International Marketing
A company's goals that are specific to foreign markets are an example of...
... supplier feedback.
As services are immaterial, ...
... the companies have to have sufficient and well-trained personnel. ... it is especially important to communicate the service brand in the right way.
Societies with a low power distance are characterized by
egalitarianism.
Market research is able to reveal connections between
sales and changes in market potential.
A "subsidiary" is a direct investment strategy in a national market using one or several partners. t/f
false
Customer and supplier power are examples of economic barriers to exit t/f
false
Qualitative primary research allows for statistical inferences to be made. t/f
false
The evaluative function can provide information about consumers' willingness to pay for specific goods and services.t/f
false
Uneven distribution of power is a feature of
greater power distance.
Which of the following basic options can wholesale and retail companies adopt when going international?
home country orientation multinational orientation
Global market segmentation is based on a view of the world as a ____________________ This approach aims at a widely _________________________ approach to marketing.
homogenous market. standardized
marketing approaches such as direct marketing measures can be utilized alongside
indirect distribution channels
Companies can differentiate between which types of "sunk costs?"
intangible (endogenous) sunk costs tangible (exogenous) sunk costs
Coordination of business activities across multiple countries is increasingly important given the
interdependency of national markets.
Which internal or external sources can be used by companies as secondary research?
market research studies about a company complaints official national statistics publicly available information of companies from the same industry business statistics
People tend to be more competitive in countries where
masculinity is of greater importance.
People in cultures with weak uncertainty avoidance are
more willing to take risks.
Multinational market segmentation is a
multi-stage process
International market segmentation is a
multi-stage process.
Market exits are
on the increase and are often reactions to earlier developments.
through controlled distribution, producers seek to
secure their sales channels
International marketing has a ______________information demand than domestic market.
significantly greater
Which are typical barriers to exit?
strategic barriers economic barriers management-related barriers
The marketing mix employed in the services sector is characterized by
the 7 Ps of marketing.
Market research is able to provide information about
the causes of specific results on a specific market.
A source of consumer feedback can be
the exchange of information and goods across borders at consumer level.
International brand policy focuses on
the longterm, consistent, logical, holistic, and coordinated configuration of all branding elements in an international context (Linxweiler, 2004).
Exiting foreign markets should be expected given the increasing internationalization of companies and the economy as a whole. t/f
true
Management-related barriers can include fear of negative effects on the management or company image. t/f
true
Global market segmentation can be conducted
worldwide or for specific regions. Companies can carry out global market segmentation using criteria such as preferences for specific product characteristics, buying power of consumers, and individual customer
Market development in the industrial goods sector is characterized by...
... a strong orientation towards ongoing and long-term relationships.
Which of the following are free trade agreements?
GAFTA (Greater Arab Trade Area) NAFTA (North American Free Trade Agreement) ASEAN (Association of Southeast Asian Nations)
the functions of international market research
Gathering information about which product policy will be most successful in the long run is an evaluative function of international market research. International market research can be used as a predictive tool to estimate the changes in marketing-relevant factors.
tangible benefits of a product go beyond its core benefit and can generally be subdivided into two categories:
aesthetic benefit and prestige benefit.
Economies of scale of established competitors are often a
barrier to entry for companies seeking to enter new markets
The increasing interconnectedness of national economies can be attributed to which developments?
barrier-free communication across national borders as a result of the spread of the Internet decreasing trade tariffs and establishing free trade zones
Market research is able to analyze the
behavior of important competitors.
. The process of entering new national markets is characterized by
business risk, complexity, and uncertainty.
Qualitative international primary research aims to
characterize the distribution of specific attributes within a population. correct
Quantitative primary research aims to
collect data that provides a more in-depth picture of that country or market. incorrect
Controlled distribution concepts significantly contribute to _____________________________________________, as vertical systems improve the producers' implementation of __________________________________________________
strengthening a brand sales and marketing strategies
The environmental factors characterizing international marketing include
technological, political-legal, and socio-cultural factors.
Adding an international dimension to existing national marketing activities means
that not only is more information required but this information needs to be more diversified.
The motivation for companies to centralize their procurement processes is often
the opportunity it provides to bundle demand and strengthen their competitive position.
Due to the immaterial nature of services,
the physical environment (i.e. business premises) must be designed with customer preferences in mind.
The _____________ dimension of a new product considers this period in which a product is considered innovative.
time
"Indirect import" means order acquisition and distribution using intermediary thirdparty companies. T/F
true
Political/legal variables give some indication of a country's stability and security of investment. t/f
true
Primary research also includes analyzing the behavior of market player t/f
true
Sunk costs should be calculated before leaving a market. t/f
true
Technological variables include the existence of broadband networks and technological standards for the design of communications policies t/f
true
The first step in multinational market segmentation is to exclude countries that do not meet the company's requirements. t/f
true
The predictive function of primary research can estimate developments that are independent of a company's marketing strategy. t/f
true
The quality of transportation routes, the climate, or existing raw materials are considered under geographical variables. t/f
true
Trading of consumer goods is a sector that has experienced massive internationalization in the past years. t/f
true
When choosing a market entry strategy, it is important to consider whether cost advantages can be realized through economies of scale. t/f
true
Distribution policies of producers increasingly favor
verticalization.
Values such as modesty and care are important in countries with
weaker masculinity.
waterfall strategy
which involves gradual market entry
sprinkler strategy
which involves simultaneous market entry
one source of supplier feedback.
Company goals for specific national markets
A subsidiary is based on
direct capital investment on the national market without any partners.
Which of the following statements are true regarding international marketing?
Companies have to deal with specific problems that occur as a result of doing business on an international scale.
Global market segmentation is
a one-step approach.
ntroducing a product is a two-step process
(addressing the innovators and early adopters followed by the majority) should be considered a promising strategy
Technological factors in the market environment of international business...
... have enhanced opportunities for international business through considerable progress in the areas of communication and transport.
Levitt's convergence theory The existence of transnational target groups conflicts with concurrent divergence tendencies that are reflected in reviving national or regional behaviors, and thus require a differientated marketing approach t/f
False
Which statements are correct regarding international non-experimental surveys?
Investigators do not exert any bias on the answers of respondents in a non-experimental survey. The non-experimental survey is used to gather information from a group of representatives from a specific population.
What does Levitt's convergence theory deal with?
It considers the world to be one large homogenous market.
Which of the following statements is correct regarding surveys?
It is comparatively easy for a company to conduct a written survey. Filter questions can be used to increase the efficiency of a written survey.
Which of the following statements is correct regarding political-legal factors?
Political-legal factors refer to the political situation and stability of a specific country. The BERI index evaluates risks for each country using data from interviews with managers and scientists.
an important issue for trading companies.
Product range policy
Which of the following statements are correct regarding international secondary research?
Secondary research uses existing data gathered from internal and external information sources. Secondary data sources include statistics collected by external agencies, reports from market research institutions, and company complaints. Secondary data should always complement primary research data.
Which of the following statements are correct regarding the industrial goods sector?
Supply businesses aim to develop long-term relationships with customers who make ongoing purchases from such businesses. A "follow the customer" strategy is an option often employed by "investment" businesses.
Which of the following statements are correct regarding vertical marketing?
Tendencies towards verticalization within a producer's distribution policy are expressed in increasing coordination of sales activities. Increasing customer trust and strengthening brand image are two advantages of international controlled distribution.
Which of the following statements are correct regarding international marketing for specific sectors?
The consequences of specific distributional policies are the main challenges in international marketing for consumer goods producers. The industrial goods sector is characterized by an increasing reliance on strategic procurement from international markets. Confidence-building measures are of utmost importance in the services sector.
Personal interviews are characterized by which of the following features?
The extent of questionnaire is not restricted. The interview situation can be controlled to a great extent.
important factors influencing the competitive position of a company in a vertical marketing system.
The power of the manufacturer's brand on the respective markets and the extent to which the trade sector can choose alternative products
Which statements regarding the timing of market entry?
The waterfall strategy involves gradual market entry. The sprinkler strategy involves simultaneous market entry.
Levitt's convergence theory The existence of transnational target groups with consistent preferences and behaviors (cross-cultural groups) is a key feature of the consumer goods sector. t/f
True
Prestige benefit represents
a product's social appeal.
The controlling function of market research involves which tasks?
collection and evaluation of information about the effectiveness of marketing measures currently in use collection of information regarding changes in company image, perceived reasonability of prices, or degree of brand awareness systematic collection of information about the company's position in the market
For consumer goods producers, marketing activities are
coordinated in order to secure important players within the trade sector who will assist in the promotion of products.
For many organizations, a
cross-border, centralized procurement process is of utmost importance.
Global market segmentation is usually based on
cross-national sociodemographic, psychographic, or behavioral classification of consumers
Individual buying behavior is often the result of
different socio-economic structures and values.
Trading companies can realize information advantages as they are in
direct contact with consumers on respective markets.
Trading companies can realize information advantages as they are in
direct contact with consumers on the respective markets.
Please complete the following statements related to the Cars Moviendos SA case study. Cars Moviendos SA should choose a ________________strategy for entering the Chinese market. There are two modes of entry that are especially attractive for the company: _______________ and _______________. One advantage that can be capitalized upon by choosing these types of market entry is that the company's clients ___________________________________________
direct investment joint venture subsidiary are already operating in China.
criteria usually considered in the pre-selection process of multinational market segmentation
economic variables technological variables sociodemographic variables political-legal variables cultural variables
The timing of market entry is not a significant factor in determining a company's success. t/f
false
Market research is able to
forecast the impact of changes in product ranges.
An increased amount of information required is the result of the
geographical expansion of business activities.
Reverse innovation is when an
international company develops a product tailored to the needs of a developing or emerging country and then offers it to consumers in industrialized countries.
product mix policy tends to become more complex the more
national markets are developed, especially when products have to be adjusted to suit individual mark
Global market segmentation is a
one-step approach.
Companies can carry out global market segmentation using criteria such as
preferences for specific product characteristics, buying power of consumers, and individual customer
used for evaluating market attractiveness
price level population growth market volume
The BERI index is a
quantitative measure used to illustrate the overall risk of specific countries.
Direct export usually means sales through
sole agencies, representative offices, and permanent establishments.