Question 1

Suppose a customer calls Breeana's office at Smith's in Sydney.The customer has a friend in Perth who was just telling her about a new snack Smith's has introduced that is selling rapidly.Breeana's office does not market this product and at the present knows very little about it.Based on this information, this firm is most likely organised according to which of the following?
A)Function
B)Product
C)Region
D)Customer
E)Market

Accepted Answer

The fact that Breeana's office in Sydney does not know much about a new product that is selling well in Perth suggests that this company is likely organized by regions. Each region would have its own marketing and sales team, and they may not be fully aware of all the products being offered in other regions.

Question 2

Holden has centralised marketing operations with personnel who direct marketing research, distribution, sales, advertising and so forth, and report directly to the top-level marketing executive.Holden's marketing department is organised by:
A)product.
B)region.
C)types of customers.
D)subregion.
E)function.

Accepted Answer

The passage clearly states that Holden has a centralised marketing department with personnel who direct marketing research, distribution, sales, advertising, and so forth, reporting directly to the top-level marketing executive. This implies that the marketing department is organised by function, rather than by product, region, or type of customer.

Question 3

For marketing implementation to be successful, the needs of __________ customers must be met.
A)external
B)internal
C)internal and external
D)planned
E)planned and realised

Accepted Answer

Successful marketing implementation requires meeting the needs of both internal and external customers. Internal customers include employees, partners, and other stakeholders within the organization who are critical to the implementation process. External customers are the end users of the product or service and are essential for the success of the marketing strategy. Both sets of customers must be considered and their needs met for successful implementation. Answer D and E are not accurate because planned and realized customers are not relevant in determining the success of marketing implementation. Answer A is incorrect because external customers alone are not sufficient for successful implementation, internal customers must also be considered. Answer B is incorrect because internal customers alone are not sufficient for successful implementation, external customers must also be considered.

Question 4

__________ refers to the coordination of internal exchanges between an organisation and its employees to better achieve successful external exchanges between the organisation and its customers.
A)Internal management
B)Internal leadership
C)Empowerment
D)Internal marketing
E)Total quality management

Accepted Answer

Internal marketing refers to the process of using marketing techniques and strategies to communicate the value of an organisation's brand to its employees, in order to encourage them to work towards its goals and to provide better customer service. Internal marketing helps to create a more motivated, engaged and customer-focused workforce, which in turn results in better customer satisfaction and loyalty.

Question 5

Which of the following is false with regard to customer lifetime value?
A)It is a key measurement that forecasts a customer's lifetime economic contribution based on continued relationship marketing efforts.
B)It can be calculated by taking the sum of the customer's present value contributions to profit margins over a specific time frame.
C)It includes not only an individual's propensity to engage in purchases but also his or her strong word-of-mouth communication about the firm's products.
D)All customers have equal value to a firm.
E)It is the only gauge that incorporates revenue, expense and customer behaviour, and adopts a customer-centric approach.

Accepted Answer

All customers do not have equal value to a firm. Some customers may generate more revenue and profits than others, while some may cost the firm more in terms of acquisition and retention expenses. Therefore, it is important for firms to identify their most valuable customers and create targeted marketing initiatives to retain them.

Question 6

An appliance manufacturer that sells to large retail stores, wholesalers and institutions would probably organise its marketing unit on the basis of:
A)subregions.
B)national divisions.
C)types of customers.
D)functions.
E)products.

Accepted Answer

Organizing the marketing unit based on types of customers, such as large retail stores, wholesalers and institutions, allows the company to tailor its marketing efforts to each customer type and better meet their specific needs and preferences. It also allows for more effective account management and relationship building with each customer type.

Question 7

The marketing control process consists of:
A)establishing goals, market scanning and market share analysis.
B)establishing standards, evaluating performance and reducing the differences between desired and actual performance.
C)establishing goals and measuring performance.
D)planning, implementing and measuring marketing activities.
E)setting objectives, implementing strategies and reducing the differences between desired and actual performance.

Accepted Answer

The marketing control process involves establishing standards, evaluating performance and reducing differences between desired and actual performance. This process helps managers to identify whether the marketing activities have been successful in achieving the desired outcomes and to take corrective actions if needed. A, C, D, and E are not fully comprehensive in their explanation of the marketing control process.

Question 8

Procter & Gamble, like many firms in the consumer packaged-goods industry, is organised by:
A)function.
B)product.
C)region.
D)types of customers.
E)subregion.

Accepted Answer

Procter & Gamble is organized by product, meaning that each product line has its own team responsible for its development, marketing, and sales. This structure allows for increased focus and specialization within each product category.

Question 9

A marketing unit can be organised according to functions, products, regions and:
A)sales.
B)target markets.
C)competitive units.
D)types of customers.
E)product features.

Accepted Answer

A marketing unit can also be organized according to types of customers, focusing on different customer segments and their specific needs.

Question 10

Organising a marketing unit by region works well for a company that:
A)produces and markets diverse products.
B)is small and has a centralised marketing operation.
C)has customers whose characteristics and needs vary greatly from one region to another.
D)has several groups of customers whose needs and problems are different.
E)offers specialised marketing mixes for different products.

Accepted Answer

Organising a marketing unit by region works well for a company that has customers whose characteristics and needs vary greatly from one region to another. This allows the company to tailor their marketing strategies to the specific needs of each region, resulting in more effective marketing and potentially higher sales.

Question 11

The managerial actions taken to make all members of an organisation understand and accept their respective roles in implementing the marketing strategy are referred to as:
A)internal management.
B)extended marketing.
C)intended marketing.
D)external marketing.
E)internal marketing.

Accepted Answer

The term "internal marketing" refers to the actions taken to ensure that all members of an organization understand and accept their roles in implementing the marketing strategy. This includes training, communication, and other steps to promote a marketing mindset throughout the organization.

Question 12

A company is expanding its operations outside Australia.To improve local managers' responsiveness to local conditions, the company's senior management has decided to delegate decision-making authority further down the chain of command.This company is:
A)building a marketing-oriented organisation.
B)empowering employees.
C)centralising.
D)decentralising.
E)making a serious error.

Accepted Answer

The company is decentralising, which means decision-making authority is being delegated further down the chain of command. This is intended to improve local managers' responsiveness to local conditions.

Question 13

A disadvantage of organising a firm's marketing unit by products is that:
A)product managers lack adequate control over marketing activities.
B)large firms might experience coordination problems.
C)it can be expensive.
D)specialised marketing assistance is less readily available.
E)marketing flexibility is limited.

Accepted Answer

Organizing by products can lead to increased costs due to the need for separate marketing teams and resources for each product line.

Question 14

If you were a marketing manager, under which type of organisational structure would you most likely be working if your firm were a large business with centralised marketing operations?
A)Organisation by type of customer
B)Functional organisation
C)Organisation by regions
D)Organisation by products and regions
E)Organisation by products

Accepted Answer

Under a functional organisation, departments are structured by the functions they perform, such as marketing, finance, and operations. In a large business with centralised marketing operations, the marketing department would likely be structured under a functional organisation. This allows for a centralised approach to marketing and ensures consistency in marketing efforts across the organization.

Question 15

Customer relationship management is facilitated by gathering useful data from:
A)telephone interactions with customers.
B)personal interactions with customers.
C)online interactions with customers.
D)all customer-contact points.
E)all exchange transactions.

Accepted Answer

Customer relationship management is facilitated by gathering useful data from all customer-contact points, which includes telephone, personal interactions, online interactions, and exchange transactions. This comprehensive approach helps to identify customer needs and preferences, improve customer satisfaction, and ultimately build strong, long-term relationships with customers.

Question 16

Key factors in determining the best organisational structure for a marketing unit are the:
A)preferences of top management.
B)fiscal resources of the firm.
C)number of employees.
D)diversity of the firm's products and the characteristics and needs of the people in the target market.
E)skill levels of employees.

Accepted Answer

The best organisational structure for a marketing unit should be based on the diversity of the firm's products and the characteristics and needs of the people in the target market. This is because marketing is all about understanding the needs of the target market and creating a strategy to meet those needs. Therefore, the structure should align with the specific product or service being marketed and the target market. A structure that works for one product or market may not work for another. Factors such as preferences of top management, fiscal resources of the firm, number of employees, and skill levels of employees can all play a role, but they should not be the sole determining factors in the structure of the marketing unit.

Question 17

In a traditional organisation, marketing decisions are generally:
A)very decentralised.
B)centralised at the top levels of the organisation.
C)made by frontline employees.
D)made by frontline managers.
E)made only by the CEO.

Accepted Answer

In a traditional organisation, marketing decisions are generally centralised at the top levels of the organisation. The senior executives and top managers have the authority to make important marketing decisions for the company. This helps to ensure consistency and alignment with overall company goals and strategies. Decentralisation of marketing decisions may lead to inconsistency, confusion, and lack of coordination between different departments or business units.

Question 18

Marketing managers at Company ABC are involved in establishing marketing performance standards, evaluating performance and reducing the differences between actual and desired performance.These marketing managers are engaged in:
A)the systems design process.
B)the marketing control process.
C)marketing systems design.
D)the marketing audit.
E)marketing evaluation.

Accepted Answer

The marketing control process involves establishing performance standards, evaluating performance, and taking corrective action to reduce the differences between actual and desired performance. This is exactly what the marketing managers at Company ABC are doing. The other options (A, C, D, E) do not accurately describe their activities.

Question 19

According to the textbook, which of the following statements is most accurate?
A)A small company always should organise by products, and a large organisation should organise by regions.
B)There is no single approach to organising a marketing unit that works well in all businesses.
C)Some organisations, by nature, have no specific internal structure.
D)Organising by type of customer works best for companies with few groups of customers.
E)Using several bases for organisation leads to uncoordinated marketing management.

Accepted Answer

The textbook states that there is no one approach to organising a marketing unit that works well in all businesses. Different companies have different needs and may require different structures. However, the textbook does provide some general guidelines and examples of common types of structures.

Question 20

A firm that truly adopts the marketing concept develops a distinct organisational culture based on a shared set of beliefs that makes __________ the pivotal point of the firm's decisions about strategy and operations.
A)beating competitors
B)increasing market share
C)customers' needs
D)marketing implementation
E)marketing control

Accepted Answer

The marketing concept is centered around satisfying customers' needs and wants. Therefore, a firm that fully adopts the marketing concept will make customers' needs the focal point of their decisions pertaining to strategy and operations.

Quiz 3: Planning, Implementing and Evaluating Marketing Strategy

Holden has centralised marketing operations with personnel who direct marketing research, distribution, sales, advertising and so forth, and report directly to the top-level marketing executive.Holden's marketing department is organised by:

For marketing implementation to be successful, the needs of __________ customers must be met.

__________ refers to the coordination of internal exchanges between an organisation and its employees to better achieve successful external exchanges between the organisation and its customers.

Which of the following is false with regard to customer lifetime value?

An appliance manufacturer that sells to large retail stores, wholesalers and institutions would probably organise its marketing unit on the basis of:

The marketing control process consists of:

Procter & Gamble, like many firms in the consumer packaged-goods industry, is organised by:

A marketing unit can be organised according to functions, products, regions and:

Organising a marketing unit by region works well for a company that:

The managerial actions taken to make all members of an organisation understand and accept their respective roles in implementing the marketing strategy are referred to as:

A company is expanding its operations outside Australia.To improve local managers' responsiveness to local conditions, the company's senior management has decided to delegate decision-making authority further down the chain of command.This company is:

A disadvantage of organising a firm's marketing unit by products is that:

If you were a marketing manager, under which type of organisational structure would you most likely be working if your firm were a large business with centralised marketing operations?

Customer relationship management is facilitated by gathering useful data from:

Key factors in determining the best organisational structure for a marketing unit are the:

In a traditional organisation, marketing decisions are generally:

Marketing managers at Company ABC are involved in establishing marketing performance standards, evaluating performance and reducing the differences between actual and desired performance.These marketing managers are engaged in:

According to the textbook, which of the following statements is most accurate?

A firm that truly adopts the marketing concept develops a distinct organisational culture based on a shared set of beliefs that makes __________ the pivotal point of the firm's decisions about strategy and operations.