Global Marketing test 2 quiz questions

Which of the following is not characteristic of direct marketing? -Advertising serves to generate an immediate inquiry or purchase. -The customer experiences high perceived risk. - A marketer relinquishes control of product when it is turned over to channel intermediaries. -Repetition is used in individual advertisements. -Direct response advertising is used.

A marketer relinquishes control of product when it is turned over to channel intermediaries.

Which of the following statements is not an example of local products or brands? -Coca-Cola developed several branded drink products for Japan. -BMW uses "the ultimate driving machine" slogan in India. -Diageo PLC markets Gordon's Edge, a gin-based ready-to-drink beverage in the United Kingdom. -Coca-Cola developed a noncarbonated, ginseng-flavored beverage for Japan. -Coca-Cola markets Kinely brand bottled water in India.

BMW uses "the ultimate driving machine" slogan in India.

Which of the following statements is not an example of local products or brands? Which of the following statements is not an example of local products or brands? Coca-Cola developed several branded drink products for Japan. BMW uses "the ultimate driving machine" slogan in India. Diageo PLC markets Gordon's Edge, a gin-based ready-to-drink beverage in the United Kingdom. Coca-Cola developed a noncarbonated, ginseng-flavored beverage for Japan. Coca-Cola markets Kinely brand bottled water in India.

BMW uses "the ultimate driving machine" slogan in India.

Which of the following most accurately describes the relative length of consumer and industrial distribution channels?

Consumer channels tend to be longer (consist of more intermediaries) than industrial channels.

Luxury good marketers found a new way to combat gray market imports into the United States. In March 1995, the U.S. Supreme Court let stand an appeals court ruling prohibiting a discount drugstore chain from selling Givenchy perfume without permission. The distinctive packaging of the perfume is also protected by the U.S. Copyright law. The ruling implies that:

Costco and Wal-Mart will be able to sell Givenchy with authorization.

Which of the following is not an appropriate guideline for companies selecting independent distributors in international markets?

Give local distributors control over marketing strategy.

In which country are global marketers likely to encounter the most restrictions on advertising? Japan United States Germany Russia Saudi Arabia

Saudi Arabia

Which of the following would not be used by an exporter with a weak home-country currency?

Speed repatriation of foreign-earned income.

Comparing the traditional formulation of Maslow's hierarchy with the results of current research on the consumer needs and motivation in Asia, which of the following is correct?

The lowest 2 levels of the hierarchy are the same in the traditional and Asian versions.

True or false, About two-thirds of world GNI is generated in the Triad countries, whereas only about 12% of the world's population is located in those countries

True

True or false, Sometimes it is preferable to market to a particular mind-set rather than an age group; in such an instance psychographic studies can help marketers arrive at a deeper understanding of consumer behavior than is possible with traditional segmentation variables.

True

Which of the following criteria should marketers use when assessing opportunity in global target markets? compatibility with company's overall objectives anticipated growth potential current size of the segment competition all of the above

all of the above

In the six-step presentation plan, the first and last steps are respectively:

approach; servicing the sale.

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.

art director

For years, ads for Volvo automobiles stressed safety features and protection in the event of a crash. Thus, Volvo automobiles developed a reputation based on which positioning strategy?

attribute/benefit

The key to maintaining competitive advantage, according to Dr. W.E. Deming as well as your textbook authors, is:

being committed to constant improvement.

Campbell Soup is making significant inroads into Japan's $500 million soup market as time-pressed homemakers place a premium on convenience. This type of consumer segmentation by Campbell Soup is referred to as:

benefit

________ represent(s) the cumulative added value of a company's investment in the marketing of a brand over time.

brand equity

represent(s) the cumulative added value of a company's investment in the marketing of a brand over time.

brand equity

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

buyer power

Wal-Mart refuses to stock CDs bearing parental advisory stickers for explicit lyrics or violent imagery. Recording artists who want their recordings available at Wal-Mart have the option of altering lyrics and song titles or deleting offending tracks. Likewise, artists are sometimes asked to change album cover art if Wal-Mart deems it offensive. Considering the elements of the five forces model this is an example of:

buyer power

Around the world, various brands of personal computers are sold with Pentium processors. This fact is often used as a selling point, with advertising that proclaims "Intel Inside." Which branding concept does such advertising reflect?

co- branding

The words that are the spoken or written communication elements in advertisements are known as:

copy

Porter's four generic strategies for achieving competitive advantage are:

cost leadership, product differentiation, cost focus, focused differentiation.

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?

cross coupon

When British entrepreneur Richard Branson established the first Virgin Megastore in Japan, he established a joint venture with the Marui retailing chain. Judging by the approach Branson used, he and his management team must have viewed Japan as:

culturally distant and difficult to enter.

Which personal computer company began life as a b-to-b marketer and then began marketing direct to the home PC market?

dell

Which of the following is not one of the steps in the Strategic/Consultative Selling Model?

develop ethnocentric policy

____ approach of marketing aka multisegment marketing, targets two or more distinct markets

differentiated global marketing

positioning refers to the act of____

differentiating a brand in a customer's mind

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?

differentiation

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 prices. This is an example of:

differentiation

If a company sells products in export markets at prices that are below fair market value and that can harm producers in the export market, that company may be accused of:

dumping

In many parts of the world, McDonald's utilizes TV advertising that shows parents interacting with their happy children. Such advertising utilizes:

emotional appeals

A company in which an ethnocentric orientation prevails is likely to utilize primarily ________ in its sales force.

expatriates

Which of the following most accurately describes the state of global public relations (PR) today?

expenditures on PR are increasing

If company managers decide to set the export price for a particular product at an amount equivalent to the home-country price, they would be using which approach to pricing?

extension pricing

T/F Brand equity is an example of a tangible product attribute.

false

t/f A global company that uses market skimming as a pricing strategy is likely to invite charges of "dumping" by competitors in host-country markets.

false

t/f An exporter that is new to a particular market would do well to choose a middleman with a reputation for "cherry picking" products.

false

t/f Brand equity is an example of a tangible product attribute.

false

t/f Distribution channels for automobiles in Japan and the United States are similar in that most car buyers in both countries visit dealerships before making a purchase.

false

t/f Japanese consumers are avid users of yen-off coupons.

false

Which of the following correctly characterizes the retailing strategy of Benetton, IKEA, and Gap?

few product categories, own-label focus

Which of the following generic strategies best captures the way Harley-Davidson has achieved competitive advantage in the global motorcycle industry?

focused differentiation

Other international personal selling approaches that fall somewhere between sales agents and full-time employee teams include all of the following except:

franchising

When Tag Heuer, a marketer of luxury watches, takes out newspaper ads urging consumers to purchase Tag Heuer products from authorized dealers only, the company is most likely attempting to combat the ________ problem.

gray market

Generally speaking, which of the following product categories represents the best potential for extension into international markets without adaptation?

industrial products

Which of the following is generally true about the marketing of high-touch products such as fine china and crystal?

it relies less on specialization and more on image

Which of the following is not identified by Porter as one of the possible types of barriers to entry in an industry?

loose bricks

Which of the following is a disadvantage of using an expatriate sales force?

maintaining is very expensive

___ is a single segment of the global market

niche

________ is the phrase global marketers use to describe ads with common design elements into which localized elements are inserted for individual country markets.

pattern advertising

A market ________ pricing strategy calls for setting price levels that are low enough to quickly build market share.

penetration

Coca-Cola Company's global marketing leadership position is based in part on its ability to put Coke "within an arm's reach of desire"; in other words, it is the ability to create:

place utility

The process of global market segmentation begins with the choice of one or more variables to use as a basis for grouping customers. All of the following are variables that are commonly used except: polycentrics. demographics. benefits sought. psychographics. behavioral characteristics.

polycentrics

___ refers to differentiating a brand in customers' minds in relation to competitor's

positioning

Nintendo was fined nearly $150 million after it was determined that the video game company had colluded with European distributors. The distributors in countries with lower retail prices had agreed not to sell to retailers in countries with high prices. This is a classic example of:

price fixing

Marketing channels exist to create utility for customers. The major categories of channel utility include all of the following except: form utility. price utility. information utility. place utility. time utility.

price utility

Dry soup mixes that have long been popular in Europe are marketed as sauces or dips in the U.S. This is an example of the ________ strategy.

product extension-communications adaptation

Prior to 2004, Nokia launched different cell phone products in different countries at different times. Nokia also used different advertising images and messages in different countries. Which approach to the world marketplace was Nokia using?

product-communication adaptation

Porsche AG uses the label "Top Guns" to describe one segment of its customers, namely those who care about power and control and who expect to be noticed. Such a profile would be based on which type of segmentation?

psychgraphic

One task of the ________ department is to generate nonpaid forms of communication to foster goodwill among customers and others.

public relations

British entrepreneur Richard Branson has built a global business empire by:

relying on brand extension

Which of the following is not one of the levels in the Asian version of Maslow's hierarchy?

self-actualization

A company with a polycentric orientation is likely to employ host-country nationals in all but which of the following selling situations?

selling high-tech products in developed countries

Excelsior Corp. launches a new hand-held personal digital assistant (PDA) for busy corporate executives. The initial retail price is set at $699. One year later, in an effort to reach a broader market, the price is lowered to $299. Which of the following describes the pricing strategies used by Excelsior Corp?

skimming strategy followed by penetration strategy

By definition, ________ feature a narrow but deep merchandise mix and high levels of service.

specialty retailers

Companies like Coca-Cola had the first-mover advantage since they were the first company to enter a global market. However, there are also first-mover disadvantages which include:

substantial investments in marketing

The choice between demonstration, slice-of-life, straight sell, and other advertising forms is a matter of:

the creative execution

The advertising promise that captures the reason that people buy products is known as:

the selling proposition

In Southern China, McDonald's is careful not to advertise prices with multiple occurrences of the number four because:

the word four is pronounced similar to the word death in Cantonese.

T/F "Switching costs" are one of the barriers to entry in Porter's five forces model.

true

T/F Fifty years ago, Kikkoman brand soy sauce was unknown in the United States. The company used sampling and even today continues to make extensive use of shopper marketing as a communication tool. Correct!

true

T/F Unique product attributes represent a barrier to industry entry known as differentiation.

true

t/f Price floor and price ceiling are two basic factors which determine the boundaries within which prices should be set.

true

standardized global marketing aka____

undifferentiated target marketing (little change to product adaptation)