INTB CH 14 (T/F)

TRUE

Physical forces inhibit efforts at international product standardization

FALSE-A disadvantage of Internet advertising is its inability to reach all of the possible consumer groups.

) An advantage of Internet advertising is its ability to reach all of the possible consumer groups.

TRUE

) Foreign environmental forces act as deterrents to the international standardization of advertising, and among the most influential of these forces are the sociocultural forces.

FALSE-Generally as marketers go down the economic and social strata in each country, they tend to find greater dissimilarities among countries on social and cultural values

) Generally as marketers go down the economic and social strata in each country, they tend to find greater similarities among countries on social and cultural values.

TRUE

) Product standards set ostensibly to protect a nation's citizens can be effective in protecting local industry from foreign competitors.

TRUE

) Sales promotion provides the selling aids for the marketing function and includes activities such as the preparation of point-of-purchase displays, contests, premiums, trade show exhibits, money-off offer, and coupons.

FALSE-A basic cultural decision for the marketer is whether to position the product as foreign or local, and which way to go seems to depend on the country, the product type, and the target market.

A basic cultural decision for the marketer is whether to position the product as foreign or local, and which way to go seems to depend on the country, the product type, and the distribution channel.

FALSE-A middle-ground advertising strategy in which the home office and the foreign subsidiaries agree on marketing objectives is called the programmed-management approach.

A middle-ground advertising strategy in which the home office and the foreign subsidiaries agree on marketing objectives is called the computerized-management approach

TRUE

According to the text, the product is the central focus of the marketing mix

TRUE

Advertisers have followed globalization to reduce costs, enabling them to develop a common strategy for large regions.

FALSE-The tools for communicating these messages—the promotional mix—are advertising, personal selling, sales promotion, public relations, and publicity. None of these tools are inherently superior to the others, although circumstances in a given situation may dictate that one of them be emphasized more than the others

Advertising is generally more effective than the other promotional mix elements.

FALSE-Many international firms have discovered that they need to change name, labels, or colors due to cultural differences.

As exemplified by companies such as Campbell's, international firms seldom have to change name, labels, or colors due to cultural differences

FALSE-Buyers of industrial goods and luxury products usually act on the same motives the world over.

Buyers of consumer goods usually act on the same motives the world over

TRUE

Buyers of industrial goods and luxury products usually act on the same motives the world over, lending themselves to a standardized approach.

TRUE

Dissimilar cultural patterns generally necessitate changes in marketing of food and other consumer goods

TRUE

Drastic modifications in the physical product may be necessary because of two problems prevalent in the developing countries-a tendency to overload equipment and to slight maintenance.

FALSE-Evidence suggests that the Internet is an effective tool in personal selling, especially when used to build trust.

Evidence suggests that the Internet is not an effective tool in personal selling, especially when used to build trust

FALSE-Foreign national pricing is the use of local pricing in foreign markets.

Foreign national pricing is the use of the home country price in foreign markets.

FALSE-Generally, industrial products require less adaptation than consumer products to meet the demands of the world market.

Generally, industrial products require greater adaptation than consumer products to meet the demands of the world market.

TRUE

Generally, the deeper the immediate market penetration desired, the greater the product modification must be.

FALSE-In cases where the product serves the same function but must be adapted to different conditions, the same message is employed with a changed product.

In cases where the product serves the same function but must be adapted to different conditions, the product may be left unchanged but a different message is required

TRUE

International markets served often differ widely because of great variations in the uncontrollable environmental forces.

TRUE

International pricing involves setting prices of goods for export to both unrelated and related firms.

TRUE

It is possible to hide profits with transfer prices

TRUE

Laws on pollution, consumer protection, and operator safety are critical as legal forces.

TRUE

Luxury items such as perfume can often be sold without adaptation in many different foreign markets

TRUE

Marketing managers of global firms who may want to use a single worldwide strategy realize that doing so is impossible

FALSE-The nature and importance of personal selling depends to a great extent on costs, available funding, media availability, and the type of product being sold.

Of all the promotional mix elements, personal selling has the greatest similarities worldwide.

FALSE-One of the reasons that Internet advertising is appealing in an international setting is that the Internet provides an affluent, reachable audience.

One of the reasons that Internet advertising is not appealing in an international setting is that most Internet users are poor and difficult to reach.

TRUE

Private brands are responsible for a shift in power from manufacturers to retailers.

TRUE

Promotion is all forms of communication between a firm and its publics

FALSE-Advertising is the paid, nonpersonal presentation of ideas, goods, or services by an identified sponsor.

Promotion is the paid, nonpersonal presentation of ideas, goods, or services by an identified sponsor.

TRUE

Public relations includes the various methods of communicating with the firm's publics, including the governments where it operates, in order to secure a favorable impression.

FALSE-Recruiting salespeople in foreign countries is at times more difficult than recruiting them in the home country because sales managers may have to cope with the stigma attached to selling that exists in some areas, and there is also the need to hire salespeople who are culturally acceptable to customers and channel members.

Recruiting salespeople in foreign countries is less difficult than recruiting them in the home country.

TRUE

Sometimes there are almost no differences between marketing domestically and marketing internationally: At other times these differences are great.

TRUE

The basic functions of domestic and international marketing are the same.

TRUE

The benefits from standardization of the marketing mix are lower costs, easier control, and reduction of time in preparing the marketing plan.

TRUE

The cultural forces tend to be closely allied to the legal forces, which exert a strong and pervasive influence on advertising

TRUE

The experience of suppliers to the youth market indicates that this market is essentially an international market segment.

FALSE-The extent of the changes in the marketing mix a firm must make when going overseas depends on the product, the environmental forces, and the degree of market penetration desired by management.

The extent of the changes in the marketing mix a firm must make when going overseas depends on the country, the political forces, and the degree of market penetration desired by management.

FALSE-The great disparity in income throughout the world is an obstacle to worldwide product standardization.

The great disparity in income throughout the world promotes worldwide product standardization.

TRUE

The international standardization of the sales promotion function is not difficult, because experience has shown that what is successful in the United States generally proves effective overseas.

FALSE-The marketing mix is a set of strategy decisions made in the areas of product, promotion, pricing, and distribution in order to satisfy the needs and desires of customers in a target market.

The marketing mix is a set of strategy decisions made in the areas of product, production, promotion, and pricing in order to satisfy the needs and desires of customers in a target market.

FALSE-The marketing of services, sometimes called intangibles, is similar to the marketing of industrial products in that these products are generally easier to market globally than consumer products.

The marketing of services, sometimes called intangibles, is similar to the marketing of consumer products in that these products are generally harder to market globally than industrial products.

TRUE

The organization of an overseas sales force, sales presentation, and training methods are generally very similar to those employed in the home country.

FALSE-The total product includes the physical product, brand name, accessories, after-sales service, warranty and instructions for use, company image, and package.

The physical product includes the total product, brand name, accessories, after-sales service, warranty and instructions for use, company image, and package

TRUE

To avoid changing the product to meet local legal requirements manufacturers frequently design it to meet the most stringent laws, even though it is over designed for other markets.