Questions chapter 22 – Flashcards
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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
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A) reengineering
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2) ________ involves buying more goods and services from external domestic or foreign vendors. A) Merging B) Broadening C) Outsourcing D) Globalizing E) Accelerating
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C) Outsourcing
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3) ________ involves studying "best practice companies" to improve performance. A) Empowering B) Globalizing C) Flattening D) Benchmarking E) Focusing
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D) Benchmarking
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4) 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
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E) acquiring firms in the same or complementary industries
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5) 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
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A) flattening
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6) 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
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D) accelerating
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7) 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
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B) factoring the interests of customers, employees, shareholders, and other stakeholders into the activities of the enterprise
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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
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C) tracking what is said online and elsewhere and studying customers, competitors, and others to improve business practices
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9) 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
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A) middlemen
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10) 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.
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C) Only when all employees realize their job is to create, serve, and satisfy customers does the company become an effective marketer.
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11) ________ 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
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A) Internal marketing
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12) 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
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B) functional specialists
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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
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C) administrative simplicity
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14) 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
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B) geographic lines
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15) 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
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A) the company's products are quite varied
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16) 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
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A) hub-and-spoke
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17) 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
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E) it fails to build long-term strengths as brand managers normally manage brands for only short periods
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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
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C) focuses on building market share rather than customer relationships
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19) 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
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A) vertical, triangular, and horizontal product teams
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20) 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.
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E) The BAMT consists of key representatives from functions affecting the brand's performance.
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21) 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
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C) when two or more products serve a similar set of needs
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22) 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
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A) market-management organization
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23) Companies that produce many products for many markets may adopt a ________ marketing organization. A) flat B) brand C) product D) matrix E) top-down
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D) matrix
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24) 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.
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B) It often creates conflicts regarding authority and responsibility for marketing activities.
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25) Transforming into a true market-driven company requires organizing around ________. A) sales B) customer segments C) products D) functions E) brands
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B) customer segments
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26) 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.
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B) Companies must watch trends and be ready to capitalize on them.
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27) 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
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D) practice a higher level of corporate social responsibility
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28) 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
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E) encourage business practices that are not clearly ethical or unethical
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29) ________ 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
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B) Greenwashing
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30) ________ 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
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B) Sustainability
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31) Cause-related marketing is part of ________. A) sustainability B) corporate societal marketing C) social media D) global marketing E) community marketing
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B) corporate societal marketing
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32) 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
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A) Millennial consumers
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33) 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.
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C) Customers questioned the link between the product and the cause and saw the firm as self-serving and exploitive.
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34) 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.
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D) Most firms choose causes that fit their corporate or brand image and matter to their employees and shareholders.
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35) ________ by nonprofit or government organizations furthers a cause. A) Corporate societal marketing B) Brand marketing C) Causal marketing D) Social marketing E) Place marketing
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D) Social marketing
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36) 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
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C) behavioral campaigns
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37) 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
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D) value campaign
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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.
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C) Explain the different causes of obesity and how it can be prevented.
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39) 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.
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D) Encourage people to participate in a walkathon aimed at promoting awareness about obesity.
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40) 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.
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B) Change public attitudes and stereotypes associated with people who are obese.
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41) 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.
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A) Motivate people with obesity to eat healthy and exercise more often.
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42) 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.
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C) Make it easy to adopt the behavior.
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43) 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
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A) determining the focus of the program
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44) ________ 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
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D) Marketing resource management
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45) ________ 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
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A) Marketing implementation
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46) ________ 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
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A) Marketing control
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47) Top and middle management are primarily responsible for ________. A) annual-plan control B) efficiency control C) profitability control D) technological control E) innovation control
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A) annual-plan control
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48) Who is primarily responsible for efficiency control? A) BAMT B) marketing auditor C) middle management D) line and staff management E) top management
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D) line and staff management
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49) 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
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B) examine where the company is making and losing money
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50) The ________ is primarily responsible for strategic control. A) line and staff management B) marketing auditor C) marketing controller D) middle management E) BAMT
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B) marketing auditor
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51) 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
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D) examine whether the company is pursuing its best opportunities with respect to markets, products, and channels
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52) 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
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D) strategic control
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53) 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.
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B) The tools used for this purpose are sales analysis, market share analysis, marketing expense-to-sales analysis, and financial analysis.
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54) 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
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D) stocks cover in days
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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
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A) average sales per point of sale
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56) 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
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C) marketing audit
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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.
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B) It identifies the most-needed improvements and incorporates them into a corrective-action plan with short- and long-run steps.
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58) 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
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A) become more holistic
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59) 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
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D) marketing science
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60) 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
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E) teamwork
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61) ________ looks at specific products, territories, and so forth that failed to produce expected sales. A) Microsales analysis B) Sales variance analysis C) Expense-to-sales analysis D) Full costing analysis E) Financial analysis
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A) Microsales analysis
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62) 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
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B) is sales as a percentage of the total sales to the market
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63) ________ 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
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A) Relative market share
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66) 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.
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C) A decline in market share does not necessarily mean the company is performing worse than other companies.
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67) 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
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D) relative market share
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68) 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
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E) marketing expense-to-sales
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69) ________ 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
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B) Full-cost approach
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75) 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.
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Answer: TRUE
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76) Marketing has sole ownership of customer interaction.
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Answer: FALSE
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77) A functional organization allows for adequate planning as the number of products and markets of a firm increases.
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Answer: FALSE
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78) Companies producing a variety of products and brands often establish a product- (or brand-) management organization.
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Answer: TRUE
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79) The product-management organization replaces the functional organization in the firm.
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Answer: FALSE
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80) 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.
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Answer: FALSE
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81) There are three types of product-teams structures: vertical, triangular, and horizontal.
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Answer: TRUE
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82) Because the retail trade tends to think of profitability in terms of product categories, some companies are switching to a category management organizational model.
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Answer: TRUE
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83) When customers fall into different user groups with distinct buying preferences and practices, a product team structure is desirable.
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Answer: FALSE
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84) Market managers are staff people, with duties like those of a product manager.
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Answer: TRUE
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85) A customer-management organization deals with individual customers rather than the mass market or market segments.
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Answer: TRUE
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86) Many companies now focus on departments as opposed to processes, because processes can be a barrier to smooth performance.
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Answer: FALSE
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87) Transforming into a true market-driven company involves organizing around products.
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Answer: FALSE
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88) Firms that are viewed as being socially responsible have the added benefit of being able to attract employees.
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Answer: TRUE
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89) 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.
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Answer: TRUE
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90) 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.
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Answer: FALSE
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91) Some business practices, such as deceptive advertising, exclusive dealing, and predatory competition, sharply divide critics regarding whether they are clearly unethical or illegal.
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Answer: FALSE
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92) Often, the more committed a company is to sustainability and environmental protection, the more dilemmas that can arise.
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Answer: TRUE
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93) Sustainability ratings exist, but there is no consistent agreement about what metrics are appropriate.
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Answer: TRUE
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94) 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.
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Answer: TRUE
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95) Corporate philanthropy as a whole is on the rise.
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Answer: TRUE
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96) Cause-related marketing efforts are unlikely to backfire as customers generally view the company's motives as genuine.
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Answer: FALSE
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97) Cash donations are the most productive contribution that businesses can make to a nonprofit or community group.
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Answer: FALSE
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98) Many companies focus on multiple cause-related marketing programs to simplify execution and maximize impact. Answer: FALSE
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Answer: FALSE
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99) Social marketing is a new trend in marketing.
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Answer: FALSE
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100) Social marketing programs designed to motivate people to donate blood or attract people for mass immunization are examples of cognitive campaigns.
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Answer: FALSE
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101) Social marketing programs take little time to develop and are generally easy to implement.
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Answer: FALSE
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102) The actual success of a social marketing program should be evaluated in terms of the program objectives.
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Answer: TRUE
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103) Desktop marketing gives marketers information and decision structures on computer dashboards.
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Answer: TRUE
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104) Profitability control is the prime responsibility of line and staff management.
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Answer: FALSE
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105) Annual-plan control involves the use of financial analysis to evaluate the performance of marketing plans.
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Answer: TRUE
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106) The annual plan control process begins with measuring performance.
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Answer: FALSE
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107) Repurchase rate is a sales metric that is used to evaluate the performance of marketing plans.
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Answer: FALSE
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108) The ratio of promoters to detractors is a customer metric that is used to evaluate the performance of marketing plans.
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Answer: TRUE
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109) A marketing audit is an orderly examination of the organization's macro- and micromarketing environments, marketing objectives and strategies, marketing systems, and specific activities.
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Answer: TRUE
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110) Self-audits tend to provide more objective information than audits conducted by external consultants.
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Answer: FALSE
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111) A marketing audit only benefits a company that is in trouble; companies in good health do not need to conduct them.
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Answer: FALSE
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112) To succeed in the future, marketing must be more holistic and less departmental.
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Answer: TRUE
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113) In the future, there will be greater emphasis on precision marketing as opposed to mass marketing.
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Answer: TRUE
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114) In the context of overall market share, customer loyalty refers to the percentage of all customers who buy from the company.
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Answer: FALSE
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115) The first step in conducting a marketing profitability analysis involves assigning functional expenses to marketing entities.
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Answer: FALSE
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116) Operating management is most effective in controlling direct costs and traceable common costs.
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Answer: TRUE
