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

The Los Altos firm-which performs global market research on everything from routers to software for clients including Cisco, HP, and Microsoft-has only 14 full-time employees. But it farms out research from Silicon Valley to India's Evalueserve and to some 5,000 other independent experts in China, the Czech Republic, and South Africa. The above serves as an example of:

_____ refers to a market that exists because of price discrepancies between different markets.

What are the challenges that organizations experience in distributing their goods in emerging-market countries?

_____ refers to setting up operations in a low-cost country for the purpose of hiring local workers at lower labor rates.

Amway, a global company, manufactures and distributes over 450 different consumer products. Amway introduced a new range of products called Satinique. Once Amway developed the product, they undertook market research to determine their target consumers group. They identified a segment consisting of professional women who always want to look their best and who want professional, salon quality products and who rely on recommendations from friends when making haircare purchase decisions. They then developed a marketing strategy and implemented a successful marketing plan. This process of identifying a particular target group to market one's products is called:

Reverse innovation means designing a product for the home country and taking that innovation to a developing country.

The purpose of segmentation is to give the company a concrete vision of its customers, so that it can better understand how to market to that customer.

Which of the following holds true for product invention?

An organization that manufactures readymade cotton shirts sources the raw material from all over the world. It does this as a precaution against the failure of one or more companies to deliver the raw materials. The above serves as an example of:

_____ markets deceive customers into buying what they think is a branded product at a bargain cost.

A consumer durable company produces and markets refrigerators locally. It faces competition from cheap imports. To compete with the cheap imports, it starts procuring the component parts of the refrigerator from a country with low manufacturing costs. The above is an example of:

Intermediaries in the channel of distribution can include distributors, wholesalers, agents, brokers, retailers, international freight forwarders, and trading companies.

Promotion has an impact on the other Ps of marketing. Explain.

In marketing, which of the following statements holds true for a product?

_____ refers to the inventory that the company holds to help ensure that it won't run out of products if there is a delay or crisis in a distant manufacturing region.