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Chapter 22: Managing a Holistic Marketing OrganizationGENERAL CONCEPT QUESTIONSMultiple Choice 1._ is the appointment of teams to manage customer-valuebuilding processes and break down walls between departments. a.Reengineering b.Outsourcing c.Benchmarking d.Supplier partnering e.Customer Partnering Answer: aPage: 696 Level of difficulty: Easy2._ is the greater willingness to buy more goods and services from outside domestic or foreign vendors. a.Benchmarkingb.Merging c.Globalizing d.Outsourcing e.Accelerating Answer: dPage: 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: ePage: 696 Level of difficulty: Easy 4._ is the trend to increase partnering with fewer but better value-adding suppliers. a.Supplier partneringb.Benchmarking c.Customer partnering d.Flattening e.Empowering Answer: aPage: 696 Level of difficulty: Easy5. _ is working more closely with customers to add value to their operations. a.Reengineeringb.Outsourcing c.Customer partnering d.Merging e.Globalizing Answer: cPage: 696Level of difficulty: Easy6._ 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: aPage: 696Level of difficulty: Easy7.Increasing the effort to “think global” and “act local” is _.a.flatteningb.benchmarking c.globalizing d.focusing e.empowering Answer: cPage: 696Level of difficulty: Easy8. _ is reducing the number of organizational levels to get closer to the customer. a.Flattening b.Globalizing c.Accelerating d.Empowering e.Draft the reportAnswer: aPage: 696 Level of difficulty: Easy9.Determining the most profitable businesses and customers and focusing on them is called _.a.empowering b.focusing c.flattening d.merging e.outsourcing Answer: bPage: 696 Level of difficulty: Easy10.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: ePage: 696Level 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: aPage: 696Level of difficulty: Easy12. 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: aPage: 696 Level of difficulty: Medium13. 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. collectb.examine c.review d.integrate e.distribute Answer: dPage: 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: aPage: 697 Level of difficulty: Medium15.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: bPage: 697 Level of difficulty: Medium16.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: cPage: 697Level of difficulty: Medium 17.A functional marketing organization can lose its _ as products and markets increase. a.focus b.effectivenessc.leader d.reporting relationships e.vice president Answer: bPage: 697Level 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: bPage: 698Level 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: cPage: 698 Level of difficulty: Medium20.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 programsd.product specific programs e.brand specific programs Answer: cPage: 699Level 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: Easy22.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 companys smaller brands have a product advocated.the product manager is an expert in his/her category only e.provides for management succession Answer: dPage: 699Level of difficulty: Hard23.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 organizationd.hub-and-spoke system e.product teams Answer: ePage: 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 teamsAnswer: aPage: 700 Level of difficulty: Hard25.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 brands performance Answer: ePage: 700 Level of difficulty: Hard26.When customers fall into different user groups with distinct buying preferences and practices, a _ is desirable. a.market-management organization b.product-management organizationc.brand-management organizationd.BAMT organization e.flattened organization Answer: aPage: 701Level 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 organizationc.Customer-management organization d.Market-centered organizations e.Brand asset organization Answer: dPage: 702Level of difficulty: Hard28.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: dPage: 702Level of difficulty: Medium29.Companies that product many products flowing into many markets may adopt a _ marketing organization. a.flat organizationb.brand organization c.product organization d.matrix organization e.top-down organization Answer: dPage: 702 Level of difficulty: Medium30.Several forces are driving companies to practice a higher level of corporate social responsibility. These include _. a.rising customer expectationsb.changing employee expectationsc.government legislationd.investor interests e.all of the above Answer: ePage: 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 behaviord.ethical, responsible, and clear behaviore.none of the above Answer: aPage: 707 Level of difficulty: Medium32._ is marketing that links the firms 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: dPage: 709Level 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: bPage: 709 Level of difficulty: Easy34.Some of the specific means by which cause-marketing programs can build brand equity withy consumers include _.a.building brand awareness and enhancing brand imageb.establishing brand credibility c.evoking brand feelings and creating a sense of brand community d.eliciting brand engagementse.all of the above Answer: ePage: 710Level 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-brandingd.ethical branding, third-party branding, co-branding e.cause branding, third-party branding, co-branding Answer: aPage: 711 Level of difficulty: Medium36. _ is done by a nonprofit or government organization to further a cause. a.Issue marketingb.Brand marketing c.Causal marketing d.Social marketing e.Non-profit marketing Answer: dPage: 712 Level of difficulty: Easy37._ is the process that turns marketing plans into action assignments and ensures that such assignments are executed in a manner that accomplishes the plans stated objectives. a.Marketing implementation b.Marketing research c.Marketing management d.Brand management e.Product management Answer: aPage: 715 Level of difficulty: Easy 38.Thomas Bonoma identifies four sets of skills for implementing marketing programs. These include _. a.diagnostic skillsb. people skillsc. listening skillsd. marketing skillse. identification skillsAnswer: aPage: 715Level of difficulty: Medium39.One of the four types of marketing control needed by companies would be _. a.operational controlb.financial controlc.logistical controld.annual plan controle.inter-departmental controlAnswer: dPage: 717Level of difficulty: Medium40.A companys or divisions 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 rightd.advertising efficiencye.none of the above Answer: aPage: 719 Level of difficulty: Hard41._ is a comprehensive systematic, independent, and periodic examination of a companys or business units marketing environment, objectives, strategies, and activities with a view to determining problem areas and opportunities and recommending a plan of action to improve the companys marketing performance. a.Marketing plan b.Marketing management c.Marketing audit d.Marketing intelligencee.Marketing metricsAnswer: cPage: 719Level of difficulty: Easy42.The four characteristics of a marketing audit are _. a.product orientation, market orientation, innovation orientation, productivity orientation b.comprehensive, systematic, independent, periodicc.comprehensive, systematic, periodic, corporated.systematic, as needed, comprehensive, independente.compartmentalized, systematic, periodic, independent Answer: bPage: 719Level of difficulty: Hard43.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 efficiencyc.sales force efficiency, brand margin efficiency, distribution efficiency, advertising efficiencyd.sales force efficiency, advertising efficiency, sales promotion efficiency, distribution efficiency e.sales force efficiency, advertising efficiency, brand profitability, distribution efficiency Answer: dPages: 717718 Level of difficulty: Medium44.The control process includes the following _. a.goal setting, performance measurement, performance diagnosis, corrective actionb.goal setting, brand review, marketing audit, corrective actionc.brand audit, control review, efficiency control, corrective actiond. management scorecard, goal setting, marketing audit, corrective actione. efficiency control, strategic control, goal setting, corrective action Answer: aPage: 717Level 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 customerd.customer, by brand, by geography, by territory e. functionally, geographically, by product or brand, by market, in a matrix, by corporate/division Answer: ePage: 696 Level of difficulty: Easy46. 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/categoriesb.category specialists/managersc.category management/categories d.product brand managers/categoriese.category management/specialists Answer: cPage: 700 Level of difficulty: Medium 47.Another rationale for category management is the increasing power of the _. a.consumerb.customer c.trade d.distribution partners e.competition Answer: cPage: 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: cPage: 703Level of difficulty: Medium49. 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 loyaltyd.customer selectivitye.price selectivityAnswer: bPage: 705Level 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: aPage: 706Level of difficulty: Easy 51. Cause-related marketing began in earnest in the _.a.1940s b.1990s c.1980s d.1970s e.1960s Answer: cPage: 709 Level of difficulty: Medium52. A successful cause marketing program can produce a number of benefits: improving social welfare; creating differentiated brand positioning; building strong consumer bonds; enhancing the companys public image with government officials and other decision makers; creating a reservoir of goodwill; boosting internal morale and galvanizing employees; and _.a.increased profit marginsb.increased brand recognitionc.driving salesd.increasing the rate of return on net worth e.increased stock pricing Answer: cPage: 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 causesb.involvement in “orphan causes” c.involvement in popular causes d.involvement in “unpopular causes”e.involvement in politically unacceptable causesAnswer: aPage: 710 Level of difficulty: Medium54. _ 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.Promotingb.Brandingc.Advertisingd.Co-branding e.Sales promotions Answer: dPage: 711 Level of difficulty: Medium55. 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 campaignsb.cognitive campaigns, behavioral campaigns, marketing campaigns, advertising campaigns c.cognitive campaigns, marketing campaigns, brand campaigns, value campaignsd.“shock” campaigns, marketing campaigns, brand campaigns, action campaignse.behavioral campaigns, action campaigns, “shock” campaignsAnswer: aPages: 713714Level of difficulty: Hard56. Strategy addresses the _ and the _ of marketing activities. a.who/how b.what/when c.what/how d.what/why e.what/who Answer: dPage: 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 priced.the who, the where, the consumer, and the pricee.the who, the when, the how, and the product choicesAnswer: bPage: 715 Level of difficulty: Medium58. To implement programs successfully, marketers need other skills. One additional skill needed by marketers includes _. a.market skills b.organizing skills c.personality skillsd. analytical skillse.interpersonal skills Answer: bPage
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