978-1337407588 Chapter 12 Solution Manual Part 2

subject Type Homework Help
subject Pages 9
subject Words 3622
subject Authors Carl Mcdaniel, Charles W. Lamb, Joe F. Hair

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Chapter 12: Services and Nonprofit Organization Marketing
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Case Assignment: Lancôme and St. Jude s Childrens 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.
© 2018 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
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Chapter 12: Services and Nonprofit Organization Marketing
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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.
© 2018 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
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Chapter 12: Services and Nonprofit Organization Marketing
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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)
© 2018 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
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Chapter 12: Services and Nonprofit Organization Marketing
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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
© 2018 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
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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
© 2018 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
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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
© 2018 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
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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 professors part, but they have resulted in very positive
Allan C. Reddy, Valdosta State University
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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
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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
© 2018 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
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V. Action Plans (Tactics)
VI. Implementation, Controls, and Evaluation
VII. Financial Projections and Budget
© 2018 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
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© 2018 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

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