Q&A Hero

Q: Hasbro is a $4 billion toy company that prides itself on donating to organizations that help children, since they and their parents comprise the target market for its business. This is an example of a(n) a. unit sales goal. b. market share goal. c. sales revenue goal. d. customer satisfaction goal. e. social responsibility goal.

Q: Business firms pursue several different types of goals. A(n) __________ goal is when a firm seeks to balance the conflicting goals of stakeholders to promote their overall welfare, even at the expense of profits. a. customer satisfaction b. shareholder c. profit minimization d. social responsibility e. employee welfare

Q: Many universities and other educational institutions provide retirement benefits by doubling the percentage an employee pays into the account up to a certain percentage of his or her pay. This provides a wonderful benefit to those who are full-time employees. This is an example of a(n) __________ goal. a. satisfaction b. sales revenue c. market share d. quality e. employee welfare

Q: The founder of Starbucks, Howard Schultz, provides health care for all employees who work over 20 hours per week. He says "the companies that are doing the right thing by covering their employees [with health care coverage] are paying for the companies who don"t do the right thing." This is an example of one of Starbucks' __________ goals. a. profit b. market share c. employee welfare d. customer satisfaction e. sales

Q: Business firms pursue several different types of goals. When a firm recognizes the critical importance of its employees, this is an __________ goal. a. employee satisfaction b. employee responsibility c. employee compensation d. employee core value e. employee welfare

Q: Lands' End ships each order within 48 hours and its guarantee is the best in the world, as exemplified by its tagline "Guaranteed. Period." These marketing actions by Lands' End are MOST LIKELY examples of __________ goals. a. profit b. market share c. employee welfare d. social responsibility e. customer satisfaction

Q: Suppose L.L. Bean, a catalog retailer, has set a goal to reduce merchandise returns by 20 percent for the holiday season. The firm would MOST LIKELY have set a(n) __________ goal. a. profit b. market share c. employee welfare d. customer satisfaction e. social responsibility

Q: Customers are the reason an organizations exists. Customer __________ can be measured with surveys or by the number of customer complaints it receives. a. satisfaction b. welfare c. service d. value e. beliefs

Q: Motorola invented the Six Sigma program that sets as a goal no more than one defect in one million parts manufactured. This is an example of a(n) __________ goal. a. profit b. sales revenue c. quality d. market share e. employee welfare

Q: Complaints about Microsoft's Xbox video game consoles began immediately after its introduction. These complaints ranged from missing parts to incorrect programming. Microsoft should have should adopted a(n) __________ goal. a. profit b. sales revenue c. customer satisfaction d. quality e. employee welfare

Q: A firm may have a goal to offer its customers the highest _________, as Medtronic does with its implantable medical devices. a. innovation b. quality c. service d. value e. warranty

Q: A small business owner was preparing her staff for the upcoming holiday season. Her women's apparel retail store had a great yearsales and profits were up 20 percent. In a meeting with her sales staff before opening the store on Black Friday, the day after Thanksgiving, she said, "We want to move as much inventory as possible. Not only can we highlight our holiday items, why don"t we mark down some of our other seasonal items while people are in a shopping mood?" From this statement, she was concerned with a __________ goal. a. profit b. sales c. market share d. customer satisfaction e. survival

Q: If profits are acceptable, a firm that has set sales as its goal may elect to __________, even though profitability may not be maximized. a. advertise b. reduce its sales force c. maintain or increase its sales d. decrease its sustainability efforts e. maximize customer satisfaction

Q: Most firms seek to maximize __________ to obtain as high a financial return on their investments (ROI) as possible. a. sales b. quality c. profit d. market share e. employee welfare

Q: Classic economic theory assumes a firm seeks to maximize its long-run __________, achieving as high a financial return on its investments as possible. a. profits b. quality c. market share d. employee welfare e. social responsibility

Q: The terms "goal" and "objective" are often used interchangeably. However, in both cases, which of the following statements would be most accurate? a. Goals convert an organization's mission and business into long- and short-term performance targets. b. Goals and objectives are actually the detailed day-to-day activities necessary to implement a marketing program. c. A company's goals and objectives are often laudable (worthy) in intent, but unrealistic in practice because they are never accomplished during the specified time period. d. Goal-setting only applies to business firms; nonprofit organizations typically do not set goals because they don"t earn a profit. e. The terms goal and objective are NOT used interchangeably. Goals are philosophical while objectives are performance-based.

Q: Statements of an accomplishment of a task to be achieved, often by a specific time are referred to as __________. a. plans b. procedures c. strategies d. goals e. visions

Q: All of the following were changes in the Netflix business model since its founding in 1997 EXCEPT: a. Netflix announced it would split the firm into two divisions, one that focused on delivering DVDs by mail (Quikster) and the other that streamed them over the Internet (Netflix). b. Netflix delivered movies by mail in VHS cassette format. c. Netflix eventually delivered movies over the Internet. d. Netflix established a partnership with DirecTV, a satellite television provider, to deliver movies over its network. e. Netflix cancelled its plan to separate its business into two divisions as a result of customer backlash and negative media criticism.

Q: The name Netflix was chosen specifically because a. it sounded new and upbeat. b. it ended in the letter "x," which causes a word to have an "edge" to it. c. the company knew that it would eventually deliver movies over the Internet. d. hidden within the name is the word "next," implying a forward looking company. e. it rhymed with "best-picks" and alluded to both quality and the visual aspects of its service.

Q: When the company Netflix first began, it wasn"t as successful as expected. This was because a. the program wasn"t subscription-based. b. too many customers failed to return the VHS cassettes. c. the price of postage increased dramatically and ate into profits. d. too many free movies were now available through on-demand cable TV and the streaming via the Internet. e. the primary target market, consisting of young people aged 18 to 24 years old, was moving away from visual media and spending more time listening to music and playing video games.

Q: Since its launch, Netflix has changed its "business model" in order to a. compete with Blockbuster retail store expansion. b. respond to changing consumer demand and the evolution of new technologies. c. expand its focus from entertainment to movie collectibles and memorabilia. d. avoid head-to-head with satellite television providers, which recently announced a strategic partnership with Blockbuster that offers a similar service as Netflix. e. begin preparations to withdraw from its traditional method of mail delivery, which takes 4-6 business days and introduce next-day delivery through FedEx.

Q: Many small bookstores, and even large ones like Borders and Bookstar, have closed. Subscribers to newspapers and magazines have cancelled their print subscriptions. This trend has caused retailer Barnes & Noble to offer the Nook, a digital e-reader for $99 and newspaper publishers such as the StarTribune to offer online content for $1. per week because of the success of Apple's iPad and Amazon's Kindle, which display digital content in a very user-friendly experience. Barnes & Noble and the StarTribune MOST LIKELY had to change their __________, which was(were) triggered by the technological and social changes that occurred in their marketing environments. a. organizational culture b. marketing tactics c. business model d. strategic marketing process e. goals/objectives

Q: A business model a. is a road map for the marketing activities of an organization for a specified future time period. b. consists of the strategies an organization develops to provide value to the customers it serves. c. is a measure of the quantitative value or trend of a marketing activity or result. d. consists of the detailed day-to-day operational decisions for an organization. e. is the means by which organizational goal are to be achieved.

Q: In the 20th century, railroads may have let other forms of transportation take business away from them because their definition included only the railroad business, rather than a broader definition that encompassed __________. a. transportation b. transcontinental shipping c. passenger travel d. product delivery e. air cargo

Q: In terms of an organization's business, railroads may have lost market share in the 20th century because they a. had less flexible routes than trucking. b. defined their business too narrowly. c. defined their business too broadly. d. priced their services too high. e. were simply an outmoded form of transportation.

Q: In the famous "Marketing Myopia" article, __________ argues that senior managers of 20th century American railroads defined their business too narrowly. a. Earl Bakken b. Benjamin Greenfield c. Reed Hastings d. Theodore Levitt e. Steven Jobs

Q: A business refers to a. the daily operational decisions that must be implemented for an organization to remain viable. b. exchange transactions between seller and buyer in order for the seller to make sales and earn profits. c. the clear, broad, underlying industry or market sector of an organization's offering. d. an organization that develops an offering. e. the objectives of a firm and the strategies and tactics that will allow it to achieve them.

Q: The organizational __________ answers the question, "What will we do?" a. foundation b. direction c. culture d. strategy e. mission

Q: George Zimmer, the CEO of Men's Wearhouse, is known to the public as the bearded company pitchman who sells suits and sport coats on TV declaring, "You"ll like the way you look, I guarantee it!" He also says that to be successful, "You"ve got to have a company that starts with trust and fairness." He aims to keep his employees happy and loyal. Zimmer is attempting to establish a(n) ___________ for Men's Wearhouse. a. ethos b. mission statement c. organizational culture d. pathos e. behavioral protocol

Q: The __________ for Lucent Technologies is "To use our unique capabilities to ensure that our customers thrive, our business grows, and we enrich the personal communications experience for people around the world." a. sustainability doctrine b. core benefit proposition c. corporate philosophy d. mission statement e. code of ethics

Q: The ___________ for American Red Cross is "to provide relief to victims of disasters and help prevent, prepare for, and respond to emergencies." a. core benefit proposition b. business definition c. sustainability doctrine d. mission statement e. core value proposition

Q: "To contribute to human welfare by application of biomedical engineering in the research, design, manufacture, and sale of instruments or appliances that alleviate pain, restore health, and extend life" is Medtronic's ___________. a. core value proposition b. corporate culture c. functional goals d. sustainability doctrine e. mission statement

Q: A mission statement includes all of the following elements EXCEPT: a. short-term. b. inspirational. c. clear. d. meaningful. e. concise.

Q: Often used interchangeably with "vision" a(n) __________ frequently has an inspirational theme. a. point of difference b. mission statement c. business definition d. core value proposition e. marketing plan

Q: By understanding its business, an organization can take steps to define its __________, a statement of the organization's functions in society that identifies its customers, markets, products, and technologies. a. core benefit proposition b. doctrine c. philosophy d. mission e. code of ethics

Q: All of the following are examples of stakeholders EXCEPT: a. government b. competitors c. shareholders d. suppliers e. customer

Q: The term that links the employees, shareholders, board of directors, suppliers, distributors, creditors, unions, government, local communities, and customers is a. stakeholders. b. stockholders. c. competitors. d. target audience. e. organizational society.

Q: The Ben & Jerry's website states "Central to the mission of Ben & Jerry's is the belief that all three parts [product mission, economic mission, social mission] must thrive equally in a manner that commands deep respect for individuals in and outside the company and supports the communities of which they are a part." This statement reflects Ben & Jerry's a. sustainability doctrine. b. goals and objectives. c. core values. d. moral distinctives. e. functional strategy.

Q: An organization's core values are the fundamental, passionate, and enduring principles that guide its conduct over time. To be effective, they must be supported by a. competitors. b. senior management. c. suppliers. d. resellers. e. government regulators.

Q: Core values refer to a. the cultural ethos of an organization. b. proprietary values of a firm. c. written mission statements that express an organization's goals and objectives. d. the personal moral and ethical codes of a firm's stakeholders. e. the fundamental, passionate, and enduring principles that guide an organization's conduct over time.

Q: The fundamental, passionate, and enduring principles of an organization that guide its conduct over time are referred to as its __________. a. core values b. strategic goals c. vision d. corporate culture e. corporate ethos

Q: Explain what a planning gap is and what is used to close it.

Q: An organization's foundation includes all of the following EXCEPT: a. organizational culture. b. business definition. c. vision. d. core values. e. mission.

Q: What is the purpose of the evaluation phase of the strategic marketing process? How is it accomplished?

Q: Which of the following statements regarding organizational foundation is most accurate? a. An organizational foundation specifies its goals. b. An organizational foundation defines the business that it is in. c. An organization's foundation empowers stakeholders to have a voice in the strategic marketing process. d. An organization's foundation is its philosophical reason for beingwhy it exists. e. An organization's foundation is the company, its product, and its customers.

Q: What is the difference between marketing strategies and marketing tactics?

Q: An organization's foundation can be broken into three key elements. They are a. products, services, and ideas. b. business definition, long-term goals, and short-term objectives. c. board of directors, top management, and stakeholders. d. corporate-level strategies, SBU-level strategies, and functional-level strategies. e. core values, mission/vision, and organizational culture.

Q: What are the four components of the implementation phase of the strategic marketing process?

Q: In marketing, the philosophical reason for a firm's existence is referred to as its organizational __________. a. strategy b. direction c. foundation d. goal e. business

Q: A campus service organization annually raises money through the sale of T-shirts. What are the major components of the marketing program it should use to increase sales? Give one example of each.

Q: Figure 1. In Figure 1. above, "C" represents the "how" element of visionary organization. This is referred to as __________. a. organizational tactics b. organizational mission c. organizational foundation d. organizational direction e. organizational strategies

Q: What are the marketing mix elements that compose a cohesive marketing program?

Q: Figure 1. In Figure 1. above, "B" represents the "what" element of visionary organization. This is referred to as __________. a. organizational tactics b. organizational mission c. organizational foundation d. organizational direction e. organizational strategies

Q: A campus service organization annually raises money through the sale of T-shirts. How could it use market segmentation to increase sales of the shirts? Be sure to include a definition of market segmentation in your answer.

Q: Figure 1. In Figure 1. above, "A" represents the "why" element of visionary organization. This is referred to as __________. a. organizational foundation b. organizational tactics c. organizational mission d. organizational direction e. organizational strategies

Q: Identify and describe the four factors in a SWOT analysis and give examples for Ben & Jerry's Homemade Ice Cream that help it identify the critical strategy-related factors that could impact the firm.

Q: Today's visionary organization uses three key elements: (1) specify its foundation; (2) set a direction; and (3) __________. a. set financial goals b. assign job responsibilities c. formulate its strategies d. establish production parameters e. establish detailed marketing tactics

Q: Figure 1. Using Figure 1., identify and describe the three steps ("A," "B," and "C") of the planning phase of the strategic marketing process.

Q: Today's visionary organization uses three key elements: (1) specify its foundation; (2) __________; and (3) formulate strategies. a. set a direction b. establish detailed marketing tactics c. assign job responsibilities d. set financial goals e. establish an organizational chart

Q: Identify and describe the three phases of the strategic marketing process.

Q: Today's visionary organization uses three key elements: (1) __________; (2) set a direction; and (3) formulate strategies. a. set financial goals b. specify its foundation c. establish detailed marketing tactics d. assign job responsibilities e. establish an organizational chart

Q: Figure 1. Based on Figure 1. above, identify and explain each of the four market-product strategies represented by each quadrant ("A," "B," "C," and "D") in the diversification analysis matrix.

Q: In general, a visionary organization asks what three types of questions to specify its foundation, set a direction, and formulate strategies? a. why, when, where b. what, by whom, how c. why, what, how d. how, when, where e. who, why, when

Q: One of the most recognized approaches to business portfolio analysis is the Boston Consulting Group's growth-share matrix. Describe this tool and the four quadrants of the matrix.

Q: Today's organizations must be visionarythat is, they must a. develop strategies based on those that were successful in the past. b. be backward-looking, examining the past carefully to learn from mistakes. c. anticipate future events and respond quickly and effectively. d. hire the most culturally diverse team possible in order to generate the best new ideas. e. involve all stakeholders of the organization when defining its business mission.

Q: The Boston Consulting Group's business portfolio analysis model can be used to analyze a firm's strategic business units. What are the strengths and weakness of this model?

Q: Explain the difference between "competencies" and "competitive advantage" in an organizational setting.

Q: When developing marketing programs for new offerings, marketing may provide staff to serve as part of a(n) __________, which consists of a small number of people from different departments who are mutually accountable to accomplish a task or a common set of performance goals. a. cross-functional team b. department c. strategic business unit d. organization e. business consortium

Q: Define "marketing dashboard" and "marketing metric" and explain how these terms are related.

Q: The logistics industry has sales of $800 billion per year. If a third party logistics provider had sales of $8 billion, what would its market share be? Be sure to define market share and show your work in your answer.

Q: Groups of a small number of people from different departments in an organization who are mutually accountable to accomplish a task or a common set of performance goals are referred to as a. designated teams. b. strategic business units. c. cross-functional teams. d. business consortiums. e. venture squads.

Q: Name and briefly describe the seven types of organizational goals or objectives.

Q: A key role of the marketing department is to "look outward." This is accomplished by a. allocating financial resources across strategic business units. b. communicating the vision of the marketing department forcefully enough to be incorporated into the overall mission of the company. c. forming cross-functional teams to help solve the organization's marketing problems. d. implement new accounting methods passed by Congress. e. listening to customers, developing and producing offerings, and implementing marketing program activities.

Q: Railroad Photo The railroad photo above shows a train hauling cargo. What "business" did rail executives believe they were in during mid-20th century? What business is a railroad firm really in? Why?

Q: Elton John Image Ben & Jerry's introduces products like its Goodbye Yellow Brickle Road ice cream flavor (see the Elton John image) for a limited time each year as a response to its mission. Name and briefly describe the three interrelated parts of Ben & Jerry's mission.

Q: Specialized functions such as marketing and finance are generally referred to as __________. a. teams b. groups c. divisions d. departments e. business units

Q: In 25 words of less, write a mission statement for the educational institution you are currently attending.

Q: Medtronic is the world leader in producing heart pacemakers and other medical devices. Earl Bakken, Medtronic's founder, wrote its mission statement when he launched the firm over a half century ago. Summarize Medtronic's mission statement and comment as to why it is a good one.

Q: What is an organization's mission? What are some elements of a well-written mission statement?

Q: What is a mission?