Partnering to Build Customer Engagement Part 3

72) In the 4Ps of the marketing mix, promotion refers solely to advertising. Answer: FALSE 73) The 4As framework takes into consideration the buyer's view of the market. Answer: TRUE 74) Discuss the four Ps of the typical marketing mix. Some people consider that there should be more than four marketing mix elements. Suggest two additional aspects that the marketing mix could include. Answer: The marketing mix is the set of tactical marketing tools that a firm blends to produce the response it wants in the target market. The marketing mix consists of everything a firm can do to influence the demand for its product. The many possibilities can be collected into four groups of variables — the four Ps. Product means the goods-and-services combination a company offers to the target market. Price is the amount of money customers must pay to obtain the product. Place includes company activities that make the product available to target consumers. Promotion refers to activities that communicate the merits of the product and persuade target customers to buy it. Additional aspects of the marketing mix: (Students' answers to this part of the question may vary. The answer given here is merely indicative.) Additional aspects could include services and packaging. 75) Managing the marketing function begins with a complete analysis of the company's situation. A thorough ________ is typically undertaken to guide decision making. A) situation analysis B) internal assessment C) industry overview D) SWOT analysis E) portfolio analysis Answer: D 76) CVS Pharmacy changed its name to CVS Health, reshaping and broadening its lines of products and services to align more appropriately with its revamped "better health" mission. For example, it stopped selling tobacco products altogether. How would this be classified in a SWOT analysis? A) strength B) weakness C) opportunity D) threat E) barrier to entry Answer: A 77) In a SWOT analysis, which of the following would most likely be considered a strength of a company? A) a favorable economic climate that encourages consumption B) the exit of a competitor from the market C) higher prices of the company's products resulting from inflation D) an increase in consumer interest in the company's products E) an improvement in the company's production technology Answer: E 78) In a SWOT analysis, which of the following would be considered a weakness of a company? A) an unfavorable economic climate that discourages consumption B) the exit of a competitor from the market C) inflation that leads to higher prices of the company's products D) falling consumer interest in its products E) obsolete technologies used by the company Answer: E 79) In a SWOT analysis, ________ refer to favorable factors or trends in the external environment that a company may be able to exploit to its advantage. A) strengths B) strategies C) threats D) opportunities E) controls Answer: D 80) In a SWOT analysis, ________ refer to unfavorable external factors or trends that may present challenges to performance. A) threats B) strategies C) weaknesses D) opportunities E) strengths Answer: A 81) Nike's goal to increase sales of its running shoes by 25 percent during the first 6 months of the new fiscal year is an example of a ________. A) differentiation objective B) positioning objective C) marketing objective D) marketing strategy E) target market strategy Answer: C 82) The process that turns marketing plans into marketing actions to accomplish strategic marketing objectives is called marketing ________. A) analysis B) implementation C) control D) planning E) design Answer: B 83) At John Deere, thousands of people both inside and outside the organization make decisions about target segments, branding, product development, pricing, promotion, and distribution. They talk with engineering about product design, advertising agencies about ad campaigns, and large retailers like Lowe's about quality offerings. This is an example of ________. A) marketing planning B) marketing standards C) marketing control D) marketing strategy E) marketing implementation Answer: E 84) Which of the following best describes a marketing department with a functional organization? A) A company creates large teams, or even whole divisions, to serve domestic and international markets. B) Marketing managers are responsible for developing marketing strategies and plans for their specific markets or customers, and the company is organized around the needs of specific customer segments. C) A product manager develops and implements a complete strategy and marketing program for a specific product or brand. D) Sales and marketing people are assigned to specific countries, regions, and districts. E) Different marketing activities are headed by specialists such as sales managers, advertising managers, marketing research managers, and customer service managers. Answer: E 85) Evaluating the results of marketing strategies and plans and taking corrective action to ensure that the objectives are attained is called ________. A) marketing control B) marketing implementation C) market planning D) marketing development E) market targeting Answer: A 86) Which of the following is true of marketing ROI? A) Marketing ROI uses only those marketing factors that can be measured in dollars. B) Marketing ROI ignores customer-centered measures of marketing impact, such as customer acquisition and retention. C) Marketing ROI is easier to calculate than financial ROI. D) Marketing ROI cannot be assessed in terms of standard marketing performance measures, such as brand awareness, sales, or market share. E) Marketing ROI measures the profits generated by investments in marketing activities. Answer: E 87) In a SWOT analysis, strengths and weaknesses refer to a firm's external environment, while opportunities and threats refer to the internal environment. Answer: FALSE 88) The most common form of marketing organization is the product management organization. Answer: FALSE 89) Marketers must practice constant marketing control to ensure that objectives are attained. Answer: TRUE 90) A company can assess marketing ROI in terms of standard marketing performance measures, such as brand awareness, sales, or market share. Answer: TRUE 91) Marketing dashboards are used to monitor strategic marketing performance. Answer: TRUE 92) Marketing ROI measures the profits generated by investments in marketing activities. Answer: TRUE 93) What is a SWOT analysis? Why is it required? Answer: Managing the marketing function begins with a complete analysis of a company's situation. The marketer should conduct a SWOT analysis, by which it evaluates a company's overall strengths (S), weaknesses (W), opportunities (O), and threats (T). Strengths include internal capabilities, resources, and positive situational factors that may help a company serve its customers and achieve its objectives. Weaknesses include internal limitations and negative situational factors that may interfere with a company's performance. Opportunities are favorable factors or trends in the external environment that a company may be able to exploit to its advantage. And threats are unfavorable external factors or trends that may present challenges to performance. Conducting a SWOT analysis is important because a company should analyze its markets and marketing environment to find attractive opportunities and identify environmental threats. It should analyze company strengths and weaknesses as well as current and possible marketing actions to determine which opportunities it can best pursue. The goal is to match the company's strengths to attractive opportunities in the environment, while simultaneously eliminating or overcoming the weaknesses and minimizing the threats. Marketing analysis provides inputs to each of the other marketing management functions. 94) Define marketing planning. Briefly outline what a company should cover in its marketing plan. Answer: Marketing planning involves deciding on marketing strategies that will help a company achieve its overall strategic objectives. A detailed marketing plan is needed for each business, product, or brand. A typical product or brand marketing plan begins with an executive summary that quickly reviews major assessments, goals, and recommendations. The main section of the plan presents a detailed SWOT analysis of the current marketing situation as well as potential threats and opportunities. The plan then states major objectives for the brand and outlines the specifics of a marketing strategy for achieving them. In addition, action programs for implementing the marketing strategy along with the details of a supporting marketing budget are presented. The final section outlines the controls used to monitor progress and corrective action. Copyright © 2017 Pearson Education, Inc. 95) Kawaii Electronics sells air conditioning systems for office buildings. The company's marketing department is currently structured as a functional organization. However, Kawaii is considering changing the structure to either a product management or a customer management organization. In a brief essay, describe each type of organization: functional, product management, and customer management. What are the advantages and/or disadvantages of each structure for Kawaii? Which structure do you recommend for Kawaii? Why? Answer: (Students' answers may vary. The answer given below is indicative.) Under the functional organization, different marketing activities are headed by a functional specialist — a sales manager, an advertising manager, a marketing research manager, a customer service manager, or a new product manager. Under a product management organization, a product manager develops and implements a complete strategy and marketing program for a specific product or brand. Unless the company has a few standout products, this system will not benefit it as much as other methods. Considering that the company sells one basic product type, this system may not be profitable for the company. Under a market or customer management organization, the company is organized around the needs of specific customer segments. In firms that use this organization, one product line is sold to many different types of markets and customers that have different needs and preferences. Though the firm sells a single type of product and product line, all its customers are offices and significant differences will most likely not exist. Though the company may segment its market based on office size, this may be an inefficient use of company resources. 96) ToyTrain is a toy company that sells its products in most regions of the United States. It produces a variety of toys for children of every age group, from toddlers to preteens. What are ToyTrain's options for organizing its marketing department? Briefly describe each structure as it would apply to ToyTrain. Which organization do you think would be best for ToyTrain? Why? Answer: (Students' answers may vary. The answer given below is indicative.) Modern marketing departments can be arranged in several ways. The most common form of marketing organization is the functional organization. Under a functional organization, different marketing activities are headed by a functional specialist — a sales manager, an advertising manager, a marketing research manager, a customer-service manager, or a new product manager. As ToyTrain is based only in the United States, a functional organization may be appropriate if marketing strategies and messages need to be consistent across the region. Under a geographic organization, sales and marketing people are assigned to specific countries, regions, and districts. A company that sells across a country could benefit from a geographic organization. As ToyTrain sells products across the country, organizing its sales and marketing personnel by region may also be appropriate. Under a product management organization, a product manager develops and implements a complete strategy and marketing program for a specific product or brand. Unless the company has a few standout brands, this system will not benefit it as much as other methods. Under a market or customer management organization, the company is organized around the needs of specific customer segments. In firms that use this organization, one product line is sold to many different types of markets and customers that have different needs and preferences. ToyTrain could use this method and organize its departments according to the age groups of the children it caters to and the types of toys suitable for each group. The company could also use some combination of these organizational forms. 97) RTF Developers is a construction company with a presence in several countries. The company currently organizes its marketing department using a functional system of organization, but this seems inefficient. Explain why a geographic organization would benefit the company more than a functional organization. Answer: (Students' answers may vary. The answer given below is indicative.) Under a functional organization, different marketing activities are headed by a functional specialist — a sales manager, an advertising manager, a marketing research manager, a customer service manager, or a new product manager. Under a geographic organization, sales and marketing people are assigned to specific countries, regions, and districts. As RTF has a presence in many countries, a geographic system might benefit it more than a functional system. Organizing its marketing department by country would allow its marketing plans and messages to be tailored to the culture and customers of that particular country and may produce a better result than centralized planning across countries. A geographic organization also allows salespeople to settle into a territory, get to know their customers, and work with a minimum of travel time and cost. 98) How do organizations carry out marketing control? Answer: Marketing control is the process of evaluating the results of marketing strategies and plans and taking corrective action to ensure that the objectives are attained. As many surprises occur during the implementation of marketing plans, marketers must practice constant marketing control. Marketing control involves four steps. Management first sets specific marketing goals. It then measures its performance in the marketplace and evaluates the causes of any differences between expected and actual performance. Finally, management takes corrective action to close the gaps between goals and performance. This may require changing the action programs or even changing the goals. Operating control involves checking ongoing performance against the annual plan and taking corrective action when necessary. Its purpose is to ensure that the company achieves the sales, profits, and other goals set out in its annual plan. It also involves determining the profitability of different products, territories, markets, and channels. Strategic control involves looking at whether the company's basic strategies are well matched to its opportunities. Marketing strategies and programs can quickly become outdated, and each company should periodically reassess its overall approach to the marketplace. 99) What are marketing dashboards? How do they benefit marketers? Answer: A company can assess marketing ROI in terms of standard marketing performance measures, such as brand awareness, sales, or market share. Many companies are assembling such measures into marketing dashboards — meaningful sets of marketing performance measures in a single display used to monitor strategic marketing performance. Just as automobile dashboards present drivers with details on how their cars are performing, the marketing dashboard gives marketers the detailed measures they need to assess and adjust their marketing strategies. 100) Raintree Developers has been measuring its marketing return on investment (or marketing ROI) to assess its marketing performance for the past few years. Explain why this method may not accurately reflect the company's performance and what Raintree can use to better estimate its performance. Answer: (Students' answers may vary. The answer given below is indicative.) Marketing ROI is the net return from a marketing investment divided by the costs of the marketing investment. ROI is a measure of the profits generated by investments in marketing activities. Marketing ROI can be difficult to assess because the benefits of marketing are not always easily translated in dollar amounts. For instance, returns such as advertising and brandbuilding impact cannot be easily put into dollar returns. However, marketing ROI can be assessed in terms of more quantifiable standard marketing performance measures such as brand awareness, sales, or market share. Beyond standard performance measures, Raintree can also use customer-centered measures such as customer acquisition, customer engagement, customer retention, customer equity, and customer lifetime value.