Question 1

Discuss three disadvantages of standardizing the marketing mix worldwide.

Accepted Answer

Students should identify any three of th

Question 2

A global firm is a firm that operates in more than one country and captures R&D, production, logistical, marketing, and financial advantages not available to purely domestic competitors.

Accepted Answer

A) True 
 B)False

Question 3

Regional economic integration means companies are more likely to enter entire regions at the same time.

Accepted Answer

A) True 
 B)False

Question 4

You work for a company that produces and markets apparel for men and women, and is planning to enter the Chinese market. If you were asked if the company should opt for a straight extension or a product adaptation, what would you choose, and why?

Accepted Answer

As a company looking to enter the Chines

Question 5

A2Z Inc. is a producer of a huge variety of consumer goods, from soaps to shower gels, and shampoos to detergents. It is a market leader in the United States and is planning to tap the immense potential in the emerging markets. Market research, however, indicates that the Brazilian culture and society are substantially different from their American counterparts. If the company wants to target the masses, which of the following options is most likely to succeed?

Accepted Answer

A)  A2Z can use a price skimming strategy to increase market share. 
B)  The company's existing strategies in the United States will work just as well in Brazil. 
C)  A2Z can introduce smaller "sachets" of shampoos and detergents that are priced lower. 
D)  The company can introduce large family packs of shampoos and soaps even if they are priced higher than competitors. 
E)  A2Z can use a predatory pricing strategy to capture the market. 
A)  A2Z can use a price skimming strategy to increase market share. 
B)  The company's existing strategies in the United States will work just as well in Brazil. 
C)  A2Z can introduce smaller "sachets" of shampoos and detergents that are priced lower. 
D)  The company can introduce large family packs of shampoos and soaps even if they are priced higher than competitors. 
E)  A2Z can use a predatory pricing strategy to capture the market.

Question 6

The main disadvantage of direct investment is that the firm loses access to the market in case the government of that country insists locally purchased goods have domestic content.

Accepted Answer

A) True 
 B)False

Question 7

Which of the following is most likely to be successful when introduced in foreign markets as a straight extension?

Accepted Answer

A)  laundry detergent 
B)  khaki pants 
C)  dessert mixes 
D)  digital camera 
E)  condensed soup 
A)  laundry detergent 
B)  khaki pants 
C)  dessert mixes 
D)  digital camera 
E)  condensed soup

Question 8

Define the internationalization process' four stages.

Accepted Answer

Some companies don't act until events th

Question 9

Important developing or emerging markets include Brazil, Russia, India, Canada, and South Africa, often called "BRICS" for short.

Accepted Answer

A) True 
 B)False

Question 10

As required levels of distribution increase, so do customer prices relative to the importer's price.

Accepted Answer

A) True 
 B)False

Question 11

Regional economic integration has intensified in recent years, which makes it more difficult for marketers to expand globally.

Accepted Answer

A) True 
 B)False

Question 12

Zodiac Inc. is one of the leading producers of designer bags in its country. The company is considering shifting some of its production to India. Which of the following could have prompted this move?

Accepted Answer

A)  People in India prefer imported designer bags. 
B)  Zodiac can target a niche market of high-profile consumers who have a high income. 
C)  Zodiac can improve its market share if it can offer better prices than its competitors. 
D)  People in the home country have an ethnocentric approach. 
E)  Market research indicates that Indian consumers have a low per-capita income. 
A)  People in India prefer imported designer bags. 
B)  Zodiac can target a niche market of high-profile consumers who have a high income. 
C)  Zodiac can improve its market share if it can offer better prices than its competitors. 
D)  People in the home country have an ethnocentric approach. 
E)  Market research indicates that Indian consumers have a low per-capita income.

Question 13

While choosing countries to invest in, companies often choose psychic proximity to their own country. Psychic proximity can best be defined as countries ________.

Accepted Answer

A)  in which the company feels comfortable with the language, laws, and culture 
B)  that are located close 
C)  that the home country's management team have visited 
D)  that have no trade barriers 
E)  with good infrastructure and stable political environment 
A)  in which the company feels comfortable with the language, laws, and culture 
B)  that are located close 
C)  that the home country's management team have visited 
D)  that have no trade barriers 
E)  with good infrastructure and stable political environment

Question 14

Contract manufacturing is one mode of licensing that allows a company to start faster, with the opportunity to form a partnership or buy out the local manufacturer later.

Accepted Answer

A) True 
 B)False

Question 15

As people in developing countries often prefer to buy in smaller quantities, ________ is one of the most important functions of intermediaries in developing countries and helps perpetuate the long channels of distribution, which are a major obstacle to the expansion of retailing.

Accepted Answer

A)  product adaptation 
B)  breaking bulk 
C)  diversification 
D)  transfer pricing 
E)  dual adaptation 
A)  product adaptation 
B)  breaking bulk 
C)  diversification 
D)  transfer pricing 
E)  dual adaptation

Question 16

The New Zealand Way program was an initiative by the government of New Zealand to raise awareness and attract tourists by showing the dramatic landscapes featured in "The Lord of the Rings" film trilogy. This is an example of a government trying to strengthen its ________.

Accepted Answer

A)  country-of-origin perceptions 
B)  international subsidiaries 
C)  internationalization 
D)  contract manufacturing 
E)  distributor relationships 
A)  country-of-origin perceptions 
B)  international subsidiaries 
C)  internationalization 
D)  contract manufacturing 
E)  distributor relationships

Question 17

People are often ethnocentric and favorably predisposed to their own country's products, unless they come from a less developed country.

Accepted Answer

A) True 
 B)False

Question 18

Comparative advertising is not acceptable in Japan, and is illegal in India and Brazil.

Accepted Answer

A) True 
 B)False

Question 19

A Gucci bag sells for $120 in Italy and $240 in the United States due to the differences in the costs of distributing the product in the two countries. This phenomenon is called a(n) ________ problem.

Accepted Answer

A)  opportunity cost 
B)  market pricing 
C)  tactical pricing 
D)  price escalation 
E)  transfer pricing 
A)  opportunity cost 
B)  market pricing 
C)  tactical pricing 
D)  price escalation 
E)  transfer pricing

Question 20

Management contracts offer foreign owners the opportunity to manage businesses for a fee.

Accepted Answer

A) True 
 B)False

Exam 8: Tapping Into Global Markets

Discuss three disadvantages of standardizing the marketing mix worldwide.

A global firm is a firm that operates in more than one country and captures R&D, production, logistical, marketing, and financial advantages not available to purely domestic competitors.

Regional economic integration means companies are more likely to enter entire regions at the same time.

You work for a company that produces and markets apparel for men and women, and is planning to enter the Chinese market. If you were asked if the company should opt for a straight extension or a product adaptation, what would you choose, and why?

The main disadvantage of direct investment is that the firm loses access to the market in case the government of that country insists locally purchased goods have domestic content.

Which of the following is most likely to be successful when introduced in foreign markets as a straight extension?

Define the internationalization process' four stages.

Important developing or emerging markets include Brazil, Russia, India, Canada, and South Africa, often called "BRICS" for short.

As required levels of distribution increase, so do customer prices relative to the importer's price.

Regional economic integration has intensified in recent years, which makes it more difficult for marketers to expand globally.

Zodiac Inc. is one of the leading producers of designer bags in its country. The company is considering shifting some of its production to India. Which of the following could have prompted this move?

While choosing countries to invest in, companies often choose psychic proximity to their own country. Psychic proximity can best be defined as countries ________.

Contract manufacturing is one mode of licensing that allows a company to start faster, with the opportunity to form a partnership or buy out the local manufacturer later.

As people in developing countries often prefer to buy in smaller quantities, ________ is one of the most important functions of intermediaries in developing countries and helps perpetuate the long channels of distribution, which are a major obstacle to the expansion of retailing.

The New Zealand Way program was an initiative by the government of New Zealand to raise awareness and attract tourists by showing the dramatic landscapes featured in "The Lord of the Rings" film trilogy. This is an example of a government trying to strengthen its ________.

People are often ethnocentric and favorably predisposed to their own country's products, unless they come from a less developed country.

Comparative advertising is not acceptable in Japan, and is illegal in India and Brazil.

A Gucci bag sells for $120 in Italy and $240 in the United States due to the differences in the costs of distributing the product in the two countries. This phenomenon is called a(n) ________ problem.

Management contracts offer foreign owners the opportunity to manage businesses for a fee.

Defining Marketing for the New Realities

Developing Marketing Strategies and Plans

Collecting Information and Forecasting Demand

Conducting Marketing Research

Creating Long-Term Loyalty Relationships

Analyzing Consumer Markets

Analyzing Business Markets

Identifying Market Segments and Targets

Crafting the Brand Positioning

Creating Brand Equity

Addressing Competition and Driving Growth

Setting Product Strategy

Designing and Managing Services

Introducing New Market Offerings

Developing Pricing Strategies and Programs

Designing and Managing Integrated Marketing Channels

Managing Retailing, Wholesaling, and Logistics

Designing and Managing Integrated Marketing Communications

Managing Mass Communications: Advertising, Sales Promotions, Events and Experiences, and Public Relations

Managing Digital Communications: Online, Social Media, and Mobile

Managing Personal Communications: Direct and Database Marketing and Personal Selling

Managing a Holistic Marketing Organization for the Long Run

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