A) Matrix organization
B) Product-geography organization
C) Geographic organization with product subsets
D) Product organization
E) Customer organization
Answer: A
Diff: 3
LO: 1.4: Illustrate how to organize and manage a modern marketing department.
AACSB: Analytical thinking
106) When Xerox, IBM, and Hewlett-Packard shifted from a geographic model to organizing marketing around specific types of customers, which organization model did they adopt?
A) Product needs
B) Brand/product management
C) Industry category
D) Market
E) Matrix
Answer: D
Diff: 2
LO: 1.4: Illustrate how to organize and manage a modern marketing department.
AACSB: Reflective thinking
107) To whom does the CMO report in most corporations today?
A) The vice president of marketing
B) The board of directors
C) The president of customer operations
D) The chief executive officer (CEO)
E) The chief operating officer (COO)
Answer: D
Diff: 2
LO: 1.4: Illustrate how to organize and manage a modern marketing department.
AACSB: Reflective thinking
108) The most common form of marketing organization consists of ________ reporting to a chief marketing officer who coordinates their activities.
A) zonal managers
B) functional specialists
C) product managers
D) area market specialists
E) brand managers
Answer: B
Diff: 1
LO: 1.4: Illustrate how to organize and manage a modern marketing department.
AACSB: Reflective thinking
109) Which of the following is the main advantage of a functional marketing organization?
A) Easy coordination
B) Lower staff requirements
C) Administrative simplicity
D) Reduced competition between functional groups
E) Smooth working relationships
Answer: C
Diff: 2
LO: 1.4: Illustrate how to organize and manage a modern marketing department.
AACSB: Reflective thinking
110) A company selling in a national market often organizes its sales force along ________.
A) functional groups
B) geographic lines
C) product teams
D) brand groups
E) product categories
Answer: B
Diff: 1
LO: 1.4: Illustrate how to organize and manage a modern marketing department.
AACSB: Reflective thinking
111) A product-management organization makes sense if ________.
A) the company's products are quite varied
B) there are very few products in the company's portfolio
C) the company is pursuing a low cost strategy
D) the company's products satisfy similar customer needs
E) the company is vertically integrated
Answer: A
Diff: 2
LO: 1.4: Illustrate how to organize and manage a modern marketing department.
AACSB: Reflective thinking
112) A product- or brand-management organization is sometimes characterized as a(n) ________ system.
A) hub-and-spoke
B) waterfall
C) internal marketing
D) top-down
E) lateral
Answer: A
Diff: 1
LO: 1.4: Illustrate how to organize and manage a modern marketing department.
AACSB: Reflective thinking
113) A disadvantage of the product-management organization is that ________.
A) it marginalizes a company's smaller brands
B) it reduces organizational responsiveness to new products in the marketplace
C) product managers generally exercise authority outside their areas of responsibility
D) it prevents product managers from gaining sufficient expertise in their product areas
E) it fails to build long-term strengths as brand managers normally manage brands for only short periods
Answer: E
Diff: 2
LO: 1.4: Illustrate how to organize and manage a modern marketing department.
AACSB: Reflective thinking
114) A product-management organization ________.
A) replaces the functional organization
B) simplifies the process of developing a national strategy
C) often focuses on building market share rather than customer relationships
D) reduces an organization's staffing requirements
E) allows product managers to achieve functional expertise
Answer: C
Diff: 2
LO: 1.4: Illustrate how to organize and manage a modern marketing department.
AACSB: Reflective thinking
115) When customers fall into different user groups with distinct buying preferences and practices, a ________ organization is desirable.
A) market-management
B) product-management
C) brand-management
D) geographic
E) functional