Intl. MKT Review Exam III
Parallel imports
- Develop when importers buy products from distributor in one country and sell them in another to distributor who are not part of the manufacturer's regular distribution system - Occurs whenever price differences are greater than the cost of transportation between two markets. Maximizing market inefficiencies - Major problem for pharmaceutical companies - Exclusive distribution
What is the ISO 9000 Certification?(standard of ____ ) (voluntary or involuntary)
- Positively affects the performance and stock prices of firms - Certification of the existence of a quality control system a company has in place to ensure it can meet published quality standards - Generally voluntary - EU Product Liability Directive - Now a competitive marketing tool in Europe and around the world - The ACSI approach
Product Homologation (certified to meet a standard)
- Product adaptation dictated by the requirements Legal Economic Political Technological Climate
Gray Market- Def. Model
- an unofficial market or trade in something, especially unissued shares or controlled or scarce goods. - Manufacturer --> Buyer X --> Freight Forwarder--> Fake paperwork--> (back to manufacturer) & US store.
Diffusion of innovations - crucial elements in the diffusion of new ideas - Variables affecting the rate of diffusion of an object
-An innovation -Which is communicated through certain channels -Over time -Among the members of a social system - the element of time -VARIABLES affecting rate: The degree of perceived newness The perceived attributes of the innovation The method of used to communicate the idea
Rostow's stages of economic development - 5 stages & examples of each
1: traditional society (substinence, barter, agriculture) 2: transitional stage (pre-take off) (specialization, surpluses, infrastructure) 3: take off (industrialization growing investment, regional growth, political change) 4: drive to maturity ( diversification, innovation, less reliance on imports, investment) 5: high mass consumption ( consumer oriented, durable goods flourish, service sector becomes dominant)
Which of the following companies is most likely to have a direct sales force in the country where it intends to sell its products? A) A company manufacturing fiber optics B) A company manufacturing decorative candles C) A company manufacturing shirts D) A company manufacturing kitchenware E) A company manufacturing plasticware
A) A company manufacturing fiber optics
Which of the following will create expanding demand, particularly for industrial goods and business services in Asia? A) A high economic growth rate B) The creation of centrally-planned economies C) A sharp increase in government spending D) The increasing use of labor in place of capital in production E) An increase in the number of government regulations
A) A high economic growth rate
An electronics manufacturer in Japan has developed a training program to train the support staff in their foreign markets on repair and maintenance of their products. The firm also ensures that there is enough stock of spare parts in all their distribution centers. The company is making improvements in the _____ component of the product. A) core B) support services C) packaging D) design E) global
B) support services
Transfer Pricing Strategy Benefits Arrangements for transfer
B: Lowering duty costs Reducing income taxes in high-tax countries Facilitating dividend repatriation when dividend repatriation is curtailed by government policy A: Sales at the local manufacturing cost plus a standard markup Sales at the cost of the most efficient producer in the company plus a standard markup Sales at negotiated prices Arm's-length sales using the same prices as quoted to independent customers
_____ may be classified as an aspect of sales promotions or public relations. A) Product tie-ins B) Product samplings C) Corporate sponsorships D) In-store demonstrations E) Point of purchase displays
C) Corporate sponsorships
Everyday Coffee, a coffee chain, has recently decided on the mode of entry to a particular market. Which phase of the planning process is the coffee chain currently in? A) Preliminary analysis B) Defining market segment C) Developing the marketing plan D) Implementation and control E) Standardization of the marketing mix
C) Developing the marketing plan
_____ is a part of the relationship-oriented business philosophy that characterizes Japanese distribution channels. A) Fast delivery B) Direct sale C) Friendship D) Variety E) Price war
C) Friendship
A country is beginning to start manufacturing activities. The economy primarily requires infrastructure development. Which of the following stages of Rostow's five-stage model of economic growth is the country in? A) The traditional society B) Drive to maturity C) Preconditions for takeoff D) Takeoff E) The age of mass consumption
C) Preconditions for takeoff
_____ is particularly important in international markets where culture dictates strong ties between customers and companies. A) Client following B) The ISO certification C) Relationship building D) Standardization E) Mass advertising
C) Relationship building
The emergence of pan-European communications media entices companies to: A) brand the same products differently in different countries. B) use different advertising appeals for different regions in Europe. C) adopt more standardized promotional efforts. D) advertise local products locally. E) limit sales and promotions to English-speaking regions.
C) adopt more standardized promotional efforts.
Ch. 16 quiz questions - For most companies, _____ and personal selling are the major components in the marketing communications mix. A) public relations B) direct selling C) advertising D) public relations E) trade shows
C) advertising
Companies not wanting to become immediately involved with the complexities of international marketing will most likely use the services of _____ middlemen. A) merchant B) agent C) domestic D) broker E) credited
C) domestic
The activities in a distribution channel process begin with the _____. A) wholesaler B) agent C) manufacturer D) retailer E) consumer
C) manufacturer
A company that considers pricing to be a static element in a business decision: A) views its export sales as a significant source of revenue. B) sets prices to achieve a specific objective such as targeted market share. C) places a low priority on foreign business. D) serves a very small proportion of the domestic market. E) does not export any excess inventory.
C) places a low priority on foreign business.
_____ is one of the six Cs of distribution channel strategy. A) Communication B) Contribution C) Capacity D) Character E) Commission
D) Character
Which of the following characteristics of an innovation is likely to have a negative impact on the acceptance of a product in the intended market? A) Relative advantage B) Compatibility C) Trialability D) Complexity E) Observability
D) Complexity
Which of the following is NOT a specific objective of sales promotion? A) Achieving immediate purchase B) Introducing consumers to the store or brand C) Gaining retail point-of-purchase displays D) Creating good relationships with the popular press E) Augmenting advertising and personal sales efforts
D) Creating good relationships with the popular press
John is a part of the marketing team in his company. There is a conflict between the finance team and the marketing team of the company on the issue of market segmentation. While the finance team is arguing for a standardized approach toward market segmentation, John and his team members feel that it is more important to understand customer requirements on an individual basis for greater customer satisfaction. Which of these terms best describes the approach adopted by John's team? A) Standardization B) Localization C) Globalization D) Customization E) Integration
D) Customization
During which step of the international communications process does the receiver of the message interpret symbolism transmitted from the information source? A) Selecting a message B) Encoding C) Selecting a message channel D) Decoding E) Identifying the sources of noise
D) Decoding
As illustrated by the Product Component Model, which of the following components of a product will be altered, if a company makes changes to the design of the product to improve its functionality? A) Core component B) Support services component C) Packaging component D) Functional component E) Global component
D) Functional component
Which of the following is true of franchising? A) It is an important form of horizontal market integration. B) The franchiser provides market knowledge, capital, and personal involvement in management. C) Foreign laws and regulations are usually hostile toward franchising. D) It provides an effective blending of skill centralization and operational decentralization. E) The franchiser has little control on marketing of the products at the point of final sale.
D) It provides an effective blending of skill centralization and operational decentralization.
The marketing team at Ojho Technologies is drafting a plan to convey the benefits of their newly developed software to the users, in their international markets. The marketing team is working on improving the _____ of the product. A) relative advantage B) compatibility C) trialability D) complexity E) observability
E) observability
The country-of-origin effect refers to the influence of: A) the home country laws on the products marketed in foreign markets. B) the success of a product in the domestic market on the marketing plans of the company. C) the economic conditions in the local market on the acceptance of a product in foreign markets. D) the international trade regulations on the marketing of a product. E) the country of manufacture or design on the consumer's perception of a product.
E) the country of manufacture or design on the consumer's perception of a product.
communication model and its implications
sender: encodes messages (transmits) ------> channel ------ > receiver: decodes message (interprets) -------------> feedback loop-------> (noise) surrounds everything
Product component (3) Support services component packaging component core component
support: repair and maintenaance, installation, instructions, deliveries, warranty, spare parts. other relative services. packaging: trademark, brand name, package, price, quality, styling. core: product platform, functional features, design features.
Which of the following is true of firms that follow variable-cost pricing? A) Firms that follow variable-cost pricing sell their products at lower net prices abroad than they are selling them in the domestic market. B) This approach to pricing emphasizes that no unit of a similar product is different from any other unit in terms of cost. C) Variable-cost pricing is suitable when a company has high variable costs relative to its fixed costs. D) If limited supply exists, a company may follow a variable-cost approach to maximize revenue and to match demand to supply. E) This approach emphasizes that each unit must bear its full share of the total fixed and variable cost.
A) Firms that follow variable-cost pricing sell their products at lower net prices abroad than they are selling them in the domestic market.
Ch. 15 quiz questions - Which of the following is true of the distribution process? A) It includes the physical handling of goods. B) It includes activities related to the promotion of goods and services. C) The ownership title remains with the distributor even on completion of the transaction. D) It excludes buying and selling negotiations. E) Middlemen do not play a role in the distribution process.
A) It includes the physical handling of goods.
In the case of international advertising, which of the following is one of the major barriers to effective communication through advertising? A) Language B) Politics C) Religion D) Education E) Government legislature
A) Language
Which of the following countries is not officially on the metric system? A) Myanmar B) Japan C) Saudi Arabia D) Mexico E) China
A) Myanmar
_____ are marketing activities that stimulate consumer purchases and improve retailer or middlemen effectiveness and cooperation. A) Sales promotions B) Advertisements C) Trade shows D) Direct selling events E) Public relations campaigns
A) Sales promotions
Robert wants to export goods manufactured by his company to a new foreign market. He needs to select a middleman. He discusses the matter with some experienced exporters. Which of the following ways of selecting a middleman are they most likely to suggest? A) Speak to the consumers of the product personally to find whom they consider to be the best distributors. B) Issue a request-for-proposal to all distributors in the target market and evaluate their responses. C) Consult other manufacturers of the similar products and select the distributor recommended by them. D) Consult trade organizations and select the distributor recommended by them. E) Conduct a background check on all the distributors available in the target market.
A) Speak to the consumers of the product personally to find whom they consider to be the best distributors.
Which of the following statements is true regarding merchant middlemen? A) They take title to manufacturers' goods. B) They are more controllable by manufacturers than agent middlemen. C) They do not assume the risks of trading. D) They work on commission and arrange for sales in the foreign country. E) They represent the best interests of a manufacturer.
A) They take title to manufacturers' goods.
R.A. Automobiles has been able to successfully market most of its new inventions in their target markets, because of their focus on niche areas and an efficient and experienced marketing team. The success of R.A. Automobiles in launching most of their inventions is referred to as _____. A) conversion-ability B) product penetration C) diffusion D) marketization E) mass-customization
A) conversion-ability
The role of _____ is to encourage the press to cover positive stories about companies and manage unfavorable rumors, stories, and events. A) public relations B) direct selling C) trade shows D) personal selling E) sales promotion
A) public relations
If a company were to focus on market planning that involved specific actions and allocation of resources, the company would be using _____ planning. A) tactical B) strategic C) corporate D) operational E) synergistic
A) tactical
A consortium is different from a joint venture in that a consortium: A) usually operates in a country where none of the participants is currently active. B) typically involves two members from two different countries. C) restricts the right to hold an equity position to its majority partners. D) does not involve the creation of a separate legal entity. E) is formed mainly for executing short-term projects.
A) usually operates in a country where none of the participants is currently active.
types of promotion: Advertising public relations sales promotion personal selling direct mail internet marketing sponsorship
A: any non personal paid form of communication using any form of mass media. PR: involves developing positive relationships with the public media, obtain favorable publicity within the media, handle successfully negative attention. SP: Commonly used to obtain an increase in sales short term. Could involve using money off coupons or special offers. DM: Is the sending of publicity material to a named person within an organization. IM: Promoting and selling your services online using various forms of online marketing techniques such as banner advertisements, videos or social media. S: Where you pay an organization to use your brand or logo.
Exporting- modes of payment and quotes Direct exporting Indirect exporting The Internet Direct sales
Accounts for 10% global activity. D: the company sells to a customer (firm or consumer) in another country. I: the company sells to a buyer (exporter or distribution, called trader) in the home country, who in turn exports the product to an specific region of the world. I: Internet marketing focused on domestic sales, however, a surprisingly large number of companies started receiving orders from customers in other countries, resulting in the concept of international Internet marketing (IIM) D: Particularly for high technology and big ticket industrial products.
Free trade zone area
Airport, seaport, or any other designated area for duty-free import of raw materials, components, sub-assemblies, semi-finished or finished goods. Such items can be stored, displayed, assembled, or processed for re-export or entryinto the general market of the importing country (after paying the required duties). Also called foreign trade Zone or free zone. NAFTA
Which of the following is true of agent middlemen? A) They take title to the merchandise. B) By using agents, the manufacturer maintains the right to establish policy guidelines. C) They are less controllable by manufacturers than are merchant middlemen. D) They are frequently criticized for not representing the best interests of a manufacturer. E) They assume the risks of trading.
B) By using agents, the manufacturer maintains the right to establish policy guidelines.
The government of Katia has made it mandatory for international banks and insurance firms to obtain the consent of individuals before exchanging their personal data with other branches of the firm in foreign countries. These firms cannot share the personal details of an individual such as income, employment details, and debt repayment histories, even with their branches in other countries, without the approval of the individual. Which of the following barriers to the functioning of service firms is in effect in the above scenario? A) Protectionism B) Controls on transborder data flows C) Protection of intellectual property D) Cultural requirements for adaptation E) Language translation barriers
B) Controls on transborder data flows
Which step of international advertising always represents the most daunting task for international marketing managers? A) Performing marketing research B) Developing the most effective message(s) for the market segments selected C) Composing and securing a budget based on what is required to meet goals D) Evaluating the campaign relative to the goals specified E) Specifying the goals of the communication
B) Developing the most effective message(s) for the market segments selected
Cottonware Corp., an American fabric manufacturing company, sells its products to Big Mart, a Japanese retailer. Big Mart retails these products in major Japanese cities. Which of the following best describes the form of exporting that Cottonware Corp. is engaged in? A) Contractual exporting B) Direct exporting C) Multiple layer exporting D) Parallel exporting E) Synergistic exporting
B) Direct exporting
In which step of the international communications process is the message from the source converted into effective symbolism for transmission to a receiver? A) Selecting a message B) Encoding C) Selecting a message channel D) Decoding E) Identifying the sources of noise
B) Encoding
Which of the following industries has a major share in the service exports of the United States apart from international tourism and transportation? A) Manufacturing industries B) Financial services C) Customer care services D) Agriculture E) Technology services
B) Financial services
Which of the following is a characteristic of Stage 3 of Rostow's five-stage model of economic growth? A) Industrial demand is associated with natural resources extraction. B) Goods demanded in the economy relate to equipment and supplies to support manufacturing. C) The focus is more on low-cost manufacturing of a variety of consumer and some industrial goods. D) The focus is on design activities and the development of manufacturing techniques. E) Infrastructure development is a primary requirement in the economy.
B) Goods demanded in the economy relate to equipment and supplies to support manufacturing.
_____ requires no equity investment and thus has a low risk, low rate of return, and little control. A) Licensing B) Indirect exporting C) Strategic alliance D) Contractual agreement E) Franchising
B) Indirect exporting
Which of the following statements is true of an export management company? A) It ranges in size from 100 to 250 people. B) It works under the name of the manufacturing firm. C) It does not have direct responsibility to the parent company. D) It acts as a middleman for companies willing to involve their own personnel in international functions. E) It acts as a middleman for firms with relatively large international volume.
B) It works under the name of the manufacturing firm.
The _____ and the television have become major communications media in most countries, due to their inherent entertainment value. A) Newspapers B) Radio C) The Internet D) Billboards E) Cinema halls
B) Radio
Ch. 12 quiz questions - Which of these best describes the view toward market segmentation in the 1970s? A) Global integration versus one-to-one marketing B) Standardization versus adaptation C) Adaptation versus one-to-one marketing D) Global integration versus local responsiveness E) Standardization versus local responsiveness
B) Standardization versus adaptation
Which of the following statements is true of the Japanese market? A) Japanese manufacturers are independent of wholesalers. B) The costs of Japanese consumer goods are among the highest in the world. C) The Japanese distribution structure supports short-term dealer-supplier relationships. D) Large stores serve an important role for Japanese consumers. E) Japanese consumers favor lower priced goods over personal service.
B) The costs of Japanese consumer goods are among the highest in the world.
Which of the following is a factor that exacerbates the volatility of demand in industrial markets? A) Professional buyers tend to make independent purchase decisions. B) The demand for industrial goods is dependent on the demand for final goods. C) Small, noncyclical swings in supply are inherent in industrial markets. D) The ratio of inputs to output is high for industrial goods. E) The demand for industrial goods is inelastic.
B) The demand for industrial goods is dependent on the demand for final goods.
Which of the following is involved in a physical distribution system? A) Human accounting B) Warehousing C) Advertising and promotion of goods D) Grievance handling E) After sales services
B) Warehousing
Ch. 18 quiz questions - Global Source Pvt. Ltd. prefers to set its prices and not follow the prices prevailing in the market to achieve specific goals. This implies that Global Source Pvt. Ltd. views pricing as a(n) _____ of accomplishing marketing objectives. A) passive instrument B) active instrument C) static element D) constant element E) fixed activity
B) active instrument
Problems of literacy, media availability, and types of media create challenges in the communications process at the _____ step. A) message selection B) encoding C) feedback D) decoding E) noise identification
B) encoding
Companies are proposing newer _____ market segments defined by "consumer cultures" related to shared sets of consumption-related symbols—convenience, youth, America, internationalism, and humanitarianism are examples. A) local B) global C) regional D) geographic E) linguistic
B) global
Cents-off, in-store demonstrations, and point-of-purchase displays are types of _____ devices. A) personal selling B) sales promotion C) trade show D) direct selling E) public relations
B) sales promotion
Which of the following is true of ISO 9000? A) It is a series of five international industrial standards originally designed by the World Trade Organization in Geneva. B) It concerns the registration and certification of a company's research and development team. C) It applies to specific products. D) It relates to generic system standards that enable a company to provide assurance that it has a quality control system. E) It is a certification of the production process which guarantees that a manufacturer produces a "quality" product or service.
D) It relates to generic system standards that enable a company to provide assurance that it has a quality control system.
Which of the following is true of parallel imports? A) The possibility of a parallel market occurs whenever price differences are lesser than the cost of transportation between two markets. B) As the prices for the same good are equal in different markets, the volume of parallel imports will increase. C) Restrictions like import quotas and high tariffs can help reduce parallel imports. D) Parallel imports can do long-term damage in the market for trademarked products. E) Parallel imports arise from the differences in the quality of trademarked goods.
D) Parallel imports can do long-term damage in the market for trademarked products.
LiteFeet, a footwear company, has developed a marketing plan for its target market—teenagers. Budgets, sales and profit expectations have been chalked out. Now, LiteFeet has begun to implement its specific plans and is anticipating great success in its chosen market. Which of the following phases of the international marketing process is LiteFeet currently in? A) Phase 1 B) Phase 2 C) Phase 3 D) Phase 4 E) Phase 5
D) Phase 4
Which of the following statements is true about retail patterns? A) Small dominant retailers can be sold to directly, but there is no adequate way to reach large retailers who handle a great volume of sales. B) The extremes in size in retailing are drastically different from those that are observed in wholesaling. C) Selling directly to the consumer is often the approach of choice in markets with sufficient or developed distribution systems. D) Retailing shows greater diversity in its structure than does wholesaling. E) Direct sales through catalogs have not proved to be a very successful way to enter foreign markets.
D) Retailing shows greater diversity in its structure than does wholesaling.
Which of the following is conducted at the highest levels of management and deals with products, capital, research and the long and short term goals of the company? A) Operational planning B) Tactical planning C) Corporate planning D) Strategic planning E) Personnel planning
D) Strategic planning
Which of the following is a factor that spurs demand for technologically advanced products? A) An increase in the size of the global unskilled labor force B) Large fiscal deficits in developed nations C) The increase in the average age in Europe D) The privatization of government-owned industries E) The opening of the Trans-Arctic route
D) The privatization of government-owned industries
Which of the following statements is true regarding an import-oriented distribution structure? A) Several independent agencies providing functions such as advertising, marketing research, and financing are a part of this distribution structure. B) The relationship between the importer and any middleman is similar to that found in a mass-marketing system. C) The idea of a channel as a chain of intermediaries performing specific activities and each selling to a smaller unit beneath it until the chain reaches the consumer is common. D) These distribution systems are local rather than national in scope. E) The marketing system develops around the philosophy of selling an unlimited supply of goods at low prices to a large number of affluent customers.
D) These distribution systems are local rather than national in scope.
Customer training is rapidly becoming a major part of a company's _____ when selling technical products in countries that demand the latest technology. A) promotional pricing B) product innovation C) capacity utilization efficiency D) after-sales service E) export strategies
D) after-sales service
IKEA, Costco, and Sears Roebuck are examples of _____. A) export management companies B) trading companies C) export associations D) global retailers E) complementary marketers
D) global retailers
When two or more participating companies join forces to create a separate legal entity to facilitate doing business in a country where at least one of them is currently active, is called a _____. A) consortium B) franchise pact C) license arrangement D) joint venture E) direct investment agreement
D) joint venture
Even though Flix bars contain all vegetarian ingredients, except for animal gelatin, they had to use the brown dot in a brown square symbol, instead of the green dot in a green square symbol, on their package in Indian markets to indicate the presence of animal-based ingredients. Such mandatory requirements that necessitate changing the labeling of products are part of the _____ requirements in the local marketplace. A) economic B) cultural C) technological D) legal E) climatic
D) legal
In an international communication process carried out by a company, the sales force of the company that conveys the encoded message to the intended receiver acts as a(n) _____. A) decoder B) source of noise C) receiver D) message channel E) information source
D) message channel
Ch. 13 quiz questions - A product's _____ is most likely to influence the purchase decision of the consumers. A) appearance B) size C) technology D) quality E) design
D) quality
A _____ refers to a business relationship established by two or more companies to cooperate out of mutual need and to share risk in achieving a common objective. A) direct sales group B) consortia C) joint venture D) strategic international alliance E) franchising organization
D) strategic international alliance
Services are classified as intangible because: A) they have a physical presence. B) their intrinsic value is embedded within their physical presence. C) they can be processed and stored in inventories for an indefinite period. D) they have an intrinsic value that results from a process, performance, or an occurrence. E) they are things or objects that can be stored and possessed.
D) they have an intrinsic value that results from a process, performance, or an occurrence.
Placement and how to incentivize and control it - Distribution is key - make or buy decision - inventory - placement & promotion
D: access to a distribution system that places the product where consumers would like to find it in the most efficient way (i.e. low cost and fast) - Competitors (manufacturers) can block access to distribution through their control (i.e. power over the distribution channel including retailing stores). - As retailing stores obtain more control (power) over the distribution, manufacturers loose power and their ability to block access to distribution. M: relate to sourcing (buy) for products/parts/raw materials and to making products/parts/raw materials - Because of globalization and improvements in quality/capacity, firms can make or buy anywhere in the world. - Make or buy decision affect placement - if the part is not available, the product can't be finished and thus, it can't be placed (presented to consumer) I: part of the distribution: lack of it affect placement and too much of it indicates placement (not placed properly, manufacturing not coordinated with sales, etc.) and/or sales (price, quality, and/or communications) issues. P: regardless of where the firm is selling (domestically and/or internationally) exerts a tremendous influence on the firm's performance (e.g. sales & profits). P: to be the most important aspect of marketing, without proper placement sales and advertising are meaningless.
Which of the following is true of tariffs? A) A tariff is levied for the purpose of decreasing government revenue. B) An ad valorem duty is a flat charge per physical unit imported. C) A specific duty is levied as a percentage of the value of the goods imported. D) Tariffs and other forms of import taxes serve to treat domestic and foreign goods equally without any discrimination. E) Compound duties include both a specific and an ad valorem charge.
E) Compound duties include both a specific and an ad valorem charge.
Which of the following is the first step in adapting a product to a foreign market? A) Developing a strategy to convey the benefits of the product to the consumer. B) Determining ways in which the product can be modified. C) Determining which physical attribute to modify to suit the local needs. D) Developing a successful product strategy. E) Determining how new a product is to a market and how people react to newness.
E) Determining how new a product is to a market and how people react to newness.
Which of the following modes of foreign market entry is the riskiest? A) Exporting B) Joint venture C) Contractual agreement D) Strategic alliance E) Direct foreign investment
E) Direct foreign investment
Three automobile companies have created a single online site called Covisint (www.covisint.com) for purchasing automotive parts from suppliers, which is expected to save the companies millions of dollars. Which of the following is one of these three companies? A) Toyota Motor Corporation B) Honda Motor Company C) Tata Motors D) Nissan Motor Company E) Ford Motor Company
E) Ford Motor Company
Which of the following is likely to hamper the growth of international services trade? A) Removal of tariffs on the import of services B) Capitalism C) Tax breaks for companies that invest abroad D) Globalization E) Higher taxes on imported services
E) Higher taxes on imported services
Which of the following can be used to manage volatility in industrial demand in the domestic market? A) Maintaining a narrow product line B) Reducing prices at a gradual pace C) Investing in foreign high-yield financial instruments D) Increasing advertising expenditures during booms E) Ignoring market share as a strategic goal
E) Ignoring market share as a strategic goal
Which of the following organizational structures is a company most likely to adopt as it attempts to reorganize for global competition? A) Global product division structure B) Pyramid structure C) Hierarchical structure D) Geographical division structure E) Matrix structure
E) Matrix structure
Which of the following is the most advanced stage in Rostow's five-stage model of economic development? A) The traditional society B) Drive to maturity C) Preconditions for takeoff D) Takeoff E) The age of mass consumption
E) The age of mass consumption
14 When using virtual trade shows as opposed to the physical model, manufacturers: A) face higher costs. B) will not be able to exhibit the product. C) will not be able to demonstrate the use of the product. D) require more manpower and marketing personnel. E) cannot engage in interpersonal relationship building.
E) cannot engage in interpersonal relationship building.
Ben's chocolates had to be sold in tin packages in their Middle East markets to prevent the chocolate from melting due to high temperatures. The factor that is influencing the change in the product is the _____ of the foreign market. A) legal requirements B) economic requirements C) technological requirements D) cultural requirements E) climatic requirements
E) climatic requirements
Lately, more and more multinational companies are favoring _____ of advertising themes in different countries. A) standardization B) unification C) uniformity D) regularization E) customization
E) customization
Product homologation is a term used in many countries to: A) identify concerns with the environmental consequences of various marketing activities. B) describe the process of development and implementation of technical standards for a product. C) define the process by which innovation spreads in a new market. D) describe the influence of the manufacturing country on the consumer's perception of a product. E) describe the changes mandated by the local product and service standards.
E) describe the changes mandated by the local product and service standards.
Rensil, a popular laundry brand in the United Kingdom, repackaged its washing powder in 20 gram and 50 gram packs in Kenya to sell them at reasonable prices. The factor that is influencing product adaptation in the local market is _____. A) climatic requirements B) political requirements C) cultural requirements D) technological requirements E) economic requirements
E) economic requirements
Firms that sell industrial goods in the international market should focus on after-sales services because these services: A) require high levels of investment in training and development. B) cannot be outsourced to other companies. C) need to be heavily advertised. D) cost the firm almost nothing. E) help the firm build customer loyalty.
E) help the firm build customer loyalty.
Ch. 14 quiz questions - Demand in industrial markets differs from demand in consumer markets in that: A) demand is more volatile in consumer markets. B) the demand for industrial products is linked to the income of the buyer. C) the demand for consumer goods is derived demand. D) the higher cost of production of industrial products makes them more expensive than consumer products. E) the level of technology used in industrial goods makes their sale more appropriate for some countries than others.
E) the level of technology used in industrial goods makes their sale more appropriate for some countries than others.
Planning Process - 4 Phases -PADI
Phase 1: Preliminary Analysis and Screening matching company and country (foreign) needs. Individual Phase 2: Adapting the Marketing Mix to Target Markets- Group assignment Phase 3: Developing the Marketing Plan (market entry mode) - Group Assignment Phase 4: Implementation and Control
Types of pricing (Skimming, penetration, variable cost, full cost)
S: A company uses when the objective is to reach a segment of the market that is relatively price insensitive and thus willing to pay a premium price for the value received P: Used to stimulate market and sales growth by deliberately offering products at low prices. V: Firm is concerned only with the marginal or incremental cost of producing goods to be sold in overseas markets F: Companies insist that no unit of a similar product is different from any other unit in terms of cost and that each unit must bear its full share of the total fixed and variable cost
Middlemen, merchant, and Agent (representative) (distribution/placement)
Seller must exert influence over two sets of channels: One in the home country One in the foreign-market country - Agent: represent the principal rather than themselves - Merchant: take title to the goods and buy and sell on their own account
Price Escalation: cost of exporting - Tariffs - Administrative costs - Inflation/Deflation - exchange rate fluctuations
T: fee charged when goods are brought into a country from another country A: include exports and imports licenses, other documents, and the physical arrangements for getting the product from port of entry to the buyer's location I: in countries with rapid inflation or exchange variation, the selling price must be related to the cost of goods sold and the cost of replacing the items D: In a deflationary market, it is essential for a company to keep prices low and raise brand value to win the trust of consumers E: Nobody's quite sure of the future value of currency. Transactions are increasingly being written in terms of the vendor company's national currency
Varying currency values Middleman & transportation cost Approaches to lessening price escalation
V: Changing values of a country's currency relative to other currencies Cost-plus pricing M: Channel diversity Underdeveloped marketing and distribution channel infrastructures A: Lowering cost of goods Lowering tariffs Lowering distribution costs Using foreign trade zones to lessen price escalation Dumping
Brand & what it is - global, national, private, COE
very important, most valuable resource a company has. G: defined as worldwide use of name, term, symbol as to identify goods or services of one seller and to differentiate them from competitiors. Internet helps. N: nationalistic pride impact on brands. use of global brands where possible and national when necessary. COE: country of origin. any influence that the country of manufacture assembly, or design has on a consumer's positive or negative perception of a product. stereotypes, judgement. P: Growing as challenges to manufacturer brands. provide high margins, shelf space, and in store promotion. quality products at low prices. competitively priced and provide real consumer value.
