mkg470 final

Joint venture

As a general rule, the Chinese government allows foreign companies to participate in its markets only if those companies agree to establish operations with local Chinese enterprises. Which market entry mode are they using

exporting

Executives at My Way/Highway Company have traditionally focused exclusively on the domestic market. As a first step toward "going global" that entails minimal risk, the company should consider:

Licensing

Companies such as Coca Cola and Disney have enjoyed substantial revenue growth by making their well-known trademark available to apparel producers via

Differentiation

Gillette markets its flagship MACH3 razor in more than 100 countries around the world. The MACH3 is available virtually everywhere that consumers shop for personal-care products; because of its advanced 3-blade design, the MACH3 typically costs more than other wet-shaving systems. Which generic strategy is evident in Gillette's global marketing effort of MACH3.

Enthocentric

If company managers decide to set the export price for a particular product at an amount equivalent to the home country price, they would be using which approach to pricing:

Skimming strategy followed by penetration strategy

Excelsior Corp. launches a new hand-held personal digital assistant (PDA) for busy corporate executives. The initial retail price is set at $699. One year later, in an effort to reach a broader market, the price is lowered to $299. Which of the following describes the pricing strategies used by Excelsior Corp:

Markets are reached through intermediaries in the exporters home market

In the case of direct exporting

Price fixing

In the late 1990s, the U.S. Justice Department fined two European pharmaceutical companies hundreds of millions of dollars for conspiring to suppress competition and set high prices for vitamin supplements marketed in the United States. What was the issue in this lawsuit:

Focused differentiation

Iridium Satellite LLC offers satellite Internet service with global coverage to customers who operate in remote areas not served by other connections. Which generic strategy does this illustrate:

Gray marketing

The unauthorized distribution of trademarked goods to exploit price differentials in world markets is known as:

Culturally close and easy to enter

When British entrepreneur Richard Branson established the first Virgin Megastore in France, he invested a great deal of money to develop a retail space on the famous Champs-Elysées. Judging by the approach Branson used, he and his management team must have viewed France as:

Culturally distant and difficult to enter

When British entrepreneur Richard Branson established the first Virgin Megastore in Japan, he established a joint venture with the Marui retailing chain. Judging by the approach Branson used, he and his management team must have viewed Japan as:

Competitive advantage

When a firm matches its distinctive competences to factors critical to industry success, it achieves:

Organic growth

Which approach to global retail expansion involves "greenfield" investment using a company's own financial resources to build a new store from the ground up:

Franchise

Which approach to retail expansion is most appropriate when targeting a country that management considers both culturally close and easy to enter

Economies of scale

Which barrier to entry is based on high production volumes that result in low overall costs compared to competitors:

contract manufacturing

Which of the following approaches does Nike use to supply world markets with its athletic shoes?

• a) Select distributors—don't let them select you. • b) Look for distributors capable of developing markets. • c) Treat local distributors as long-term partners. • d) Maintain control over marketing strategy from day one. • e) All of the above are appropriate guidelines.

Which of the following is an appropriate guideline for companies selecting independent distributors in international markets

Product differentiation

Which of the following is one of the generic strategies for competitive advantage identified by Michael Porter and discussed in your text

Skimming

Which pricing strategy would be most appropriate for a marketers of luxury designer brands