Deck 16: International Marketing

Question 1

Which of the following is not one the key issues facing international marketing managers?

A) how to distribute the firm's product
B) how to develop the firm's product
C) how to select the firm's employees
D) how to sell the firm's product

Answer 1

C

Question 2

Marketing managers at Hoffman Jewelry concentrate their efforts on high-end consumers with significant amounts of disposable income. What business strategy is Hoffman Jewelry pursuing?

A) focus
B) cost leadership
C) differentiation
D) related diversification

Answer 2

A

Question 3

Product ________.

A) involves the development of tangible and intangible features that meet customer needs in diverse markets
B) involves the development of policies that bring in revenue and strategically shape the competitive environment
C) involves devising ways to enhance the desirability of the product to potential buyers
D) gets products and services into the hands of customers via transportation and merchandising

Answer 3

A

Question 4

Promotion primarily involves ________.

A) developing tangible and intangible features that meet customer needs in diverse markets
B) developing policies that generate revenue and strategically shape the competitive environment
C) devising ways to enhance the desirability of the product to potential buyers
D) getting products to customers via transportation and merchandising

Question 5

Which of the following best describes the marketing strategy of Novica?

A) generating funds for art projects sponsored by National Geographic
B) reducing overhead costs by manufacturing home goods overseas
C) linking artists from developing countries with buyers in the U.S.
D) responding to competitive pressure from U.S. home goods stores

Question 6

________ is the process of planning and executing the conception, pricing, promotion, and distribution of ideas, goods, and services to create exchanges that satisfy individual and organizational objectives.

A) Strategy
B) Marketing
C) Production
D) Management

Question 7

Which of the following companies follows a cost leadership business strategy?

A) Wal-Mart
B) Rolex
C) Target
D) BMW

Question 8

Which approach to international marketing is the easiest for a firm to adopt?

A) ethnocentric approach
B) polycentric approach
C) geocentric approach
D) transnational approach

Question 9

Marketing managers at Unique Home Furnishings strive to develop products, pricing strategies, promotional strategies, and distribution tactics that set the firm's products apart from those of competitors in the eyes of customers. Unique Home Furnishings has cultivated an image of perceived quality and fashion that allows the firm to charge prices higher than most furniture businesses. What is the overall business strategy of Unique Home Furnishings?

A) focus
B) cost leadership
C) differentiation
D) related diversification

Question 10

When adopting a(n) ________ approach, a firm applies the domestic marketing mix abroad.

A) ethnocentric
B) polycentric
C) geocentric
D) multidomestic

Question 11

What is the function of pricing in the marketing mix?

A) assessing customer needs and values
B) developing policies that generate revenue
C) increasing the desirability of the product to buyers
D) transporting products to customers quickly and inexpensively

Question 12

What is the process of planning and executing the conception, pricing, promotion, and distribution of ideas, goods, and services to create exchanges across national boundaries that satisfy individual and organizational objectives?

A) globalization
B) international marketing
C) organizational design
D) international management

Question 13

Timex is working to adapt its advertising campaign for a market in Europe. What element of the marketing mix is being addressed in this example?

A) product
B) pricing
C) promotion
D) place

Question 14

Which element of the marketing mix includes the development of the tangible and intangible features that meet customer needs in diverse markets?

A) product
B) pricing
C) promotion
D) place

Question 15

Which element of the marketing mix includes devising ways to enhance the desirability of the product or service to potential buyers?

A) product
B) pricing
C) promotion
D) place

Question 16

Which of the following companies follows a differentiation strategy?

A) Wal-Mart
B) Hyundai
C) Rolex
D) Hanes

Question 17

Marketing managers at Computex concentrate their promotional efforts on advertising the low price of their computer components. What business strategy is Computex supporting?

A) focus
B) cost leadership
C) differentiation
D) related diversification

Question 18

In the international marketing mix, the place element focuses on ________.

A) revenue policies
B) advertising and product image
C) transportation and merchandising
D) location of manufacturing operations

Question 19

Which element of the marketing mix includes the development of policies that bring in revenue and strategically shape the competitive environment?

A) product
B) pricing
C) promotion
D) place

Question 20

Which of the following is LEAST relevant to decisions about the international marketing mix?

A) legal forces
B) collectivism
C) competition
D) income levels

Question 21

Which product category listed below lends itself to a standard price policy?

A) commodities
B) luxury goods
C) consumer packaged goods
D) services

Question 22

Firms that view themselves as multidomestic are more likely to adopt a(n) ________ approach to international marketing.

A) ethnocentric
B) polycentric
C) geocentric
D) transnational

Question 23

FridgeWare is an MNE that manufactures and sells refrigerators around the world. Consumer protection regulations vary widely from country to country. Which aspect of FridgeWare's products is LEAST likely affected by host country differences?

A) technical specifications
B) packaging
C) labeling requirements
D) warranties

Question 24

Carver Foods is an MNE that sells baby food around the world. What product component will most likely be standardized by Carver in all foreign markets?

A) labeling
B) ingredients
C) brand name
D) container size

Question 25

International pricing strategies are significantly affected by all of the following EXCEPT ________.

A) exchange rate fluctuations
B) competitors' warranties
C) transportation costs
D) distribution practices

Question 26

Maddox Home Goods is based in Illinois but has plans to target the housewares market in Europe. Maddox executives believe that the firm's successful U.S. marketing strategy will work equally well in the European market. Maddox most likely has a(n) ________ approach to international marketing.

A) ethnocentric
B) polycentric
C) geocentric
D) multidomestic

Question 27

Which approach to marketing allows the firm to provide essentially the same product or service in different markets and to use essentially the same marketing approach globally?

A) polycentric
B) geocentric
C) multidomestic
D) transnational

Question 28

A firm that follows an ethnocentric approach to marketing standardizes the marketing mix based on the ________.

A) needs of customers around the world
B) ability of the firm to transport goods
C) needs of home country customers
D) ability of the firm to customize

Question 29

Which approach to international marketing is the most expensive to adopt?

A) ethnocentric approach
B) polycentric approach
C) geocentric approach
D) multidomestic approach

Question 30

Which of the following is a disadvantage of customized international marketing?

A) creates inefficiencies in R&D
B) ignores different conditions of product use
C) inhibits local marketing initiatives
D) ignores differences in buyer behavior patterns

Question 31

Organix Foods, a U.S. firm, is expanding its operations overseas. Executives at the firm plan to take a polycentric approach to international marketing. Which of the following actions will Organix most likely take?

A) using the same marketing mix in domestic and foreign markets
B) customizing the marketing mix for each foreign market
C) standardizing the marketing mix and product
D) developing a bilingual marketing mix

Question 32

What organizational characteristic is suggested by the standardization approach to international marketing?

A) centralized
B) decentralized
C) global product design
D) global area design

Question 33

Which of the following is asserted by advocates of standardization?

A) customizing products is essential for high profits
B) customers in developed countries are similar
C) emerging economies are competitive
D) differentiation indicates bias

Question 34

Origin Outfitters uses a geocentric approach to international marketing. Which pricing policy does Origin Outfitters most likely use?

A) standard
B) two-tiered
C) market
D) global

Question 35

What advantage does a firm that standardizes its international marketing mix achieve?

A) market share
B) niche revenues
C) economies of scale
D) economies of scope

Question 36

Which of the following is not an advantage of standardized international marketing?

A) reduces marketing costs
B) reflects different conditions of product use
C) facilitates centralized control of marketing
D) results in economies of scale in production

Question 37

Which of the following is a tangible component of a product?

A) image
B) installation
C) warranty
D) packaging

Question 38

Which of the following factors is LEAST relevant to the degree of standardization or customization a firm adopts?

A) cultural differences between home and host countries
B) franchising arrangements in host country
C) legal systems of host countries
D) type of product

Question 39

Both the ethnocentric and geocentric approaches to international marketing advocate the concept of ________.

A) codetermination
B) standardization
C) customization
D) differentiation

Question 40

Marketers at Divine Design assume that customers will pay a higher price for a product that exactly meets their needs than a product that does not. Which approach to international marketing is most likely used by Divine Design?

A) ethnocentric
B) polycentric
C) geocentric
D) transnational

Question 41

Which term refers to the facts or impressions the advertiser wants to convey to potential customers?

A) medium
B) message
C) copy
D) graphic

Question 42

Under a ________ price policy, the firm sets one price for all its domestic sales and a second price for all its international sales.

A) standard
B) two-tiered
C) market
D) global

Question 43

Under a ________ price policy, the firm charges the same price for its products and services regardless of where they are sold or the nationality of the customer.

A) standard
B) two-tiered
C) market
D) global

Question 44

Mazda was charged with dumping minivans in the U.S. market. What pricing policy was Mazda most likely using?

A) standard
B) two-tiered
C) market
D) global

Question 45

Honda's advertising stresses its reliability and functionality. Reliability is the ________.

A) medium
B) message
C) copy
D) channel

Question 46

Which term refers to the mix of advertising, personal selling, sales promotion, and public relations used by a firm to market its products?

A) marketing mix
B) promotion mix
C) public relations mix
D) communications mix

Question 47

Under a ________ price policy, the firm customizes its prices on a market-by-market basis to maximize its profits in each market.

A) standard
B) two-tiered
C) market
D) global

Question 48

Which term best describes the market pricing policy?

A) simple
B) integrated
C) complex
D) standardized

Question 49

Which of the following occurs when products are imported into a country legally but outside the normal channels of distribution authorized by the manufacturer?

A) gray market
B) parallel exporting
C) black market
D) price gouging

Question 50

Which of the following would most likely trigger a gray market?

A) a firm has large price differences among different markets
B) a firm prices its products almost equally in all markets
C) products are illegal in one market but legal in another
D) products are closely regulated by the government

Question 51

All of the following are primary targets of international promotional activities EXCEPT ________.

A) buyers
B) distributors
C) competitors
D) potential investors

Question 52

Which of the following is not a product commonly influenced by gray markets?

A) automobiles
B) DVDs
C) cameras
D) computers

Question 53

Lands' End markets its products in international markets with the same marketing mix that it applies to the U.S. market. Which pricing policy does Lands' End most likely use?

A) standard
B) two-tiered
C) market
D) global

Question 54

Under the ________ price policy, firms can set higher prices where markets will tolerate them and lower prices where necessary to remain competitive.

A) standard
B) two-tiered
C) market
D) global

Question 55

Which of the following is not one of the elements of the promotion mix?

A) advertising
B) e-commerce
C) sales promotion
D) public relations

Question 56

The ________ is the communication channel used by the advertiser to convey a message.

A) medium
B) message
C) copy
D) graphic

Question 57

Which component of the marketing mix encompasses all efforts by an international firm to enhance the desirability of its products among potential buyers?

A) product
B) price
C) place
D) promotion

Question 58

Digitex, an MNE, customizes its marketing mix in each market that the firm enters to meet the idiosyncratic needs of customers in different foreign markets. What pricing policy does Digitex most likely use?

A) standard
B) two-tiered
C) market
D) global

Question 59

Executives at Dawson Manufacturing, an MNE, are considering the implementation of a market pricing policy. Which of the following is NOT a potential risk to Dawson of this type of policy?

A) inability to assess marginal costs
B) damage to the firm's brand name
C) development of a gray market
D) complaints about dumping

Question 60

A Taiwanese discount store is able to purchase and import Coke made in the United States for 27% less than the price of Coke made in Taiwan. This is a example of a ________.

A) black market
B) gray market
C) controlled market
D) free market

Question 61

Which of the following is an advantage of using personal selling in international marketing?

A) low-cost market entry strategy
B) access to local market information
C) standardization of promotion mix
D) enhancement of firm's reputation

Question 62

Which of the following products most likely lends itself to standardized advertising due to its universal appeal?

A) Progressive auto insurance
B) McDonald's hamburgers
C) Capital One credit cards
D) Palmolive soap

Question 63

Distribution channels consist of all of the following except ________.

A) manufacturer
B) wholesaler
C) supplier
D) customer

Question 64

________ is the process of getting products and services from the firm into the hands of customers.

A) Product development
B) Distribution
C) Marketing
D) Promoting

Question 65

International marketing activities should not integrate with the firm's functional strategies.

Question 66

What element of the promotion mix promotes a close, personal contact with customers?

A) advertising
B) public relations
C) personal selling
D) sales promotions

Question 67

A direct channel includes what channel members?

A) manufacturer, import agent, retailer, customer
B) manufacturer, import agent, customer
C) manufacturer, retailer
D) retailer, customer

Question 68

Which of the following buys products and services from the manufacturer and then resells them to retailers?

A) consumer
B) wholesaler
C) franchiser
D) exporter

Question 69

The ethnocentric approach to standardization versus customization is the most difficult to achieve.

Question 70

What is an advantage of using trains as a mode of transportation for exports?

A) reliable
B) direct
C) flexible
D) fast

Question 71

Marks and Spencer buys apparel from international wholesalers for sale in its stores in the United Kingdom. Marks and Spencer is a(n) ________.

A) manufacturer
B) wholesaler
C) retailer
D) intermediary

Question 72

Toyota operates a manufacturing facility in Georgetown, Kentucky. To build goodwill, Toyota provides grants to local charities, funds college scholarships to graduating high school students, and sponsors local youth sports teams. This is an example of ________.

A) sales promotion
B) personal selling
C) public relations
D) brand placement

Question 73

It is important for a firm to adopt an international marketing strategy that supports the firm's overall business strategy.

Question 74

The marketing mix involves a firm's product, price, promotion, and place.

Question 75

What term refers to the number of stages in the distribution channel?

A) supply chain
B) stage hierarchy
C) channel length
D) channel width

Question 76

Which element of the promotion mix consists of efforts aimed at enhancing a firm's reputation and image with the general public?

A) sales promotion
B) personal selling
C) public relations
D) brand placement

Question 77

Which of the following factors is LEAST affected by the transportation mode selected for a product's distribution?

A) inventory costs
B) market share data
C) product's useful shelf life
D) product's exposure to damage

Question 78

Pizza Hut is offering free pizza slices in Beijing. This is an example of ________.

A) advertising
B) sales promotion
C) public relations
D) brand placement

Question 79

Timex and Rolex both follow a differentiation strategy.

Question 80

Specialized marketing efforts such as coupons are a part of ________.

A) advertising
B) public relations
C) sales promotions
D) brand placements