketing campaign?

A) Motivate people with obesity to eat healthy and exercise more often.
B) Change public attitudes and stereotypes associated with people who are obese.
C) Explain the different causes of obesity and how it can be prevented.
D) Encourage people to participate in a walkathon aimed at promoting awareness about obesity.
E) Help people with obesity to implement lifestyle changes.

Question 73

Cash donations are the most productive contribution that businesses can make to a nonprofit or community group.

Question 74

Social marketing is a new trend in marketing.

Question 75

Cause-related marketing efforts are unlikely to backfire as customers generally view the company's motives as genuine.

Question 76

Companies must adopt and disseminate a written code of ethics, build a company tradition of ethical behavior, and hold their people fully responsible for observing ethics and legal guidelines if they wish to demonstrate ethical behavior.

Question 77

Because of insincere firms jumping on the "green" bandwagon, consumers bring a healthy skepticism to environmental claims, but they are also unwilling to sacrifice product performance and quality.

Question 78

Corporate philanthropy as a whole is on the rise.

Question 79

Social marketing programs take little time to develop and are generally easy to implement.

Question 80

Often the more committed a company is to sustainability and environmental protection, the more dilemmas that can arise.