Answer: B
Diff: 2
LO: 1.4: Illustrate how to organize and manage a modern marketing department.
AACSB: Reflective thinking
118) A functional organization allows for adequate planning as the number of products and markets of a firm increases.
Answer: FALSE
Diff: 1
LO: 1.4: Illustrate how to organize and manage a modern marketing department.
AACSB: Reflective thinking
119) The product-management organization replaces the functional organization in the firm.
Answer: FALSE
Diff: 1
LO: 1.4: Illustrate how to organize and manage a modern marketing department.
AACSB: Reflective thinking
120) An advantage of the product- and brand-management system is that product and brand managers focus the company on building market share rather than customer relationships.
Answer: FALSE
Diff: 1
LO: 1.4: Illustrate how to organize and manage a modern marketing department.
AACSB: Reflective thinking
121) Because the retail trade tends to think of profitability in terms of product categories, some companies are switching to a category management organizational model.
Answer: TRUE
Diff: 1
LO: 1.4: Illustrate how to organize and manage a modern marketing department.
AACSB: Reflective thinking
122) When customers fall into different user groups with distinct buying preferences and practices, a product team structure is desirable.
Answer: FALSE
Diff: 1
LO: 1.4: Illustrate how to organize and manage a modern marketing department.
AACSB: Reflective thinking
123) Many companies now focus on departments as opposed to processes, because processes can be a barrier to smooth performance.
Answer: FALSE
Diff: 1
LO: 1.4: Illustrate how to organize and manage a modern marketing department.
AACSB: Reflective thinking
124) What steps can a CEO take to create a market- and customer-focused company?
Answer: To create a true marketing organization, the CEO must convince senior management of the importance of being customer focused. It is also important that the CEO be able to hire strong marketing talent, including a skilled chief marketing officer who not only manages the marketing department but also has the respect of, and influence with, the other C-level executives. the CEO must also facilitate the creation of strong in-house marketing training programs to sharpen the company's marketing and demonstrate a strong commitment to customers.
Diff: 2
LO: 1.4: Illustrate how to organize and manage a modern marketing department.
AACSB: Reflective thinking
125) What three forces do marketing experts George Day and Robert Malcolm believe will change the role of the CMO in the coming years?
Answer: Day and Malcolm believe that three driving forces will change the role of the CMO in the coming years: (1) predictable marketplace trends, (2) the changing role of the C-suite, and (3) uncertainty about the economy and organizational design. They identify five priorities for any successful CMO: act as the visionary for the future of the company, build adaptive marketing capabilities, win the war for marketing talent, tighten the alignment with sales, and take accountability for returns on marketing spending.
Diff: 2
LO: 1.4: Illustrate how to organize and manage a modern marketing department.
AACSB: Reflective thinking
126) Describe the functional organization of a marketing department in terms of its structure, advantages, and disadvantages.
Answer: The most common form of marketing organization consists of functional specialists reporting to a chief marketing officer (CMO). The main advantage of a functional marketing organization is its administrative simplicity. It can be quite a challenge for the department to develop smooth working relationships, however. This form also can result in inadequate planning as the number of products and markets increases and each functional group vies for budget and status. The CMO constantly weighs competing claims and faces a difficult coordination problem.
Diff: 2
LO: 1.4: Illustrate how to organize and manage a modern marketing department.
AACSB: Reflective thinking
127) Explain the product- or brand-management organization and list its advantages and disadvantages.
Answer: Companies producing a variety of products and brands often establish a product- (or brand-) management organization. The product- or brand-management organization does not replace the functional organization, but serves as another layer of management. A product-management organization makes sense if the company's products are quite different, or if the sheer number of products is beyond the ability of a functional organization to handle. Product and brand management is sometimes characterized as a hub-and-spoke system.