Global final
What does the original equipment manufacturing entry mode entail?
A company enters a foreign market by selling its unbranded product to another company in the host market
This channel member is the middleman that buys from manufacturers and wholesalers and sells directly to the end consumers. They are called what?
Retailers
What intermediaries sell directly to the end consumer?
Retailers
** What are 3 main motivating factors for entrepreneurs to engage in gray trade? (10 pt question on test)
1) Wide price discrepancies across markets 2) Limited availability of versions in other markets 3) Inexpensive logistics make it easy
List and explain the 3 main disadvantages of global brands
1) can be seen as threatening to the local culture 2) lack of uniqueness since they are available everywhere 3) mismatch between the standardized product benefits and the local culture/ consumer wants and needs
What channel action can be taken to address the problem of gray trade?
1) supply interference- consists of engaging in relationship building with distributors and requesting the careful screening of orders and careful disposal of surplus inventory 2) demand interference- about using advertising to educate customers about the drawbacks of gray goods 3) strategic attack- creates stronger reasons for customers to patronize authorized dealers 4) dealer interference- search for gray imports at the gray trader's outlets in the importing country, then asking the dealer to help dispose of the inventory
A large American firm has just concluded legal arrangements under which a Chinese manufacturer will produce some of its electronic products for sale in its domestic and foreign markets. This arrangement would be BEST described as: A. contract manufacturing B. franchising C. turnkey manufacturing D. licensing
A
Gernerally, Latin America and South Africa have attained rapid growth in consumer demand as a result of a more even distribution of wealth created by their: A. natural resources B. low labor costs C. technological expertise D. production efficiencies
A
The United State's traditional concern with infrastructure gives it a favorable position in which of the following portions of Porter's diamond of national advantage? A. factor conditions B. demand conditions C. related and supporting industries D. firm strategy, structure, and rivalry
A
In a multinational firm, what is the difference between a local manager and expatriate manager?
A local manager is someone from the host country who is hired to run the subsidiary While an expatriate manager is from the home market/ head quarters
The "platform" that defines the basic structure of a firm's offering is called the: A. base model B. core product C. foundation offering D. modular design
B
Which of the following modes of foreign market entry offers the GREATEST amount of control and risk for the international marketer? A. franchising B. foreign direct investment C. direct exporting D. joint ventures
B
What is the most common form of web advertisements?
Banner ads
A country which is more efficient/ productive than all other nations with regard to a specific product or resource is said to have a(n): A. comparative advantage B. monopoly C. absolute advantage D. trade deficit
C
Wherever group pressures to conform are strong, multi attributed evaluation is likely to be overridden by: A. price concerns B. distribution concerns C. social norms D. whims and fancies
C
What are wholesalers?
Channel members that sells goods to anyone other than the normal/end consumer
Asian countries have attracted a lot of FDI from Western countries recently, due to their large populations and what?
Cheap labor
The America First Corporation is heavily involved in standardization of the marketing mix. The firm is most likely to be involved in: A. foreign entry B. domestic marketing C. local marketing D. globalization
D
What is the underlying framework that guides an individual's perceptions of the world?
Culture
All of the following are advantages of standardization EXCEPT: A. scale/ scope economies B. improved quality C. enhanced customer preferences D. enhanced uniqueness
D
Black and Decker Corporation have found that many European countries employ a direct current electrical system. Accordingly, the firm produces electrical tools wired for the European market, and provides adapters to allow its portable products to use either the U.S. or the European system. Black and Decker's redesigned European products are BEST described as: A. global products B. adapted products C. niche products D. localized products
D
The main contribution of the "local" partner in a joint venture is based on its: A. financial strength B. technological prowess C. manufacturing efficiency D. knowledge of the local market
D
What is the main contributor to the different retail structures that you see across different markets?
Different lifestyles of consumers
Suppose an exporter enters a given market by selling its unbranded product to an OEM buyer and also its branded product to independent distributors. What type of distribution system is this?
Dual distribution system
The most important factor in the acceptance of global directives by local managers is called?
Due process
Polo by Ralph Lauren is an example of what type of brand?
Endorsement brand
Explain 1 of the 4 adverse consequences of gray trade for the global marketer
Erosion of brand equity, which happens when the gray goods do not perform to the level expected
What global pricing strategy uses the same price across ALL markets?
Ethno-centric pricing- (evaluating other peoples and cultures according to the standards of one's own culture)
What is the type of research called where the local marketer administers experiments (much like the ones you do in the behavioral lab at KU) to people in the host market, in order to understand why buyers have certain attitudes toward a product or brand?
Explanatory/ causal research
Who does the personal visit, contract negotiations, and screening and deciding on a distributor in a foreign market under indirect exporting?
Export management company or the third party agent
What are the 3 typical product categories of multi domestic markets?
Food Clothing Entertainment
What is the specific licensing mode of entry called where the entrant sells its entire business model for a local investor/ business person to run for an upfront fee and royalties?
Franchising
The amount of advertising in a country tends to vary directly with the country's _____?
GDP/ per capita
What is the difference between global and local brands? What are some examples of global brands?
Global brands- well known and available throughout the world's markets Local brands- only strong and known in a single or few markets and complexly unknown elsewhere Ex. of global brands: Coca-cola, Dell, McDonalds, Subway, etc.
Retail outlets include all of the following EXCEPT: A. department stores B. grocery stores C. specialty stores D. malls E. banks F. restaurants G. E-commerce platforms H. NONE of the above
H
In most emerging markets, what is the basic segmentation variable?
Income level
According to the ___ ___ ___ ___ , an innovating country will eventually import the products it created.
International product life cycle
Where do global marketers generally identify potential distributors in a new foreign market?
International trade fairs
How has/will the emergence of the internet affect gray trade? Do you thin it has increased or decreased it? Why?
It will increase gray trade because gray traders are able to search prices all over the world and locate any price discrepancies for the same goods in different countries. Thus, they can more easily locate arbitrage opportunities with the internet
Contracts are most important in high or low context cultures?
Low context cultures
What is global advertising?
Media advertising that is more or less uniform across many countries- often, but not necessarily- in media vehicles with global reach
What type of international advertising is adapted to particular markets?
Multi-domestic advertising
What is the most difficult, yet important component of the marketing mix for a firm in a developing market?
Place/ distribution
Coupons, BOGO, and other discounts are known as what?
Point of purchase promotions
What is 1 pro and 1 con of the licensing form of entry?
Pro: license knows his/ her home market better than the foreign company does Con: don't have control over the operations. Dissipation could happen
The function of damage control is generally carried out by:
Public relations
Mike Duke, former CEO of Walmart, has talked about the major challenge for his company in China is being able to meet the local preferences of the various provinces in China while still being able to leverage the efficiencies and low prices that Walmart is known for. This is a prime example of the ____ vs. ____ trade off in global marketing.
Standardization vs. Adaptation
True or false: "Think" countries prefer more informational, lecture style advertisements
True
What 2 mediums are best to use in order to raise awareness for your product/ brand?
Tv and Radio
What are the 4 research steps when evaluating the attractiveness of potential host market(s)?
1) country identification 2) preliminary screening 3) in depth screening 4) final selection
List and explain the 3 main functions that brands serve for the consumer
1) easy way to be able to evaluate the quality of the product 2) status symbol to show off to others that the person is important or wealthy 3) provides self worth and adds to the self concept of the individual (emotions)
What are the undesirable effects of gray trade on manufacturers and their authorized intermediaries?
1) erosion of brand equity- can happen if the gray goods don't perform to the level expected 2) strained relationships with authorized channel members- arises when channel members face intra-brand competition 3) legal liabilities- usually involves warranties that can't be honored 4) complication of global marketing studies- forecasted sales in a market may not be realized when there is a sudden influx of gray goods
What are the 3 different global advertising strategies?
1) identical ads 2) pattern standardization 3) global prototypes
Define each of the 6 dimensions of the Hofstede framework to analyze cultures. How would Japan be classified in each dimension, and why?
1) individualism vs collectivism- in a collective society, the identity and world of the individual is rooted in the social system, whereas in an individualist society, the identity of a person is based on his/her achievements 2) high vs low power distance- how power distance societies are less egalitarian and respect authority more, whereas low power distance societies are more democratic 3) masculine vs feminism- masculine society is more assertive, competitive, and aggressive, whereas a feminine society is more nurturing and caring 4) uncertainty avoidance- rates societies based on the level of risk and ambiguity people are willing to accept 5) time orientation- high time orientation refers to making decisions with the long term future in mind, rather than just on the immediate benefits 6) indulgence vs restraint- indulgent societies allow relatively free gratification of needs and to have fun (leisure, life control, free speech, etc.) where as restrained societies suppress gratification of personal needs to maintain social norms Japan is: more collectivist, high power distance, masculine, high on uncertainty avoidance, high on long term orientation, and restrained
** Porcupine Effect- What are the 5 P's and explain them Extra credit question on final
1) pride (the unhealthy kind)- develop and area of expertise and find a way to make yourself indispensable. It's okay to take your work and commitments seriously, but don't make a habit of taking yourself too seriously. 2) politics (gossip, calumny, backbiting..)- "as you progress through your career, be introspective. Ask yourself, 'Am i treating others the way that I expect to be treated?' If not, fix your behavior before it becomes habitual. You will be better for it and so will those you manage. 3) polarization- "To achieve results, the effective executive has to use all available strengths: the strengths of associates, superiors, and one's own thoughts. These strengths are the true opportunities" 4) pettiness (only set your sights on the big picture)- Fairness and emotional considerations affect negotiation profoundly. Negotiating rationally requires that you understand the impact of these influences on your own judgment and decisions, and you anticipate the same impact on your opponent's decisions. 5) power- means by which managers influence behavior; change the course of events, overcome resistance, and motivate people to take action. In other words, to exert strong leadership.
List and explain the 4 different global positioning strategies. As discussed in class, what strategy does Nike follow? Explain.
1) similar segment, similar positioning: you target the same group of consumers in the host market as you do in the home market. You also position the product the same way int eh minds of consumers. Nike follows this strategy because they go after young boys and aspiring athletes by positioning their product as a high performance sportswear 2) similar segment, different positioning: target the same group of consumers buy you position your product differently in the minds of the customers 3) different segment, similar positioning: you target a different group of people with the same positioning strategy 4) different segment, different positioning: this is complete adaptation as you target a different group of potential customers with a different way of positioning the product in the minds of people
What are the 2 techniques to forecast industry sales for mature product life cycle products? Briefly explain how a marketing researcher would compute these
1) time series forecasting: extrapolate past sales data into the future to predict industry sales 2) regression forecast: decide which independent variables (how many people are in the target market, how likely is it that people can buy the product, etc) are the most important indicators to predict industry sales in the future
What are the 3 main factors that motivate gray traders to engage in this type of practice?
1) wide price discrepancies between national markets 2) limited availability of certain models or versions in one market 3) inexpensive logistics
What are the factors encouraging parallel distribution (gray trade)?
1) wide price discrepancies between national markets 2) limited availability of certain models or versions in one market 3) inexpensive logistics meaning that transportation can be accomplished with relative ease
Advertising is very important in the U.S. What are the 2 reasons for this that the lecture went over? Why is this?
1) word of mouth 2) social norms Because due to cultural diversity, word of mouth and social norms are not that important in establishing what people should like and buy. Therefore, ads have a lot of opportunity in influencing buyer preferences and behavior
According to the _____, an innovating country will eventually import the products it created. A. international product cycle B. principle of absolute advantage C. principle of comparative advantage D. circular flow of innovation model
A
American negotiators typically place least emphasis upon the ____ portion of the negotiation process. A. nontask sounding B. task related exchange of information C. persuasion D. conclusion and agreement
A
Collectively, the factors of market, competition, cost, technology, and government constitute: A. globalization drivers B. market segments C. segmentation variables D. adaptive criteria
A
For global marketing to work decisions are centralized, usually in the domestic country. This fact means all of the following EXCEPT: A. subsidiaries in foreign countries have more autonomy B. marketing effort is a top down activity, basically C. economic decisions that affect local employees are made elsewhere D. others besides senior level executives may be involved, too
A
In countries characterized by distribution complexity and/or idiosyncratic customer requirements, Philip's Corporation typically contracts with domestic firms to sell their products in those markets. The firm is employing a(n): A. distribution alliance B. joint venture C. direct foreign investment D. turnkey investment
A
In which of the following purchase "decision rules" are all product features considered simultaneously? A. the compensatory rule B. the evoked set decision rule C. the hierarchical decision rule D. the cost/ benefit decision rule
A
John is attempting to choose from several products to satisfy his home entertainment needs. He is approaching this task by applying the product information he has collected to evaluate the pros and cons of each alternative against his entertainment preferences. John is currently engaged in: A. a multi attributed evaluation B. evoked set definiton C. choice expansion analysis D. new want evaluation
A
Kraft Corporation emphasizes the identification of and entry into foreign segments which would require the least change in the firm's products and practices. The firm will seek out: A. similar segments allowing similar positioning B. universal segments requiring adapted positioning C. different segments requiring unique positioning D. different segments allowing similar positioning
A
Marketing skills are especially difficult to transfer abroad because of their: A. intangibility B. reliability upon technology C. product dependence D. regulation under import legislation
A
Nonverbal messages are most important in: A. high context cultures B. low content cultures C. low context cultures D. high content cultures
A
Polo by Ralph Lauren or Fairfield Inn by Marriott are examples of what type of brands? A. endorsement brands B. master brands C. umbrella brands D. corporate brands
A
The America First Corporation would like to evaluate the difficulty of exerting a country culturally distant from its own and how much culture shock its managers are likely to encounter. The firm is most likely to employ which of the following for this purpose? A. Hofstede's mapping B. Gannon's metaphors C. Porter's diamond of national advantage D. Hall's silent leadership
A
The creation of a particular place for a product or service in the consumer's mind is the goal of: A. product positioning B. market segmentation C. generic market development D. market localization
A
The problems associated with the respondent's tendency to answer questions in a way that will "satisfy" the interviewer or protect their own ego are called: A. demand characteristics B. respondent "lie scales" C. survey scaling D. sample selection
A
The recognition of a difference between an ideal and an actual state of affairs generates: A. problem recognition B. search C. choice D. outcomes
A
Transportation costs, tariffs/duties, special taxes, and exchange rate fluctuations typically result in: A. price escalations overseas B. price volatility overseas C. price stability overseas D. price deflation overseas
A
Which of the following sources of customer satisfaction tend to be taken for granted, more or less, in mature markets? A. functional performance B. after sales service C. warranties D. personal attention
A
_____ can be derived from the widely available GNP measure, population size, growth in GNP, and imports of relevant goods. A. An indirect measure of market size B. Growth in penetration C. The level of competitive rivalry D. Tariffs, taxes, duties, and transportation cots
A
What is the difference between adaptation and localization of a product?
Adapting a product means to customize it to fit the local culture and preferences, while localizing a product just ensures that it is functional in the host country
Transfer prices should reflect the prices a subsidiary would face in the open market. This is known as what?
Arm's length pricing
What is the difference between artificial and natural entry barriers? Give one example of each and explain why it is an entry barrier.
Artificial entry barrier- erected by the government to protect their domestic companies from foreign competition. An example is a tariff that taxes imports and makes foreign products more expensive and less competitive compared to domestic products. This is an entry barrier because it makes it harder for a foreign company to be successful in the host market. Natural entry barrier- organically created. An example is strong competition that makes it hard for a foreign entrant to be successful in the host market
A(n) _____ is a type of strategic alliance in which partners create an equity based new unit A. FDI B. joint venture C. joint franchise D. joint license
B
All of the following are typical product categories of multi domestic markets EXCEPT: A. food B. electronics C. clothing D. entertainment
B
Americans naturally assume a "teaching" rather than a "learning" role with regard to: A. manners B. other cultures C. advertising D. regulation
B
Due to differences in preferences, tastes, and habits, a foreign firm may be forced to develop strategies designed to compete with domestic producers of market specific: A. initiations B. substitutes C. reproductions D. counterfeits
B
Even experienced managers thrust into unfamiliar cultures may unintentionally offend foreign nationals through their dress, body position, gestures, eye movements or other factors which compose the: A. culture shock B. body language C. "silent speech" D. culture trap
B
For many firms the FIRST question asked about a country that is a candidate for entry concerns: A. cultural risks B. political risks C. linguistic risks D. economic risks
B
For which of the following types of purchases the consumer is likely to spend the LEAST amount of time identifying and evaluating purchase alternatives? A. highly visible products B. convenience products C. high risk products D. expensive goods
B
In mature markets, the primary distribution problem is typically related to: A. the lack of a sophisticated distribution system B. the difficulty and expense of gaining access to an appropriate channel C. poor transportation facilities D. the lack of efficient communication systems
B
In mature markets, the strategic focus for the local marketing is typically on: A. overcoming high tariff barriers B. gaining market share C. generic market development D. developing market infrastructure
B
Market segmentation is a "must" in the North American market due to all of the following EXCEPT: A. its diversity B. its distribution channels C. its maturity D. its well defined consumer preferences
B
Most international trade takes place within: A. countries B. regions C. multi national companies D. global marketplaces
B
New democratized countries are distinguished from the typical developing country by all of the following characteristics EXCEPT: A. the satisfaction of basic needs B. a strong marketing infrastructure C. a solid basic education, social control, and security D. the absence of a free market
B
One of the problems with licensing is the risk that a firm's know how will easily leak to competitors through: A. piracy B. dissipation C. expatriation D. repatriation
B
Prior to targeting a foreign country for entry, the America First Corporation routinely studies maps to evaluate the country's geographic features, assess its climate and weather patterns, and conducts on site visits to develop a personal "feel" for the country. The firm is attempting to assess its potential market's: A. economic environment B. physical environment C. socio cultural environment D. regulatory environment
B
Some marketers do not find macro-segmentation useful because: A. the research is poorly conducted, normally B. the indicators are too general to be predictive of buyer behavior C. the indicators are too general to be predictive of buyer behavior D. diffusion patterns are the same world wide, anyway
B
The America First Corporation generates its sales forecasts by attempting to identify critical independent variables that are thought to influence sales- and the relative influence each might exert. The firm is employing the: A. Delphi technique B. regression technique C. extrapolation technique D. expert pooling technique
B
The America First Corporation is preparing to embark upon a global franchising venture for its highly desirable brands. The firm will probably face its GREATEST challenge in: A. recruiting foreign franchisees B. maintaining strict and continuous quality control C. negotiating franchise agreements D. collecting royalties and fees
B
The MOST basic requirement for fair trade certification is a guarantee on the part of the multinational buyer to A. engage in environmentally sustainable practices B. pay a reasonable price for the supplies from a producer C. promote healthy working conditions D. discourage local competition
B
The Marvel Corporation has contracted with an independent agent to represent the firm in its foreign markets. By doing so, the firm has gained the services of a firm familiar with its markets while avoiding the costs of managing their export affairs. Marvel is making use of: A. a joint venture B. an export management company C. a franchising arrangement D. direct exporting
B
The creation of the EU has stimulated firms across the world to: A. track spot exchange rates of various European countries to save costs B. analyze the potential of pan-European marketing strategies C. divest most of their recent acquisition D. invest huge amount of resources in creating documents to meet the requirement of the various European countries
B
The final selection of a country to enter should NEVER be made until managers have acquired: A. favorable tariff treatment B. direct experience in the country C. favorable exchange rates D. a fully executed deed to an acceptable plant site
B
The forecasting method by which a time series of sales data covering past periods is extended in the future is called: A. regression based forecasting B. times series extrapolation C. the Delphi method D. the jury pooling approach
B
The growing influence of global marketing has spawned a significant _____ movement encouraged by dissidents, protestors, and environmentalists alike. A. communist B. anti- globalization C. socialist D. anti- capitalist
B
The long term orientation, which tends to be a characteristic of Asian than Western cultures, is described by Hofstede by which of the following cultural dimensions? A. masculine versus feminine B. Confucianist dynamics C. Uncertainty avoidance D. Power distance
B
The major advantage derived from establishing an FDI through an acquisition rather than by a greenfield investment is derived from the fact that an acquisition: A. is always less expensive B. allows faster penetration of the local market C. is not subject to political instability risks D. is typically easier to finance
B
The relentless emphasis on the most recent technology in new products has been a major force behind the emergence of: A. manufacturing alliances B. R & D alliances C. distribution alliances D. piggyback alliances
B
Under the four dimensions of Ghemawat's CAGE concept, regulatory differences between countries which pose problems are referred to as: A. cumulative distance B. administrative distance C. geographic distance D. economic distance
B
When the market researchers claim that a country's population is more "feel" oriented, what are they referring to? A. the population tends to be "left-brain" oriented B. the country's populace tends to be more impulsive and emotional C. the advertising in the country is more highly regulated D. the advertising should use rational arguments and a lecture format
B
Which of the following approaches to characterizing foreign cultures utilizes "holistic" images to capture the essence of the culture? A. Hofstede's mapping B. Gannon's metaphors C. Porter's diamond of national advantage D. Hall's silent leadership
B
Which of the following power distance/ individualism descriptions best describes the United States? A. small power distance/ collectivist B. small power distance/ individualist C. large power distance/ collectivist D. large power distance/ individualist
B
How are web advertisements "naturally" global?
Because anyone in the world, given they have internet access, can access a web ad
What are the pros and cons of direct exporting?
By selling directly to overseas distributors, Pros: 1) you have control of the marketing operations and 2) you can develop the skills and know how of doing business internationally within the firm Cons: 1) the overhead costs and 2) the administrative burden of doing it all yourself
A new factor that has encouraged regionalization is the insight that: A. customer needs and preferences seldom differ markedly between regions B. understanding customer in different parts of the world does not require any face to face interaction C. even in the age of the internet and global communications, distance still matters D. it is possible to virtually manage employees and deal with local subsidiary managers
C
According to the Hofstede framework, what type of society values leisure, free speech, and personal control? A. restrained society B. open society C. indulgent society D. masculine society
C
All of the following are advantages associated with the use of export management companies (EMCs) EXCEPT: A. the EMC is knowledgeable about markets with which its clients are unfamiliar B. the client firm can avoid the overhead costs and administrative burdens of managing their own export affairs C. the client firm gains a wealth of marketing skill and know how at no cost to itself D. the EMC serves as the client firm's "export department"
C
All of the following are environmental dimension considered by global marketers EXCEPT: A. physical B. socio cultural C. psychological D. economics
C
All of the following are sources of disadvantages associated with standardization EXCEPT: A. the existence of strong local competitors B. the lack of uniqueness C. the growth of global communications and travel D. the existence of strong trade barriers
C
As part of its evaluation of potential foreign markets, the America First Corporation carefully studies the role, strength, and focus of national and local governments, trade associations, and unions. The firm is PRIMARILY attempting to evaluate the: A. socio cultural environment B. economic environment C. regulatory environment D. physical environment
C
Asian countries typically have very large populations, which have helped them attract foreign direct investment from Western companies that are looking for: A. knowledgeable workers B. cheap land C. cheap labor D. natural raw materials
C
Fair trade standards adhere to all the following practices, EXCEPT: A. workers receive decent wages B. no forced child labor is used C. workers cannot join unions or bargain collectively D. have the right to advertise that its products meet fair trade standards
C
Family brands are used for all products in one category while ___ are used for products from a diverse set of product categories. A. product brands B. sub brands C. umbrella brands D. dual brands
C
Forecasted revenues and costs are used to identify the country market that best leverages a firm's resources during which of the following stages of the attractiveness evaluation process? A. country identification B. preliminary screening C. final selection D. in depth screening
C
Hofstede's cultural dimension concept utilizes all of the following factors EXCEPT: A. individualism versus collectivism B. power distance C. old versus young D. masculine versus feminine
C
If a company's strength is not firm specific, then its competitive advantage is usually: A. less imitable B. less vulnerable to competition C. less sustainable D. not subject to change
C
If you were considered more of a "think" country, what type of advertising message might work better in your country? A. one with a low of imagery like in Japan B. very dramatic ads like in theater C. ads with more of a lecture format D. ads with a lot of pictures, especially those with color
C
In a ___ strategy, the firm moves gradually into overseas markets A. wide spread B. overflow C. waterfall D. sprinkler
C
In low context countries, contracts serve as a verbal expression of a final agreement whose integrity is legally enforceable. Written contracts, by contrast, exhibit much less finality in such high context countries as: A. the US B. Australia C. Japan D. New Zealand
C
In most emerging markets, the basic segmentation criteria is: A. age and gender B. educational level C. income level D. housing type and location
C
Japanese consumers are noted for their strong loyalty to domestic brands. Foreign firms seeking to enter this market must be prepared to overcome this: A. tariff barrier B. distribution monopoly C. natural barrier D. access barrier
C
Let's assume that the University of Kansas wanted to move into the Chinese market. They decided that they wanted to attract working adults to their school because of the fierce competition from other universities from college aged students. They also decided that they would sell their university experience as being a great buy for a well respected American degree. Finally, after much research, they concluded that it would be best to "export" their services in the form of offering online degrees only in China so they wouldn't have to open up a physical school there. In regards to KU's marketing strategy, the working adults represent their ____, being a great buy and a well respected American education represent their ___, and their exporting strategy is their ____. A. target market, advertising campaign, and exit strategy B. target market, marketing, and strategy selling C. target market, product positioning, and entry mode strategy D. product positioning, marketing, and entry mode strategy
C
Marriott Corporation is developing a questionnaire for its foreign markets using its domestic instruments as a guide. In order to avoid potential language problems, the proposed questionnaire should be: A. written in English, only B. translated in each market's language C. back translated to assure clarity D. sampled
C
Microsoft Corporation supports its global brands with heavy advertising that is seen and heard in adjacent nations/ markets not yet entered by the firm. Microsoft is hoping to benefit from: A. piggy backing B. market hopping C. demand spillover D. scope economies
C
Nationalization and contact revocation are examples of which type of political risk factor? A. general instability B. operations C. expropriation D. finance
C
Perceptions or image that target customers have of a product or service is referred to as: A. sub marketing B. market segmentation C. product positioning D. the diffusion process
C
Subjective judgment and experience play their GREATEST roles in which of the following phases of the attractiveness evaluation process? A. country identification B. preliminary screening C. final selection D. in depth screening
C
The America First Corporation is attempting to estimate the portion of industry sales it can reasonably expect in each of several potential markets. The firm is engaged in estimating: A. market growth B. market interdependence C. market share D. market size
C
The expansion of what group of people is a key characteristic of a new growth market? A. the wealthy B. the poor C. the middle class D. the educated
C
The fundamental aim of business strategy is to create and maintain: A. lower prices B. efficient channels C. a competitive advantage D. production efficiency
C
The idea that sales in a new or lagging market can be forecasted by examining sales patterns in countries in which the product has been successfully marketed is at the core of: A. the build up method B. the jury technique C. forecasting by analogy D. expert pooling
C
The use of progressively less important features to successfully screen out purchase alternatives is the primary characteristic of the: A. compensatory decision rule B. sequential decision rule C. hierarchical decision rule D. evoked set decision rule
C
When interpreting various cultural manifestations in different countries, the marketer needs to remember that: A. culture is often inherited B. self referencing is an objective measure C. self referencing can be misleading D. culture is not very different across countries
C
When using the regression method of forecasting, independent variables are typically divided into all of the following subgroups, or components EXCEPT: A. the size component B. the willingness to buy component C. the purchase value component D. the ability to buy component
C
Which of the following is a variable typically used in macro-segmentation? A. product usage pattern B. price sensitivity C. socio-demographic data D. media usage
C
Which of the following is typically the most critical and difficult component of the marketing mix for a firm operating in a developing market? A. product quality B. promotion C. distribution D. pricing
C
Which of the following statements best describes the key to success of globally standardized products? A. firms are constantly developing new products to replace older products to meet customer demand B. status and brand is important to consumers worldwide C. products are of high quality with advanced features and better priced D. cheap prices are the products are mass manufactured
C
Direct payments to foreign retail distributors to gain shelf space are called: A. bribes B. shelf liners C. distribution allowances D. slotting fees
D
Globalizing marketing involves all of the following EXCEPT: A. global coordination of marketing activities B. some degree of marketing standardization C. a degree of uniformity in the marketing mix D. customization of products as per local preference
D
Green Time Tea Corporation routinely determines the functional requirements its products must meet to perform appropriately in new markets. The firm's focus then shifts to changes that would lead customers in the most desirable segments of the new market to prefer their product. Green Time's efforts to satisfy local tastes and preferences would be BEST described as: A. localization B. globalization C. standardization D. adaptation
D
In emerging markets, all of the following about product positioning are true EXCEPT: A. customer needs are basic B. domestic alternatives are weak C. initial offering usually consists of standardized simpler selections D. strong need for extensive after sales service
D
In most of its foreign markets, the Purina Corporation feels it necessary to employ sophisticated market research to fine tune its market segmentation strategy because the customers are increasingly particular, with well developed preferences; they are eager to satisfy varied and idiosyncratic tastes. During is PRIMARILY active in: A. saturated markets B. new growth markets C. emerging markets D. mature markets
D
India, China, Russia, and the United States are best described as: A. homogeneous cultures B. monolithic cultures C. capitalistic and neo capitalistic cultures D. multicultural countries
D
L. L. Bean Corporation would like to establish a link between its advertising expenditures and purchase behavior so as to guide its future budgeting efforts. This can best be attempted through experimental, or: A. direct observation B. focus groups C. attitude scaling D. causal research
D
P&G Pampers' successful positioning message in Japan focused on happy babies rather than inconvenienced mothers. This is an example of: A. different segments, different positioning strategy B. different segments, similar positioning strategy C. similar segment, similar positioning strategy D. similar segment, different positioning strategy
D
Partitioning a given market into similar customer groupings for which uniform marketing strategies can be used is called: A. homogenization B. market division C. sub marketing D. market segmentation
D
Sue wants to export her products to India. Where are the BEST places to find/contact potential distributors for her products in India? A. cocktail parties at beach resorts in India B. over the internet C. the distributors' offices in the big cities of India D. trade fairs and conventions
D
Tariffs, regulations, and national security concerns have traditionally been designed to favor: A. foreign entries B. strategic groups C. competitive rivals D. domestic competitors
D
The America First Corporation has traditionally done quite well in its Canadian endeavors. In part their success may be explained by the fact that both the U.S. and Canada are best described by: A. strong uncertainty avoidance/ masculine B. strong uncertainty avoidance/ feminine C. weak uncertainty avoidance/ feminine D. weak uncertainty avoidance/ masculine
D
The America First Corporation is considering entry into several foreign countries which have a long history of political instability and/or nationalization of foreign assets. Which of the following modes of entry would the firm be LEAST likely to employ? A. franchising B. licensing C. joint ventures D. foreign direct investment
D
The Celanese Corporation is currently involved in compiling estimates of actual market size and market potential for its "short list" of candidates for potential entry. The firm's present focus would indicate that it is involved in which of the following stages of the entry evaluation process? A. country identification B. final selection C. preliminary screening D. in depth screening
D
The newly democratized post communist nations are usually placed under which type of market category? A. mature markets B. new, open markets C. new growth markets D. emerging markets
D
The underlying framework that guides an individual's perceptions of observed events and personal interactions, and the selection of appropriate responses in social situations is: A. psychology B. sociology C. linguistics D. culture
D
What type of orientation do companies generally have when it comes to global marketing? A. customer orientation B. production orientation C. pricing orientation D. selling orientation
D
When a company groups or clusters countries that are more homogeneous, in general market characteristics, it is in which stage of global segmentation? A. micro-segmentation B. cluster analysis C. localization D. macro-segmentation
D
Which of the following is MOST akin to selling a generic brand? A. franchising B. direct exporting C. turnkey projects D. original equipment manufacturing
D
Which of the following is one simple truth about buyer behavior in all markets? A. buyers are always brand conscious B. buyers are always price sensitive C. buyers are always influenced by their peers D. buyers are always goal oriented
D
Which of the following is the MOST typical objective of global marketers? A. gaining scale and scope returns at home B. learning from a leading market C. pressuring competitors D. exploiting market potential and growth
D
Which of the following is typically seen as the simplest way to enter international markets? A. foreign direct investment B. direct exporting C. franchising D. indirect exporting
D
Why do companies adopt the diversification approach? A. to share spillover effects easier B. one good advertising copy will play well in all the markets C. to introduce the same product lines in all markets D. to gain protection against the risk of large losses
D
What is done in the 2nd stage of the country attractiveness analysis? Explain each of the 4 aspects that are researched in this stage
Data is collected quickly for a preliminary assessment of the potential for the product 1) physical environment- is the climate suitable for our product 2) sociocultural environment- are the cultural and social factors aligned with our product 3) economic environment- can people afford the product 4) trade blocs and regulation- are we even able to move into this country or how hard/ expensive will it be
What is the difference between direct exporting and indirect exporting?
Direct exporting: when a company directly takes leads and finds distributors in foreign markets to sell their product to. Indirect exporting: when the company hires an expert management company/ outsides to do it
What is the biggest risk with licensing, where your firm's know how can be used against the firm?
Dissipation (think of squandering or frittering away money)
Which entry mode offers the GREATEST amount of control and risk for the company?
FDI- foreign direct investment
In what stage of the country selection process should you forecast revenues and costs if your company moved into that country?
Final selection
What type of entry mode has Sports Clips (from the video in class) used to successfully expand across the United States?
Franchising
What global pricing strategy uses the same price in regions, but differ across regions
Geo-centric pricing
Homeplus has opened a virtual grocery store for South Koreans to do their grocery shopping while they wait for the subway. After all, research shows that South Koreans are the 2nd hardest working people in the world with little time and energy to go to a supermarket to do their grocery shopping. This new type of retailing structure emerging in South Korea is a prime example of the necessity for retailing environments to adapt to the ___ of the host market.
Lifestyles
What is the difference between point of purchase and trade promotions?
POP promotions- promotions that are to the end consumers (discounts, coupons, etc.) Trade promotions- promotions that are for other channel members
The most common approach to global advertising, which allows creative flexibility at the local level, is ___ ___
Pattern standardization
What is the difference between penetration and skimming pricing strategies? Which one is the most common for firms entering foreign markets?
Penetration pricing is when a firm enters a market with very low prices and then gradually raises the prices as competitors leave the market. Skimming starts with a high price and then gradually lowers it to capture more volume. Penetration is most common
When a company promotes its product by getting into a movie or TV show, this is known as what?
Product placement
What are 2 pros and 2 cons of using the franchising mode of entry for foreign entry? (for the franchisor)
Pros: collect up front fee and sales royalties from franchisee low risk Don't have to do extensive marketing research to know the how market Cons: if the franchisee messes up, it hurts your brand image across the world Dissipation could occur: franchisee could use the know how that you gave them and use it to create another competitor for you
When a company associates itself with sports teams and large events, this is known as what type of promotional activity?
Sponsorships
In a ___ strategy, the firm moves simultaneously into many different markets
Sprinkler
When a company tries to fight gray trade by discouraging its authorized dealers from disposing/ selling excess products to gray traders, it is engaging in what?
Supply interference
What does different segments, similar positioning mean?
The company targets different groups of people to buy their product in different markets, while maintaining the same way of positioning their product vis-à-vis the competition
In the consumer decision making process, what does the consumer do in the evaluation of alternatives stage?
The consumer assess all of the products in his/her consideration set and matches the pros and cons of the alternatives against preferences
Why type of advertisements are naturally global?
Web ads
This type of intermediary sells goods to anyone other than the final consumer
Wholesalers
Can localized advertising still be global? Why or why not?
Yes, because localized advertising just means that you make minor changes to the advertisement to make it function properly in different markets. The ad can still be standardized, but the language or medium may be different in the host market.
Most international trade takes place within:
regions