BAS 282: Global Marketing: SmartBook

What are major functions of global marketing research?

* Gathering precise information about competitors. * Analyzing the global market.

Match each segmentation strategy with its description.

* Global - One product is used in all markets. * Multi-domestic - A few products are used in large market segments. * Adaptive - Completely new products are used in each market.

Which of the following statements accurately describe how promotional issues affect global marketers?

* International product promotions can build on domestic brand awareness. * The creation of social media has helped marketers promote brands from the United States around the world. * The meaning of slogans can be changed during translation to other languages.

Which of the following statements about currency fluctuation are true?

* It can impact the global marketing activities in a country either negatively or positively. *It is measured using exchange rates.

Which of the following are traits of exporting?

* It is used by businesses of all sizes. * It allows small businesses to sell globally.

Match the element of a company's marketing mix with the example of how it might be adjusted to enter a foreign market.

* Product - Deciding which flavors consumers in the foreign market will prefer. * Price - Analyzing how much the consumers in the target market can afford to pay for a product. * Place - Deciding whether retail outlets in the foreign market need to be accessible to foot traffic or automobile traffic. * Promotion - Deciding how to translate an advertising campaign into the language of the foreign market.

Which statements about technology and global marketing are true?

* Technology makes it possible for customers from countries with different native languages to view the same website in their own language. *Technology has made it possible for even small businesses to operate globally.

How does global marketing research compare to local research?

* They both are used to complete the same key tasks. * Local research firms can recognize data collection barriers not obvious to global firms.

What are reasons for firms to engage in global marketing activities?

* To improve profits * To meet customer demand in various markets * To maintain local market share

Benefits of using licensing to enter markets include ______.

* a reduction in the effects of increased regulation. * greater knowledge of the local market.

Risks of promoting products in other languages include ______.

* creating messages that have unintended meanings when translated. * designing logos with cultural references that are not understood in other countries.

Product decisions for international markets are based on ______.

* cultural perceptions of product packaging * whether products should be standardized or individualized * the segmentation strategy the firm is using

Factors that must be taken into account when determining logistics for international marketing include ______.

* dramatic fluctuations in fuel prices. * inland transportation delays. * the possibility of piracy. * labor strikes.

If a company that wants to do business in another country hires a local marketing research firm in that country, the company is likely to ______.

* have more accurate communications contact information * avoid language barrier issues

Elements of the marketing mix that firms must adjust to when entering a foreign market include ______.

* price * promotion * product * place

In which of the following scenarios does currency manipulation occur?

A South American country buys a large amount of an Asian country's currency, causing the value of its own currency to drop, and then exports its products to the Asian country at low prices.

Which of the following is an example of a brand message not translating well to another language?

A slogan meaning "be active" is rendered as "run away quickly."

Elena's Edibles sells over 200 variations of their basic candy bar, each with a slightly different recipe tailored to local preferences.

Adaptive

How the value of a country's currency changes in relation to the value of other countries' currencies.

Currency Fluctuation

A country's government pressured the central bank in the country to begin a program that would make its currency artificially cheap. The country was than able to export more goods to other countries because the goods became relatively inexpensive. What has happened?

Currency manipulation

A basement-waterproofing company sees great profit potential and wants to open a new facility in another country.

Direct Ownership

An arrangement in which a domestic firm actively manages an overseas facility.

Direct Ownership

Ben just traveled to Argentina and realized that it would be a perfect place for him to open a new office for his agricultural supply business. He plans to open a new facility and send his top managers there to oversee the operation. Which market entry strategy is Ben using?

Direct Ownership

Selling domestically produced products to foreign markets.

Exporting

When companies enter new global markets, they often ______.

innovate in response to market differences

The price of one country's currency in terms of another country's currency.

Exchange Rate

A family creates a small number of ceramic items every month to sell in foreign markets.

Exporting

Sandra collects pretty rocks from a creek on her brother's property. She put together a site on the Internet and is now selling the rocks to buyers in more than 20 countries. Which market entry strategy is Sandra using?

Exporting

Which of the following is a logistics issue?

Federated Steel must find a way for its cargo ships to receive priority processing by officials in congested Asian ports.

A contractual arrangement in which a firm provides a local owner operator the right to use its name and marketing and operational support in exchange for a fee and, typically, a share of the profits.

Franchising

A restaurant wants to open locations in other countries but does not want to deal with hiring and managing employees.

Franchising

______ involves a contractual arrangement in which one company lets a local owner operator use its name and receive support in exchange for a fee and, usually, ______.

Franchising; a share of the profits

Polly's Paintbrushes sells the exact same Pollypaint Pro brushes in all of its markets worldwide.

Global

What type of marketing strategies intentionally deal with customers, markets, and competition around the world to sell more products in more markets?

Global

Which statement about competition and profits is generally true?

Higher competition means lower profits.

How wealth is allocated across a country's population.

Income distribution.

Top Shelf Hardware is about to enter into direct ownership of an overseas manufacturing facility. What benefit will Top Shelf most likely gain from this?

Increased control over its advertising, pricing, and product distribution in comparison with other methods of expansion

A heavy equipment company wants to sell its machines in a foreign market but needs a partner to do so.

Joint Venture

An arrangement in which a domestic firm partners with a foreign company to create a new entity, thus allowing the domestic firm to enter the foreign company's market.

Joint Venture

A large company is releasing a new action movie and wants to quickly sell products related to the movie.

Lincensing

A legal process in which one firm pays to use or distribute the resources of another firm.

Lincensing

Which statement about foreign competition and local businesses is generally true?

Local companies are better positioned to connect with customers.

Which of the following is a key feature of global marketing?

Most large firms must expand into global markets to sell more of their products.

Bingo's Battery Chargers sells five different regional models, each designed to use the electricity sources and connect to the common battery types used in five large global regions.

Multi-domestic

Why is it often difficult for companies to find demographic information about global markets?

Not all countries collect demographic data in the same way.

Which of the following is an example of a lack of cultural fit?

The launch of a European marketing campaign that is funny to Americans but offensive to Germans

Since overseas shipping tends to ______ than domestic transportation, companies engaged in global marketing hire ______ professionals to navigate the maze of transportation choices and develop solutions that support the firm's marketing strategy.

incur more costs; logistics

A belief by residents of a country that it is inappropriate or immoral to purchase foreign-made goods and services is called ______.

consumer ethnocentrism

Companies that enter foreign markets must make sure that their marketing achieves cultural fit, which may include incorporating messages designed to counteract ______, which occurs when a country's residents believe it is wrong or immoral to purchase foreign-produced products.

consumer ethnocentrism

A kitchen utensil company entered the market in a Southeast Asian country but soon found that some of its products, such as wooden bowls and spoons, were not selling because people would not buy items they could make for themselves. This is a result of the global marketing pricing issue of ______.

consumer willingness to pay

How well a marketing campaign works for a specific audience is known as ______.

cultural fit

Omaima is designing a marketing campaign that her company will use in a foreign country. To ensure that the campaign has good ______, Omaima makes sure to take into account the culture, traditions, needs, and wants of that specific country.

cultural fit

How the value of one country's currency changes in relation to the value of other currencies is known as ______.

currency fluctuation

One week, 100 Japanese yen are worth $1.25 in U.S. dollars. The following week, 100 Japanese yen are equal to $1.40. This is best described as an example of ______.

currency fluctuation

When governments artificially control the relative value of their currencies, they are engaging in ______.

currency manipulation

Many companies enter global markets in response to ______.

customer demand

Casey lives in the United States and believes it is wrong to purchase anything not made domestically. Casey is ______.

displaying consumer ethnocentrism

The governments of many emerging nations ______, so global marketers ______.

do not regularly collect an accurate census; often hire special research firms

Selling domestically produced products to foreign markets is known as ______.

exporting

Many companies choose to enter foreign markets because ______.

foreign consumers demand their products

Many businesses pursue the strategy of franchising because the ______ assumes most of the costs.

franchisee

A marketing strategy that consciously addresses customers, markets, and competition throughout the world in an effort to sell more products in more markets is known as ______ marketing.

global

Marketers are affected by currency manipulation when ______ artificially control the price of a country's currency in relation to other currencies.

governments

When a product costs a lot more in one country than another, branded products are sometimes sold through legal but unauthorized distribution channels known as the ______ market.

gray

Since they have to deal with almost 200 countries, global marketers face ______ than domestic marketers.

greater opportunity for error

A firm's ability to compete in the foreign market ______.

has been made easier by technology

In comparison to exporting, licensing has ______ risk.

higher

In order to analyze global markets in a way that will help them overcome language barriers and cultural differences, firms ______.

hire local marketing research companies

Culture clashes due to different business approaches in different countries are a major risk of __________ ventures.

joint

PEH Quarrying, an American company, wants to partner with Stone Liberators, an Italian company, to form a new firm in Italy. This is an example of a ______. The goal for PEH in doing this is to ______.

joint venture; enter the Italian stone market

Direct ownership can work well in a market that has ______.

little political risk and similarities between the foreign and domestic cultures.

When Bill's Beefy Burgers expanded its franchising to overseas markets, it created several new menu options and added more low-cost options. These were changes to its ______.

marketing mix

When a company enters a foreign market, it ______.

may face strong local competition

When marketers translate campaigns into different languages, they need to remember that ______. They also need to carefully examine their ______ can also be misinterpreted.

messages can easily be translated in a distorting way; logos because imagery

When compared to domestic marketing, global marketing activities present ______ challenges for companies.

more

The opportunity to enter global markets is ______, and this is important because ______.

open to firms of all sizes; the largest markets are outside the United States

As companies develop their international pricing strategy, they must consider whether a foreign competitor will sell products to the same market at a lower price than it sells the same product in its domestic market. This practice is known as ______.

product dumping

Companies usually prefer to market to countries with low taxes on imports, known as ______,because these taxes make it hard for firms to ______.

tariffs; price their products competitively

If a business wants to know how many Turkish lira it will cost to buy something that is valued at U.S. $100,000, it needs to know ______.

the exchange rate

If ______ showed that one U.S. dollar was worth one euro yesterday, but went up to two euros today, French tourists arriving in the United States today would have ______ during their vacation than when they left home yesterday.

the exchange rate; less buying power