Chapter 18: Global Marketing and Business Analytics

d. Communication

Direct selling, sales promotion, direct marketing, and advertising are all examples of a company's _________________ channels. a. Public relations b. Production c. Logistics d. Communication

a. Source effects

Following a month-long social media attack on German imports, German electronics manufacturers decided to implement an advertising campaign to negate the attack and reassure US consumers that German-made electronics were of the highest quality and relied on US parts to complete the product. Which international communication barrier was the company trying to overcome? a. Source effects b. Channel length c. Noise levels

b. Profit margin.

For most companies, each intermediary in a channel adds its own markup to products, which creates a link among channel length, the final selling price, and the company's a. Marketing mix. b. Profit margin. c. Sales forecasts. d. Retail markup.

b. Marketing mix

Grayson's department is responsible for assessing the distribution and pricing strategies for the company's main product lines. This department is responsible for two of the elements that comprise the ______________. a. Sales forecast b. Marketing mix c. Mission statement d. Purchasing parity

c. Mass media advertising

Karen's boss told the marketing department that a pull strategy should be implemented to sell the new line of footwear. Which communication strategy should the department use? a. Personal selling b. Source effects c. Mass media advertising d. Customization

c. Each key function in the company.

Members of a product development team should be comprised of individuals from a. The affiliate companies. b. The marketing and production departments. c. Each key function in the company.

a. Standardized advertising spreads the costs of ad development over many countries thereby lowering the costs of value creation.

What is an accurate depiction of standardized advertising? a. Standardized advertising spreads the costs of ad development over many countries thereby lowering the costs of value creation. b. Standardized advertising has no affect on the cost of developing advertisements since the value of a dollar is inconsistent in many countries. c. Standardized advertising increases the cost of value creation since several countries must approval the final ad. d. Standardized advertising is based primarily on government regulations.

d. Price discrimination

When consumers in Belgium are charged lower prices for no particular reason for Nike shoes than consumers in Italy, it is an example of _______________________________. a. Purchasing power parity b. Gross domestic product c. Elasticity of demand d. Price discrimination

c. Communication strategy

A company relies on a ________________ to advise prospective customers about the attributes of a product. a. Cultural barrier b. Distribution channel c. Communication strategy d. Retail concentration

d. Product

According to the text, a _______________________ can be viewed as a cluster of attributes. a. Market b. Consumer c. Logistic d. Product

b) Intensive use of a sales force and is relatively costly.

Although personal selling is effective as a promotional tool, it requires a) That the product can be demonstrated or delivered by a sales force in the targeted market. b) Intensive use of a sales force and is relatively costly. c) Backup and support from electronic media to realize its potential.

b. Personal selling

Belinda thinks her company should use a push strategy for its new product line because it needs to educate consumers on how to use the product. How does a push strategy promote products? a. Mass media advertising b. Personal selling c. Indirect promotions d. Industry wide promotions

d. Length

Channel ___________ refers to the number of intermediaries between the manufacturer and the consumer. a. Depth b. Width c. Breadth d. Length

c) Cultural barriers.

P&G's biggest hurdle to overcome when selling tampons in Latin American markets was a) Advertising restrictions b) Noise levels. c) Cultural barriers. d) Media availability.

b. Strategic

Predatory pricing, multipoint pricing, and experience curve pricing are all aspects of _________________ pricing. a. Government b. Strategic c. Domestic d. Standardized

d. Distribution

The method a company chooses for delivering a product to the consumer is called the ______________ strategy. a. Planning b. Production c. Manufacturing d. Distribution

c) This media availability is not universal.

Advertisers in the United States can use print media, broadcasting media, the Internet, cable outlets, and more. While this level of media sophistication is found in many other developed countries, a) Most of these countries have even more media choices and considerations for promotion. b) There are almost no such media in developing countries. c) This media availability is not universal.

d. Discrimination

Price __________________ exists when customers in different countries are charged different prices for the same product. a. Elasticity b. Relief c. Standardization d. Discrimination

d. Fragmented

Sooyoung reported to the management team that since there were so many retailers supplying the product, none of them held a major share of the market. She is describing an example of a(n) __________________________ retail system. a. Concentrated b. Outsourced c. Channel d. Fragmented

a. Cultural

The frozen food division of Nestle markets fish cakes and fish fingers in Great Britain but focuses on marketing boeuf bourguignon and coq au vin in France. This reflects how Nestle is taking _________________________ differences into account when selling products. a. Cultural b. Political c. Economic d. Pricing

c. Elasticity

The price ______________ of demand is a measure of the responsiveness of demand for a product to change in price. a. Inventory b. Parity c. Elasticity d. Curve

b. Availability of skilled research talent.

A key attraction of research centers like Silicon Valley and Kobe is a. Low cost of product customization. b. Availability of skilled research talent. c. Quick redesign work. d. Success rate of past products.

d. Industrial

Critics of Levitt note that his implications apply more to basic __________________ products. a. Financial b. Consumer c. Agricultural d. Industrial

b. False Reason: Levitt's concept, while more explanatory of industrial products, still does not prove a fully standardized international marketplace currently exists.

True or False: Levitt's concept of a fully-standardized international marketplace is represented in most consumer brands today. a. True b. False

b. False Reason: Technological innovation is BOTH creative and destructive. It can make a host of new product but also destroy an entire industry.

True or False: Technological innovation is always viewed as a creative rather than a destructive force. a. True b. False

c. Pressures for local responsiveness require the Mickey Mouse character to be adapted to local markets.

Disney's Mickey Mouse is one of the most globally recognized brands ever. Which of the following statements does not depict Mickey Mouse and Walt Disney Company? a. Mickey Mouse represents the convergence of certain tastes and preferences among consumers in the more advanced countries of the world. b. Mickey Mouse transcends cultural differences between countries. c. Pressures for local responsiveness require the Mickey Mouse character to be adapted to local markets. d. Theodore Levitt would likely suggest that the success of Mickey Mouse is a result of the globalization of markets.

b. Distribution strategy

During the meeting, Kristof asked, "Where is the product typically bought by customers in the international market segments?" What element of the marketing mix is he addressing? a. Product strategy b. Distribution strategy c. Communication strategy d. Pricing strategy

d. Technical

After his company introduced a new line of hair dryers, Jeremy realized that the dryers could not be sold in Europe because the electrical adapters would not fit into the existing design. Jeremy's company failed to take into account ___________________ standards that limited globalization. a. Noise b. Cost c. Financial d. Technical

d. Price elasticity of demand.

After the company lowered the cost of the shoes, sales increased by 30%. This demonstrates the concept of a. Price discrimination. b. Exclusive distribution channels. c. Pull strategies. d. Price elasticity of demand.

c. Communication

Although American Express may sell the same basic charge card service worldwide, differences in national regulations require it to vary aspects of its ___________ strategy from country to country a. Product b. Pricing c. Communication d. Distribution

d. Big

At Clark HealthCare Systems, the amount of data the company must store has become so large that it must be stored on the cloud and cannot be processed using traditional software. This type of data is known as ___________________ data. a. Primary b. Warehouse c. Gold d. Big

b. Pull

Charles works for a company that makes toothpaste. He realizes that the best way to advertise the product line to the international market is through mass media advertising because it will reach more consumers and it would be impossible to reach every consumer with a personal sales call. He recognizes that his company should use a _______ communication strategy. a. Push b. Pull

d. Technical standards

DVD equipment manufactured in the US will not play DVDs recorded on equipment manufactured in Great Britain. This limits the market for selling DVDs from Great Britain in the US and shows how _____________________________ can influence consumer behavior. a. Economic development b. Cultural differences c. Consumer tastes d. Technical standards

b) Media availability.

Factors that determine the relative attractiveness of push and pull strategies include product type relative to consumer sophistication, channel length, and a) The image of the brand. b) Media availability. c) The nature of the competition within the market structure.

a) A pull strategy.

Firms in consumer goods industries that are trying to sell to a large segment of the market generally favor a) A pull strategy. b) Seeking a marketing partner who can help penetrate the large segments of the market. c) A push strategy.

d. Channel length

Heidi's company works through an import agent to get their products to retailers throughout Europe. In this situation, there are two intermediaries between the manufacturer and the consumer. This refers to the ____________________________. a. Technical standards b. Retail concentration c. End product d. Channel length

a. Long

In which type of distribution channel is it more likely for the consumer to end up paying a higher price for the final product? a. Long b. Short c. Constant d. Simple

c. Product

Iron Man and Avengers movies represent which part of the marketing mix? a. Promotion b. Production c. Product d. Price

a. Market segmentation

Jason's report outlined that consumers living on the west coast had purchased 80% more of the company's line of "green" products compared to consumers living in the southeastern part of the country. His report demonstrates the concept of _______________. a. Market segmentation b. Producer placement c. Economic diversification d. Globalization

b. Exclusive

Jonah's company is trying to gain access to shelf space in supermarkets for its new line of crackers. However, it is very difficult to get the stores to carry the product because so many stores prefer to carry crackers from established manufacturers. Jonah's company's efforts are being hampered by a(n) _________________ distribution channel. a. Short b. Exclusive c. Parallel d. Long

d. Personal selling

Manuel's company decided to implement a push strategy for its new line of health care products. That means the company will use _________________ to promote the products. a. Television product placement b. Newspaper advertisements c. Informercials d. Personal selling

b. Competition among U.S. firms has deteriorated in the recent past.

Many strategists argue that firms should centralize R&D activity in the United States. Which of the following statements, if true, would weaken this argument? a. United States consumers are the most affluent consumers in the world. b. Competition among U.S. firms has deteriorated in the recent past. c. Proprietary regulations that exist in the United States nonexistent. d. United States give more importance to scientific establishments than transactional establishments.

a. Segmentation

Market _________________ is a tool companies use when trying to identify distinct groups of consumers whose purchasing behaviors differ from that of other consumers. a. Segmentation b. Demographics c. Scoring d. Inventory

a. Communications Explanation: Marvel Studios' Avengers: End Game premiered in international markets in 2019. Any rebates or coupons encouraging people to go to see the movie are considered to be part of Disney's communications strategy. Rebates, coupons, and other sale offers to motivate customers in international market segments targeted to buy a company's product are part of the company's sales promotion effort in its communications strategy.

Marvel Studios' Avengers: End Game premiered in international markets in 2019. Any rebates or coupons encouraging people to go to see the movie are considered to be part of Disney's _______________________ strategy. a. Communications b. Mass media c. Product branding d. Distribution

a. Source effects

Nigel works at a British advertising agency and has advised his client that it's not worth the company's money to advertise its products in China because he knows there is a strong bias against foreign firms for this particular product. This demonstrates how __________ can impact international marketing. a. Source effects b. Channel length c. Acquisitions d. Noise levels

b. Intense competition is present.

Other things being equal, the rate of new product development seems to be greater in countries where a. Underlying domestic demand is weak. b. Intense competition is present. c. Consumers belong to lower social strata. d. Infrastructure is in the developing phase.

a) Customer education

P&G faced a challenge concerning consumer sophistication in the industry. Which is the best way to combat this challenge? a) Customer education b) Focusing on media availability c) Designing a nonprofit advertising campaign. d) Business-to-business education

b) Push marketing Explanation Push marketing strategies emphasize personal selling; P&G used its existing sales force to explain the product to doctors and give away samples.

P&G had to overcome gender barriers because most Mexican doctors are men and they did not fully understand the product. Which strategy did P&G employ to overcome this hurdle? a) Global marketing b) Push marketing c) Foreign marketing d) Consumer marketing

b) Direct selling Explanation Direct selling is the person-to-person sale of a consumer product or service.

P&G hired counselors to educate and ultimately sell tampons to women. In doing so, what kind of communications strategy was P&G employing? a) Cultural barriers b) Direct selling c) Sales promotion d) Advertising

b. Push

Paul's company sells complex products to hospitals and medial facilities. It would be best for his company to use a ___________ strategy as a communications tool. a. Pull b. Push

d. Pull Explanation: We can conclude that Walt Disney uses a pull communications strategy. A pull strategy depends more on mass media advertising to communicate the marketing message to potential consumers.

The Walt Disney empire includes its motion picture studios, theme parks, cable TV networks, publishing, and merchandising. We can thus conclude that Walt Disney uses a ____________________ communications strategy. a. Push b. Intermarket c. Brand d. Pull

a) The channel was short.

The channel length is a key component to the successful growth of the Tampax brand. Which best describes the initial channel length in Monterrey, Mexico? a) The channel was short. b) The channel was fragmented. c) The channel was long. d) The channel was low quality.

d. Business analytics

The knowledge, skills, and technology that allow for the exploration and deeper investigation of a company's international business strategies and activities to gain insight and drive future strategy development and implementation is known as ________________. a. Long-range forecasting b. Arbitration c. Benchmarking d. Business analytics

c) To carry the product for it to reach the consumer.

The longer the distribution channel, the more intermediaries there are that must be persuaded a) To advertise the product in the appropriate media. b) To provide exclusive coverage, shutting out competitors. c) To carry the product for it to reach the consumer.

d. Tradition

The most important aspect of cultural differences that companies need to recognize when marketing to another country is the impact of ______________________________. a. Government b. Education c. Cost d. Tradition

a. Production

The three core functions involved in the development of new products are R&D, marketing, and ________________________. a. Production b. Management c. Finance d. Sales

a. True Reason: The level of economic development impacts consumer behavior. A consumer in a less-developed nation may not have the income to purchase a car that had extra features, that consumer would look for a car that was reliable.

True or False: Consumers buying a car in a less-developed nation are more likely to be concerned with product reliability over extra features. a. True b. False

d. An intermarket segment.

Walt Disney theme parks have proved to be successful in multiple countries around the world. Disney's theme-park visitors can be described as being a segment that spans multiple countries, transcending national borders. This type of segment is called a. A country of origin segment. b. A Millennial segment. c. A transformational segment. d. An intermarket segment.

c. Integrating R&D and marketing department

What would help a company reduce the risk of developing products for which there is little or no demand? a. Limiting the budget allocated to the R&D department b. Basing product development on secondary research c. Integrating R&D and marketing department d. Separating the sales and marketing department in the company

a. Dumping

When Tomas learned that the inventory levels were still at 90%, he instructed the sales team to sell the product 35% lower than the cost to produce the product in order to bring the inventory down to acceptable levels. This demonstrates the idea of _________________. a. Dumping b. Price elasticity c. Predatory pricing d. Arbitrage

a. Dumping Explanation Dumping occurs whenever a firm sells a product for a price that is less than the cost of producing it. There is some ambiguity in the definition of dumping among countries and some argue that selling abroad at prices below those in the country of origin, as opposed to below cost, is dumping.

When a company sells a product for a price that is less than the cost of producing the product, it is engaging in a. Dumping. b. Licensing. c. Discriminating. d. Franchising.

b. Pull

When a company sells consumer goods, such as shampoo and lotion, it would be common for the company to use a _____________ strategy. a. Push b. Pull

c. Predatory Explanation: Predatory pricing is the use of price as a competitive weapon to drive weaker competitors out of a national market. Once the competition has left the market, the firm can then raise its prices.

When a company uses price as a competitive weapon to drive weaker competitors out of a national market, it is using ________________ pricing. a. Parity b. Multipoint c. Predatory d. Experience curve

c. Concentrated

When a few retailers supply the majority of the market, it is called a ________ retail system. a. Market b. Fragmented c. Concentrated d. Channel

c. Dumping

When a firm sells a product for a price that is less than the cost of producing the product, it is called _____________________________. a. Licensing b. Arbitrage c. Dumping d. Elasticity

c. Exclusive

Which type of distribution channels are most likely in place when it is difficult for new firms to gain access to retail space? a. Concentrated b. Fragmented c. Exclusive d. Displaced

b. Consumer behavior

________________ may be influenced by the level of economic development of a country, resulting in different features of a product being sold to less developed nations than to developed nations, such as basic model cars sold in less developed nations. a. Human resources b. Consumer behavior c. Production capacity d. Management