MKTG 411 Test 2

What are the five-step marketing research approach leading to marketing actions?

1.) Define the problem. 2.) Develop the research plan. 3.) Collect relevant information. 4.) Develop findings. 5.) Take marketing actions.

What marketing entry strategies have the highest risk highest reward to lowest risk lowest reward?

1.) Direct Investment 2.) Joint Venture 3.) Licensing 4.) Exporting

What are the four primary differences between international and domestic research?

1.) New parameters Duties Foreign currencies Modes of transportation International documentation Port facilities 2.) New environment which involves understanding: The culture of the host country and its demographics Political system Stability Differences in societal structures and language Legal issues Technological level of the society The economic environment 3.) Number of factors involved are: The number of changing dimensions that increase geometrically and the interaction between them Coordination becomes difficult 4.) Broader definition of competition is faced when entering the international market The firm must determine: Breadth of the competition Track the competitive activities Evaluate the actual and potential impact on its own operations

What are the three sequences to a Sequential Process of Researching Foreign Market Potentials.

1.) Preliminary Screening for Attractive Country Markets - What foreign markets to investigate. 2.) Assessment of Industry Market Potential - What is the aggregate demand in each of the selected markets. 3.) Company Sales Potential Analysis - How attractive is the potential demand for a company's products and services.

What is a Proxy Variable?

A substitute for a variable that cannot be measured directly.

What is Matrix Structure?

Adopted by multinational organizations for planning, organizing, and controlling interdependent business, critical resources, strategies and geographic regions The matrices used vary according to their areas of emphasis and the number of dimensions needed

What is mixed structure?

Combines two or more organizational dimensions simultaneously May occur in a transitionary period after a merger or an acquisition, or because of a unique market characteristics or product lines In the long term, coordination and control across such structures become tedious

How do you evaluate secondary data?

Consider the quality of the data source, with primary focus on: The purpose and method of original data collection Assess the quality of actual data in terms of: Accuracy Reliability Recency Assess the comparability and compatibility of the data

The following six-part strategy for success has been proposed:

Create customized products and services Develop approaches that overcome key obstacles Utilize the latest technology for advantage Scale up operations locally, regionally, and globally Exploit low-cost labor Invest in talent to sustain their growth and expansion

What are the three types of implementation?

Decentralization: Subsidiaries are granted high degree of autonomy Centralization: Strategic decision making is concentrated at headquarters Coordinated decentralization: Overall corporate strategy is provided from global or regional headquarters

What are Export trading companies (ETCs)?

Designed to improve the export performance of small- and medium-sized firms in the United States Permits bank participation in trading companies Reduces the antitrust threat to joint export efforts Firms participating in trading companies by joining or forming them need to: Consider the difference between product- and market-driven activities

What are the four Strategies for Local Companies? How much Global Pressure does each have? Are they customized to home market of transferable abroad?

Dodger- Sells out a global player and becomes a part of an alliance. High Pressure, Home Market. Defender- Leverages local asset in segments where globals are weak. Low Pressure, Home Market. Contender- Upgrades capabilities to match globals in niche. High Pressure, Transferable Abroad. Extender- Expands into markets similar to home base. Low Pressure, Transferable Abroad.

What are Export management companies (EMC)?

Domestic firms that perform international marketing services as commission representatives or distributors for other firms Two primary forms of operation Take title to goods and operate internationally on their own account Perform services as agents

What is Functional Structure?

Emphasizes the basic tasks of the firm Works best when both products and customers are relatively few and similar in nature A variation of this approach is the use of process as a basis for structure

NIH syndrome can be avoided by:

Ensuring that local managers participate in the development of global brand marketing strategies Encouraging local managers to develop ideas for regional or global use Maintaining a product portfolio that includes local as well as regional and global brands Allowing local managers control their marketing budgets and respond to local customer needs and counter global competition

What are the two subsets of Bases for International Marketing Segmentation?

Environmental Bases Marketing Management Bases

What is Plan Control?

Formalized long-range programs with more than a one-year horizon.

What are the four parts of Environmental Bases?

Geographic Cultural Political Economic

What is Product Structure?

Gives worldwide responsibility to business units for marketing of their product lines Provides improved cost efficiency through centralization of manufacturing facilities Provides the ability to balance the functional inputs needed by a product and to react quickly to product-specific problems in the marketplace Fragments international expertise within the firm because a central pool of international experience no longer exists

Secondary data for international marketing research can be procured from:

Governments International organizations Service organizations Trade associations Directories and newsletters Electronic information services Other firms

What are Interviews?

Intent is to obtain in-depth information instead of a wide variety of information.

What is a Focus Group?

Interaction within a group, ideally seven to ten participants, about a specific topic.

What is Content Analysis?

Investigates the content of communication in a society Monitors the social, economic, cultural, and technological environment Pinpoints upcoming changes and new opportunities

What is Area Structure?

Is organized on the basis of geographical area Follows the marketing concept most closely because individual areas and markets are given concentrated attention Is suited if market conditions with respect to product acceptance and operating conditions vary dramatically

Firms are reluctant to engage in international marketing activities due to :

Lack of sensitivity to differences in consumer tastes and preferences Limited appreciation for the different marketing environments abroad Lack of familiarity with national and international data sources and the inability to use them Firms building up their international marketing activities on the basis of unsolicited orders

What is Not-invented-here syndrome (NIH)?

Leads to decline of global program when: Country organizations are not part of the planning process.

Which of the following is true of marketing research? a. Marketing research can take place in a void. b. Marketing research is the link between marketer and market without which marketing cannot function. c. Marketing research highlights the roles of bias, emotions, and subjective judgment. d. Marketing research can take place even without a business purpose.

Marketing research is the link between marketer and market without which marketing cannot function.

What is customer structure?

Operations are structured based on distinct worldwide customer groups

What is the difference between Primary and Secondary Data?

Primary data are collected with the objective of identifying some specific factors needed by the researcher. Collected by an already available source of information such as Newspapers, Television Commercials or any other institute that has collected data for their purposes, then those will be secondary data.

What is Product Driven versus Market Driven?

Product Driven (focuses on making a unique product and focuses inwards). Market Driven (focuses outwards to take advantages of opportunities).

Six basic types of global structures are available:

Product structure Area structure Functional structure Customer structure Mixed or hybrid structure Matrix structure

What are the four parts of Marketing Management Bases?

Product-Related Promotion-Related Price-Related Distribution Related

What Market Factors contribute to globalization?

Purchasing power Developed infrastructures Technology Globalization of distribution channels Cross-border retail alliances

What is the difference between Qualitative, Quantitative, and Causal Research?

Qualitative research -How/why questions Quantitative research -What questions Causal research -Only way to establish causality

What is Cultural Control?

Require an extensive socialization process, and informal, personal interaction is central to the process. The primary instruments of cultural control are Careful selection. Training of corporate personnel. Institution of self-control.

Analyzing and interpreting secondary data requires:

Requires combination and cross tabulation of various sets of data or the use of proxy information to: Arrive at conclusions which address the research objectives.

What is Observation?

Requires the researcher to play the role of a nonparticipating observer of activity and behavior Can be personal or impersonal, obtrusive or unobtrusive Can be extremely useful in shedding light on practices not previously encountered The degree to which the observer has to be familiarized or introduced to other participants may vary The complexity of the task may differ due to the use of multiple languages

What is Budget Control?

Short-term guidelines in such areas as investment, cash, and personnel.

Companies need to globalize their international strategies by formulating them across markets to:

Take advantage of underlying market, cost, environmental, and competitive factors.

What are born globals or mini nationals?

Taking advantage of today's more open trading regions and newer technologies.

What is E-Commerce?

The ability to offer goods and services over the Web Various methods to market products over the Internet: Development of corporate websites Business-to-consumer and business-to-business forums

What is Exercising Control?

The degree of control imposed will vary by subsidiary characteristics, including its location.

What is Bureaucratic/formalized control?

The elements are: International budget and planning system, functional reporting system, and policy manuals used to direct functional performance

Which of the following best describes the firms that export via export intermediaries? a. They directly sell their products to foreign retailers. b. They sell their products to local firms that will subsequently sell the products in international markets. c. They use the services of export management companies (EMCs) or form export trading companies (ETCs). d. They use the services provided by sogoshosha to sell their products in international markets.

They use the services of export management companies (EMCs) or form export trading companies (ETCs).

What is Glocalization?

Uniformity is sought in elements that are strategic in nature and care is taken to localize necessary tactical elements.

What is Cross-subsidization?

Use of resources accumulated in one part of the world to fight a competitive battle in another.

What are Surveys?

Useful in providing the opportunity to quantify concepts Conducted via questionnaires that are administered personally, by mail, or by telephone Can be hampered by social and cultural constraints Allows the researcher to rapidly accumulate a large quantity of data amenable to statistical analysis

The value of research in making a particular decision may be determined by applying the following equation:

V(dr) - V(d) > C(r) Where: V(dr) - Value of the decision with the benefit of research V(d) - Value of the decision without the benefit of research C(r) - Cost of research

_____ controls consist of company policies and explicit set of regulations and rules that outline desired levels of performance. a. Bureaucratic b. Contributor c. Implementer d. Cultural

a. Bureaucratic

_____ demand is said to occur when large multinational firms who would like to maintain their established business relationships, encourage their suppliers to follow them abroad. a. Derived b. Overfull c. Latent d. Irregular

a. Derived

Which of the following is true of a dodger? a. It upgrades capabilities to match globals in niches. b. It sells out to a global player or becomes part of an alliance. c. It expands into markets similar to home base. d. It leverages local assets in segments where globals are weak.

b. It sells out to a global player or becomes part of an alliance.

Which of the following is a proactive motivation to go international? a. Competitive pressures b. Unique products c. Overproduction d. Excess capacity

b. Unique products

The value of research in making a particular decision can be determined by applying the following equation: V(dr) - V(d) > C(r). In this equation, V(dr) represents the: a. cost of research. b. value of the decision with the benefit of research. c. value of the decision without the benefit of research. d. difference between the cost of research and the benefit of research.

b. value of the decision with the benefit of research.

Which of the following most accurately describes a firm with a product-driven approach? a. The firm believes that the major source of its success lies in the superiority of its products compared with its competitors' products b. The main focus of the firm is inward to improve the quality of the products rather than outward to understand market conditions. c. All of the above are correct. d. None of the above are correct.

c. All of the above are correct.

Which of the following global structures improves cost efficiency through centralization of manufacturing facilities? a. Global functional structure b. Global customer structure c. Global product structured d. Global mixed structure

c. Global product structured

Which of the following is true about primary research? a. It is the only type of research conducted by a firm with a specific need. b. It is very limited in scope, as it typically does not go beyond the activities of secondary data collection. c. It is conducted to fill specific information needs that could not be addressed via secondary information. d. In international markets, it is easier to collect primary information than secondary information.

c. It is conducted to fill specific information needs that could not be addressed via secondary information.

Which of the following is true about unstructured questions? a. Unstructured questions typically allow the respondents only limited choice options. b. Unstructured questions decrease the potential for interviewer bias. c. Unstructured questions permit the capture of in-depth information. d. Unstructured questions prevent the respondents from setting their own frame of reference.

c. Unstructured questions permit the capture of in-depth information.

The _____ approach seeks uniformity, especially in elements that are strategic in nature, and also takes care to localize necessary tactical elements. a. globalization b. segmentation c. glocalization d. positioning

c. glocalization

The _____ concentrates international expertise, information flows concerning foreign market opportunities, and authority over international activities. a. export department structure b. global division c. international division d. hybrid structure

c. international division

_____ refers to a company's use of resources accumulated in one part of the world to fight a competitive battle in another. a. Hard power b. Diversification c. Soft power d. Cross-subsidization

d. Cross-subsidization

_____ refers to a company's decision to expand its portfolio by developing a strategy characterized by growth in a relatively large number of markets. a. Concentration b. Differentiation c. Cross-subsidization d. Diversification

d. Diversification

Which of the following is an approach that can be used against the emergence of the NIH syndrome? a. Maintaining a product portfolio that exclusively supports specific local brands b. Allowing global managers control over local marketing budgets c. Ensuring that global managers participate in the development of marketing strategies and programs for local brands d. Encouraging local managers to generate ideas for possible regional or global use

d. Encouraging local managers to generate ideas for possible regional or global use

Which of the following is an internal change agent associated with the internationalization process? a. Demand b. Competition c. Governmental activities d. New management

d. New management

Which of the following research techniques is most valuable for the researcher who is totally unfamiliar with a market or market situation, and can be quickly achieved through participation in a trade mission? a. Surveys b. Interviews c. Focus groups d. Observation

d. Observation

If market conditions with respect to product acceptance and operating conditions vary dramatically, the _____ approach is the one to choose. a. functional b. customer c. product d. area

d. area

In _____, a parent company grants an independent entity the right to do business in a specified manner that includes the right to sell the parent company's products and use its name, along with its production, preparation, and marketing techniques. a. leasing b. a joint venture c. hire purchasing d. franchising

d. franchising

A country organization that exists in a smaller, less-established market, and suffers from lack of competence is called a(n) _____. a. contributor b. strategic leader c. shell corporation d. implementer

d. implementer

The collaboration of two or more organizations for more than a transitory period to share assets, risks, and profits is referred to as a(n) _____. a. sole proprietorship b. Acquisition c. portfolio investment d. joint venture

d. joint venture

The intent of gathering qualitative data is to: a. amass data. b. search for statistical significance. c. generalize. d. obtain a better understanding of given situations and behavioral patterns.

d. obtain a better understanding of given situations and behavioral patterns.

One of the goals of globalization is to reduce costs by _____. a. charging a lot more for product sold b. using price skimming techniques of increasing prices for brand name merchandise c. dumping surplus in receptive markets d. pooling production or exploiting factor costs or capabilities within a system

d. pooling production or exploiting factor costs or capabilities within a system

What are controls?

focus on actions to verify and correct actions that differ from established plans Within an organization, control serves as an integrating mechanism Controls are designed to: Reduce uncertainty, increase predictability Ensure that behaviors originating in separate parts of the organization are compatible and in support of common organizational goals

Entering a market without conducting marketing research-

places firms, their assets, and their entire operation at risk.