Exam 14: Competing Effectively Through Global Marketing, Distribution, and Supply-Chain Management

A large number of Indian families own two-wheelers because four-wheelers are beyond their purchasing power. This inspired Tata Motors to begin R&D to develop an affordable car, Tata Nano. The company went back to the drawing board to rethink how best to design an affordable car for India. The selling price of this no-frills auto was brought down by dispensing with most nonessential features, reducing the amount of steel used in its construction, and relying on low-cost Indian labour. Nano is primarily aimed at the Indian domestic market where it provides an opportunity for new car ownership for people who would otherwise never own one. The above serves as an example of:

The first step in inventing a product for a new country market is to understand the key product characteristics needed to succeed in that market.

_____ refers to a situation in which consumers use the place where a product was made as a barometer for evaluating the product's quality.

The advantage of straight product extension strategy is that the company doesn't need to invest in new research, development, or manufacturing.

In the case of offshoring, the vendor takes control of the operations and runs the operations as they see fit.

The downsides of safety stock include the increased costs of carrying that inventory such as the investment in the products, taxes and insurance, and storage space.

Counterfeit markets hurt companies that have invested in building intellectual assets such as unique product designs, technological developments, costly media content, and carefully crafted brands.

_____ effect refers to a situation in which consumers' perception of the country influence whether they perceive the product favorably or unfavorably and thus whether they'll purchase the product.

The main disadvantages of global sourcing are low quality and higher cost.

Counterfeit markets are illegal because they purposely deceive the buyer.

A US-based soft drink manufacturer introduces a drink in the Indian market that is already available in the US market. The manufacturer does not make any changes with regard to the size of the bottle, the fizz in the drink or the taste of the drink. The consumers in India get the same product that is available in the American market. The above serves as an example of:

Total Quality Management (TQM) refers to a set of management practices which focuses on:

What are the four Ps of marketing?

One of the biggest challenges in selling to emerging markets involves making the product affordable.

The four Ps of marketing are product, price, _____, and place.

Which of the following statements holds true for demand management?

In marketing, gray market refers to the:

In the case of sole-sourcing, if the company gives the supplier a lot of business, the company may have more influence over the supplier for preferential treatment.

In the case of outsourcing, the firm retains control of the operations and directly hires the employees.

What are the advantages and disadvantages of creating a global brand?