Q&A Hero

Q: List potential stakeholders for the college or university that you attend.

Q: Each strategic business unit has marketing and other specialized activities (e.g., finance, manufacturing, or research and development) at the __________ level, where groups of specialists actually create value for the organization. a. strategic b. corporate c. functional d. business unit e. compartmental

Q: Figure 1. According to Figure 1. above, what are the three elements that today's visionary organization must do to be forward looking and successful in its marketing environment?

Q: Explain what a visionary organization is and the two key steps that are part of how visionary organizations formulate strategies.

Q: What is a cross-functional team and how is it used?

Q: Apple, a multimarket, multiproduct firm, manufactures and markets iMacs, iPods, iPhones, and iPads as a portfolio of businesses. At what organizational level does Apple set the strategic direction for these businesses to create customer value?

Q: A subsidiary, division, or unit of an organization that markets a set of related offerings to a clearly defined group of customers is referred to as a a. strategic business unit. b. strategic industry level. c. private corporation. d. product grouping. e. marketing department.

Q: Figure 1. Using Figure 1. above, identify and briefly describe the five levels in a hierarchical organizational structure, including the three that are strategic in nature.

Q: Describe the three levels in an organization.

Q: In recent years, many large firms have changed the title of the head of marketing from vice president of marketing to a. chief executive officer. b. corporate marketing official. c. coordinating marketing officer. d. chief marketing officer. e. corporate marketing executive.

Q: Implementation of IBM's "Smarter Planet" strategy has resulted in all of the following EXCEPT: a. a reduction in supply chain costs and inventory levels for retailers. b. a reduction in traffic delays through coordinated signals. c. a reduction in power usage for consumers using smart meters. d. a reduction in crime. e. a reduction in wasted coverage for advertising messages.

Q: The person most likely to oversee product planning and positioning, as well as coordinate public relations initiatives, would most likely be the responsibilities of the __________. a. CEO b. CMO c. CPM d. CPO e. COO

Q: The marketing plan for IBM's "Smarter Planet" strategy included all of the following marketing tactics EXCEPT: a. handing out "Smarter Planet" t-shirts on selected college campuses through the world. b. television ads to describe the "Smarter Planet" strategy. c. a website that provided reports, video clips, and statistics. d. a message in an annual report from IBM's Chairman of the Board and CEO. e. an appearance of "Watson" on the TV game show Jeopardy!

Q: Bill McDermott is President and CEO of SAP Americas and Asia Pacific Japan. SAP is a company that sells extremely expensive enterprise resource planning software to large and mid-sized companies. McDermott operates at the __________ level of his organization. a. business unit b. functional c. corporate d. strategic e. tactical

Q: All of the following were strategic opportunities identified in IBM's 2015 Road Map EXCEPT: a. the connected, "smarter planet." b. cloud and smarter computing. c. a shift from software and services to PCs and hard disk drives. d. business analytics and optimization. e. growth markets such as China, India, Brazil, and Africa.

Q: These senior managers have an increasingly important role in top management because of their ability to think strategically. Most of them bring multi-industry backgrounds, cross-functional management expertise, analytical skills, and intuitive marketing insights to their job. These individuals are referred to as a. chief marketing officers (CMOs). b. chief financial officers (CFOs). c. chief executive officers (CEOs). d. chief human resource officers (CHROs). e. chief operating officers (COOs).

Q: IBM's business strategy to help its clients be more efficient, productive, and responsive to the data generated from the revolution in the global marketplace concerning the instrumentation and integration of the world's processes and infrastructures is referred to as a. "The IBM Way." b. "Smarter Planet." c. "Reinvent Business." d. "The 2015 Road Map." e. "Big Blue."

Q: Evergreen Air Center is the world's largest parking lot for unwanted commercial aircraft. Airlines pay from $750 to $5,000 monthly for the storage services provided by Evergreen. Prior to September 2001, the company had 140 discarded airplanes at its Arizona facilities and was growing at a rate of about six planes monthly with about two per month sold for parts and/or scrap metal. After calamity struck the airline industry in September 2001, the airlines have retired over 1,000 planesmany of which have found their way to Evergreen. Now the actual number of planes stored at Evergreen differs significantly from the prediction based on previous behavior in effect before September 2001. This difference is referred to as the __________. a. contribution margin b. marginal trend c. breakeven point d. planning gap e. sales differential

Q: The corporate level in an organization is where a. the department heads direct overall strategy for the entire organization. b. groups of specialists actually create value for the organization. c. a small number of people from different departments are mutually accountable to accomplish a task or a common set of performance goals. d. a subsidiary, division, or unit of an organization markets a set of related offerings to a clearly defined group of customers. e. top management directs overall strategy for the entire organization.

Q: Figure 1. Based on the sales revenue data shown in Figure 1. above, as a marketing manager for Kodak, you would MOST LIKELY conclude that a. the planning gap is narrowing. b. the actual sales results (line BE) are on track with the new plan (line BD). c. the actual sales results (lines AB and BE) are on track with the plan in place since 2003 (line BC). d. sales are increasing significantly since 2003 (line BD). e. another new plan should have been implemented in 2009 since the planning gap (wedge DBC) is widening each year thereafter.

Q: The corporate level refers to the level in an organization where top management a. develops marketing strategies and tactics for the marketing department to implement. b. directs overall strategy for the entire organization. c. executes all marketing program actions to ensure consistency of performance. d. develops overall sales projections not only for the short term but also for a period of at least two to five years. e. supervises the hiring, firing, and training of all marketing department personnel.

Q: Figure 1. Based on the information in Figure 1. above, the planning gap between 2003 and 2012, as represented by the wedge DBC, __________. a. is widening b. is narrowing c. is staying the same d. cannot be determined e. actually began in 1998

Q: Figure 1. The question mark (?) represented by the wedge DBC in Figure 1. above is the __________. a. contribution margin b. marginal trend c. breakeven point d. planning gap e. sales differential

Q: Figure 1. In Figure 1. above, "E" represents a. board of directors. b. corporate level. c. departments. d. functional level. e. strategic business unit level.

Q: After examining a planning gap, firms typically attempt to a. decide if the time horizon should be increased or decreased. b. perform a SWOT analysis with their major competitor as the principal focus. c. use statistical linear trend analysis to interpret the results. d. exploit a positive deviation or correct a negative deviation. e. adopt a market-product grid to analyze the sales results.

Q: Figure 1. In Figure 1. above, "D" represents the a. strategic business unit level. b. functional level. c. corporate level. d. board of directors. e. CMO.

Q: The planning gap refers to a. the difference between projected total costs and realized total revenues. b. the difference between projected total costs and net profits. c. the difference between marginal revenue and marginal cost. d. the percentage point difference between a firm and its next largest competitor in terms of market share. e. the difference between the projection of the path to reach a new goal and the projection of the path of the results of a plan already in place.

Q: Figure 1. In Figure 1. above, "C" represents the a. strategic business unit level. b. board of directors. c. corporate level. d. functional level. e. CMO.

Q: The difference between the projection of the path to reach a new goal and the projection of the path of the results of a plan already in place is referred to as the __________. a. planning gap b. contribution margin c. points of difference d. breakeven point e. sales response function

Q: Figure 1. In Figure 1. above, "B" represents the a. functional level. b. board of directors. c. corporate level. d. department level. e. strategic business unit level.

Q: The two major aspects of the evaluation phase of the strategic marketing process are a. segmenting the market and selecting target markets. b. establishing a business mission and designing measurable goals and objectives. c. designing the marketing mix and setting the budget. d. comparing the results of the marketing program with the goals in the written plans to identify deviations and to act on them. e. executing the marketing plan and designing the marketing organization.

Q: Figure 1. In Figure 1. above, "A" represents the a. functional level. b. board of directors. c. corporate level. d. CEO. e. strategic business unit level.

Q: The third phase of the strategic marketing process is the __________. a. tactics phase b. strategic phase c. planning phase d. implementation phase e. evaluation phase

Q: Large organizations are extremely complex. They usually consist of __________ organizational levels whose strategies are linked to marketing. a. three b. five c. ten d. fifteen e. twenty to thirty

Q: David and Cecilia Stanford, owners of Prairie Herb vinegars, decided to offer the product in 5-ounce and 13-ounce sizes. They decided to sell the vinegar only through the mail and to price the smaller bottle at $4.45 and the largest bottle at $13.25. These actions consist of Prairie Herb's marketing a. tactics. b. missions. c. visions. d. strategies. e. customer values.

Q: Which of the following statements about strategy is most accurate? a. An organization can be all things to all people because it has access to all the resources it needs to discover and satisfy the needs and wants of its target markets. b. The marketing department helps to both set an organization's direction and move it there. c. The American Marketing Association (AMA) recently has established the definition of strategy. d. Strategy is an organization's short-term course of action designed to deliver a broad customer experience while achieving its goals. e. Only start-up organizations must develop strategies to help them (1) raise capital and (2) focus and direct their efforts to accomplish their goals.

Q: Compared to marketing strategies, marketing tactics generally involve actions that a. are detailed day-to-day operational decisions. b. are long-term rather than short-term. c. involve upper levels of management rather than front-line managers. d. are general rather than specific in nature. e. have been successfully implemented in the past.

Q: The detailed day-to-day operational decisions essential to the overall success of marketing strategies are referred to as __________. a. marketing plans b. marketing programs c. marketing tactics d. marketing strategies e. marketing procedures

Q: Marketing tactics refer to the a. long-term decisions made to implement the marketing program and the monitoring of those decisions. b. detailed day-to-day operational decisions essential to the overall success of marketing strategies. c. steps taken to develop an effective marketing plan. d. development of marketing strategies to achieve the organization's marketing objectives. e. refinement of the organization's mission based on the results obtained from a marketing audit.

Q: Which of the following statements reflects the key elements in developing a marketing strategy for L. M. Schofield, Inc., a company that produces specialized concrete surfaces for heavily trafficked areas such as retail outlets and amusement parks? a. Buy ads in all the major trade journals aimed at businesses in the entertainment and/or sports industry. b. Communicate using direct mail about the various walking surfaces Schofield can create for contractors who are building riding and walking paths. c. Design a sample ad and test it using visitors at a trade show. d. Hire six new sales representatives for the Midwest regional office and train them on all aspects of concrete surfaces. e. Conduct a focus group to decide on which surface to use for a theme park in Brazil.

Q: An industry refers to a. organizations that develop similar offerings. b. organizations who manufacture identical products to meet ISO 9000 specifications. c. companies that are active in the production of materials that are used in finished products. d. a group of people or firms united through strategic alliances. e. the economic activity concerned with the selling of finished products to wholesalers and retailers.

Q: A marketing strategy is the means by which a marketing goal is to be achieved. The two factors that usually characterize a marketing strategy are a. specific organizational goals and objectives. b. a detailed marketing plan and a marketing budget. c. marketing strategies and marketing tactics. d. a specified target market and a marketing program to reach it. e. marketing programs and marketing dashboards to evaluate them.

Q: Organizations that develop similar offerings, when grouped together, create a(n) a. conglomerate. b. merger. c. industry. d. sector. e. monopoly.

Q: The term marketing strategy is used to address both the __________ and the __________. a. product groupings; target market b. target market; marketing program c. subjective; objective d. revenues generated; market share achieved e. feasibility; time required to implement

Q: According to the textbook, all of the following terms can be used interchangeably to refer to entities that engage in business and nonprofit operations EXCEPT: a. an organization. b. a company. c. a firm. d. a corporation. e. an enterprise.

Q: A marketing strategy refers to a. the means by which a marketing goal is to be achieved, usually characterized by a specified target market and a marketing program to reach it. b. the tactical decisions made to implement the marketing program. c. a technique to quantify performance measures and growth targets of a firm's strategic business units (SBUs). d. a road map for the marketing activities of an organization for a specified future time period, such as one year or five years. e. the detailed day-to-day operational decisions.

Q: Social entrepreneurs are usually structured as __________. a. business firms b. subchapter S corporations c. nonprofit organizations d. governmental agencies e. 501 (c) 3 for profit organizations

Q: A marketing __________ is defined as the means by which a marketing goal is to be achieved, usually characterized by a specified target market and a marketing program to reach it. a. plan b. tactic c. strategy d. concept e. action

Q: __________ applies innovative approaches to organize, create, and manage a venture to solve the practical needs of society. a. Corporate welfare b. Social entrepreneurship c. Sustainable development d. Cause marketing e. Societal capitalism

Q: Figure 1. In Figure 1. above, "B" represents a firm's partnerships with a. other organizations. b. suppliers. c. shareholders. d. customers. e. other departments.

Q: Figure 1. In Figure 1. above, "A" represents a firm's relationships with a. suppliers. b. customers. c. shareholders. d. other departments. e. other organizations.

Q: The American Red Cross created a series of advertisements to encourage people to donate blood. After viewing an ad, Amanda went to the local Red Cross office and donated a pint of her blood. Amanda returned home feeling happy that she had performed a good deed. Was this an exchange in a marketing sense? a. Yes, because the blood was donated to the Red Cross based on an advertisement, a marketing activity. b. Yes, because the donated blood was exchanged for a feeling of satisfaction. c. No, because the Red Cross is nonprofit organization. d. No, because no money changed hands. e. No, because the Red Cross, a service organization, did not provide Amanda with a product.

Q: In marketing, the idea of exchange refers to a. the negotiation phase between the manufacturer and the seller. b. the financial remuneration (monetary payment) for a product or service. c. the trade of things of value between buyer and seller so that each is better off after the trade. d. the bartering of products and services for other products and services. e. the practice of swapping products and services for other products and services rather than for money.

Q: Mizuno designs and sells high quality baseball gloves. Who benefits the LEAST from the firm's marketing activities for its gloves? a. a baseball or softball player who purchases a new Mizuno glove b. the Sports Authority salesperson who sells a player a Mizuno glove c. the supplier who provided the leather to Mizuno d. the shareholder of Mizuno that designs and manufactures the gloves e. No one should benefit the "least." All should be benefit from Mizuno's marketing efforts, even society at large.

Q: Which of the following statements about stakeholders is most accurate? a. Ultimately, the only relevant stakeholder is the ultimate consumer. b. The organization, suppliers, shareholders, employees, and consumers are all stakeholders of an organization and all should benefit from the organization's marketing activities. c. Employees can be stakeholders only if they own shares in their company. d. Suppliers are the most important stakeholders because without them, products could never be produced. e. The only way to be a stakeholder is to have a financial investment in an organization's product, service, or idea.

Q: The common factor among an organization's chairman of the board, stockholders, suppliers, laborers, customers, and society at large is that a. all are stakeholders and should benefit from the marketing of a product. b. everyone has a say in the ultimate design of a product. c. everyone is legally culpable if something goes wrong with a product. d. all have to make some type of direct financial investment in the organization. e. all use the product or service marketed by the organization.

Q: All of the following are true about marketing EXCEPT: a. Marketing is a broader activity than advertising. b. Marketing stresses the importance of delivering genuine benefits in the offerings of products, services, and ideas. c. Marketing persuades people to buy the "wrong" things. d. When an organization engages in marketing, all stakeholders should benefit. e. Marketing is a broader activity than personal selling.

Q: The combined American Marketing Association's 2004/2007 definitions of marketing used in the textbook defines marketing as a. the activity for creating, communicating, delivering, and exchanging offerings solely for the benefit of the organization's stockholders. b. the activity for creating, communicating, delivering, and exchanging solely for the benefit of the organization's customers. c. the activity for creating, communicating, and delivering a product or service at the highest possible price. d. the activities of advertising, promoting, and selling products to the greatest number of profitable customers. e. the activity for creating, communicating, delivering, and exchanging offerings that benefit its customers, the organization, its stakeholders, and society at large.

Q: Marketing refers to a. the activity for creating, communicating, delivering, and exchanging offerings that benefit the organization, its shareholders, and employees. b. the activity for creating, communicating, delivering, and exchanging offerings that benefit its customers, the organization, its stakeholders, and society at large. c. the activity for creating, communicating, delivering, and exchanging offerings that benefit the organization, its shareholders, and customers. d. the activity for creating, communicating, delivering a product or service to a specific segment of the market, and providing the greatest customer value at the highest possible price. e. the activities of advertising, promoting, and selling products to the greatest number of potential customers while simultaneously meeting the needs of the customer and organization.

Q: Marketing refers to a. the production of products or services that will generate the highest return on investment. b. the strategies used in the advertising and promotion of products and services. c. the process of identifying target market segments for a product or service. d. the activity involved in actually getting a product or service to ultimate consumers and organizational buyers. e. the activity for creating, communicating, delivering, and exchanging offerings that benefit its customers, the organization, its stakeholders, and society at large.

Q: Identify the six prelaunch issues that 3M and David Windorski needed to address before the Post-itFlag Highlighter could be manufactured and marketed.

Q: __________ of all new businesses fail within five years of their launch. a. Only 5 percent b. Only 10 percent c. Only 25 percent d. About 40 percent e. Over 50 percent

Q: At the BMW website, BMW.com, you can design your own personal BMW. If you choose to use this method to purchase a car, what type of utility(ies) has(have) been created?

Q: Initially, Facebook targeted which market segment of consumers? a. grade school children ages 6 to 12 years old b. high school students c. college students d. adults with professional occupations e. senior adults 55 years and older

Q: Which of the following statements about marketing is most accurate? a. Unless you take a marketing class, you will never truly know anything about marketing. b. Marketing is nothing more than common sense. c. Marketing requires an innate sense of creativity; you either have it or you don"t. d. You can call yourself a marketing expert only if you have sold something. e. You are already a marketing expert because as a consumer, you have already been involved in marketing decisions.

Q: If other companies applied the same strategy David Windorski used at 3M, they would most likely a. avoid the use of mock-ups and working models to speed up the new-product development process and get the product out to the market faster. b. search continuously to discover customers' needs. c. copy 3M's "5% Rule" to do unfunded research. d. avoid excessive attention to customers' demands because they cannot always differentiate between their needs and their wants. e. focus on the shareholders of the company and know the strategy will follow.

Q: What is the difference between micromarketing and macromarketing?

Q: How much time does 3M allow their inventors for the purpose of doing initially unfunded research? a. 5% b. 10% c. 15% d. 25% e. 35%

Q: While working at 3M, Windorski and his team observed and questioned students about how they read textbooks, took notes, and prepare for exams to a. discover a potentially new way to satisfy student needs by creating a new product. b. convince them of 3M's superiority over other competitors. c. determine how much the average college student traditionally spends on office supplies. d. find possible correlations between students' study styles and their final grades. e. develop advertising that relates more effectively with a younger student population.

Q: Many market-oriented, older manufacturing organizations have experienced four distinct stages in the life of their firms. Beginning with the 1860s, list and define each of the four eras of U.S. business history.

Q: Companies are just beginning to use Twitter as a tool in their relationship marketing programs. In what ways could Twitter benefit both customers and organizations?

Q: The Apple iPhone 4S is rated by Consumer Reports as being one of the best smartphones in the industry. Define customer value. In what ways do you think the Apple iPhone 4S provides value for its customers?

Q: Why do some executives feel that environmental factors are NOT entirely outside their influence?

Q: List and describe the five environmental forces in a marketing decision that are outside the control of marketing managers.

Q: Add your own personal experience and creativity to what you have just learned in Chapter 1. Formulate a plan to assess the needs of either (1) students who have too many textbooks to carry to and from class or (2) executives who are too busy to keep up with the latest information in their field.

Q: Most people would assume that in marketing the only thing of value to "exchange" would be monetary (check, credit/debit, currency, and/or coin transactions). What else can be exchanged? Provide an example of a nonmonetary transaction that still fits the criteria of exchange.

Q: Explain the market research that David Windorski, 3M inventor, did to develop the Post-itFlag Highlighter.

Q: In the future, 3M will make use of __________ to attract new customers. a. product extensions b. social responsibility c. social entrepreneurship d. graduate students to design new products e. cause marketing by "going green"

Q: All of the following were pre-launch issues 3M encountered before it could offer the Post-itFlag Highlighter EXCEPT: a. manufacturing issueswhere will the product be produced? b. place issueshow will 3M persuade office supply retailers and college bookstores to carry the items? c. promotion issueshow will 3M tell students the offering exists? d. price issueswhat should 3M charge for this innovation and should there be differences between different retail outlets (college bookstores, mass merchandisers, office supply stores, etc.)? e. market segmentation issueswho is(are) the target market(s) for this offering?

Q: Which of the following statements about 3M's market research prior to introducing the Post-itFlag Highlighter is most accurate? a. David Windorski worked with clay and wood models to see how much additional weight students would be willing to carry in their backpacks. b. David Windorski asked students to dump the contents of their backpacks to make sure no clay prototype was being stolen. c. David Windorski used focus groups, observed students' studying behavior, and even gave out trial Post-itFlag Highlighters to a sample of students to try for a month. d. David Windorski hired students to act as "brand evangelists" to handout promotional samples of Post-itFlag Highlighters to other students at their respective universities and colleges during "move-in day." e. David Windorski hired students as "mystery shoppers" to see what office supplies students bought at their college bookstores during the week before as well as the first week of classes.