978-1337407588 Chapter 12 Solution Manual Part 2

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Chapter 12: Services and Nonprofit Organization Marketing

Case Assignment: Lancôme and St. Jude s Children’s Research Hospiʼ–

tal

In most people’s minds, curing childhood cancer and beauty products aren’t linked, but maybe

“The support of Lancôme, its network of ambassadors and generous customers is making

a significant difference in the lives of some of the world’s sickest children,” said Richard

St. Jude’s Children’s Research Hospital is the only National Cancer Institute–designated

Comprehensive Cancer Center dedicated exclusively to children. Research and treatment

Families of St. Jude’s patients never receive a bill for treatment because St. Jude’s feels

Lancôme, founded by Armand Petitjean in 1935, is the world’s leading luxury beauty

brand, known for their timeless glamour with a French touch. Lancôme has a presence in 130

In 2015, Lancôme launched their “Moments of Happiness” campaign to support St.

Chapter 12: Services and Nonprofit Organization Marketing

In honor of the seventh year of their partnership, Lancôme increased their fundraising

Lancôme also continued the Hand Heart Campaign from 2015. From September 29 to

“It’s inspiring for our organization to be involved and contribute to such a miracle, and

I’m humbled and proud of our partnership with St. Jude s,” says Suriya Parksuwan, president of ʼ

Lancôme also launched their “Always On” campaign to continue their support of St.

Sources: S. Faragalli, “How to Make Your Next Lancôme Purchase Benefit St. Jude’s Children’s

Hospital,” InStyle, October 22, 2015, accessed October 23, 2016,

Expands Its Support for St. Jude s Children’s Research Hospital,” ʼPR Newswire, October 18,

2016, accessed October 23, 2016,

TRUE/FALSE

1. St. Jude’s Children’s Research Hospital is a nonprofit organization.

Chapter 12: Services and Nonprofit Organization Marketing

PTS: 1 OBJ: LO: 12-7 TOP: AACSB: Reflective Thinking

KEY: CB&E Model: Strategy MSC: BLOOMS: Level I Knowledge

2. Lancôme is a nonprofit organization.

PTS: 1 OBJ: LO: 12-7 TOP: AACSB: Reflective Thinking

KEY: CB&E Model: Strategy MSC: BLOOMS: Level I Knowledge

3. The effort by nonprofit organizations to bring about mutually satisfying exchanges with target

markets is nonprofit organization marketing.

PTS: 1 OBJ: LO: 12-7 TOP: AACSB: Reflective Thinking

KEY: CB&E Model: Strategy MSC: BLOOMS: Level I Knowledge

4. Lancôme and St. Jude’s Children’s Research Hospital view profit with the same objective in

mind.

PTS: 1 OBJ: LO: 12-7 TOP: AACSB: Reflective Thinking

KEY: CB&E Model: Strategy MSC: BLOOMS: Level I Knowledge

5. Nonprofit organizations cannot measure their success or failure in strictly financial terms.

PTS: 1 OBJ: LO: 12-7 TOP: AACSB: Reflective Thinking

KEY: CB&E Model: Strategy MSC: BLOOMS: Level I Knowledge

MULTIPLE CHOICE

1. Which of the following marketing activities are performed by nonprofit organizations?

a. develop, manage, and eliminate programs and services

b. decide on prices to charge (may be called fees, donation, tuition, fares, fines, or rates)

Chapter 12: Services and Nonprofit Organization Marketing

c. schedule events or programs and communicate their availability through brochures, signs,

public service announcements, or advertisements

d. All of these

e. None of these

PTS: 1 OBJ: LO: 12-7 TOP: AACSB: Reflective Thinking

KEY: CB&E Model: Strategy MSC: BLOOMS: Level I Knowledge

2. Which of the following issues relating to target markets is unique to nonprofit organizations?

a. apathetic or strongly opposed targets

b. pressure to adopt undifferentiated segmentation strategies

c. complementary positioning

d. All of these

e. None of these

PTS: 1 OBJ: LO: 12-7 TOP: AACSB: Reflective Thinking

KEY: CB&E Model: Strategy MSC: BLOOMS: Level I Knowledge

3. The targets for the “Moments of Happiness” campaign are __________.

a. Lancôme customers

b. families of sick children

c. Instagram and Twitter users

d. A and C

e. All of these

f. None of these

PTS: 1 OBJ: LO: 12-7 TOP: AACSB: Reflective Thinking

KEY: CB&E Model: Strategy MSC: BLOOMS: Level I Knowledge

4. What is true about the benefit strength for the “Moments of Happiness” campaign?

a. Only St. Jude s benefits from the campaign in the form of $1 donations. ʼ

b. There are benefits for St. Jude s in the form of $1 donations and ʼto the customer in the form

of their purchase, but Lancôme receives no benefit from the campaign.

c. The campaign has financial benefits for both St. Jude s and ʼLancôme, and the customers

benefit in the form of a desired purchase.

d. Only Lancôme benefits from the campaign in the form of increased purchases.

PTS: 1 OBJ: LO: 12-7 TOP: AACSB: Reflective Thinking

Chapter 12: Services and Nonprofit Organization Marketing

KEY: CB&E Model: Strategy MSC: BLOOMS: Level I Knowledge

5. The “Moments of Happiness” campaign is using which special promotion resource offered to

nonprofit organizations?

a. professional volunteers

b. sales promotion activities

c. public service advertising

d. All of these

e. None of these

PTS: 1 OBJ: LO: 12-7 TOP: AACSB: Reflective Thinking

KEY: CB&E Model: Strategy MSC: BLOOMS: Level I Knowledge

Great Ideas for Teaching Chapter 12

Kay Blythe Tracy, Gettysburg College

Service Learning as a Marketing Project

Service learning benefits both the community and the students. This service learning project

allows marketing students to put what they are learning in class into practice and to see some of

Course Outcomes

Each student consulting group completes a written marketing research report for which they

collect primary data on a research question important to their client. Findings are utilized in

Client Responsibilities

For this project, potential clients (local not-for-profit agencies) are contacted and asked to

Chapter 12: Services and Nonprofit Organization Marketing

Student Responsibilities

Before enrolling in the course, students are advised that it is a service learning experience, which

will require a higher commitment of time and effort on their part than the standard marketing

Students in the marketing class are divided into groups of three or four. They are given written

client information prior to the clients’ visits to class, and the group makes a preliminary choice of

their preferred clients. Actual client choice is done following the clients’ presentations in class,

Record Keeping

On their initial visit, clients are given a folder with project information. Clients and the student

consulting groups keep logs (blank forms are provided), to ensure that a reasonable level of

interaction is maintained. Clients are contacted by mail about mid-semester with a

Chapter 12: Services and Nonprofit Organization Marketing

Time Line

Week 1: Explain the project (expect a few students to drop when they hear the details).

Week 2: Select student consulting groups. Hand out client information. Show clients’

presentations in class.

Week 3: Have two free class periods for group on-site visits.

Summary

We are fortunate in having a service learning center on campus, which helps with setting up the

clients initially. We also have college transportation available if needed, but it has not been

Overall, my experiences with service learning projects have been positive. Service learning

projects do require more work on the professor’s part, but they have resulted in very positive

Allan C. Reddy, Valdosta State University

Chapter 12: Services and Nonprofit Organization Marketing

A Live Project for Services Marketing Course

Teaching the Services Marketing course can be an interesting and rewarding experience with a

As part of the learning process, students in my Services Marketing course evaluate two similar

service establishments in the area. For convenience, we choose any two identical restaurants in

Typically, the project goals center on measuring service quality, price, speed of service, and so

forth. Often, the measurement instrument is the Semantic Differential method with ten bipolar

These values are totaled in class followed by a good class discussion on what is wrong with each

As stated earlier, this mini-project is both entertaining and educative, and it helps to cultivate a

group spirit in the class (of 20 or more students). The students eat out together (the student pays

for his or her food) to evaluate two identical restaurants (preferably chains). Also, it helps

Jacqueline K. Eastman, Valdosta State University

Chapter 12: Services and Nonprofit Organization Marketing

Nonprofit Marketing Plan Project

Marketing professors like to give their students the opportunity to do “real world” projects,

especially in a capstone undergraduate marketing course or an MBA marketing strategy course.

Working with for-profit businesses, however, can be problematic for a variety of reasons.

Students are not given enough information by the firm to address issues thoroughly.

One way to give the students the needed experience in creating a marketing plan while avoiding

the above problems is to work with nonprofit organizations. One’s local United Way Director

If possible, one should find a couple of organizations to give students a choice of who they

would like to work with and, through the presentations made at the end of the quarter, to expose

Finally, the marketing plan the students create needs to address the following areas:

I. Executive Summary (synopsis and major aspects of the marketing plan)

II. Situation Analysis (examine the environment)—SWOT analysis

III. Desired Outcomes/Marketing Objectives (Goals and Objectives)

IV. Marketing Strategies

Chapter 12: Services and Nonprofit Organization Marketing

V. Action Plans (Tactics)

VI. Implementation, Controls, and Evaluation

VII. Financial Projections and Budget

Chapter 12: Services and Nonprofit Organization Marketing