Chapter 22: Managing a Holistic Marketing Organization

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