Exam 4: Developing a Global Vision27

Global marketers must be careful when considering demographic characteristics of different countries.Why is population an insufficient indicator of market potential? What other demographic factors should be considered in addition to or instead of population?

According to research done by the World Bank,countries with the least amount of business regulation foster the strongest economies.

International trade does not always involve cash.Sometimes companies accept all or part of the payment for goods or services is in the form of other goods or services.This is known as:

Leuwin & Thomason is a British manufacturer of rifles used in competition.It wants to make its products more readily available in the United States and Canada.The company feels it is important to retain strict quality control over its production processes and wants its global expansion to yield a high return.Which method should Leuwin & Thomason choose to enter the global marketplace?

Some distribution strategies that are commonly used in other countries are illegal in the United States.

Cardiac Science,a U.S.manufacturer of defibrillators,heart monitoring devices,and other medical related devices,sells 85 percent of its products outside the United States.It sells basically the same product to a hospital in London,Tokyo,Pretoria,or Sydney.It uses the same promotional tactics in all of its markets.Cardiac Science:

A business that is thinking of expanding into global markets needs to examine all of the following external environments EXCEPT:

NAFTA is the New American Foreign Trade Amendment,which allows for balanced trade with the European Union (EU).

SCENARIOS Computer Sales A price war began in Japan in the personal computer market when Dell Computer Corporation introduced PCs at prices 25 to 60 percent lower than rivals.Dell targeted corporate customers from its Tokyo offices by "direct sales," the company's preferred name for mail order,and its main avenue for PC sales in the United States.Japan is the world's second-largest market for personal computers and had been ruled by NEC Corporation,who maintained a strong dealer network and had traditionally sold its computers at very high prices.Dell joined IBM and Compaq in targeting the Japanese market.Dell bet it could succeed in Japan by transplanting its U.S.method of operations in which the company assembles the PC to customer specifications,loads it with software,and delivers it to Japan.The company's success depended on its ability to sell PCs over the telephone.Analysts doubted this was possible in Japan because dealer networks are the key to the market,but Dell executives believed that name recognition was the main hurdle.To familiarize its target market with the idea of buying a computer sight unseen,Dell launched a major ad campaign through direct mail and ads in computer-related magazines and newspapers. -Refer to Computer Sales.Dell is dedicated to entering the Japanese market.Company executives believe name recognition is the largest marketing issue.The first step in creating the international marketing mix should be:

The manufacturer of Marlboro cigarette has given Japan Tobacco the legal right to use its trademarks and patents to manufacture Marlboro cigarettes in Japan.For this right,Japan Tobacco pays a fee.This is an example of the use of _____ to enter an international market.

Describe a multinational corporation,and give two examples of an MNC.

SCENARIOS Computer Sales A price war began in Japan in the personal computer market when Dell Computer Corporation introduced PCs at prices 25 to 60 percent lower than rivals.Dell targeted corporate customers from its Tokyo offices by "direct sales," the company's preferred name for mail order,and its main avenue for PC sales in the United States.Japan is the world's second-largest market for personal computers and had been ruled by NEC Corporation,who maintained a strong dealer network and had traditionally sold its computers at very high prices.Dell joined IBM and Compaq in targeting the Japanese market.Dell bet it could succeed in Japan by transplanting its U.S.method of operations in which the company assembles the PC to customer specifications,loads it with software,and delivers it to Japan.The company's success depended on its ability to sell PCs over the telephone.Analysts doubted this was possible in Japan because dealer networks are the key to the market,but Dell executives believed that name recognition was the main hurdle.To familiarize its target market with the idea of buying a computer sight unseen,Dell launched a major ad campaign through direct mail and ads in computer-related magazines and newspapers. -Refer to Computer Sales.Dell's advertising campaign utilizing direct mail and ads in computer magazines relates to which global marketing mix variables?

Monroe plans to market its shock absorbers in several different global markets.It plans to rely on extensive advertising.Before implementing this plan,its advertising manager should know:

Japanese consumers have experienced more than a decade of recession and deflationary pressures.This condition would more likely impact the Japanese consumers':

A Brazilian-based office supply distributor wishes to close a deal for advertising space in a major Argentine newspaper.The office supply distributor is strapped for cash but would like to run weekly quarter-page ads in the newspaper.The newspaper needs office supplies for its employees.The Brazilian supplier knows the Argentine economy is going through a period of inflation and the value of its money is falling.Which of the following strategies should the Brazilian office supply distributor implement?

The same rules that controlled bricks-and-mortar retailers are appropriate for any company that wants to become a part of the Internet economy.

The United States is the only country that actively engages in global marketing.

The U.S.Rice Millers' Association claims that if the Japanese government would remove the tax on imported U.S.rice,Japanese consumers would save $6 billion annually.This tax is an example of a(n):

The pricing component of the marketing mix presents some unique problems and challenges in global marketing.Name and discuss three pricing considerations unique to global marketing.

Which of the following statements about the use of the Internet in global marketing is true?