Marketing Management, 14e (Kotler/Keller)
Chapter 22 Managing a Holistic Marketing Organization for the Long Run
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
2) ________ involves buying more goods and services from external domestic or foreign
vendors.
A) Merging
B) Broadening
C) Outsourcing
D) Globalizing
E) Accelerating
3) ________ involves studying “best practice companies” to improve performance.
A) Empowering
B) Globalizing
C) Flattening
D) Benchmarking
E) Focusing
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
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
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
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
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
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
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.
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
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
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
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
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
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
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
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
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
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.
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
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
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
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.
25) Transforming into a true market-driven company requires organizing around ________.
A) sales
B) customer segments
C) products
D) functions
E) brands
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.
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
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
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
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
31) Cause-related marketing is part of ________.
A) sustainability
B) corporate societal marketing
C) social media
D) global marketing
E) community marketing
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
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.
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.
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
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
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
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.
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.
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.
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.
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.
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
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
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
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
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
48) Who is primarily responsible for efficiency control?
A) BAMT
B) marketing auditor
C) middle management
D) line and staff management
E) top management
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
50) The ________ is primarily responsible for strategic control.
A) line and staff management
B) marketing auditor
C) marketing controller
D) middle management
E) BAMT
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
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
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.
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
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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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
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.
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
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
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
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
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
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