marketing test

Because retailers have to be concerned with product selection, price, and space, they often evaluate products on the basis of

sales per square foot of selling area.

Sometimes business partnerships are formed between traditional rivals competing for market share in the same product class. These partnerships are known as

strategic alliances.

About what percentage of the annual U.S. gross domestic product is government spending?

40 percent

What is the primary distinction between a joint venture and a strategic alliance in international marketing?

A joint venture is defined in scope, while a strategic alliance is typically represented by an agreement to work together.

Johnston Chemicals' president is very excited about the possibility of the firm's British subsidiary having access to customers in the entire EU. He realizes that it will be some time before this area truly becomes one market, primarily because of differences in which of the following?

Cultural factors

Harley-Davidson Motors manufactures all of its motorcycles in the U.S. at one of four sites. With a large number of its bikes sold in markets all around the world, it still retains the manufacturing close to the headquarters for several reasons, one being that its management wants to keep close watch on the quality of its products. However, for all the accessories, apparel, and other riding gear, Harley-Davidson contracts out to other manufacturers to produce the items with the Harley name and logo. Some of these items, particularly the apparel, are made in China. Lately, some members of the Harley Owners' Group (HOG) have been complaining to the company about this practice, citing that "everything Harley should be made in America". ​ Refer to Scenario 9.1. At what level of involvement in international marketing is Harley-Davidson with regard to its bikes?

Exporting

Globalization of markets requires developing marketing strategies as if the world were one market. Which of the following marketing mix variables is most difficult to standardize for globalization?

Media allocation

Safeway Supermarkets recently placed an order with the Kahn Corporation for hotdogs. The typical weekly order is for 10 cases; however, since the upcoming weekend includes a holiday, this time Safeway is ordering 100 cases of hotdogs. Safeway orders this product on a regular basis. What type of purchase does this week's purchase represent?

Modified rebuy

The trade agreement that links Mexico, Canada and Unites States into one economic market is called which one of the following?

NAFTA

Caterpillar, maker of large construction equipment in the U.S., would like to better understand factors that would affect its ability to export its products to various countries. Which of the following forces determine how trade barriers affect Caterpillar's marketing efforts?

Political and legal

Which of the following statements about reseller markets is false?

Resellers are not concerned with how much space the product takes up as long as it has a high price.

The Cooper Tire & Rubber Company has been searching for less expensive raw materials for manufacturing its bicycle tires. Cooper has found that there are less expensive sources in the country of Indonesia, but it needs to form a partnership with the government of Indonesia in order to gain access to the country's rubber. What type of partnership will need to be formed?

The Cooper Tire & Rubber Company has been searching for less expensive raw materials for manufacturing its bicycle tires. Cooper has found that there are less expensive sources in the country of Indonesia, but it needs to form a partnership with the government of Indonesia in order to gain access to the country's rubber. What type of partnership will need to be formed?

Which of the following would be a benefit to a franchiser, such as Jiffy Lube, in expanding into international marketing?

The franchiser does not have to put up a large capital investment.

The government decides to purchase a new fleet of fighter jets for the U.S. Air Force. What type of buying procedure is the government most likely to use?

The government will select a few firms and enter into negotiations with them until the contract is awarded

How does using an exporting intermediary limit the risk involved with global marketing?

This approach involves limited risk because the company has no direct investment in the foreign country.

The Ford Motor Company has entered into an alliance with Yves Saint Laurent, a maker of clothing and one of the most successful fashion houses in the world. Yves Saint Laurent is headquartered in France. Ford will use Yves Saint Laurent designs and color traditions in its production of luxury models of the company's Expedition SUV and Lincoln vehicles. The Yves Saint Laurent elements will appear in the interior and body paint color. This alliance would most likely be classified as

a strategic alliance

KFC opened its first franchised restaurant outside of North America in England in 1964. Now, over a billion KFC chicken dinners are sold annually at more than 80 countries and territories around the world. KFC has established its own processing plants in these countries to ensure the quality of its chickens and other food items. In the U.S., the menu at KFC is usually the same in all restaurants, with only a very few additional items available in different regions. However, when KFC first franchised into Asian countries, it added many unusual local delicacies to the menuitems such as fried octopus and squid. Additionally, the franchised stores in Asian countries display cooked food in "plates" near windows at the front of the store. This is a tradition for many restaurants in these countriesto offer the customer passing by a preliminary view of their product. ​ Refer to Scenario 9.2. Which of the following alliances will KFC most likely utilize to guide its business transactions in Japan and China?​

a. ​APECAPEC

The Foreign Corrupt Practices Act of 1977 makes it illegal for U.S. firms to

attempt to make large payments or bribes to influence policy decisions of foreign governments

Harley-Davidson Motors manufactures all of its motorcycles in the U.S. at one of four sites. With a large number of its bikes sold in markets all around the world, it still retains the manufacturing close to the headquarters for several reasons, one being that its management wants to keep close watch on the quality of its products. However, for all the accessories, apparel, and other riding gear, Harley-Davidson contracts out to other manufacturers to produce the items with the Harley name and logo. Some of these items, particularly the apparel, are made in China. Lately, some members of the Harley Owners' Group (HOG) have been complaining to the company about this practice, citing that "everything Harley should be made in America". ​ Refer to Scenario 9.1. One of Harley-Davidson's largest international markets is in Japan, where American brands are highly sought after. This is an example of ____ impacting the market.

cultural forces

Selling products that are not in demand in all world markets, such as hand-powered washing machines for use in countries where electricity is not universally available, represents an international marketing strategy focusing on

customization

High Plains Furnishings, a furniture manufacturer in southern Montana, markets its furniture products in markets within the United States. It has also found several niche target markets in Finland, Chile, and Argentina. High Plains Furnishings is engaging in

domestic marketing and limited exporting

Henderson Synthetics is a producer of chemical products aimed at increasing agricultural yield per acre. Henderson Synthetics' management believes that several of the firm's products could have sizable markets in other countries, however, it is costly to obtain market research to confirm this. If Henderson Synthetics wanted to temporarily "try out" these international markets with a minimal level of commitment and cost, it should use

exporting.

Organizations that employ standardized products, promotion campaigns, and prices for all markets are practicing what is known as

globalization.

The Mont Blanc Company plans to export expensive consumer gift items to Germany. The best overall economic measure of market potential would be Germany's

gross domestic product per capita

Christoff's Lawn & Lot is a small business that provides landscaping and grass cutting services in the spring and summer. Christoff's usually contracts with customers on an annual basis, with the terms set out at the beginning of the season. This year, the area experienced a significant amount of rain, causing the grass to grow more quickly. Christoff's was required to cut the grass every time it grew 2 inches, and no matter how many times it needed cutting, the customer paid the same monthly amount based on the original contract. The price of gas has now grown by 35% causing Christoff's to pay more for their supplies. The demand for gas despite its price represents ________ demand for Christoff's Lawn & Lot.

inelastic

If Caterpillar wished to reach the market in Malaysia but was leery of a direct investment in the country, it might provide a Malaysian operation with the knowledge to produce and market its products in exchange for a commission. This type of arrangement is called

licensing

GE Transportation produces locomotive engines for sale in countries around the world. After looking at the total market for locomotive engines, the company found that various rail lines wanted different types of engines. Major rail lines in the U.S. and South America wanted engines to haul heavy freight. Rail lines in Sweden and Germany were interested in a cleaner, greener locomotive engine. Rail lines operated by several Eastern European countries wanted locomotive engines for running short distances between cities in their own country. GE Transportation is currently manufacturing its GE 4400 for heavy freight, its Hybrid Eco-Engine, and its Dash 9, suited for shortline transport. ​ Refer to Scenario 6.2. Researchers at GE Transportation estimate that 1,000 rail lines throughout the world will purchase some kind of locomotive engine next year. That number represents the

market potential.

Southern Tier Industries has operations in more than 30 foreign countries. The headquarters in Atlanta controls the entire organization while offering subsidiaries the freedom necessary to achieve success in local markets. Southern Tier Industries is an example of a(n)

multinational enterprise

Some hospitals in the United States find that their need for radiologists to read X-rays is volatile during the evening and early morning hours, especially between 2:00 and 6:00 am. This is because the number of emergency room visits needing X-rays is usually lower than those required during daytime operating hours. There is a recent trend where hospitals in the United States are contracting radiologists from countries such as Australia to read the electronically-transmitted X-rays during the evening and early morning hours. This is an example of

outsourcing

Business markets are typically divided into four categories. These categories are

producer, reseller, government, and institutional

The term dumping refers to the sale of

products sold in foreign countries at unfairly low prices.

Another name for the European Union is

the Common Market

A company not involved in manufacturing that brings together buyers and sellers in different countries is usually referred to as a

trading company

A(n) ____ is an organization that links buyers and sellers in different countries but is not involved in manufacturing.

trading company

Walmart sells numerous products, including packaged food, produce, automotive maintenance services, eyeglasses, clothing, and toys. Walmart advertises itself as a store where "we save people money so they can live better," focusing on its low prices as the customer's most important need. Walmart's advertising appears to use a(n) _____ strategy to a market that is _____.

undifferentiated; homogeneous

​U.S. businesses are increasingly recognizing that international markets provide enormous opportunities for growth and profit. ___________companies are entering international markets and quickly realizing as much as 70 percent of their sales outside the domestic market within two years

​Born global

​The international marketplace offers a new set of challenges for the marketer to navigate. There are multiple forces that must be overcome if the firm's marketing strategies are to be successful in international markets. For example, some countries have import tariffs and quotas that restrict the flow of foreign products into their domestic markets. This is an example of which of the following environmental forces present in international markets?

​Political, Legal and Regulatory Forces

​A ______________ links buyers and sellers in different countries but it has no manufacturing capability. It most important function is ___________ to products and moving them from the domestic country to the foreign country

​foreign subsidiary; taking title

When marketing to business customers, marketers have to understand the key characteristics of the business customer, and alter their marketing mix accordingly. For example, a business customer views _________ as the amount of investment necessary to obtain a desired level of return or savings. Moreover, the business customer demand ______________ before buying to be sure their needs are being met with the product.

​price; detailed information