Final 2
51) In the global watch industry, the success of the Swatch brand resulted in a manufacturing renaissance for Switzerland. In the strategic framework known as hypercompetition, Swatch's success is an example of interactions in which arena?
A) cost/quality
35) Which promotional technique is best suited to a situation in which a company wants consumers to actually try its product or service at no cost? A) sampling B) sweepstakes C) couponing D) free-standing inserts E) personal selling
A) sampling
42) Tobacco companies in Central Europe face the prospect of tougher marketing and advertising regulations due to:A) the growing concern about health hazards associated with smoking.B) a dislike of global brands crowding out local brands.C) a desire to return to communist-era policies.D) a desire to comply with EU entry requirements.E) the pressure from neighboring countries.
Answer: D
47) The choice between demonstration, slice-of-life, straight sell, and other advertising forms is a matter of the:A) creative strategy.B) advertising appeal.C) selling proposition.D) creative execution.E) big idea.
Answer: D
5) Because advertising is often designed to add ________ value to a product or brand, it plays a more important communications role in marketing consumer products than it does for marketing industrial products.A) socialB) monetaryC) culturalD) psychological E) emotional
Answer: D
79) One task of the ________ department is to generate nonpaid forms of communication to foster goodwill among customers and others.A) sales promotionB) global marketingC) headquarters D) public relationsE) advertising
Answer: D
The Communication Process Model
Cultural Context A: Encoding and Information Source Cultural Context B: Message Channel, Decoding, Receiver Middle: Noise and Feedback
64) Which global company has dissolved its matrix structure in order to achieve "greater speed and efficiency by further focusing and flattening the organization"?
D) ABB
44) Joseph Tripodi is Chief Marketing and Commercial Officer of:
D) Coca-Cola (United States).
40) Howard Stringer, a native of the United Kingdom, is Chairman of:
D) Sony (Japan).
61) Boeing has reorganized its commercial transport design and manufacturing engineers from functional lines into a matrix organization; This new design is expected to have all but one of the following benefits:
D) provide customer contacts.
65) The key to successful matrix management is ensuring that managers are able to:
D) resolve conflicts and achieve integration.
76) In developing countries, globalization's opponents accuse companies of:
E) all of the above
54) Which of the following is not one of the four arenas in which dynamic strategic interactions are played out in hypercompetitive industries?
E) buyer and supplier power
78) In a socially responsible firm, employees perform all of the following except:
E) develop their own core ideologies on moral principles.
56) A company with headquarters in Europe and operational units in Canada, the United States, and Mexico would be well advised to consider establishing a(n):
E) regional management center.
Which of the following principles of disruptive innovation pertains to the notion of agnostic marketing?
Markets that don't exist can't be analyzed.
62) Which of the following is not characteristic of mass marketing? A) Product benefits do not typically include home delivery. B) Advertising is used to generate an immediate inquiry or purchase. C) Repetition of ads is the key to awareness and remembering. D) The customer perceives relatively little risk. E) Purchase action is deferred.
B) Advertising is used to generate an immediate inquiry or purchase.
51) Sony's Blu-ray DVD format has gained widespread acceptance; Sony, Sharp, Panasonic, and other Japanese manufacturers are all experiencing ________ sales of traditional electronics products
B) declining
16) Maytag has been called "the Rolls-Royce of washers and dryers." Maytag markets Neptune, a high-tech machine, at a substantially higher than regular washer price. This is an example of:
B) differentiation.
50) Management writers often use terms like ________ to describe an organization in which autonomous business units operate with their own agendas and a minimum of horizontal interdependence
C) chimneys
26) Building layers of advantage is one of the elements of Hamel and Prahalad's framework for:
C) competitive innovation.
57) The advantages that a regional management center can offer a company include all of the following except:
C) considerable cost saving.
21) The issue of sustainability is central to this strategy concept:
C) cost focus.
77) In fall 2002, a new Broadway production of Puccini's La Boheme was set in Paris circa 1957. The stage set included billboards for luxury pen maker Montblanc and Piper-Heidsieck champagne. This is an example of: A) consumer sales promotion. B) sampling. C) product placement. D) trade sales promotion. E) global awareness.
C) product placement.
39) Spoexa, a food-marketing company was hired by French Ministry of Agriculture to organize cocktail parties in 19 countries in order to: A) promote French wines. B) promote French cheese. C) show that French cuisine is laid back. D) show that French wines are superior. E) show how to use French cuisine.
C) show that French cuisine is laid back.
The Rugman and D'Cruz's flagship model is evident in the strategies of all but one of the following businesses: IKEA. Ford. Benetton. Microsoft. Volkswagen.
Microsoft.
________-commerce is one of the significant marketing opportunities made possible by the digital revolution. Marginal-cost Mobile Multisegment Multilingual Multinational
Mobile
Continuity
Most middlemen have little loyalty to their vendors. ---Distributors and dealers are probably the most loyal middlemen, but even with them, manufacturers must attempt to build brand loyalty to company.
A key player in the cell phone business who could have been first to market with a cell phone camera is:
Motorola.
A key player in the cell phone business who could have been first to market with a cell phone camera is: Sprint. Motorola. Samsung. AT&T. Ericsson.
Motorola.
Decoding
The receiver unravels the symbols to interpret what is being communicated. Transforming the sender's message back into thought. This is influenced greatly by the receiver's frame of reference (or realm of understanding) which involves their values, attitudes and state of mind when receiving the message.
According to David Whitwam, former CEO of Whirlpool, one must create an organization whose people are: absolutely free of the "not-invented here" syndrome. able to adapt to systems across borders. adept at exchanging ideas, processes, and symptoms. working together to solve the biggest global problems. constantly working together to identify best global opportunities.
adept at exchanging ideas, processes, and symptoms.
IMC is composed of
advertising, sales promo, trade shows, personal selling, direct selling, public relations.
The domain name for Amazon.com for Germany is:
amazon.de.
Building layers of advantage is one of the elements of Hamel and Prahalad's framework for: innovation leadership. competitive innovation. marketing management. positioning. quality advantage.
competitive innovation.
Many firms have gained competitive advantage by disadvantaging rivals through: competitive innovation. cost leadership. focused differentiation. differentiation. consumer differentiation
competitive innovation.
The advantages that a regional management center can offer include all of the following except: coordinated decision making. considerable cost saving. pan-regional decision making. coordinated control. coordinated regional planning.
considerable cost saving.
Core Component
consist of the physical product in all its design and functional features
Web sites that provide news and entertainment and support a company's PR efforts are known as:
content sites.
Web sites that provide news and entertainment and support a company's PR efforts are known as: content sites. transaction sites. company sites. promotion sites. cyber sites.
content sites.
Primary stakeholders include all of the following except: media. customers. top management. employees. suppliers.
media.
Each network has its own "metrics of value." For laptop computers this value would include all of the following except:
memory capacity.
According to Michael Porter's research on the competitive advantage of nations, Switzerland's large synthetic dye industry and the success of the Swiss pharmaceuticals can be explained in terms of: factor conditions. formation of the European Union. demand conditions. related and supporting industries. strategy, structure, and rivalry.
related and supporting industries.
Caterpillar's attention was focused elsewhere when Komatsu made its first entry into the Eastern Europe and gained grounds. This is an example of: differentiation. layers of advantage. loose bricks. changing the rules. collaborating.
loose bricks.
Which form of organization design is capable of integrating geographic knowledge, product knowledge, functional competencies, and customer knowledge? geographic structure international division structure worldwide product division structure regional management center matrix structure
matrix structure
Rugman and D'Cruz have developed an alternative framework to Porter's five forces model. The framework, based on business networks, is called: the flagship model. strategic intent. the Rugman & D'Cruz model. the differentiation model. the hypercompetition model.
the flagship model.
Why foreign middlemen?
a. Greater control of the distribution process and easy & constant contact with middlemen.
Organizations, in order to be globally successful, must be viewed as portfolio of: competencies. products. activities. policies. businesses.
competencies.
product variations
can be added or deleted to satisfy local differences
The visionary strategy of the Chief Executive Officer of Volkswagen which included switching the German plants entirely to the new model, failed due to all of the following reasons except: investment in SEAT in Spain. confusion among American dealers about where it was made. continued demand for Beetle model in the United States. investment of billions of dollars in Skoda autoworks in Czechoslovakia. resistance on the part of German unions.
continued demand for Beetle model in the United States.
Nike came under fire from critics who alleged poor working conditions in the factories that make the company's athletic shoes. This is an example of the demand for: labor unions. corporate social responsibility. standards for working conditions. higher wages. equal opportunity employment.
corporate social responsibility.
61) Which of the following is not characteristic of direct marketing? A) A marketer relinquishes control of product when it is turned over to channel intermediaries. B) Advertising serves to generate an immediate inquiry or purchase. C) Repetition is used in individual advertisements. D) The customer experiences high perceived risk. E) Direct response advertising is used.
A) A marketer relinquishes control of product when it is turned over to channel intermediaries.
45) According to David Whitwam, former CEO of Whirlpool, one must create an organization whose people are:
A) adept at exchanging ideas.
30) Intel's loose brick was:
A) it's narrow focus on complex microprocessors for PCs.
85) Even in the face of such tough and growing competition, Adidas still enjoys high brand loyalty among older Europeans. The company recruits young people and pays them to wear Adidas shoes in public. This is an example of:A) local advertising.B) pattern advertising.C) global advertising.D) advocacy advertising.E) image advertising.
Answer: E
67) Which of the following does not describe the Toyota Production System (TPS)?
C) fixed setup time
32) An important leadership task involves articulating all of the below mentioned points except:
C) status.
17) Germany's Mittelstand companies have been extremely successful pursuing:
D) focused differentiation.
45) The Rugman and D'Cruz's flagship model is evident in the strategies of all but one of the following businesses:
E) Microsoft
5) New entrants to an industry bring all of the following except:
E) decline in per-unit product costs.
70) Which of the following is not the way US auto mass producers operate?
E) lack of employee teamwork
The best country using mobile advertising is: Indonesia. India. South Korea. Sudan. Japan.
India.
Which of the following pioneers of the digital revolution developed URL, http, and HTML, thus paving the way for the World Wide Web?
Tim Berners-Lee
Stereotype
-"Made in China" is not well made -People believe that some countries make certain products better than others -- ex: English Tea, Chinese Silk, Italian Leather
Oreo Video Case:
-kids in china teach parents because product is newer to them -china has less sugar in Oreos for a lightly sweetened taste -Milk Chocolate Oreos in Venezuela -Bigger packages in US because we don't shop as often -Change parent company from Kraft to names outside countries will recognize and be comfortable with -Changes ads to consumer aka billboards in Venezuela because they spend more time in the car
Burberry
-reinvented themselves by acquiring their licensing rights and focusing on the 25 wealthiest cities for their stores. -As for media used, they moved toward "click and buy" features for their outerwear and bags which deliver these items months before they even hit the stores. -They also use Facebook to communicate with their fans, having millions of followers and allowing their customers to post photos of them in their Burberry. -They also simulcast their runway shows in 3-D in major cities such as NYC. They stream their shows online for customers to watch and comment on.
Inge G. Thulin is chief executive of: Ford Motor Company (USA). 3M (USA). Nissan Motor (Japan). Pharmacia Corporation (USA). Atlas Copco AB (Sweden).
3M (USA).
Advertising
6 steps: 1) perform marketing research 2) specify the goals of the communication 3) select effective media 4) compose and secure a budget based on what is required to meet goals 5) develop the most effective message(s) for the market segments selected 6) execute the campaign ----Standardized products may be marketed globally. But because of difference in cultures, the still require different advertising appeal in different markets.
Product Component Model
A product is multidimensional, and the sum of all its features determines the bundle satisfactions (utilities) received by the consumer.
71) Interactive television (ITV) allows viewers to see the ad in its entirety by pressing a remote button; to order products from home-shopping channels; or choose different camera angles, such as in sports events. Comments by James Pennefather, brand manager for Smirnoff, UK, based on comparison of traditional TV ads to ITV features included all of the following except: A) "it allows viewers to interact with programming." B) "it is a lot more unproven." C) "it needs further testing." D) "it is a calculated risk." E) "it may or may not succeed."
A) "it allows viewers to interact with programming."
39) Brazilian Carlos Ghosn is chief executive of:
A) Nissan Motor (Japan).
10) Walmart refuses to stock CDs bearing parental advisory stickers for explicit lyrics or violent imagery. Recording artists who want their recordings available at Walmart have the option of altering lyrics and song titles or deleting offending tracks. Likewise, artists are sometimes asked to change album cover art if Walmart deems it offensive. Considering the elements of the five forces model this is an example of:
A) buyer power.
69) Chinese direct-response television has learned that there are many obstacles that still need to be overcome, which include all of the following except: A) consumers' savings rate is very low. B) limited number of private telephones. C) low penetration of credit cards. D) delivery logistics in Beijing. E) delivery logistics in Shanghai.
A) consumers' savings rate is very low.
52) According to strategy expert Richard D'Aveni, the actions taken by Swatch in the global watch industry illustrate hypercompetitive dynamic maneuvering in which arena?
A) cost/quality
48) Which of the following is not a step in the strategic/consultative selling model? A) develop a marketing mix B) develop a personal selling philosophy C) develop a product strategy D) develop a relationship strategy E) develop a presentation strategy
A) develop a marketing mix
54) Which type of sales person is best suited to selling technologically-sophisticated products in developed countries? A) expatriates B) third-country nationals C) host-country nationals D) agents of any nationality E) none of the above
A) expatriates
56) When a company must decide on the composition of its foreign sales force, which alternative is generally the most expensive? A) expatriates B) third-country nationals C) host-country nationals D) agents of any nationality E) agents of host country
A) expatriates
36) According to Michael Porter's research on the competitive advantage of nations, human, physical, knowledge, capital, and infrastructure resources are all components of a country's:
A) factor conditions.
58) After much trial and error in creating sales forces, most companies today attempt to establish a: A) hybrid sales force composed of expatriates and in-country nationals. B) sales force composed of a majority of expatriates. C) hybrid sales force composed of expatriates and third country nationals. D) sales force composed of third country nationals. E) sales force consisting of all in-country nationals.
A) hybrid sales force composed of expatriates and in-country nationals.
9) Factors which determine suppliers' ability to gain leverage over industry firms include all of the following except:
A) large numbers and relatively few in number.
69) Concepts such as "assembler value chains" and "downstream value chains" are associated with:
A) lean production.
3) Which of the following is not identified by Porter as one of the possible types of barriers to entry in an industry?
A) loose bricks
62) Which form of organization design is capable of integrating geographic knowledge, product knowledge, functional competencies, and customer knowledge?
A) matrix structure
Which global company has dissolved its matrix structure in order to achieve "greater speed and efficiency by further focusing and flattening the organization"? Whirlpool Levi Strauss ABB Pearson PLC Gillette
ABB
Coverage
Another major goal is full-market coverage to gain the optimum volume of sales obtainable in each market, secure a reasonable market share. Many companies do not attempt full-market coverage but seek significant penetration in major population centers.
12) A phrase which is analogous to the concept of global product platforms is:A) "Pattern advertising."B) "Template advertising.C) "Cookie-cutter advertising."D) "Model advertising."E) "Stereotype advertising."
Answer: A
13) ________ is the phrase global marketers use to describe ads with common design elements into which localized elements are inserted for individual country markets.A) "Pattern advertising"B) "Template advertising"C) "Cookie-cutter advertising"D) "Model advertising"E) "Stereotype advertising"
Answer: A
2) Advertising, public relations, and other forms of communication are critical tools in the marketing program and reflect the ________ (P) of the marketing mix.A) ProductB) PromotionC) PriceD) PlaceE) Process
Answer: B
30) The kind of brand awareness a company wants to project is identified by:A) area coverage B) buyer perception.C) company organization.D) national responsiveness.E) in-house marketing.
Answer: B
41) Some of the world's most memorable advertising campaigns have achieved success because they originate from an idea that is so big that the campaign offers opportunities for a seemingly unlimited number of new executions. Such a campaign is said to have:A) "life."B) "legs."C) "love."D) "fun."E) "toes."
Answer: B
44) In many parts of the world, McDonald's utilizes TV advertising that shows parents interacting with their happy children. Such advertising utilizes:A) rational appeals B) emotional appeals.C) SRC appeals.D) melodramatic appeals.E) localized appeal.
Answer: B
45) Ads that tickle the funny bone of the intended audience and evoke response that will direct purchase behavior are based on:A) rational appeals.B) emotional appeals.C) SRC appeals.D) melodramatic appeals.E) localized appeal.
Answer: B
88) China's ongoing trade-related friction with the United States highlights the need for:A) a better distribution system.B) a better PR effort.C) sales promotion.D) a better transportation system.E) pattern advertising.
Answer: B
15) When the subheads and body copy of an advertisement are localized, not simply translated, it is an example of:A) local advertising.B) global advertising.C) pattern advertising.D) advocacy advertising.E) stereotype advertising.
Answer: C
3) A ________ company possesses a critical marketing advantage with respect to marketing communications.A) domesticB) localC) globalD) glocalE) multinational
Answer: C
73) U.S. advertisements contain more ________ information, and are more likely to include comparative appeals than Arabic ads.A) peopleB) processC) priceD) sexE) context
Answer: C
37) Inge G Thulin is chief executive of:
B) 3M (USA).
49) Which global marketing expert recommends an organization design based on a "global superstructure" that views the world in terms of 30 regions?
B) Kenichi Ohmae
38) Which of the following has an American woman as the chief executive?
B) PepsiCo (USA)
36) Indra K Nooyi is chief executive of:
B) PepsiCo (USA).
72) Traditional support media include: A) indoor posters. B) billboards. C) newspapers. D) magazines. E) catalogs.
B) billboards.
35) When company management decides that it is unwilling to follow the "conventional wisdom" and instead finds a new way to gain competitive advantage, it might be said to be:
B) changing the rules of engagement.
43) Mitsubishi Heavy Industries Ltd. and other Japanese companies manufacture airplanes under license to U.S. firms, and also work as subcontractors for aircraft parts and systems. This type of effort is known as:
B) collaborating.
57) Other international personal selling approaches that fall somewhere between sales agents and full-time employee teams include all of the following except: A) exclusive license arrangements. B) contract manufacturing or production. C) management-only agreements. D) franchising. E) joint ventures.
B) contract manufacturing or production.
75) Secondary shareholders include all of the following except:
B) employees.
48) In today's dynamic global competitive environment, organizations need to develop new forms of:
B) flexibility, efficiency, and responsiveness.
68) Thomas Burke, an executive at Saatchi & Saatchi, is quoted as saying ________ are "the most powerful form of advertising ever created." A) corporate advocacy ads B) infomercials C) banner ads on the Internet D) direct mail campaigns E) catalog sales
B) infomercials
52) As a company's initial international business involvement becomes too much for a single manager or export department to handle, the next step is typically to establish a(n):
B) international division structure.
31) A marketer of fine French cognac offers fancy cigar ashtrays as prizes to consumers who correctly solve a crossword puzzle. Which of the following most accurately describes this offer? A) price promotion B) non-price promotion C) trade sales promotion D) sweepstakes promotion E) sampling
B) non-price promotion
63) Having established that the matrix is appropriate, management can expect the matrix to integrate the following competency on a worldwide basis:
B) product knowledge and know-how.
59) Under the geographical and product division structures, for the company with French origins, France is:
B) simply another geographic market.
53) The country with the highest number of companies with Global Competitive Advantage is:
B) the United States.
58) One of the potential drawbacks of a regional management center is that:
B) the cost can be prohibitive.
55) According to the hypercompetition model of competitive advantage, which of the following allows the firm to create an entirely new product or market?
B) timing advantage
76) Product placement has reached the world of live theater and opera. The difference between product placement and other forms of promotion is: A) ethical concerns are not taken into account. B) viewers are being marketed to subliminally without their consent. C) products are focused showing different angles. D) prominent personalities add a message about the product. E) sponsors are recognized for their contribution.
B) viewers are being marketed to subliminally without their consent.
Bluetooth mobile communication technology has all of the following advantages over Wi-Fi except one:
Bluetooth works over shorter distances than Wi-Fi.
Bluetooth mobile communication technology has all of the following advantages over Wi-Fi except one: Bluetooth works over shorter distances than Wi-Fi. Bluetooth is well suited for use with cell phones. Bluetooth consumes less power than Wi-Fi. Bluetooth technology has been incorporated into automobiles. Bluetooth can handle data as well as voice.
Bluetooth works over shorter distances than Wi-Fi.
Nike Example
Brand Value --a. Baby, Runner, Girl playing sports but not good yet then they hit their peak. --Everyone does crazy things with Nike that are super impressive. --Shows that you can do anything you set your mind to. --"Unlimited You"
Excluding China, which does not allow Google to publish figures regarding its requests for information, the government with the largest number of requests for information is: America. India. Taiwan. Brazil. Japan.
Brazil.
Excluding China, which does not allow Google to publish figures regarding its requests for information, the government which had the largest requests for information is:
Brazilian.
33) In addition to "selling" their visions, top management at both Whirlpool and GE face the formidable task of building:
C) a cadre of globally oriented managers.
75) Chinese authorities ratified the WHO's Framework Convention on Tobacco Controls; which means: A) Chinese TV can show tobacco ads only after midnight. B) tobacco companies cannot show ads on TV but can sponsor sports events. C) all forms of tobacco promotion and sponsorships will be phased out by the year 2010. D) tobacco companies can use sponsorships of health and sporting events. E) tobacco companies can sponsor China's national soccer tournament after the year 2010.
C) all forms of tobacco promotion and sponsorships will be phased out by the year 2010.
43) Organizations in order to be globally successful must be viewed as portfolio of:
C) competencies.
23) Many firms have gained competitive advantage by disadvantaging rivals through:
C) competitive innovation.
32) Which of the following is not an advantage of using sales promotions? A) provides a tangible incentive to buyers B) provides accountability to marketing managers C) enables company to build its database D) builds long-term brand awareness E) develops relationship with customers
C) enables company to build its database
52) A company in which an ethnocentric orientation prevails is likely to utilize primarily ________ in its sales force. A) host-country nationals B) third-country nationals C) expatriates D) agents of any nationality E) agents of host country
C) expatriates
34) Yong Nam, CEO of LG, recently stipulated that English would be required throughout the company; His reasons for this action included all of the following statements except:
C) impede information sharing.
42) According to Prahalad and Hamel, a core competence has all of the following characteristics except:
C) it is easy for competitors to imitate.
39) Taiwan's Acer prospered by following founder Stan Shih's strategy of approaching the world computer market from the periphery. By the time Acer was ready to target the United States in earnest, it was already the number one PC brand in key countries in Latin America, Southeast Asia, and the Middle East. This is an example of which component of competitive innovation?
C) loose bricks
74) Primary stakeholders include all of the following except:
C) media.
41) Unilever hired a promotional marketing firm to pass out Lever 2000 hand wipes in food courts and petting zoos. This is an example of: A) point-of-use sampling. B) point-of-sale sampling. C) point-of-dirt sampling. D) point-of-event sampling. E) point-of-work sampling.
C) point-of-dirt sampling.
41) When Brazilian Carlos Ghosn was installed as chief executive, he introduced two new words into Nissan's lexicon:
C) speed and commitment.
36) The success of the Stratos project helps the Red Bull by: A) having their logo on NASCAR cars. B) using You Tube as an effective marketing tool. C) standing out from a crowded field of competitors. D) utilizing free-standing inserts. E) personal selling.
C) standing out from a crowded field of competitors.
22) Rugman and D'Cruz have developed an alternative framework to Porter's five forces model. The framework, based on business networks, is called:
C) the flagship model.
70) Industry observers expect the popularity of home shopping to increase during the next few years due to: A) the formation of European Union. B) the economic development in India. C) the introduction of interactive television. D) the introduction of iPhone. E) the introduction of TV shops.
C) the introduction of interactive television.
51) Negotiation requires both customer and the salesperson: A) to be persistent in their point of view. B) to be subjected to arm-twisting. C) to agree to disagree. D) come away as winners. E) come away as losers.
C) to agree to disagree.
38) Promotions designed to increase product availability in distribution channels are known as: A) sales promotions. B) price promotions. C) trade sales promotions. D) consumer sales promotions. E) nonprice promotions.
C) trade sales promotions.
Hershey rolled out a new line of condensed-milk candies, named Yo-man, specifically targeting the premium candy segment in: India. China. South Korea. Mexico. Japan.
China.
________ is the term that refers to the merging of different industries such as computers, photography, and motion pictures.
Convergence
________ is the term that refers to the merging of different industries such as computers, photography, and motion pictures. Value networks Telematics Agnostic marketing Convergence Disruptive technology
Convergence
74) Worldwide spending on outdoor advertising amounts to about ________ of total ad spending. A) 1% B) 2% C) 4% D) 6% E) 10%
D) 6%
59) Benefits for using sales agents include all of the following except: A) agents work under contract rather than as full-time employees. B) agents are less expensive than full-time, in-country national sales representatives. C) agents possess the same market knowledge as in-country nationals. D) agents can eventually replace manufacturer's sales agents. E) agents possess the same cultural knowledge as in-country nationals.
D) agents can eventually replace manufacturer's sales agents.
2) Which of the following is not identified by Porter as one of the five forces that explains competition in an industry?
D) bargaining power of competitors
79) The effective integration of products and brands with entertainment can be seen on the TV hit American Idol. This type of trend is referred to as: A) advertising age. B) traditional advertising. C) global advertising. D) branded entertainment. E) image entertainment.
D) branded entertainment.
66) The term magalog is used to describe which communication medium? A) direct mail B) Groupons C) coupons D) catalogs E) infomercials
D) catalogs
31) According to Carly Florina, former CEO of Hewlett-Packard, leadership is about:
D) connecting.
13) Porter's four generic strategies for achieving competitive advantage are:
D) cost leadership, product differentiation, cost focus, focused differentiation.
68) Employee ability is emphasized in a lean production environment; Before being hired, people seeking jobs with Toyota participate in the Day of Work, an assessment test to determine who has the right mix of qualities; These qualities include all of the following except:
D) decision making.
47) Which of the following is not one of the steps in the Strategic/Consultative Selling Model? A) develop personal selling philosophy B) develop relationship strategy C) develop product strategy D) develop ethnocentric policy E) develop customer strategy
D) develop ethnocentric policy
42) Del Vecchio, the Italian entrepreneur's business principles include all but one of the following:
D) hiring qualified personnel.
80) The universal concerns for global companies established by the United Nations Global Compact consist of the following three dimensions:
D) human rights, labor, and the environment.
49) The ________ framework was developed by Professor Richard D'Aveni to describe a business environment in which no form of competitive advantage can be sustained for long because of escalating and accelerating competitive forces.
D) hypercompetition
41) A nation's banking system, health care system, transportation system, and communications system, as well as the availability and cost of using these systems are considered as ________ resources available for competitive advantage of a business.
D) infrastructure
31) In the terminology of the strategic intent framework for competitive advantage, a firm that establishes advantages in a number of different areas has:
D) layers of advantage.
71) Which of the following assumptions does not belong in a list of characteristics of lean production?
D) maximize backwards integration
66) Which of the following does not belong in a list of mass production in an automobile company such as Ford?
D) outsource from supplier specialists
78) Celeste Atkinson is a lifestyle and entertainment manager for Audi, and her job is to create buzz by ensuring that vehicles such as the Audi A8L and the S8 sports sedan figure in paparazzi photos. This is referred to as: A) lifestyle placement. B) blockbuster placement. C) promotion placement. D) product placement. E) photo placement.
D) product placement.
54) Hershey rolled out a new line of condensed-milk candies, Yo-man, specifically targeting premium candy segment in:
E) China.
64) Which of the following is not a useful guideline for U.S.-based direct marketers wishing to reach global customers? A) Do not treat prospects as though they are Americans. B) Do not automatically assume that a direct-mail campaign that works in one country will work in another country. C) Do not assume that all Europeans are similar in their tastes and wants. D) Customers should be able to return products to an address in their local country market. E) Focus on all countries included in the European Union.
E) Focus on all countries included in the European Union.
42) Coupons are not a favorite promotion tool for use in: A) the United Kingdom. B) Belgium. C) the United States. D) Italy. E) Malaysia.
E) Malaysia.
40) PepsiCo experienced great success in Latin America with its Numeromania contest, which lured consumers by promise of big cash prizes. They used the same contest in Poland successfully. This shows that: A) Numeromania can be used in different languages. B) Numeromania can be used in cash starved countries. C) leverage experience gained in one country can be used in another country. D) economically squeezed consumers love Pepsi. E) Numeromania helped in developing a taste for Pepsi in both countries.
E) Numeromania helped in developing a taste for Pepsi in both countries.
46) Which of the following is the best organization structure for global marketing?
E) There is no single "best" structure.
48) Chance events play a role in shaping the competitive environment. Chance events are occurrences which include all of the following except:
E) annual business meeting.
47) The rivalry between Dell, Hewlett-Packard, Gateway, Compaq, and Apple forces all the players to undertake all of the following except:
E) change the rules of engagement.
50) The characteristics of home demand for a firm's products or services include all of the following except:
E) the size of the competitors share of the home demand.
47) In the fast changing, competitive environment, new global realities are emerging, which includes all of the following needs except:
E) to deliver success.
Which of the following is not one of Clayton Christensen's principles of disruptive innovation?
E-commerce activities can be divided into three categories.
Policy makers in some countries are concerned about U.S. control of the Internet. Positions taken by countries such as ________ state that Internet is global and no single country should be in control.
India and Brazil
Policy makers in some countries are concerned about U.S. control of the Internet. Positions taken by countries such as ________ state that Internet is global and no single country should be in control. China and Japan Mexico and Venezuela India and Brazil Thailand and Malaysia Japan and South Korea
India and Brazil
While South Korea is considered as "ready for tomorrow" in terms of Internet Speed, countries which are "below today's applications threshold" include all of the following except:
India.
Konbini refers to convenience stores where consumers can pay for online purchases in Russia. Bosnia. Japan Indonesia. Croatia.
Japan
Which global marketing expert recommends an organization design based on a "global superstructure" that views the world in terms of 30 regions? Paul Krugman Kazuo Inamori Michael Porter Kenichi Ohmae Tom Peters
Kenichi Ohmae
Gucci Example
Lifestyle brand- commercial promotes and expensive lifestyle that not everyone can live and have.
One of the problems with Web site sales is credit card fraud. All of the following countries are those where fraud is rampant except:
Malaysia.
________-commerce is one of the significant marketing opportunities made possible by the digital revolution.
Mobile
Brazilian Carlos Ghosn is chief executive of: Ford Motor Company (USA). Pearson PLC (Great Britain). Nissan Motor (Japan). Atlas Copco AB (Sweden). Pharmacia Corporation (USA).
Nissan Motor (Japan).
Organizations vary in terms of the size and potential of targeted global markets and local management competence in different country markets. Considering different factors and facts related to the constellation of pressures, which of the following statements is not accurate? No two organizations pass through similar stages. Conflicting pressures may arise from the need for product and technology. No two organizations arrive at precisely the same organizational pattern. Conflicting pressures may arise from the need for better organization. Some patterns are common among different organizations.
No two organizations arrive at precisely the same organizational pattern.
Indra K. Nooyi is chief executive of: Ford Motor Company (USA). Atlas Copco AB (Sweden). Nissan Motor (Japan). PepsiCo (USA). Pharmacia Corporation (USA).
PepsiCo (USA).
Facebook, Google, Pinterest, Twitter, and Wikipedia represent which element of the marketing mix? People Place Promotion Product Price
Product
Colgate Example
Product Benefit i. Same product with different packaging based on area. ii. advertisements are all the same just in different languages except for India (ballywood theme).
All of the following statements regarding Starbucks are true except: Starbucks partners can take part in Starbucks' stock option plan. Starbucks has the opportunity to be a different global company. Starbucks is a profitable company. Shareholders consider Starbucks' stock to be risky investment. Starbucks offers health benefits to company employees.
Shareholders consider Starbucks' stock to be risky investment.
In the 1950s, which company used transistor technology licensed from Bell Labs to develop the transistor radio?
Sony
In the 1950s, which company used transistor technology licensed from Bell Labs to develop the transistor radio? Nokia RCA Panasonic Sony Sanyo
Sony
Howard Stringer, a native of the United Kingdom, is Chairman of: Pearson PLC (Great Britain). Atlas Copco AB (Sweden). Sony (Japan). Nissan Motor (Japan). Ford Motor Company (USA).
Sony (Japan).
According to "digital opportunity index" published by the United Nations, the country that leads the world in providing its citizens with access to information and communications technologies (ICT) is:
South Korea
The country which boasts the world's fastest average Internet speed is:
South Korea.
The country which boasts the world's fastest average Internet speed is: Russia. India. Japan. China. South Korea.
South Korea.
The ability to speak foreign languages is one difference between managers born and raised in the United States and those born and raised elsewhere. Which of the following is true and reflects this statement? Chinese managers study English as much as Chinese. There are equal numbers of American and Chinese children studying English. Correct There are 200 million Chinese children studying English. There are 24 million American children studying Chinese. There are 200 million Indian children studying Chinese.
There are 200 million Chinese children studying English.
Robert Noyce and Jack Kilby are pioneers in the digital revolution. What contribution did they make?
They invented the silicon chip.
Robert Noyce and Jack Kilby are pioneers in the digital revolution. What contribution did they make? They invented the first digital computer. They invented the silicon chip. They invented the spreadsheet. They invented the transistor. They invented the Internet.
They invented the silicon chip.
Encoding
This is transposing the intended meaning of the message with words, symbols or pictures to show a message. Encoding is the development of the message that contains the information the source hopes to convey. It is putting together the thoughts, ideas and information into a symbolic form that can be transmitted and understood by the receiver.
________ are online retail operations that allow customers to purchase goods and services. Promotion sites Transaction sites Transfer sites Content sites Matrix sites
Transaction sites
The automobile industry has become fiercely competitive on a global basis. The initial success of foreign automakers in the United States was due to all of the following reasons except: inability of U.S. manufacturers to manufacture high-quality cars. reluctance of U.S. manufacturers to design high-quality cars. reluctance of U.S. manufacturers to make inexpensive small cars. bigger cars meant bigger profits for U.S. manufacturers. U.S. manufacturers did not realize drivers' preferences.
U.S. manufacturers did not realize drivers' preferences.
Which of the following digital revolution pioneers created a "network of networks" that is now known as the Internet?
Vint Serf and Bob Kahn
Francisco Martínez is CFO of Comercial Mexicana SA, a retail chain in Mexico. Commenting on Walmart's entry into Mexico, Mr. Martínez notes, "I buy 20,000 plastic toys, and Walmart buys 20 million. Who do you think gets them cheaper?" Which strategic principles are evident in this comment? Walmart's barriers to entry and differentiation Walmart's loose bricks and switching costs Walmart's buyer power and cost leadership Walmart's discount policies for customers Walmart's focused differentiation and supplier power
Walmart's buyer power and cost leadership
The domain name for Amazon.com for Germany is: amazon.gm. amazon.com.gm. amazon.ge. amazon.de. amazon.gr.
amazon.de.
Chance events play a role in shaping the competitive environment. Chance events are occurrences which include all of the following except: wars and their aftermath. major technological breakthroughs. oil crisis. currency fluctuations. annual business meeting.
annual business meeting.
Country of Origin Effect
any influence that the country of manufacture, assembly, or deign has on a consumer's positive or negative perception of a product.
Lessons that are learned from Starbucks' company's cooperation with NGOs include all of the following except: don't wait for a crisis to collaborate. appreciate the value of the NGOs dependence. understand that building relationships with NGOs takes time. recognize that collaboration involves some compromise. think strategically about relationships with NGOs.
appreciate the value of the NGOs dependence.
In the tech world, about 90% of the world's nearly one billion PCs use Microsoft's operating systems and 80% use Intel's microprocessors. This represents which aspect of the Porter's five forces model? threat of new entrants rivalry among competitors threat of substitute products bargaining power of buyers bargaining power of suppliers
bargaining power of suppliers
Suppose you are a sales representative for Advanced Micro Devices (AMD) in Japan. You are trying to convince Toshiba to buy your company's superfast Opteron microprocessor for its new laptop computer. Toshiba's representative seems interested, but eventually does not actually place an order. Confidentially, the representative tells you that he is afraid that Intel will withhold shipments of its Pentium 4 if he does business with AMD. Thinking about Intel's role in this scenario, which of the following elements of the five forces model is evident here? bargaining power of buyers bargaining power of suppliers barriers to entry threat of substitute products threat of new entrants
barriers to entry
The key to maintaining competitive advantage, according to Dr. W.E. Deming is: being committed to constant improvement. being first to market with all products. challenging all market leaders. outsourcing key components. stressing low-price advantage in all areas.
being committed to constant improvement.
Jaguar produced so few cars that it couldn't get volume discounts from components suppliers. Jaguar managers sometimes could not even determine the "fair" price for a particular part. In terms of Porter's competitive forces framework, Jaguar's strategic disadvantage stemmed from low: threat of new entrants. buyer power. threat of substitute products. supplier power. access to distribution channels.
buyer power.
The term "m-commerce" is used to describe the use of: web.com in commerce. credit cards in commerce. money in commerce. cell phones in commerce. Internet in commerce.
cell phones in commerce.
The rivalry between Dell, Hewlett-Packard, Gateway, Compaq, and Apple forces all the players to undertake all of the following except: improve existing products. develop new technologies. change the rules of engagement. lower costs and prices. develop new products.
change the rules of engagement.
Gillette markets its flagship MACH3 razor in more than 100 countries around the world. The MACH3 is available virtually everywhere that consumers shop for personal-care products; because of its advanced 3-blade design, the MACH3 typically costs more than other wet-shaving systems. Which generic strategy is evident in Gillette's global marketing effort of MACH3? cost leadership consumer focus cost focus focused differentiation differentiation
differentiation
Secondary stakeholders include all of the following except: general business community. employees. media. local community groups. nongovernmental organizations.
employees.
According to Michael Porter's research on the competitive advantage of nations, human, physical, knowledge, capital, and infrastructure resources are all components of a country's: related and supporting industries. factor conditions. strategy, structure, and rivalry. global conditions. demand conditions.
factor conditions.
Ethnocentrism
feelings of national pride can influence attitudes toward foreign products
Germany's Mittelstand companies have been extremely successful pursuing: differentiation. cost leadership. cost focus. cost differentiation. focused differentiation.
focused differentiation.
Hundreds of small companies such as Martin-Logan and Mark Levinson compete in the high-end audiophile segment of the consumer electronics industry. If analyzed in terms of Porter's generic strategies framework, such companies might be said to be pursuing competitive advantage via: focused differentiation. consumer differentiation. cost focus. differentiation. cost leadership.
focused differentiation.
Del Vecchio, the Italian entrepreneur's business principles include all but one of the following: investing in automation. investing in Robots, not workers. hiring qualified personnel. "Made in Italy" is important. cutting costs to keep production at home.
hiring qualified personnel.
The ________ framework was developed by Professor Richard D'Aveni to describe a business environment in which no form of competitive advantage can be sustained for long because of escalating and accelerating competitive forces. hypercompetition factor conditions generic strategies five forces model strategic intent
hypercompetition
Direct Communication
i. 1) an information source: product message to communicate 2) encoding: conversion to effective symbolism 3) a message channel: media that conveys the encoded message 4) decoding: the interpretation by the receiver of the symbolism 5) receiver: those who receive the message 6) feedback: information about the effectiveness of the message 7) Noise: uncontrollable and unpredictable influences.
Claude Shannon's technical report led to his pioneer work for which he is regarded as the inventor of the: information theory. Internet. transistor. silicon chip. spreadsheet.
information theory.
As a company's initial international business involvement becomes too much for a single manager or export department to handle, the next step is typically to establish a(n): worldwide product division structure. international division structure. regional management center. geographic structure. matrix structure.
international division structure.
"Cloud computing" is different from currently available technologies in all of the following aspects except:
it is installed in the computer's hard drive.
"Cloud computing" is different from currently available technologies in all of the following aspects except: computer files can be accessed remotely. applications are delivered through a Web browser. it is installed in the computer's hard drive. it is performed "in the cloud." archives are stored on massive remote servers.
it is installed in the computer's hard drive.
Intel's loose brick was: it's narrow focus on complex microprocessors for PCs. developing new chips incorporating 3D technology. unbeatable in computer market. demand for non-PC products. getting into the smartphone market.
it's narrow focus on complex microprocessors for PCs.
As a result of the digital revolution, a variety of companies in all parts of the world are developing a new generation of products, services, and technologies; which include all of the following except:
landline connectivity.
In the terminology of the strategic intent framework for competitive advantage, a firm that establishes advantages in a number of different areas has: marketing breadth. attribute diversity. layers of advantage. comparative advantage. a "double diamond."
layers of advantage.
Wunderman and Epsilon are: leading digital agencies. popular digital media products. competing standards for wireless connectivity. popular Internet auction sites in Japan. European companies with highly rated Web sites.
leading digital agencies.
Concepts such as "assembler value chains" and "downstream value chains" are associated with: traditional assembly designs. the matrix structure. the global marketing audit. polycentric organizational designs. lean production.
lean production.
The Web site's architecture should be flexible enough to allow all of the following except:
local culture
The Web site's architecture should be flexible enough to allow all of the following except: different dates. money formatting. privacy. local culture. currency.
local culture.
An approach to competitive advantage that exploits weaknesses in competitors' narrow-focus strategies is called a ________ strategy. layers of advantage supplier power loose bricks collaboration generic
loose bricks
Taiwan's Acer prospered by following founder Stan Shih's strategy of approaching the world computer market from the periphery. By the time Acer was ready to target the United States in earnest, it was already the number one PC brand in key countries in Latin America, Southeast Asia, and the Middle East. This is an example of which component of competitive innovation? supplier power layers of advantage generic collaboration loose bricks
loose bricks
Caterpillar's attention was focused elsewhere when Komatsu made its first international entry into the Eastern European Market. Based on the strategic intent framework, this is an example of: layers of advantage. changing the rules. comparative advantage. collaborating. loose bricks.
loose bricks.
Intel's focus on designing complex, expensive microprocessors for PCs enabled competitors to develop cheaper chip sets for non-PC electronics devices. In the strategic intent model of competitive advantage, this is an example of: building layers of advantage. loose bricks. changing the rules of engagement. collaborating. None of these
loose bricks.
Until recently, visitors to Web sites for most luxury goods purveyors were not given the opportunity to buy. The reason behind this was:
luxury goods purveyors strive to create a shopping experience.
Alcatel-Lucent, the French telecommunications equipment manufacturer, has launched a service that sends tailored text messages when smartphone users are near a specific location, such as a store, hotel, or restaurant. This capability can help in all of the following ways except: promoting mobile campaigns which will reach smartphone users. text messages can be sent to smartphone users who are in the vicinity. locating smartphone users for delivering products or services. obtaining demographic information about the smartphone users. offering special deals to smartphone users who happen to be in the vicinity.
obtaining demographic information about the smartphone users.
Smartphones that are equipped with global positioning system can determine the users' exact geographic position. This capability has created new opportunity for marketers by using all of the following innovative means except:
obtaining demographic information through the smartphone users.
The integrated circuit and the concept of binary code permitted the development of the:
personal computer
The integrated circuit and the concept of binary code permitted the development of the: SMS. personal computer. transistor. radio. smartphone.
personal computer.
Intel achieved success by using the "Intel Inside" advertising campaign and logo that appears on many brands of PCs. This is an example of a barrier to entry classified as: new approaches to customer needs. distribution channels. competitor response. product differentiation. new capacity.
product differentiation.
Web sites can be classified by purpose as represented by the term: international sites. geographic sites. regional sites. promotion sites. matrix sites.
promotion sites.
Boeing has reorganized its commercial transport design and manufacturing engineers from functional lines into a matrix organization. This new design is expected to have all of the following benefits except: unite engineering and manufacturing processes. lower costs and quick updates. enhance product consistency. facilitate problem solving. provide customer contacts.
provide customer contacts.
Under the geographical and product division structures, for the company with French origins, France is: a divisional market in Europe. a special unit of the European market. simply another geographic market. a product market in European Union. the headquarter country market.
simply another geographic market.
Broadband offers companies the telecommunication capability to do all of the following except:
streaming sales.
Packaging Component
style features, packaging, labeling, trademarks, brand name, quality, price, and all other aspects of a products package. (frequently require both discretionary and mandatory changes)
Streaming media represents a huge market opportunity for all of the following except:
telematics.
The country with the highest number of companies with Global Competitive Advantage is: the United States. Germany. France. Japan. the United Kingdom.
the United States.
According to the hypercompetition model of competitive advantage, which of the following allows the firm to create an entirely new product or market? timing advantage know-how advantage countermoves outflanking switching costs
timing advantage
In the fast changing, competitive environment, new global realities are emerging, which include all of the following needs except: to deliver quickly. to deliver success. to deliver best quality. to be cost effective. to be customer driven.
to deliver success.
Amazon.com, the leading Internet bookseller, allows users to purchase books, CDs, and other products online. Amazon.com is primarily a(n) ________ site.
transaction
Amazon.com, the leading Internet bookseller, allows users to purchase books, CDs, and other products online. Amazon.com is primarily a(n) ________ site. content execution promotion transaction cyber
transaction
In the shipbuilding industry, Polish and Chinese shipyards offer simple, standard vessel types at low prices that reflect low production costs. This represents generic strategy related to: cost differentiation. focused differentiation. differentiation. cost leadership. cost focus.
cost focus.
The issue of sustainability is central to this strategy concept: consumer differentiation. cost focus. focused differentiation. cost leadership. differentiation.
cost focus.
In today's dynamic global competitive environment, organizations need to develop new forms of: ethnocentrism and myopia. export department structure. geographic structure. flexibility, efficiency, and responsiveness. self-reference criterion.
flexibility, efficiency, and responsiveness.
BMW Assist and BMW Teleservices are using telematics system, which provides all of the following benefits except:
help in downloading music.
BMW and Porsche have developed Apple Watch apps that enable drivers to remotely check many items within their cars which includes all of the following except: help in booking hotel rooms. information about services. help in restaurant reservation. information about pricing. help recharging the car's batteries.
help recharging the car's batteries.
Wi-Fi, or wireless fidelity, permits laptop and PDA users to establish high-speed wireless connections to the Internet via:
hot spots.
Wi-Fi, or wireless fidelity, permits laptop and PDA users to establish high-speed wireless connections to the Internet via: magnetic rays. hot spots. modem. infrared rays. laptop warriors.
hot spots.
The universal concerns for global companies established by the United Nations Global Compact consist of the following three dimensions: factor conditions, demand conditions, industry conditions. content domains, animal rights, and labor. content domain, human conditions and animal rights. human rights, labor, and the environment. human rights, animal rights, and the environment.
human rights, labor, and the environment.
Until recently, visitors to Web sites for most luxury goods purveyors were not given the opportunity to buy. The reason behind this was: luxury goods are purchased by rich people who do not shop online. luxury goods purveyors did not like to use online promotions. global audience do not go online for luxury goods. luxury goods purveyors strive to create a shopping experience. luxury goods purveyors prefer sending information on iPad.
luxury goods purveyors strive to create a shopping experience.
The differences between lean producers and U.S. mass producers is in the way they deal with all of the following groups except: dealers. customers. suppliers. distributors. managers.
managers.
The organization design in which an employee reports to both a country manager and a functional manager is a(n): matrix structure. regional management center. international division structure. worldwide product division structure. geographic structure.
matrix structure.
Each network has its own "metrics of value." For laptop computers this value would include all of the following except: low weight. small size. memory capacity. power consumption. rugged design.
memory capacity.
Cost
two kinds of channel cost are 1) the channel developing cost 2) the continuing cost of maintaining the channel --Costs of middlemen include: transporting and sorting the goods, breaking bulk, providing credit, local advertising, sales representation, and negotiations.
International Communication can be difficult because
i. A message may not get through because of media inadequacy ii. The message may be received by the intended audience but not be understood because of different cultural interpretations iii. The message may reach the intended audience and be understood but have no effect because the marketer did not correctly assess the needs and wants or even the thinking processes of the target market iv. Country Laws and Regulations: laws that control comparative advertising vay from country to country in Europe. A variety of restrictions on advertising of specific products exist around the world (tobacco) v. Linguistic Limitations: abstraction, terse writing, and word economy, the most effective tools of the advertiser, pose problems for translators. Low literacy in many countries seriously impedes communications and calls for greater creativity and use of verbal media. vi. Cultural Diversity
Six C's of Luxottica
i. Cost: lower (lower retailer middlemen commissions) ii. Capital Requirements: higher for retail chain acquisition iii. Control: higher thank to direct integrated channel iv. Coverage: selective coverage v. Character: perfectly coherent with the company vi. Continuity: easy to achieve because the distribution chain is owned by the company or tied up with long-term contracts (franchising)
Channel Choice
identify target market, marketing goals, financial and personnel commitments to development of international distribution, control and length of channel in terms of sale, and chancel ownership
Yong Nam, CEO of LG, recently stipulated that English would be required throughout the company. His reasons for this action included all of the following statements except: not to depend on a small group of people. the need to have seamless communication. impede information sharing. facilitate decision making. utilizing everybody's wisdom.
impede information sharing.
A nation's banking system, health care system, transportation system, and communications system, as well as the availability and cost of using these systems are considered as ________ resources available for competitive advantage of a business. capital physical knowledge human infrastructure
infrastructure
Decoding is the process of
interpreting messages and relies on correct encoding and the ability of the receiver to deconstruct transmitted meaning. Decoding occurs when the message reaches on or more of the receivers senses.
According to Prahalad and Hamel, a core competence has all of the following characteristics except: it is easy for competitors to imitate. a significant contribution to perceived customer benefits. potential access to a wide variety of markets. benefits to customers. it is difficult for competitors to imitate.
it is easy for competitors to imitate.
As a result of the digital revolution, a variety of companies in all parts of the world are developing a new generation of products, services, and technologies; which include all of the following except: smart cell phones. broadband network. landline connectivity. wireless connectivity. mobile commerce.
landline connectivity.
Factors which determine suppliers' ability to gain leverage over industry firms include all of the following except: large numbers and relatively few in number. buyers preferences are highly differentiated. suppliers' products or services are important to user firms. suppliers' products or services are highly differentiated. alternative products do not threaten suppliers' business.
large numbers and relatively few in number.
When managers at Matsushita realized that cost advantages in TV production were often fleeting, they added quality and reliability advantages, thus establishing: buyer power. layers of advantage. a "double diamond." attribute diversity. loose bricks.
layers of advantage.
Wunderman and Digitas are:
leading digital agencies.
Ideally, each country-specific site should reflect all of the following except:
universal shopping cart icon.
Ideally, each country-specific site should reflect all of the following except: local culture. customs. universal shopping cart icon. brand identity. language usage.
universal shopping cart icon.
Tesco Example
-changed name to Home Plus in South Korea to be successful. -South Koreans hate grocery shopping, so they had an idea to bring the store to the people. They made virtual displays in subways and use your smart phone to shop by scanning the QR code and the purchase will be delivered to your door when you get home. -Customers can shop whenever they want on their phone with ease.
Amazon Go
-no cashier, scan phone to enter with Amazon Go app, shop, items you pick up are added to your cart and when you finish shopping, you walk out and they charge your amazon account. -There are cameras and high-tech sensors which keep track of everything to prevent theft.
50) The words that are the spoken or written communication elements in advertisements are known as:A) copy.B) manuscript.C) idea.D) script E) writings.
Answer: A
Today Microsoft lags behind new industry entrants in high-growth, consumer-oriented areas such as search and social networking. Which of the principles of disruptive innovation does this fact pertain to? Small markets don't satisfy the growth needs of large companies. A company's capabilities define its disabilities. Markets that don't exist can't be analyzed. Technology supply may not equal market demand. Companies depend on customers for resources.
A company's capabilities define its disabilities.
1) As companies recognize and embrace new concepts such as the globalization of "the coffee culture," the potential for effective global advertising: A) decreases.B) increases.C) remains the same.D) becomes evident.E) is ignored.
Answer: B
35) The ability to speak foreign languages is one difference between managers born and raised in the United States and those born and raised elsewhere; Which is true and reflects the earlier statement?
A) There are 200 million Chinese children studying English.
14) Francisco Martínez is CFO of Comercial Mexicana SA, a retail chain in Mexico. Commenting on Walmart's entry into Mexico, Mr. Martínez notes, "I buy 20,000 plastic toys, and Walmart buys 20 million. Who do you think gets them cheaper?" Which strategic principles are evident in this comment?
A) Walmart's buyer power and cost leadership
7) In the tech world, about 90% of the world's nearly one billion PCs use Microsoft's operating systems and 80% use Intel's microprocessors. This represents which aspect of the Porter's five forces model?
A) bargaining power of suppliers
12) Suppose you are a sales representative for Advanced Micro Devices (AMD) in Japan. You are trying to convince Toshiba to buy your company's superfast Opteron microprocessor for its new laptop computer. Toshiba's representative seems interested, but eventually does not actually place an order. Confidentially, the representative tells you that he is afraid that Intel will withhold shipments of its Pentium 4 if he does business with AMD. Thinking about Intel's role in this scenario, which of the following elements of the five forces model is evident here?
A) barriers to entry
24) The key to maintaining competitive advantage, according to Dr. W.E. Deming is:
A) being committed to constant improvement.
4) Jaguar produced so few cars that it couldn't get volume discounts from components suppliers. Jaguar managers sometimes could not even determine the "fair" price for a particular part. In terms of Porter's competitive forces framework, Jaguar's strategic disadvantage stemmed from low:
A) buyer power.
46) In the 1950s, Sony licensed the technology for the transistor from Bell Labs and proceeded to become the world's leading manufacturer of portable radios. Which strategy was Sony using to gain competitive advantage?
A) collaboration
43) A box of Crest toothpaste contains a coupon entitling the buyer to save 50 cents when purchasing a Crest toothbrush. What type of sales promotion does this represent? A) cross coupon B) product placement coupon C) trade promotion coupon D) freestanding coupon E) online coupon
A) cross coupon
49) Building a prospect base is typically part of which step of the strategic/consultative selling model? A) development of a customer strategy B) development of a personal selling philosophy C) development of a product strategy D) development of a relationship strategy E) development of a presentation strategy
A) development of a customer strategy
34) An approach to competitive advantage that exploits weaknesses in competitors' narrow-focus strategies is called a ________ strategy.
A) loose bricks
60) The organization design in which an employee reports to both a country manager and a functional manager is a(n):
A) matrix structure.
8) Dell's factories can assemble a complete PC in three minutes. With a build-to-order strategy at the heart of its business model, Dell's sales staff maintains close ties with customers. This approach represents which aspect of the Porter's five forces model?
A) rivalry among competitors
53) A company with a polycentric orientation is likely to employ host-country nationals in all but which of the following selling situations? A) selling high-tech products in developed countries B) selling high-tech products in less-developed countries C) selling low-tech products in developed countries D) selling low-tech products in less-developed countries E) none of the above
A) selling high-tech products in developed countries
65) Which country or region offers direct marketers the advantage of a well-developed mailing list industry? A) the United States B) Japan C) Western Europe D) Latin America E) South Korea
A) the United States
19) Which of the following generic strategies best captures the way Harley-Davidson has achieved competitive advantage in the global motorcycle industry?
D) focused differentiation
In developing countries, globalization's opponents accuse companies of: undermining local cultures. placing intellectual property rights ahead of human rights. promoting unhealthy diets and unsafe food technologies. pursuing unsustainable consumption. All of these
All of these
A broadband communication system is one that has sufficient capacity to carry simultaneously which of the following? multiple voice data video music All of these
All of these
49) In advertising, a(n) ________ is an agent who chooses graphics, pictures, type styles, and other visual elements and has general responsibility for the overall look of an advertisement.A) art directorB) copywriterC) IMC managerD) PR practitionerE) stylist
Answer: A
26) According to data published by Advertising Age (2014), which of the following is the largest global advertising organization based on worldwide revenues?A) WPP GroupB) Interpublic GroupC) Omnicom GroupD) Dentsu Inc.E) Havas
Answer: A
27) According to data published by Advertising Age (2014), which of the following is the largest global advertising agency network based on worldwide revenues?A) Young & Rubicam Group (WPP)B) Interpublic GroupC) Omnicom GroupD) Dentsu Inc.E) Havas
Answer: A
29) Japanese companies are less inclined to use this approach for selecting advertising agencies:A) designate global agencies.B) designate local agencies.C) use of ads in-house.D) use of outside agencies.E) use of in-house marketing.
Answer: A
46) Ads based on a(n)________ appeal depend on logic and speak to the audience's intellect.A) a rationalB) an advertising C) an emotional D) a localizedE) a melodramatic
Answer: A
48) A recent global campaign for IKEA, the Swedish home furnishings retailer, positioned houses as homes as a place for love, memories, and laughter. This is a classic example of:A) emotional appeal.B) rational appeal.C) selling proposition.D) advertising appeal.E) creative appeal.
Answer: A
86) Which of the following most accurately describes the state of global public relations (PR) today?A) Expenditures on PR are dropping.B) Expenditures on PR are increasing.C) PR practices are standardized worldwide.D) PR is not important in emerging markets like India.E) Foreign investments are increasing.
Answer: B
4) Which of the following product category/company pairings best illustrates the concept of "product cultures"?A) earth-moving equipment/CaterpillarB) personal hygiene/Procter & GambleC) coffee bars/StarbucksD) batteries/DuracellE) automobiles/Ford
Answer: C
43) The advertising promise that captures the reason that people buy products is known as:A) creative strategy.B) the advertising appeal.C) the selling proposition.D) the creative execution.E) the big idea.
Answer: C
51) In Southern China, McDonald's is careful not to advertise prices with multiple occurrences of the number 4 because:A) prices ending in odd numbers are preferred in China.B) there is no number four in the Chinese language.C) the word four is pronounced similar to the word death in Cantonese.D) multiple occurrences are considered as unlucky in China.E) prices are not included on menus in China.
Answer: C
52) Which promotional mix element is most closely associated with activities designed to foster goodwill and understanding with various constituents both inside and outside the company?A) personal sellingB) advertisingC) public relationsD) sales promotionE) publicity
Answer: C
69) Which of the following is true about advertising expenditures in Germany and Brazil?A) Television is the leading medium in both Germany and Brazil.B) Newspapers are the leading medium in both Germany and Brazil C) Television is the leading medium in Brazil; newspapers are the leading medium in Germany.D) Television is the leading medium in Germany; newspapers are the leading medium in Brazil.E) Magazines are the leading medium in Brazil and Germany.
Answer: C
72) In which country are global marketers likely to encounter the most restrictions on advertising?A) the United StatesB) JapanC) Saudi ArabiaD) RussiaE) Germany
Answer: C
8) Which company ranked number one in terms of ad spending in Europe in 2013?A) General MotorsB) Philip MorrisC) UnileverD) Procter & GambleE) Coca-Cola
Answer: C
80) Generally speaking, a company has little control over media. To compensate for this lack of control, many companies utilize:A) image advertising.B) advocacy advertising.C) corporate advertising.D) TV advertising.E) radio advertising.
Answer: C
81) What do Ford Motor Company, Coca-Cola, Nike, and McDonald's all have in common?A) They are all consumer packaged-goods companies.B) They all have foreign CEOs.C) They have all received a great deal of negative publicity in recent years.D) They all rely exclusively on TV advertising.E) They spend more in advertising in foreign markets than home markets.
Answer: C
89) A company that is ________ in its approach to public relations (PR) will extend home-country activities into host countries.A) regiocentricB) polycentricC) ethnocentricD) domesticE) hostile
Answer: C
9) What do Unilever and Procter & Gamble have in common?A) Revenues at both companies have been hurt by regulations concerning tobacco advertising and promotion.B) Both companies utilize extension approaches to advertising.C) Both companies rank high in terms of non-U.S. ad spending.D) Both companies use a great deal of corporate advertising.E) Both companies use the same advertising agency.
Answer: C
11) Competitive advertising may impair the effectiveness of the message due to the fact that it may:A) not reach the intended recipient.B) reach the intended recipient but is misunderstood.C) reach the intended recipient and is understood, but the recipient may fail to take action.D) get distorted by noise.E) only be in one language.
Answer: D
31) The significance of tobacco advertising is highlighted by the fact that ________ million people die each year as a direct result of consuming tobacco products.A) twoB) threeC) fourD) fiveE) six
Answer: D
33) The country which has a massive potential for cigarette manufacturers is:A) Egypt.B) Spain.C) Turkey.D) China.E) Vietnam.
Answer: D
7) Which company ranks number one in terms of worldwide ad spending for the year 2013?A) General MotorsB) Philip MorrisC) UnileverD) Procter & GambleE) Coca-Cola
Answer: D
71) ________ leads the world in terms of watching the most television; daily viewership is 5 hours, 39 minutes each day, followed by Macedonia with 5:19; the United States is third with 5:04.A) IndiaB) FranceC) South KoreaD) SerbiaE) Germany
Answer: D
82) A supplier in China was accused of selling outdated meat to McDonald's. The consequent declining sales were a result of ________ problem.A) pricingB) distributionC) sales promotionD) public relationsE) advertising
Answer: D
83) Officials at Brazil's state-owned oil company and top politicians were accused of collaborating with contractors to receive billions in kickbacks. This resulted in ________ problems for Petrobras.A) pricingB) distributionC) sales promotionD) public relationsE) advertising
Answer: D
84) Japan's Fuji Photo Film asked its advertising agency to develop an advocacy campaign for the United States targeted to appeal both to Walmart and to its customers. This is an example of:A) local advertising.B) pattern advertising.C) global advertising.D) advocacy advertising.E) image advertising.
Answer: D
87) A company adopting a(n) ________ approach to worldwide PR activities gives the host-country practitioner maximum leeway to incorporate local customs and practices into the PR effort.A) ethnocentricB) regiocentricC) localD) polycentricE) publicity
Answer: D
10) A company's efforts to effectively communicate with customers is very important. All of the following are major difficulties which can compromise an organization's attempt to communicate with customers except:A) the message does not reach the intended recipient.B) the message reaches the intended recipient but is misunderstood.C) the message reaches the intended recipient and is understood, but the recipient may fail to take action.D) the message is distorted by noise.E) the message is only in one language.
Answer: E
14) In the language of global marketing, ________ is the phrase used to describe advertising that represents a middle ground between 100% standardization and 100% localization.A) "stereotype advertising"B) "template advertising"C) "cookie-cutter advertising"D) "compromise advertising"E) "pattern advertising"
Answer: E
16) Standardized print campaigns can be used for all of the following except:A) visual appeal.B) industrial products C) high-tech consumer products.D) voiceovers TV commercials.E) stereotype advertising.
Answer: E
28) In selecting an advertising agency, all of the following issues should be taken into consideration except:A) company organization.B) national responsiveness.C) area coverage.D) buyer perception.E) franchise or company owned status.
Answer: E
32) McDonald's global marketing chief, staged a competition that included agencies from all over the world. "i'm lovin' it" tagline was devised by a(n) ________ agency.A) EgyptianB) AmericanC) TurkishD) ChineseE) German
Answer: E
6) Landor Associates, a company specializing in brand identity and design, recently determined that ________ has the number one brand-awareness and esteem position in the United States, number two in Japan, and number six in Europe.A) McDonald'sB) ToyotaC) Sony D) Pepsi E) Coke
Answer: E
70) The McDonald's print ads conveyed sexual innuendo. One execution featured a "beauty shot" of a Quarter Pounder with an extreme close-up of a woman's mouth in the background. This was created to use localized advertisement for all of the following reasons except:A) beef is considered a luxury, upscale item in China B) beef is perceived to boost energy.C) beef is perceived heighten sex appeal.D) in Chinese, the word beef connotes manliness, strength, and skill.E) magazines are the leading medium in China.
Answer: E
90) In developing countries, such as Ghana, the best way to communicate with market segments may be through:A) mass media.B) written word.C) magazine ads.D) TV ads.E) dance, songs, and storytelling.
Answer: E
44) Social couponing is one of the hottest sales promotion trends today. This refers to: A) sampling. B) Groupons. C) sweepstakes. D) freestanding inserts. E) personal selling.
B) Groupons.
25) Building layers of advantage, searching for loose bricks, changing the rules of competitive engagement, and collaborating are elements of the competitive advantage framework developed by:
B) Hamel and Prahalad.
15) Gillette markets its flagship MACH3 razor in more than 100 countries around the world. The MACH3 is available virtually everywhere that consumers shop for personal-care products; because of its advanced 3-blade design, the MACH3 typically costs more than other wet-shaving systems. Which generic strategy is evident in Gillette's global marketing effort of MACH3?
B) differentiation
27) Caterpillar's attention was focused elsewhere when Komatsu made its first entry into the Eastern Europe and gained grounds. This is an example of:
B) loose bricks.
29) Intel's focus on designing complex, expensive microprocessors for PCs enabled competitors to develop cheaper chip sets for non-PC electronics devices. In the strategic intent model of competitive advantage, this is an example of:
B) loose bricks.
40) The town of Impruneta in the Italian province of Florence, is a source of high-quality terracotta; the high iron content of the area's clay means that the finished pieces can withstand temperatures as low as ‒20 degrees Fahrenheit. Many artisan pieces are rolled by hand, including those imported in the United States by Seibert & Rice. This is an example of ________ resources available for competitive advantage of a business.
B) physical
6) Intel achieved success by using the "Intel Inside" advertising campaign and logo that appears on many brands of PCs. This is an example of a barrier to entry classified as:
B) product differentiation.
1) According to Porter, the nature of the interaction between potential industry entrants, buyers, substitute products, suppliers, and rival firms determines:
B) the industry's profit potential in terms of long-run return on invested capital.
Internet penetration is less than 10 percent in: Greenland. the Netherlands. Burundi. Qatar. Bahrain.
Burundi.
28) Canon introduced the first full-color copiers and the first copiers with "connectivity"-the ability to print images from such sources as video camcorders and computers. This Canon example shows how an innovative marketing strategy-with fresh approaches to the product, pricing, distribution, and selling leads to overall competitive advantage in the marketplace. This strategy can be classified under:
C) changing the rules.
18) In the shipbuilding industry, Polish and Chinese shipyards offer simple, standard vessel types at low prices that reflect low production costs. This represents generic strategy related to:
C) cost focus.
45) It was found that Malaysians hesitate to use coupons due to the: A) lower power distance. B) higher uncertainty avoidance. C) fear of public embarrassment. D) impact of religion. E) general dislike for coupons.
C) fear of public embarrassment.
46) Environmental issues and challenges faced by a company which is in the initial stages of implementing a personal selling strategy include all of the following except: A) political risks. B) regulatory hurdles. C) product innovation. D) currency fluctuations. E) market unknowns.
C) product innovation.
80) Dietrich Mateschitz, Red Bull's creator, stated "When we first started, we said that there is not an existing market for Red Bull." The reasons behind Red Bull's success include all of the following except: A) a market was created for Red Bull. B) a market segment was found with unmet needs. C) the blue-and-silver color on cans helped in Red Bull's popularity. D) orthodox advertising strategies were used with tactics. E) The Red Bulletin magazine helped in Red Bull's popularity.
C) the blue-and-silver color on cans helped in Red Bull's popularity.
67) In Hong Kong and Singapore, Western catalogers are finding it easy to market because of all of the following reasons except: A) efficient postal services. B) highly educated populations. C) wide use of credit cards. D) few mail-order companies. E) high per capita income.
D) few mail-order companies.
Joseph Tripodi is Chief Marketing and Commercial Officer of: Coca-Cola (United States). Gap (United States). L'Oreal (France). SAP AG (Germany). Levi's (United States).
Coca-Cola (United States).
Six C's
Cost, Capital Requirements, Control, Coverage, Character, Continuity
53) Which of the following does not contribute to the establishment of an international division?
D) Management lacks desire to scan the globe for opportunities and threats.
73) A ban on billboards in Brazil meant they have to come down, and in addition, transit ads on buses and taxis were not allowed. Denied access to traditional outdoor advertising, companies devised a number of alternative ways to communicate with prospective customers. These ways included all of the following except: A) Citibank used the color blue in much of its advertising. B) ads were placed indoors in elevators. C) ads were placed in rest rooms and other indoor traffic areas. D) ads were placed on buses. E) ads were placed using social media or online channels.
D) ads were placed on buses.
77) Lessons that are learned from Starbucks' company's cooperation with NGOs include all of the following except:
D) appreciate the value of the NGOs dependence.
60) Peppers and Rogers described different steps that are involved in one-to-one marketing. These steps include all of the following except: A) identify. B) differentiate. C) interact. D) evaluate. E) customize
D) evaluate.
37) Critical marketing tool for global companies such as Red Bull is: A) sampling. B) sweepstakes. C) couponing. D) event marketing. E) personal selling.
D) event marketing.
20) Hundreds of small companies such as Martin-Logan and Mark Levinson compete in the high-end audiophile segment of the consumer electronics industry. If analyzed in terms of Porter's generic strategies framework, such companies might be said to be pursuing competitive advantage via:
D) focused differentiation.
33) When managers at Matsushita realized that cost advantages in TV production were often fleeting, they added quality and reliability advantages, thus establishing:
D) layers of advantage.
37) According to Michael Porter's research on the competitive advantage of nations, Switzerland's large synthetic dye industry and the success of the Swiss pharmaceuticals can be explained in terms of:
D) related and supporting industries.
11) Several factors can create intense rivalry among firms. These factors include all of the following factors except:
D) upward pressure on prices and profitability.
38) The automobile industry has become fiercely competitive on a global basis. The initial success of foreign automakers in the United States was due to all of the following reasons except:
E) U.S. manufacturers did not realize drivers' preferences.
63) Which of the following environmental characteristics affects use of direct marketing in Europe? A) the European Commission's concern about privacy B) high postal rates in several European countries C) industries in Europe are still developing complete mailing lists D) linguistic, cultural, and regional diversity E) all of the above
E) all of the above
50) In the six-step presentation plan, the first and last steps are respectively: A) presentation; demonstration. B) approach; close. C) presentation; negotiation. D) approach; presentation. E) approach; servicing the sale.
E) approach; servicing the sale.
56) The visionary strategy of the Chief Executive Officer of Volkswagen which included switching the German plants entirely to the new model, failed due to all of the following reasons except:
E) continued demand for Beetle model in the United States.
79) Nike came under fire from critics who alleged poor working conditions in the factories that make the company's athletic shoes; This is an example of the demand for:
E) corporate social responsibility.
73) In contrast to the lean producers, US mass producers typically maintain operations that involve all of the following except:
E) employee teamwork.
44) Which of the following is not an element of Rugman and D'Cruz's flagship model?
E) focused differentiation
32) Caterpillar's attention was focused elsewhere when Komatsu made its first international entry into the Eastern European Market. Based on the strategic intent framework, this is an example of:
E) loose bricks.
55) Which of the following is a disadvantage of using an expatriate sales force? A) superior product and company knowledge B) capability to institute the acceptable practices C) follow policies of the home office D) enhanced promotion prospects E) maintaining is very expensive
E) maintaining is very expensive
72) The differences between lean producers and US mass producers is in the way they deal with all of the following groups except:
E) managers.
55) A company with headquarters in the United States and operational units in the Netherlands, France, Italy, and Spain would be well advised to consider establishing a(n):
E) regional management center.
33) In a contest of 45 different languages covering 60 countries, marketers for Axe Apollo invited consumers to fill out an "astronaut profile." This is an example of: A) promotion of different types for marketing. B) promotion of interest in space exploration. C) people in different countries prefer different topics. D) astronaut profile varies from country to country. E) sales promotion by global marketer.
E) sales promotion by global marketer.
34) To fight counterfeiting, the "Disney Magical Journey" promotion was keyed to mail-in hologram stickers on genuine Disney products. Participants could win Disney DVDs, TV sets, and trips to Hong Kong Disneyland. This is an example of: A) promotion of different types for marketing. B) promotion of Disney Magical Journey. C) people in many countries prefer mail-in hologram. D) "Disney Magical Journey" is popular worldwide. E) sales promotion by global marketer.
E) sales promotion by global marketer.
An Internet site's address on the World Wide Web is: HTML. URL. WWW. HTTPS. HTTP.
HTTP.
Building layers of advantage, searching for loose bricks, changing the rules of competitive engagement, and collaborating are elements of the competitive advantage framework developed by: Drucker. Hamel and Prahalad. W.E. Deming. Porter. D'Aveni.
Hamel and Prahalad.
The top Digital Agency Network by 2014 Interactive Marketing Revenue is: IBM Interactive Experience. Deloitte Digital. Wunderman. Epsilon. Accenture Interactive.
IBM Interactive Experience.
One of the problems with Web site sales is credit card fraud. All of the following countries are those where fraud is rampant except: Bosnia. Indonesia. Croatia. Japan Russia.
Japan
It is advisable to start a double-ACSII platform when designing a Web site's architecture since:
Japanese and Chinese languages require a database which supports such platform.
It is advisable to start a double-ACSII platform when designing a Web site's architecture since: French and German languages cannot be used in Web site's architecture. French and German languages use the Latin alphabet. German-language Web sites require double the English Web site's capacity. the English language can store only a maximum of 256 characters. Japanese and Chinese languages require a database which supports such platform.
Japanese and Chinese languages require a database which supports such platform.
Social Media
Social media is more direct and personalized. People are constantly online and on their phones using social media. Consumer engagement. Consumer-generated content is having an impact on brands (both postivie and negative)
Apple Example
apple has Siri in multiple languages and accents but does not change their product. The product is a standard product that is adjusted for the consumer.
Apple COE example
apple puts the "designed by Apple In California" before adding "assembled in China"
________ are online retail operations that allow customers to purchase goods and services.
Transaction sites
Which is the top Digital Agency Network based on 2012 Interactive Marketing Revenue?
Wunderman (WPP)
In addition to "selling" their vision, top management at both Whirlpool and GE face the formidable task of building: access to distribution channels. a cadre of globally oriented managers. a cadre of loyal customers. physical layout and design. their company stature.
a cadre of globally oriented managers.
A broadband communication system is one that has sufficient capacity to carry simultaneously which of the following?
all of the above
Walmart refuses to stock CDs bearing parental advisory stickers for explicit lyrics or violent imagery. Recording artists who want their recordings available at Walmart have the option of altering lyrics and song titles or deleting offending tracks. Likewise, artists are sometimes asked to change album cover art if Walmart deems it offensive. Considering the elements of the five forces model this is an example of: buyer power. access to distribution channels. threat of substitute products. threat of new entrants. supplier power.
buyer power.
Canon introduced the first full-color copiers and the first copiers with "connectivity"-the ability to print images from such sources as video camcorders and computers. This Canon example shows how an innovative marketing strategy-with fresh approaches to the product, pricing, distribution, and selling leads to overall competitive advantage in the marketplace. This strategy can be classified under: differentiation. changing the rules. collaborating. layers of advantage. loose bricks.
changing the rules
When company management decides that it is unwilling to follow the "conventional wisdom" and instead finds a new way to gain competitive advantage, it might be said to be: searching for loose bricks. collaborating. building layers of advantage. changing the rules of engagement. innovating.
changing the rules of engagement.
Management experts often use terms like ________ to describe an organization in which autonomous business units operate with their own agendas and a minimum of horizontal interdependence. towers chimneys sprinklers fountains skyscrapers
chimneys
Mitsubishi Heavy Industries Ltd. and other Japanese companies manufacture airplanes under license to U.S. firms, and also work as subcontractors for aircraft parts and systems. This type of effort is known as: searching for loose bricks. innovating. building of layers of advantage. collaborating. changing the rules of engagement.
collaborating.
In the 1950s, Sony licensed the technology for the transistor from Bell Labs and proceeded to become the world's leading manufacturer of portable radios. Which strategy was Sony using to gain competitive advantage? layers of advantage loose bricks collaboration engagement changing the rules
collaboration
According to Carly Fiorina, former CEO of Hewlett-Packard, leadership is about: title. status. bragging. hierarchy. connecting.
connecting.
Porter's four generic strategies for achieving competitive advantage are: price determination, cost leadership, product differentiation, distribution savings. cost leadership, product differentiation, cost focus, focused differentiation. cost leadership, product differentiation, consumer differentiation, focused differentiation. cost leadership, product differentiation, cost challenger, product challenger. price leadership, product differentiation, price challenger, cost differentiation.
cost leadership, product differentiation, cost focus, focused differentiation.
According to strategy expert Richard D'Aveni, the actions taken by Swatch in the global watch industry illustrate hypercompetitive dynamic maneuvering in which arena? Olympics entry barriers deep pockets cost/quality timing and know-how
cost/quality
In the global watch industry, the success of the Swatch brand resulted in a manufacturing renaissance for Switzerland. In the strategic framework known as hypercompetition, Swatch's success is an example of interactions in which arena? cost/quality entry barriers sporting events deep pockets timing and know how
cost/quality
Public Relations
creating good relationships with the popular press to help companies communicate messages to their publics, customers. encouraging the press to cover positive stories about companies. managing unfavorable rumors, stories, and events.
Capital Requirements
critical elements are capital requirement. --Use of distributors or dealers may lessen the capital investment, but manufacturers often have to provide initial inventories, loans, floor plans, or other arrangements.
McDonald's Example
customized menus for every country based off of what their culture eats. For example, Canada focuses more on breakfast food while Morocco eats fish balls. they adapt to their consumer.
The practice of registering a particular domain name for the express purpose of reselling it to the company that should rightfully use it is called:
cybersquatting.
The practice of registering a particular domain name for the express purpose of reselling it to the company that should rightfully use it is called: cybersquatting. piracy. gray market. copyright violation. patent violation.
cybersquatting.
Employee ability is emphasized in a lean production environment. Before being hired, people seeking jobs with Toyota participate in the Day of Work, an assessment test to determine who has the right mix of qualities. These qualities include all of the following except: problem solving. dexterity. team attitude. decision making. team work.
decision making.
New entrants to an industry bring all of the following except: new approaches to customer needs. decline in per-unit product costs. new capacity. desire to gain market position. desire to gain market share.
decline in per-unit product costs.
Sony's Blu-ray DVD format has gained widespread acceptance. Sony, Sharp, Panasonic, and other Japanese manufacturers are all experiencing ________ sales of traditional electronics products. improving increasing declining horizontal vertical
declining
In a socially responsible firm, employees perform all of the following except: distinguish between right and wrong. conduct business in an ethical manner. pursue goals and policies that are in society's best interest. use moral principles as guidelines. develop their own core ideologies.
develop their own core ideologies.
Maytag has been called "the Rolls-Royce of washers and dryers." Maytag markets Neptune, a high-tech machine, at a substantially higher than regular washer price. This is an example of: consumer focus. differentiation. cost focus. cost leadership. focused differentiation.
differentiation.
Although it is certainly possible for European consumers to browse Amazon.com's U.S. site, they prefer a direct link to a site with a local domain name. All of the following are possible reasons for such behavior except:
due to price fluctuations the preference will be for the Web site that quotes prices in U.S. dollars.
Although it is certainly possible for European consumers to browse Amazon.com's U.S. site, they prefer a direct link to a site with a local domain name. All of the following are possible reasons for such behavior except: due to price fluctuations the preference will be for the Web site that quotes prices in U.S. dollars. the Web site of choice will be that which offers a product selection tailored to local tastes. the preference will be for sites that are in their own language. the Web site of choice will be one that quotes prices in euros. the preference will be for the Web site which ships from local distribution points.
due to price fluctuations the preference will be for the Web site that quotes prices in U.S. dollars.
In contrast to the lean producers, U.S. mass producers typically maintain operations that involve all of the following except: greater labor direct content. employee teamwork. divide employees with no overlap. less mechanization. limited quality control.
employee teamwork.
In India, ________ penetration is high compared to other forms of media.
mobile phone
Smartphones that are equipped with a global positioning system can determine the users' exact geographic position. This capability has created new opportunity for marketers by using all of the following innovative means except: locate smartphone users for delivering products or services. obtaining demographic information about the smartphone users. promoting mobile campaigns which will reach smartphone users. text messages can be sent to smartphone users who are in the vicinity. offering special deals to smartphone users who happen to be in the vicinity.
obtaining demographic information about the smartphone users.
The town of Impruneta in the Italian province of Florence, is a source of high-quality terracotta; the high iron content of the area's clay means that the finished pieces can withstand temperatures as low as ‒20 degrees Fahrenheit. Many artisan pieces are rolled by hand, including those imported in the United States by Seibert & Rice. This is an example of ________ resources available for competitive advantage of a business. human knowledge capital infrastructure physical
physical
According to Christensen's five principles of disruptive innovations, the following statement is not true:
small markets solve the growth needs of large companies.
Having established that the matrix organizational structure is appropriate, management can expect to integrate the following competency on a worldwide basis: geographic knowledge. product knowledge and know-how. functional competence in finance, production and marketing. knowledge of customer or industry and its needs. All of these are competencies.
product knowledge and know-how.
When an organization assigns regional or worldwide product responsibility to its product divisions, there are several advantages except: products can be tailored to local market needs. can help in integrating operations. manufacturing standardization can occur. can result in saving development costs. can result in significant economies.
products can be tailored to local market needs.
Some global marketers make the strategic decision to establish a presence on the Web without offering transaction opportunities even though the product could be sold that way. Such sites are known as:
promotion sites.
Some global marketers make the strategic decision to establish a presence on the Web without offering transaction opportunities even though the product could be sold that way. Such sites are known as: cyber sites. promotion sites. content sites. company sites. transaction sites.
promotion sites.
Web sites can be classified by purpose as represented by the term:
promotion sites.
A company with headquarters in Europe and operational units in Canada, the United States, and Mexico would be well advised to consider establishing a(n): geographic structure. matrix structure. international division structure. worldwide product division structure. regional management center.
regional management center.
A company with headquarters in the United States and operational units in the Netherlands, France, Italy, and Spain would be well advised to consider establishing a(n): matrix structure. regional management center. worldwide product division structure. geographic structure. international division structure.
regional management center.
Support Services Component
repair and maintenance, instructions, installation, warranties, deliveries, and the availability of spare parts.
The key to successful matrix management is ensuring that managers are able to: adhere to matrix structure. adopt a matrix design. preserve existing organizational culture. resolve conflicts and achieve integration. maintain technical systems.
resolve conflicts and achieve integration.
Dell's factories can assemble a complete PC in three minutes. With a build-to-order strategy at the heart of its business model, Dell's sales staff maintains close ties with customers. This approach represents which aspect of the Porter's five forces model? threat of new entrants bargaining power of suppliers threat of substitute products rivalry among competitors bargaining power of buyers
rivalry among competitors
Sales Promotion
short-term efforts directed to the consumer or retailer to achieve such specific objectives. In markets in which the consumer is hard to reach because of media limitations, the percentage of the promotional budget allocated to sales promotions may have to be increased 1. consumer product trail or immediate purchase 2. consumer introduction to the store or brand 3. gaining retail point-of-purchase displays 4. encouraging stores to stock the product 5. supporting and augmenting advertising and personal sales efforts
According to Christensen's five principles of disruptive innovations, the following statement is not true: technology supply may not equal market demand. an organization's capabilities define its disabilities. small markets solve the growth needs of large companies. companies depend on customers and investors for resources. markets that don't exist can't be analyzed.
small markets solve the growth needs of large companies.
When Brazilian Carlos Ghosn was installed as chief executive, he introduced two new words into Nissan's lexicon: beliefs and values. speed and commitment. activities and commitment. values and activities. policies and speed.
speed and commitment.
An important leadership task involves articulating all of the following points except: beliefs. values. activities. status. policies.
status.
Broadband offers companies the telecommunication capability to do all of the following except: compressed video. streaming media. streaming video. streaming audio. streaming sales.
streaming sales.
Streaming media represents a huge market opportunity for all of the following except: telematics. game publishers. online gaming. Internet portals. video game industry.
telematics.
Which of the following is not a critical issue for a company whose management intends to engage in e-commerce?
the availability of hot spots for Wi-Fi
Character
the channel-of-distribution system selected must fit the character of the company and the markets in which it is doing business
One of the potential drawbacks of a regional management center is that: pan-regional coordination efforts can suffer. regional management may take a one-sided approach when implementing corporate objectives. there is a lack of coordinated decision making. the cost can be prohibitive. the company may lose its "insider" advantage.
the cost can be prohibitive.
According to Porter, the nature of the interaction between potential industry entrants, buyers, substitute products, suppliers, and rival firms determines: whether a country can generate income by innovation. the industry's profit potential in terms of long-run return on invested capital. whether a country can create a comparative advantage in the production of differentiated products. whether or not the government will launch an antitrust investigation. whether a country can generate a balance of payments surplus.
the industry's profit potential in terms of long-run return on invested capital.
Claude Shannon's technical report led to his pioneer work for which he is regarded as the inventor of:
the information theory.
"Small markets don't solve the growth needs of large companies" and "markets that don't exist can't be analyzed" are two principles of disruptive innovation. These principles are integral to:
the innovator's dilemma.
"Small markets don't solve the growth needs of large companies" and "markets that don't exist can't be analyzed" are two principles of disruptive innovation. These principles are integral to: the five forces model. strategic intent. the innovator's dilemma. the innovator's dream. the flagship model.
the innovator's dilemma.
Control
the more involved a company is with the distribution, the more control it exerts. As channeled grow longer, the ability to control price, volume, promotion, and type of outlets diminishes.
Cloud-based music services are expected to have a major impact on the mobile music business. The reason for their popularity includes all of the following except:
the pricing schemes for various services are simple.
Cloud-based music services are expected to have a major impact on the mobile music business. The reason for their popularity includes all of the following except: this new approach addresses some of the shortcomings of the existing methods. the pricing schemes for various services are simple. music services can be purchased from a variety of mobile devices. they are a hybrid between subscription and online store business. they offer users a music locker "in the cloud."
the pricing schemes for various services are simple.
The characteristics of home demand for a firm's products or services include all of the following except: the size of the competitors share of the home demand. pattern of the growth of the home demand. the size of the home demand. the composition of home demand. means by which the home demand pushes or pulls foreign markets.
the size of the competitors share of the home demand.
The term "m-commerce" is used to describe:
the use of cell phones in commerce.
Several factors can create intense rivalry among firms. These factors include all of the following factors except: upward pressure on prices and profitability. firms feel pressure due to fixed costs and produce at full capacity. firms focus on market share at the expense of others. lack of differentiation in products and services. absence of switching costs for customers.
upward pressure on prices and profitability.
In every industry, companies are embedded in a(n) ________, which has a cost structure associated with it that dictates the margins needed to achieve profitability.
value network
In every industry, companies are embedded in a(n) ________, which has a cost structure associated with it that dictates the margins needed to achieve profitability. digital network value network transaction innovator's dilemma URL
value network
According to the innovator's dilemma:
well-managed companies that listen and respond to needs of established customers may miss opportunities to innovate.
According to the innovator's dilemma: well-managed companies that listen and respond to needs of established customers may miss opportunities to innovate. markets that don't exist can't be analyzed. innovations are copied soon after they are discovered. the computing power of a microprocessor doubles every 18 months. regulation of e-commerce activities will increase at a rate that is directly proportional to the growth of e-commerce revenues.
well-managed companies that listen and respond to needs of established customers may miss opportunities to innovate.
Bluetooth is gaining popularity in Europe compared to Wi-Fi due to all but one of the following advantages:
works over shorter distances.
Bluetooth is gaining popularity in Europe compared to Wi-Fi due to all but one of the following advantages: can be used in automobiles. less power consumption. well suited to use with cell phones. works over shorter distances. can be incorporated into home appliances.
works over shorter distances.
