Question 1

According to the text,one of the main reasons that IKEA has been able to grow rapidly without greater capital investments is that
A) it operates in tax havens.
B) most of its production is outsourced to other firms.
C) it is a privately held company.
D) it has relied more on local production.
E) it sells at the lowest cost price in the market.

Accepted Answer

One reason that IKEA has been able to grow so rapidly-without greater capital investments-is that it carefully manages its costs.

Question 2

As marketing managers do more promotion and selling over the Internet,it is critical that information technology systems be robust from a security standpoint.

Accepted Answer

As marketing managers do more promotion and selling over the Internet, it is critical that information technology systems be robust from a security standpoint.

Question 3

While there are real human resources challenges in dealing with rapidly expanding marketing efforts,there are also challenges in dealing with decisions to drop products,channels of distribution,or even certain types of customers.

Accepted Answer

Decisions to drop products, channels of distribution, or customers can be traumatic, especially if jobs will be cut. To the extent possible, it's important to plan a phase-out period so that people can make other plans.

Question 4

It is the chief executive's job to communicate with others in the organization and explain the new marketing strategy,what needs to happen,and why.

Accepted Answer

Good communication is crucial. The marketing manager must find ways to explain the new strategy, what needs to happen, and why.

Question 5

Marketing managers should plan time for strategy changes and not put undue pressure on the people in their organization to perform heroic efforts.

Accepted Answer

A marketing manager who ignores the ripple effects of a change in strategy may later expect everyone to meet a schedule that won't work. Certainly there are cases of heroic efforts by people in organizations to turn someone's vision into a reality. Yet it's more typical for such a plan to fall behind schedule, to run up unnecessary costs, or to just plain fail.

Question 6

It is the responsibility of the chief executive-not the marketing manager-to make the strategic planning decisions that concern how a firm is going to use its overall resources-from marketing,production,finance and other areas.

Accepted Answer

Making the strategic planning decisions that concern how a firm is going to use its overall resources-from marketing, production, finance, and other areas-is the responsibility of the chief executive officer, not the marketing manager.

Question 7

It is the responsibility of the marketing manager to make the strategic planning decisions that concern how a firm is going to use its overall resources-from marketing,production,finance and other areas.

Accepted Answer

Making the strategic planning decisions that concern how a firm is going to use its overall resources-from marketing, production, finance, and other areas-is the responsibility of the chief executive officer, not the marketing manager.

Question 8

All large organizations have secure information technology security systems that prevent them from being hacked.

Accepted Answer

As marketing managers do more promotion and selling over the Internet, it is critical that information technology systems be robust from a security standpoint. Companies such as Sony, LinkedIn, Citigroup, Best Buy, and Walgreens are just a few of the companies whose customer data has been compromised by hackers.

Question 9

Rapid growth strains human resources because it's a challenge getting enough qualified people.

Accepted Answer

The success of a marketing plan often depends on how quickly the firm's personnel can get geared up for what needs to be done. Firms that grow rapidly may face challenges finding enough qualified people.

Question 10

The marketing manager needs to work with the human resources manager-or with other managers-who will participate in preparing the firm's personnel for changes required by a new marketing strategy.

Accepted Answer

Good communication is crucial. at a minimum, the marketing manager needs to have clear communication with other managers who will participate in preparing the firm's personnel for a change.

Question 11

Enterprise resource planning systems are used to integrate internal and external information management across the entire organization.

Accepted Answer

Enterprise resource planning systems are used to integrate internal and external information management across the entire organization. Such a system connects the rest of the firm with the marketing information system.

Question 12

A new marketing strategy often upsets established ways of doing things in the organization.

Accepted Answer

New strategies often require changes that upset the status quo and vested interests.

Question 13

In planning a new strategy or reorganization,it's important to keep in mind that each change may require several other changes,and each change may take time.

Accepted Answer

Each change may require several others and that each change may take time.

Question 14

Human resource issues can be especially important when there is a need to implement a new marketing plan that involves major changes in the organization.

Accepted Answer

Human resource issues can be important both in a marketing manager's choice among different possible marketing opportunities and in the actual implementation of marketing plans-especially new plans that involve major change.

Question 15

Marketing strategies and plans that the marketing manager recommends are more likely to be accepted-and then successfully implemented-if the links between marketing and other functional areas have been carefully considered from the outset.

Accepted Answer

Marketing strategies and plans that the marketing manager recommends are more likely to be accepted, and then successfully implemented, if the links between marketing and other functional areas have been carefully considered from the outset.

Question 16

A marketing plan for a new strategy needs to take into consideration the time-and effort-that will be required to get people up to speed on the new jobs they will be expected to do.

Accepted Answer

Marketing plans need to take into consideration the time and effort that will be required to get people up to speed on the new jobs they will be expected to do.

Question 17

Human resource issues include recruiting and hiring new employees,deciding how people will be compensated,and what to do when a job is not being performed well or is no longer necessary.

Accepted Answer

A small firm may not have a separate department-but somebody (perhaps the owner or other managers) must deal with people-management matters, like recruiting and hiring new employees, deciding how people will be compensated, and what to do when a job is not being performed well or is no longer necessary.

Question 18

Training is especially important during rapid growth of a company because it takes time to hire people and get them up to speed.

Accepted Answer

Training takes time. A marketing manager who wants to reorganize the firm's sales force so that salespeople are assigned to specific customers rather than by product line may have a great idea, but it can't be implemented overnight.

Question 19

Many of the people affected by a new strategy may not be under the control of the marketing manager.

Accepted Answer

People affected by a new strategy may not be under the control of the marketing manager. And the marketing manager may not be able to change everyone into enthusiastic supporters of the plan.

Question 20

It is the marketing manager's job to communicate with others in the organization and explain the new strategy,what needs to happen,and why.

Accepted Answer