MKTG 350 Exam #2

________ percent of the world's economic growth in the next 20 years is predicted to come from emerging markets, such as China and India.

75

________ is the most common method for entering foreign markets.

Exporting

Market penetration strategies allow the firm to introduce new products to new customers, often including international markets.

False

Small companies have to invest a lot of money to go global.

False

When the product is wrong, skilled marketing communication and pricing sophistication can correct the problems.

False

Which of the following criteria for market segmentation is least likely to enable successful segmentation?

It should be undifferentiated.

________ target markets are those segments that have reasonable potential but for one reason or another are not best suited for development immediately.

Secondary

Different target markets will view the same product in completely different ways.

True

The first step in moving into global markets is to evaluate the market opportunities.

True

Target marketing is the process by which ________.

a company evaluates market segments and decides which ones have the most potential for development

In the 1970s, Michelob beer changed its advertising messages frequently and saw sales plummet. Slogans like "Weekends were made for Michelob," "Put a little weekend into your weekday," and "Special times deserve a special beer" had consumers checking their calendars to find the right time to drink a Michelob. Michelob was suffering from the positioning error of ________.

confused positioning

Sabeen didn't have time to shop for Christmas gifts, so she ordered everything from Amazon. This shows how Amazon's _______ leadership is one way the company creates differentiation in its offerings.

convenience

People around the world prefer Swiss watches over watches manufactured in other countries. In the context of product issues, which of the following best describes the customer's perception?

country-of-origin effect

Segmenting markets means that a company is ________.

dividing the market into meaningful smaller markets based upon common characteristics

Ford Motor Co. introduced its automobile called Nova in Mexico. It faced difficulty in selling the car because "Nova" in Spanish means "It doesn't go." This illustrates a problem with ________.

fitting the product to the culture

An understanding of marketing beyond home markets develops over time as a company gets more international business experience. This process is referred to as the ________.

global experience learning curve

Age is a commonly used method of segmentation. Age alone, however, may be dangerous because ________.

grouping older customers into one group is an approach that fails to consider the vast differences in other important variables

Time Express, a well-established North American delivery service, wants to expand service into Central and South America. According to Igor Ansoff's Product-Market Matrix, this is classified as the ________ strategy.

market development

Bliss Massage Therapy Center maintains a database of over 700 clients and sends each one a special discount offer in the month of his or her birthday. Managers hope that as existing customers use the discount, they will see an overall growth in sales. According to Igor Ansoff's Product-Market Matrix, this is an example of the ________ strategy.

market penetration

Many countries restrict marketing to children more severely than in the United States. A firm considering direct foreign investment would report this finding under the heading of ________.

marketing communication barriers

Delxen Inc., a multinational company, uses the same prices for all its products globally. This type of pricing is called ________.

one world price

Prices of products are often higher in a foreign country than the home country due to transportation charges, taxes, tariffs, and exchange rate fluctuations. This change in price from home country to foreign country is referred to as ________.

price escelation

Coca-Cola changes the taste of its soft drinks to meet local market preferences. This is an example of ________.

product adaptation

When Sunshine Inc., a cosmetics manufacturer, introduced an additional line of perfumes, the response from its existing customers was good. According to Igor Ansoff's Product-Market Matrix, this is an example of the ________ strategy.

product development

In the context of positioning errors, when consumers have only a vague idea about the company and its products, and do not perceive any real differentiation, it is called ________.

underpositioning