Deck 22: Managing a Holistic Marketing Organization for the Long Run

Question 1

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

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

Answer 1

A

Question 2

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 market place
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

Answer 2

E

Question 3

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

Answer 3

E

Question 4

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 5

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 6

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

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

Question 7

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 8

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 9

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.

Question 10

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 11

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 12

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 13

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 14

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 15

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 16

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 17

________ 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 18

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

Question 19

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 20

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

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

Question 21

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

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

Question 22

A __________ program could backfire if cynical consumers question the link between the product and the cause, and see the firm as being self-serving and exploitive.

A) cause-related marketing
B) holistic marketing
C) social media
D) global marketing
E) community marketing

Question 23

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

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

Question 24

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 25

Cause-related marketing is part of ________.

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

Question 26

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 27

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 28

________ 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 29

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

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

Question 30

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 31

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 32

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 33

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 34

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) geographic organization
E) functional organization

Question 35

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 implement to lifestyle changes.

Question 36

________ 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 37

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 38

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 39

________ by nonprofit or government organizations furthers a cause.

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

Question 40

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 41

Top and middle management are primarily responsible for ________.

A) annual-plan control
B) efficiency control
C) profitability control
D) technological control
E) innovation control

Question 42

Which of the following is an example of a distribution metric used for measuring the performance of marketing plans?

A) effective reach
B) customer acquisition costs
C) market share
D) stocks cover in days
E) response rate

Question 43

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 44

To succeed in the future, marketing must ________.

A) become more holistic
B) build brands through promotion rather than performance
C) be more departmental
D) focus on free-spending
E) rely more on mass marketing

Question 45

Who is primarily responsible for efficiency control?

A) BAMT
B) marketing auditor
C) middle management
D) line and staff management
E) top management

Question 46

Which of the following is true regarding annual-plan control?

A) This control process begins by identifying the causes of serious performance deviations.
B) The tools used for this purpose are sales analysis, market share analysis, marketing expense-to-sales analysis, and financial analysis.
C) The marketing controller has the primary responsibility for annual-plan control.
D) Its purpose is to evaluate and improve the spending efficiency and impact of marketing expenditures.
E) It measures profitability by product, territory, customer, segment, trade channel, and order size.

Question 47

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 48

Which of the following is a best practice in business and marketing?

A) end-product orientation
B) reacting to competitors
C) vertical integration
D) stockholder driven
E) teamwork

Question 49

The ________ is primarily responsible for strategic control.

A) line and staff management
B) marketing auditor
C) marketing controller
D) middle management
E) BAMT

Question 50

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 51

________ 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 analysis
D) Brand management
E) Product management

Question 52

Which of the following is likely to be an important trend in marketing in the future?

A) marketing intuition
B) free-spending marketing
C) manual marketing
D) marketing science
E) mass marketing

Question 53

The purpose of strategic control is to ________.

A) examine whether the planned results are being achieved
B) examine where the company is making and losing money
C) evaluate and improve the spending efficiency and impact of marketing expenditures
D) examine whether the company is pursuing its best opportunities with respect to markets, products, and channels
E) understand the efficiency of the sales force, advertising, sales promotion, and distribution

Question 54

A ________ 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) test market
C) marketing audit
D) market-based scorecard analysis
E) marketing metric

Question 55

Your firm has experienced a decline in sales over the last three quarters. You have traced the problems to distribution inefficiencies. Which of the following should you track to ensure that the firm's distribution efficiency is maximized?

A) average sales per point of sale
B) sales from new products
C) trial rate
D) repurchase rate
E) new customer gains

Question 56

________ software provides a set of Web-based applications that automate and integrate project management, campaign management, budget management, asset management, brand management, customer relationship management, and knowledge management.

A) Marketing dashboard
B) Enterprise resource planning
C) Supply chain management
D) Marketing resource management
E) Enterprise campaign management

Question 57

Which of the following is true regarding a marketing audit?

A) It focuses primarily on a firm's macromarketing environment.
B) It identifies the most-needed improvements and incorporates them into a corrective-action plan with short- and long-run steps.
C) It is less effective at locating the real source of a problem than a functional audit.
D) It analyzes only those marketing activities that have failed to produce adequate results.
E) It relies solely on company managers for data and opinions.

Question 58

The purpose of profitability control is to ________.

A) examine whether the planned results are being achieved
B) examine where the company is making and losing money
C) evaluate and improve the spending efficiency and impact of marketing expenditures
D) examine whether the company is pursuing its best opportunities with respect to markets, products, and channels
E) understand the efficiency of the sales force, advertising, sales promotion, and distribution

Question 59

________ is the process by which firms assess the effects of their marketing activities and programs and make necessary changes and adjustments.

A) Marketing control
B) Marketing implementation
C) Test marketing
D) Market watch
E) Market analysis

Question 60

Marketing effectiveness rating instruments and marketing audits are approaches to ________.

A) annual-plan control
B) profitability control
C) efficiency control
D) strategic control
E) statistical control

Question 61

______________ determines if a company should enter, expand, contract, or withdraw from any business segments.

A) Profitability Analysis
B) Sales variance analysis
C) Expense-to-sales analysis
D) Full costing analysis
E) Financial analysis

Question 62

The sales gap due to reduced volume is ________.

A) 0.4 percent
B) 28.5 percent
C) 71.4 percent
D) 2.5 percent
E) 63 percent

Question 63

The manufacturer launches a brand building advertising campaign. The campaign does not promote any one specific car but is aimed at promoting the company as a whole. Which type of cost does this fall under?

A) direct costs
B) material costs
C) non-traceable costs
D) traceable costs
E) labor costs

Question 64

The CEO's annual compensation is an example of a ________.

A) direct cost
B) variable cost
C) traceable common cost
D) non-traceable common cost
E) manufacturing cost

Question 65

The cost of the land where the plant which manufactures the common parts is set up falls under ________.

A) traceable common costs
B) non-traceable common costs
C) variable costs
D) manufacturing costs
E) material costs

Question 66

Marketing has sole ownership of customer interaction.

Question 67

How much of the sales performance gap is due to price decline?

A) 28.5 percent
B) 37 percent
C) 2.5 percent
D) 71.4 percent
E) 0.4 percent

Question 68

Suppose the manufacturer pays a commission on every car sold. Then, the salesperson's commission is classified as a(n) ________.

A) cost of labor
B) traceable common cost
C) non-traceable common cost
D) advertising cost
E) direct cost

Question 69

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 70

The cost of operating the common manufacturing facility is a(n) _____.

A) opportunity cost
B) traceable cost
C) non-traceable cost
D) sunk cost
E) differential cost

Question 71

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

Question 72

Annual-plan control requires making sure the company isn't overspending to achieve sales goals. The key ratio to watch is ________.

A) stock turnover
B) gross margin
C) return on capital
D) cash flow return on investment
E) marketing expense-to-sales

Question 73

Served market share ________.

A) expresses the company's sales as a percentage of total market sales
B) is sales as a percentage of the total sales to the market
C) is market share in relationship to the largest competitor
D) is always smaller than overall market share
E) measures the relative contribution of different factors to a gap in sales performance

Question 74

________ advocates argue that all costs must ultimately be imputed in order to determine true profitability.

A) Direct-cost approach
B) Full-cost approach
C) Traceable-cost approach
D) Activity based costing approach
E) Fixed cost approach

Question 75

________ is market share in comparison to the largest competitor.

A) Relative market share
B) Served market share
C) Overall market share
D) Market value
E) Target market share

Question 76

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

Question 77

Which of the following is true about market share?

A) Outside forces affect all companies in the same way.
B) A company's performance should be judged against the average performance of all companies.
C) A decline in market share does not necessarily mean the company is performing worse than other companies.
D) A decline in market share cannot be deliberately engineered.
E) All shifts in market share have marketing significance.

Question 78

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 79

A(n) ________ of exactly 100 percent means that a company is tied for the market lead. A rise in relative market share means the company is gaining on its leading competitor.

A) overall market share
B) served market share
C) potential market share
D) relative market share
E) actual market share

Question 80

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