Marketing Management, 15e (Kotler)
Chapter 23 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 shifts in 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) ________, or reducing the number of organizational levels to get closer to the customer, is one
of the important shifts in marketing and business practices.
A) Merging
B) Flattening
C) Globalizing
D) Focusing
E) Justifying
8) 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
9) 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
10) List and define some of the important shifts that have taken place in business and marketing
practices.
11) 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
12) 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.
13) ________ 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
14) 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
15) 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
16) 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
17) 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
18) 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
19) 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 marketplace
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
20) 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
21) 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
22) 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.
23) 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
24) When customers fall into different user groups with distinct buying preferences and
practices, a ________ organization is desirable.
A) market-management
B) product-management
C) brand-management
D) geographic
E) functional
25) Companies that produce many products for many markets may adopt a ________ marketing
organization.
A) flat
B) brand
C) product
D) matrix
E) top-down
26) 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.
27) Transforming into a true market-driven company requires organizing around ________.
A) sales
B) customer segments
C) products
D) functions
E) brands
28) 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.
29) 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.
30) Marketing has sole ownership of customer interaction.
31) A functional organization allows for adequate planning as the number of products and
markets of a firm increases.
32) Companies producing a variety of products and brands often establish a product- (or brand-)
management organization.
33) The product-management organization replaces the functional organization in the firm.
34) 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.
35) There are three types of product-team structures: vertical, triangular, and horizontal.
36) Because the retail trade tends to think of profitability in terms of product categories, some
companies are switching to a category management organizational model.
37) When customers fall into different user groups with distinct buying preferences and
practices, a product team structure is desirable.
38) Market managers are staff people, with duties like those of a product manager.
39) A customer-management organization deals with individual customers rather than the mass
market or market segments.
40) Many companies now focus on departments as opposed to processes, because processes can
be a barrier to smooth performance.
41) Transforming into a true market-driven company involves organizing around products.
42) Describe the functional organization of a marketing department in terms of its structure,
advantages, and disadvantages.
43) Explain the product- or brand-management organization and list its advantages and
disadvantages.
44) What is a market-management organization?
45) Many companies are beginning to realize that they are not really market and customer
driven, they are product and sales driven. In the attempt to transform themselves into true
market-driven companies, many firms must change. Describe and explain what changes are
necessary.
46) What is a brand-asset management team (BAMT)?
47) Define a category-management organization.
48) What is a customer-management organization? When should a customer-management
organization be adopted?
49) 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
50) 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
51) One opportunity for designing a cause program so the sponsoring company is not overlooked
among other corporate sponsors is to support a(n) ________, or a disease that afflicts fewer than
200,000 people.
A) orphan cause
B) overlooked calamity
C) behavioral campaign
D) social marketing plan
E) value campaign
52) ________ 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
53) ________ 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
54) Cause-related marketing is part of ________.
A) sustainability
B) corporate societal marketing
C) social media
D) global marketing
E) community marketing
55) 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
56) 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.
57) 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.
58) ________ marketing by nonprofit or government organizations furthers a cause.
A) Corporate societal
B) Brand
C) Causal
D) Social
E) Place
59) Social marketing programs designed to discourage cigarette smoking or excessive
consumption of alcohol are examples of ________ campaigns.
A) cognitive
B) active
C) behavioral
D) value
E) normative
60) A social marketing program which aims to alter ideas about abortion is an example of a(n)
________ campaign.
A) cognitive
B) active
C) behavioral
D) value
E) normative
61) 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.
62) 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.
63) 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 to implement lifestyle changes.
64) 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.
65) 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.
66) 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
67) Firms that are viewed as being socially responsible have the added benefit of being able to
attract employees.
68) 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.
69) 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.
70) Some business practices, such as deceptive advertising, exclusive dealing, and predatory
competition, sharply divide critics regarding whether they are clearly unethical or illegal.
71) Often the more committed a company is to sustainability and environmental protection, the
more dilemmas that can arise.
72) Sustainability ratings exist, but there is no consistent agreement about what metrics are
appropriate.
73) 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.
74) Corporate philanthropy as a whole is on the rise.
75) Cause-related marketing efforts are unlikely to backfire as customers generally view the
company’s motives as genuine.
76) Cash donations are the most productive contribution that businesses can make to a nonprofit
or community group.
77) Many companies focus on multiple cause-related marketing programs to simplify execution
and maximize impact.
78) Social marketing is a new trend in marketing.
79) Social marketing programs designed to motivate people to donate blood or attract people for
mass immunization are examples of cognitive campaigns.