MKT 435 - Exam 3
True
(T/F) Channels of distribution often pose longevity problems.
True
(T/F) Companies that are serious about restricting the gray market must establish and monitor controls that effectively police distribution channels
False
(T/F) Companies that use pricing to achieve marketing objectives use pricing as a static element
False
(T/F) For selling in relationship-oriented countries, a sales force consisting of American expatriates proves to be most efficient
False
(T/F) International business negotiations are conducted keeping national stereotypes in mind.
True
(T/F) Of all the elements of the marketing mix, decisions involving advertising are those most often affected by cultural differences among current markets
True
(T/F) Sales promotions constitute the major portion of the promotional effort in rural and less accessible parts of the market
false
(T/F) Social recognition is a more important motivating factor for an American sales representative compared to a Japanese salesperson
False
(T/F) Television is an advertising medium with no restrictions in most counties
False
(T/F) The distribution channel process includes all activities, beginning with the manufacturer and ending with the retailer.
True
(T/F) The role of public relations is to create good relationships with the population press and other media to help companies communication messages to their publics - customers, the general public, and governmental regulators
True
(T/F) cultural differences in nonverbal behaviors are almost always hidden below our awareness.
False
(T/F) for a company, the chief advantage of an expatriate sales force is the low cost involved in the process.
Negotiation Checklist
1. assessment of the situation and the people 2. facts to confirm during the negotiation 3. agenda 4. BATNA 5. concession strategies 6. team assignments
5 Steps to improve the renter process
1. commit to reassigning expatriates to meaningful positions 2. create a mentor program with senior executives as monitors for company activities 3. offer a written job guarantee with the company's obligation for the expatriate on return 4. keep the expatriate in touch with headquarters 5. prepare the expatriate and family for repatriation once a return date is set
4 Problems in International Negotiations
1. language 2. nonverbal behaviors 3. values 4. thinking and decision-making process
Steps to International Advertising
1. perform marketing research 2. specify the goals of the communication 3. develop the most effective messages for the market 4. select effective media 5. compose and secure a budget based on what is required to meet goals 6. execute the campaign 7. evaluate the campaign relative to the goals specified
A
A _________ exists when various companies producing similar products or services work together to control markets for the types of godsend services they produce. A. cartel B. producer's association C. monopoly D. competitive market E. cabal
C
A marketer who expects to be effective in the international marketplace should: A. not let the local culture influence his or her decisions B. be antagonistic toward other cultures C. have a positive outlook on an international assignment D. not let market behavior influence his or her decisions E. practice cultural chauvinism
C
A multinational company, with its headquarters in the US, wants to sell its new high-technology product in Germany. For effective selling, the salesforce for this company should consist mostly of: A. third-culture people from Japan B. local German nationals C. American expatriates D. temporary, freelancing German sales personnel E. illegal aliens living in the US
nontask sounding
Americans always discuss topics other than business at the negotiation table (i.e. the weather, family, sports, politics, business conditions, etc.) but not for long
B
An American buyer is negotiating with a British supplier for the producer of raw materials or production of heavy machinery in the United States. Before exchanging any information pertaining to the business of the meeting, he spends a few minutes talking to the British negotiator on topics such as World Cup soccer, the recently concluded general elections, and the English weather. The American buyer is engaging in the first stage of a business negotiation known as: A. appraisal of current affairs B. non task sounding C. persuasion D. setting an agenda E. assessment of business terms
B
Blogs, virtual worlds, and video sharing are examples of media commonly known as __________. A. Texas Visual Imaging B. social media C. widespread media D. local media E. global media
D
Companies following the __________ philosophy insist that no unit of a similar product is different from any other unit in terms of cost and that each unit must bear its full share of total fixed and variable cost A. premium pricing B. variable cost pricing C. fixed cost pricing D. full cost pricing E. demand based pricing
A
Drew's company imports materials and parts into a free trade zone (FTZ) within the United States and then has the finished products imported into the United States. Her company will most likely: A. not have to pay tariffs on the products while they are in the FTZ B. incur higher labor costs than other domestic companies C. have to pay tariffs based on the value of both the parts and the materials D. not be able to store finished goods in the FTZ E. have to pay tariffs based on the value of the raw materials when they leave the country
D
Due to differences in culture in different markets, standardized products that are marketed globally will most likely require: A. consistent promotional messages B. a different primary function C. a standardized marketing strategy D. a different advertising appeal E. standardized secondary attributes
E
Firms that are unfamiliar with overseas marketing and firms that produce industrial goods orient their pricing solely on the basis of: A. cultural differences in perceptions of pricing B. competitive pricing in the market C. market segmentation from country to country
A
Floral Group Inc., an importing organization in New York, buys perfumes from GS Inc. in France for $13 a unit. Unknown to GS, Floral Group sells this product in the United States for $15 a unit. This leads to a loss of revenue for GS Inc. as it also sells its perfume in the US but for a higher price of $18. Which of the following best describes the above scenario? A. parallel importing B. direct importing C. black-listed importing D. circular importing E. co-mingled importing
True
Four values - objectivity, competitiveness, equality, and punctuality - that are held strongly and deeply by most Americans seem to frequently cause misunderstandings and bad feelings in international business negotiations
C
Great Britain has epitomized distribution through specialty-type middlemen, distributors, wholesalers, and retailers. In recent years, however, there has been a trend toward broader lines, conglomerate merchandising, and mass marketing. This suggests that a firm that neglects the growth of self-service, scrambled merchandising, or discounting may find that it has lost large segments of its market only because its channels no longer reflect the ______________ of the market. A. cost B. capital requirement C. character D. continuity E. control
True
Ideally, a website should be translated into the languages of the target market
E
In __________, a firm is concerned only with the marginal or incremental cost of producing goods to be sold in overseas market A. full cost pricing B. fixed-cost piercing C. demand-based pricing D. premium pricing E. variable cost variable
C
In international business, global marketing strategies are almost implemented through _________ with business partners and customers from foreign countries. A. Internet forums B. direct mails C. face-to-face negotiations D. emails E. telephonic conversations
B
In store demonstrations, samples, coupons, contests, and sweepstakes are examples of _________ devices A. personal selling B. sales promotion C. direct selling D. public relations E. content marketing
C
In the context of international business negotiations, the notions of ____________ relates to how power in negotiations is best measured A. a standard for business negotiations B. the failure to listen during negotiations C. the best alternative to a negotiated agreement D. what you negotiate is what you get E. a face-to-face communication
A
In the context of media planning and analysis, billboards are especially useful n countries: A. with high literacy rates B. where sales promotions are ineffective C. where people prefer buying in small quantities D. with high income levels E. where the laws governing the Internet are very complicated
C
In the context of reciting sales and marketing personnel for an international sales force, there is a clear bias in favor of the locals. The reason for this is most likely that local nationals: A. do not accept biases B. have a better understanding of home-officer politics C. transcend both cultural and legal barriers D. have supreme technological expertise E. are readily available compared to scarcely available expatriates
B
In which of the following modes of distribution in the foreign market will a company have to make maximum financial investment? A. export management companies B. direct sales force C. complementary marketers D. export associations E. trading companies
B
Lush Cosmetics Corp., a US-based firm, has recently started exporting cosmetics to India. Lush has introduced a new range of mineral-based makeup products for the first time in the Indian market. As Lush has no competitors in this segment of the Indian cosmetics market, it has set a very high price for its products in order to reach the premium, price insensitive segment of the market. This is an example of ___________. A. penetration pricing policy B. price skimming C. cost based pricing policy D. psychological pricing policy E. bundling
B
Meta Garon, a manufacturer of sports bicycles, in a bid to tap the enormous market for bicycles in China promote their cycles as premium sporting and leisure bicycles. They use various cycling legends and sports celebrities as brand ambassadors and use television, radio, and newspapers as media. Bicycles in China are used mainly by the working class for commutation, and the main users of bicycles did not relate to Meta Garbon's products, and the promotional campaign was a failure. During which of the following steps of the international communications process did Meta Garon most likely go wrong? A. decoding B. information source selection C. selection of message channel D. encoding E. noise cancellation
E
Most middlemen have little loyalty to their vendors. They handle brands in good times when the line is making money but quickly reject such products within a season or a year if they fail to produce during the period. This is an example of problems associated with which of the following six Cs of distribution channel strategy? A. cost B. control C. character D. capital requirement E. continuity
D
Most toy manufacturers would agree that toys cannot be marketing profitability in countries without commercial television advertising directed toward children. In this scenario, commercial television advertising exemplifies the availability of appropriate __________. A. personal selling services B. direct mailing services C. demonstrations D. communication channels E.financial aid
A
Norman, a German national, works as a sales manager for Black Oil Corporation in the Middle-East. Given the benefits associated with the job, he works on one foreign assignment after another and rarely returns to the headquarters in Germany. In view of the given information, we can say that Norman is a: A. professional expatriate B. native salesperson C. virtual expatriate D. repatriate manager E. third-country national
A
Overseas premiums that are paid to the family of expatriates during short-term assignments if they do not relocate to the foreign country are called: A. separation allowances B. displacement services C. special assessments D. fringe benefits E. pension plans
D
Qualified and ambitious sales personnel refuse to take up foreign assignments for fear of hampering their career development. This "out of sight, out of mind" fear is most closely linked to the problems of: A. naturalization B. conflict of interests C. acculturation D. repatriation E. skill redundancy
A
The _________ step in the intentional communications process refers to the information about the effectiveness of the message that flows from the receiver (the intended target) back to the information source for evaluation of the effectiveness of the process A. feedback B. message channel selection C. interpretation D. decoding E. encoding
C
The channel process includes all activities, beginning with the manufacturer and ending with the ____________. A. wholesaler B. retailer C. final customer D. agent middlemen E. merchant middlemen
C
The largest personnel requirement for international marketing for most companies is in the: A. management team B. information technology team C. sales team D. production department E. finance department
C
The single most important activity of international business negotiations is ____________. A. presentation B. etiquette C. listening D. self-disclosure E. oration
B
When Polar Inc., an American fast-food company wanted to market its burgers and fries in France, it was asked to import French wine to the US in return. This is an example of: A. bargaining B. countertrade C. buy-back D. countervailing duties E. bribery
B
Which negotiation tactic, according to foreign negotiators, is the most useful when dealing with Americans? A. including higher-level executives in talks B. taking time over the negotiations C. providing lots of self-disclosure D. offering cutbacks on deals E. high first offers, followed immediately with deeply discounted second offers
B
Which of the following actions must be taken by a negotiator before international negotiations begin? A. rushing the foreign negotiator to come to a decision B. planning concession strategies C. relying only on information obtained from external sources D. marking concessions before reaching an agreement E. asking questions on specific areas of the deal
C
Which of the following best defines virtual expatriates? A. they work in a foreign culture and blend to such an extent that they may more closely resemble a local than an expatriates B. they work abroad in one country after another for the greater part of their career C. they manage operations from their own countries working for a foreign company in a third country D. they are expatriates from their own countries working for a foreign in a company in a third country E. they stay and work abroad for a short period of one to two months and then return to their home country
E
Which of the following can be considered by American negotiators as a signal of progress in a business relationship with foreigners? A. a less frequency of talk among themselves in their own language B. decreased bargaining and use of higher-level and formal channels of communication C. absence of questions on specific areas of a deal D. a hardening of attitudes and positions on some issues E. higher-level foreigners being included in the discussions
E
Which of the following distribution structures is also known as a traditional distribution structure? A. manufacturer-oriented B. customer-oriented C. service-oriented D. export-oriented E. import-oriented
E
Which of the following elements of integrated marketing communications is related to encouraging the press to cover positive stories about companies and managing unfavorable rumors, stories, and events? A. direct selling B. sales promotion C. personal selling D. trade shows E. public relations
B
Which of the following is an advantage of virtual expatriates? A. they can eliminate the problem of time zone differences B. their families do not have to be uprooted from their home country C. they can avoid cross-cultural communications problems with their foreign colleagues D. they possess complete local knowledge about cultural practices in the foreign country E. they can establish closer relationships with their customers in the foreign country
B
Which of the following is one of the six Cs of distribution channel strategy? A. communication B. continuity C. contribution D. capacity E. commission
D
Which of the following is the first step toward initiating efficient and effective international business negotiations? A. following upon procedures and practices B. management of preliminaries such as training and location of talks C. preparation and manipulation of negotiation settings D. selecting an appropriate negotiation team E. managing the process of negotiations
A
Which of the following is the single most important reason for expatriate dissatisfaction? A. unsuccessful family adjustment B. cultural conflict in the foreign country C. redundant skills in a foreign country D. communication issues with home-country headquarters E. noncooperation for foreign colleagues
A
Which of the following methods can be used to minimize the inevitable errors that crop up while exchanging information across language barriers? A. using multiple communication channels during presentation B. using silent periods more frequently C. agreeing to use English as the common language for communication D. using more promises and recommendations instead of threats and warnings E. prolonging the duration of non task sounding
D
Which of the following statements is true regarding the decision-making process in international business negotiations? A. the Western sequential approach and the Eastern holistic approach to decision-making are found to complement each other B. American negotiations tend to make larger concessions after agreements are announced. C. The American approach to a complex negotiations task is to discuss all issues at once, in no apparent order D. Americans tackle issues such as prices, delivery, and warranty one at a time, with the final agreement being the sum of smaller agreements E. Asian negotiators prefer to break up a complex, large task into a series of smaller tasks
D
Which of the following, according to experienced exporters, is the only way to select a middleman? A. conduct a background check on all the distributors available in the target market B. consult other manufacturers of similar products and select the distributor recommended by them C.issue a request-for-proposal to all distributors in the target market and evaluate their responses D. talk personally to ultimate consumers to find whom they consider to be the best distributors E. consult trade organizations and select the distributor recommended by them
D
While developing an international advertisement campaign, which of the following is the first step of the process? A. executive the campaign B. select effective media C. compose and secure a budget based on what is required to meet goals D. perform marketing research E. Specify the goals of the communication
C
_____________ should NOT be used as a selection criterion for international negotiation teams A. stamina B. breadth of knowledge C. gender D. flexibility E. maturity
countertrade (barter)
a pricing tool that every international marketer must be ready to employ
integrated marketing communications
composed of advertising, sales promotion, trade shoes, personal selling, direct selling and public relations
the six C's
cost, capital requirements, control, coverage, character, continuity
public relations
creating good relationships with the popular press and other media to help companies communicate messages to their publics - customers, the general public, and governmental regulators
Signals of Progress in Negotiations
higher-level foreigners being included in the discussions, questions beginning to focus on specific areas of the deal, a softening of attitudes and positions
most important activity of negotiations
listening
middlemen and transportation costs
longer channel length, performance of marketing functions and higher margins may make it necessary to increase prices
sales promotion
marketing activities that stimulate consumer purchases and improve retailer or middlemen effectiveness and cooperation
requirements of transnational management
maturity, emotional stability, breadth of knowledge, positive outlook, flexibility, cultural empathy, energetic and enjoys travel
full cost pricing
no unit of a similar product is different from any other unit in terms of cost, which must bear its full share of the total fixed and variable cost
Four Values in Negotiations (Americans)
objectivity, competitiveness, equality, punctuality
the distribution process
physical handling and distribution of goods, the passage of ownership, the buying ad selling negotiations between producers and middlemen and between middlemen and customers
deflation
results in decreasing prices, creating a positive result for consumers, but both put pressure to lower costs on everyone in the supply chain
variable cost pricing
the firm is only concerned only with the marginal of incremental cost of producing goods to be sold in overseas markets
skimming pricing
used to reach a segment of the market that is relatively price insensitive and thus willing to pay a premium price for a product
penetration pricing
used to stimulate market growth and capture market share by deliberately offering products at low prices