quiz 4 part 4

Sixty percent of the Japanese population lives in the _____ market area, which essentially functions as one massive city. A. Tokyo-Nagoya-Osaka B. Komaki-Tokoname-Kariya C. Nagoya-Handa-Seto D. Nishio-Okazaki-Inazawa E. Inuyama-Nisshin-Takahama

A. Tokyo-Nagoya-Osaka

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. character B. continuity C. control D. cost E. capital requirement

A. character Channel captains must be aware that channel patterns change; they cannot assume that once a channel has been developed to fit the character of both company and market, no more need be done. Great Britain, for example, has epitomized distribution through specialty-type middlemen, distributors, wholesalers, and retailers; in fact, all middlemen have traditionally worked within narrow product specialty areas. In recent years, however, there has been a trend toward broader lines, conglomerate merchandising, and mass marketing.

In the context of the use of the Internet in international marketing channels, technically, e-commerce is a form of _____ selling. A. direct B. parallel C. dual D. mass E. targeted

A. direct Technically, e-commerce is a form of direct selling; however, because of its newness and the unique issues associated with this form of distribution, it is important to differentiate it from other types of direct marketing. E-commerce is used to market B2B services, consumer services, and consumer and industrial products via the World Wide Web. It involves the direct marketing from a manufacturer, retailer, service provider, or some other intermediary to a final user.

28. A major disadvantage of _____ is that they can seldom afford to make the kind of market investment needed to establish deep distribution for products. A. export management companies B. trading companies C. import associations D. global retailers E. complementary marketers

A. export management companies

A major disadvantage of _____ is that they can seldom afford to make the kind of market investment needed to establish deep distribution for products. A. export management companies B. trading companies C. import associations D. global retailers E. complementary marketers

A. export management companies A major disadvantage of export management companies is that they seldom can afford to make the kind of market investment needed to establish deep distribution for products because they must have immediate sales payout to survive.

39. In the context of types of domestic middlemen, the WTO in 2003 ruled _____ to be in violation of international trade rules, thus starting a major trade dispute with the European Union. A. foreign sales corporations B. direct marketing partnerships C. trading companies D. export promotion companies E. Webb-Pomerene export associations

A. foreign sales corporations

In the context of the types of domestic middlemen, the WTO in 2003 ruled _____ to be in violation of international trade rules, thus starting a major trade dispute with the European Union. A. foreign sales corporations B. direct marketing partnerships C. trading companies D. export promotion companies E. Webb-Pomerene export associations

A. foreign sales corporations

With respect to global marketing management, the argument for market segmentation in the 1980s was framed as _____. A. globalization versus localization B. standardization versus adaptation C. adaptation versus one-to-one marketing D. globalization versus one-to-one marketing E. standardization versus localization

A. globalization versus localization

Vital Health Products found out that they had to reduce the length of the tread in their treadmills sold in China owing to the shorter legs of the average Chinese person. By doing this, Vital has achieved product _____. A. homologation B. standardization C. dilution D. flexibility E. repositioning

A. homologation

56. In the context of controlling middlemen, parallel importing is also known as _____. A. secondary wholesaling B. black marketing C. backwashing D. industrial piracy E. smuggling

A. secondary wholesaling

One result of the Asian financial crisis of 1997 to 1998 was the creation of

ASEAN+3

Consumers have broad but somewhat vague stereotypes about specific countries and specific product categories that they judge "best". Which of the following would not fit in the "best" stereotype scheme?

American chocolate

Which of the following is an example of comparative advertising?

An ad showing a dog choosing one brand of dog food over another

Most analysts predict that China would see an 8 to 10 percent average GNP growth in the next 10 to 15 years. All of this growth is primarily dependent on China's: A. ability to deregulate industry. B. ability to prevent the privatization of its state owned enterprises. C. preparedness to resist the capitalist wave. D. ability to put embargoes on foreign investment. E. ability to uphold its traditional legal system.

A. ability to deregulate industry.

Which of the following statements regarding the industrial goods market is true? A. Industrial goods are marketed through the same channels as consumer goods. B. Industrial goods are more standardized than consumer goods. C. Industrial goods are meant for consumption by the buyer. D. The industrial goods market is highly concentrated. E. Marketing efforts in the industrial goods market are highly customized.

B. Industrial goods are more standardized than consumer goods.

11. In the international business arena, which of the following is considered to be one of Walmart's strengths? A. Clean business reputation. B. Internal Internet-based system. C. Ability to beat competitors. D. Outreach programs to placate small retailers. E. Ability to influence foreign governments.

B. Internal Internet-based system.

Which of the following is the final link in the culmination of a company's marketing and sales efforts? A. Chairperson B. Marketing manager C. Sales representative D. General manager E. Accountant

C. Sales representative

Company A and Company B are at a particular level of economic integration. Both these countries enjoy reduced or eliminated internal tariffs on trade between them and have added a common external tariff on products imported from countries outside the union. These companies represent a _____.

Customs Union

Which of the following is NOT one of the factors changing the way countries trade and prosper in the twenty-first century? A. The transition from socialist to market-driven economies. B. Liberalization of trade and investment policies in developing countries. C. The transfer of public-sector enterprises to the private sector. D. The rapid development of regional market alliances. E. The expansion of military interventions around the world.

E. The expansion of military interventions around the world.

_____ is a term used to identify concern with the environmental consequences of a variety of marketing activities.

Green marketing

Describe the information search characteristic that should lead to each of the following strategies: Maintenance

Habitual decision (no search), brand in evoked set.

Based on market metrics, which of these countries of the Asia-Pacific region has the highest literacy rate?

Japan

Describe the information search characteristic that should lead to each of the following strategies: Intercept

Limited decision (limited search), brand not in evoked set.

_____ required the United States, Canada and Mexico to remove all tariffs and trade barriers over 15 years, and beginning in 2008, all tariff barriers were officially dropped.

NAFTA

Public Relations

New product publicity crisis management consumer education event/ issue sponsorship press relations internet websites

International Advertising ( Norway)

No channel may interrupt a television program, at any time, for advertising breaks

Which of the following elements of the international communications process comprises external influences, such as competitive advertising, other sales personnel, and confusion at the receiving end that can detract from the ultimate effectiveness of communication?

Noise

Diversity Within China

Northeast China: Longtime Industrial Heartland Beijing-Tianjin Shanghai and the Yangtze River Delta Pearl River Delta The Other Billion

Satellite and Cable TV

Of increasing importance in TV advertising is the growth and development of satellite TV broadcasting. Advertisers and governments are both concerned about the impact of satellite TV. Governments are concerned because they fear further loss of control over their airwaves and the spread of "American cultural imperialism.

What are the two dimensions that help in defining the quality of a product of A. Product quality and process quality. B. Market-perceived quality and performance quality. C. Product quality and service quality. D. Actual quality and assumed quality. E. Absolute quality and relative quality.

B. Market-perceived quality and performance quality.

Which of the following countries was involved in the formation of the free trade group Mercosur?

Argentina

Art Directors and Art Direction

Art Directors Advertising professional who has the general responsibility for the overall look of an ad Will choose graphics, pictures, type styles, and other visual elements that appear in an ad Art Direction The visional presentation of an advertisement

Mobile Phone Applications

As the numbers of mobile phones continues to explode around the world, now at 5.9 billion, so do the number of applications. The top 1 percent of mobile phone users consume half of the world's bandwidth.

Tactical Considerations

Availability Cost Coverage Lack of Market Data Newspapers Magazines Radio and Television Satellite and Cable TV Direct Mail The Internet Social Media Mobile Phone Applications Other Media

Which of the following factors affects the choice of distribution channels?

Available distribution intermediaries

China has a dual economy and embraces aspects of:

B) socialism and capitalism.

Two major events that occurred in 2000 had a profound effect on China's economy. One of these is the United States's granting normal trade relations (NTR) to China on a permanent basis (PNTR). Which of the following is the other one? A. Inclusion in the board of the World Bank. B. Admission to the World Trade Organization. C. Signing of the new ASEAN pact. D. The handover of Hong Kong by the British to China. E. Inclusion of Hong Kong as a special administrative region (SAR) of China.

B. Admission to the World Trade Organization.

42. Which of the following is one of the six Cs of distribution channel strategy? A. Communication B. Continuity C. Capacity D. Commission E. Contribution

B. Continuity

48. 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 that period. This is an example of problems associated with which of the following six Cs of distribution channel strategy? A. Character B. Continuity C. Control D. Cost E. Capital requirement

B. Continuity

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 that period. This is an example of problems associated with which of the following six Cs of distribution channel strategy? A. Character B. Continuity C. Control D. Cost E. Capital requirement

B. Continuity Channels of distribution often pose longevity problems. 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 that period.

Apex Corp. is a wholesaler for Global Electronics in the French market. Global Electronics discovered that Apex Corp. was diverting some of its goods to the English market. Apex Corp. could get a greater profit in the English market because the goods were bought by the firm at a cheaper price in France. In the context of the above scenario, which of the following forms of business is Apex engaged in? A. Black marketing B. Parallel importing C. Backwashing D. Industrial piracy E. Smuggling

B. Parallel importing A company's goods intended for one country are sometimes diverted through distributors to another country, where they compete with existing retail or wholesale organizations. This is known as parallel importing or secondary wholesaling.

55. Apex Corporation is a wholesaler for Global Electronics in the French market. Global Electronics discovered that Apex Corp. was diverting some of their goods to the English market. Apex Corp. could get a greater profit in the English market because the goods were bought by the firm at a cheaper price in France. In the context of the above scenario, which of the following forms of business is Apex engaged in? A. Black marketing. B. Parallel importing. C. Backwashing. D. Industrial piracy. E. Smuggling.

B. Parallel importing.

Which of the following actions should be taken to begin the search for prospective middlemen? A. Short-listing the middlemen B. Studying the target market C. Evaluating the available financial resources D. Designing the sales force required E. Understanding the mission of the manufacturing firm

B. Studying the target market The search for prospective middlemen should begin with study of the market and determination of criteria for evaluating middlemen servicing that market.

47. Which of the following modes of distribution affords the most control over the distribution channels but often at a cost that is not practical? A. Complementary marketers. B. Direct sales force. C. Export associations. D. Trading companies. E. Export management companies.

B. Direct sales force.

_____ has long been considered the most effective nontariff barrier to the Japanese market. A. Population in Japan B. Distribution in Japan C. Culture in Japan D. Import and export procedures in Japan E. Intense competition in Japan

B. Distribution in Japan Distribution in Japan has historically been considered the most effective nontariff barrier to the Japanese market. However, the market is becoming more open as many traditional modes of operation are eroding in the face of competition from foreign marketers and as Japanese consumers continue to focus on lower prices.

Which of the following is considered as the single most important environmental element of a country to which the foreign marketer must adjust the marketing task? A. Political stability B. Economic level C. Social norms D. Literacy level E. Cultural orientation

B. Economic level

38. Which of the following is a type of domestic middleman? A. Sole proprietors. B. Export Management Companies. C. Foreign distributors. D. Lessors. E. Joint ventures.

B. Export Management Companies.

Which of the following is a type of domestic middleman? A. Sole proprietors B. Export management companies C. Foreign distributors D. Lessors E. Joint ventures

B. Export management companies

34. Which of the following distribution structures is also known as a traditional distribution structure? A. Export-oriented B. Import-oriented C. Manufacturer-oriented D. Service-oriented E. Customer-oriented

B. Import-oriented

4. Which of the following distribution structures is also known as a traditional distribution structure? A. Export-oriented B. Import-oriented C. Manufacturer-oriented D. Service-oriented E. Customer-oriented

B. Import-oriented

Which of the following distribution structures is also known as a traditional distribution structure? A. Export-oriented B. Import-oriented C. Manufacturer-oriented D. Service-oriented E. Customer-oriented

B. Import-oriented An import-oriented distribution structures is also known as a traditional distribution structure.

In a _____ distribution structure, an importer controls a fixed supply of goods and the marketing system develops around the philosophy of selling a limited supply of goods at high prices to a small number of affluent customers. A. domestic B. traditional C. manufacturer-oriented D. service E. customer-oriented

B. In an import-oriented or traditional distribution structure, an importer controls a fixed supply of goods, and the marketing system develops around the philosophy of selling a limited supply of goods at high prices to a small number of affluent customers. In the resulting seller's market, market penetration and mass distribution are not necessary because demand exceeds supply, and in most cases, the customer seeks the supply from a limited number of middlemen.

It was not until this single market was established that the United States, Japan, and other countries gave serious thought to creating other alliances. Which of the following is being referred to here? A. European Commission. B. The European Economic Community. C. The European Steel and Coal Community. D. The Asia-Pacific Economic Cooperation. E. The European Community.

B. The European Economic Community.

6. _____ has long been considered the most effective nontariff barrier to the Japanese market. A. The Japanese population B. The Japanese distribution structure C. Japanese culture D. The Japanese import and export procedure E. Intense competition in Japan

B. The Japanese distribution structure

Identify a local practice that makes companies reluctant to place ads in foreign national consumer magazines.

Use of raffles to select advertisements for magazines shortly before press time

Describe each of the strategies: Capture

Since these consumers engage in limited search, we need to know where they search and what information they are looking for. In general, we will want to supply information, often on price and availability, in local media through cooperative advertising, and at the point‑of‑purchase through displays and adequate shelf space. We will also be concerned with maintaining consistent product quality and adequate distribution.

Of all elements in the marketing mix, decisions involving _____ are those most often affected by cultural differences among country markets

advertising

All of the following is involved in a physical distribution system EXCEPT:

advertising and promotion of goods

Channel management

all activities related to selling, service, and the development of long-term customer relationships

29. For companies seeking entrance into the complicated Japanese distribution system, _____ offer one of the easiest routes to success because they virtually control distribution through all levels of channels in Japan. A. trade representatives B. trading companies C. brokers D. export management companies E. complementary marketers

B. trading companies

For companies seeking entrance into the complicated Japanese distribution system, _____ offer one of the easiest routes to success because they virtually control distribution through all levels of channels in Japan. A. trade representatives B. trading companies C. brokers D. export management companies E. complementary marketers

B. trading companies The omnipresent trading companies virtually control distribution through all levels of channels in Japan. Because trading companies may control many of the distributors and maintain broad distribution channels, they provide the best means for intensive coverage of the market.

2. In a _____ distribution structure, an importer controls a fixed supply of goods and the marketing system develops around the philosophy of selling a limited supply of goods at high prices to a small number of affluent customers. A. domestic B. traditional C. manufacturer-oriented D. service E. customer-oriented

B. traditional

In a _____ distribution structure, an importer controls a fixed supply of goods and the marketing system develops around the philosophy of selling a limited supply of goods at high prices to a small number of affluent customers. A. domestic B. traditional C. manufacturer-oriented D. service E. customer-oriented

B. traditional

_____ refers to the system of accounts that records a nation's international financial transactions.

Balance of payments

In the context of social responsibility and environmental management, a treaty among the members of the _____ agreed to a total ban on the export of hazardous wastes by developed nations.

Basel Convention

What is the difference between internal and external information search?

Because an internal information search is much easier, less time‑consuming, and less expensive than an external search, internal search generally occurs first. This involves bringing relevant information from what is retained in long‑term memory into current memory. If no satisfactory solution can be obtained, then an external information search would follow if warranted by the nature of the problem and its importance. Information search also occurs on an ongoing basis for products and activities with which an individual is involved.

Which of the following is true of Professor Jared Diamond's views regarding the influence of geography on history and cultural values?

Before the advent of transoceanic shipping, ideas flowed over the Silk Road.

20. Which of the following statements is true regarding agent middlemen? A. They take title to the merchandise. B. They work on commission and arrange for sales in the foreign country. C. Manufacturers cannot control them as they control merchant middlemen. D. They do not represent the best interests of the manufacturer. E. They assume trading risks.

B. They work on commission and arrange for sales in the foreign country.

Which of the following statements is true regarding agent middlemen? A. They take title to the merchandise. B. They work on commission and arrange for sales in the foreign country. C. Manufacturers cannot control them as much as they control merchant middlemen. D. They do not represent the best interests of the manufacturer. E. They assume trading risks.

B. They work on commission and arrange for sales in the foreign country. Agent middlemen work on commission and arrange for sales in the foreign country but do not take title to the merchandise.

30. Which of the following was a goal of the Export Trading Company Act? A. To allow U.S. companies to bypass tax laws with respect to international trading. B. To remove antitrust disincentives to export activities. C. To bypass trade barriers in foreign countries. D. To earn the highest possible profits in foreign countries. E. To combine export shipments within single containers.

B. To remove antitrust disincentives to export activities.

34. Dynamic economies differ from static economies in that dynamic economies: A. need not match marketing efforts with the market needs and wants. B. have rapidly changing consumption patterns. C. have rigid consumption patterns. D. define marketing as typically nothing more than a supply effort. E. do not require the marketer to be prepared for economic shifts and emerging markets.

B. have rapidly changing consumption patterns.

A disadvantage when using home-country middlemen as intermediaries in the distribution process is the: A. large financial investment required. B. limited control over the distribution process. C. large managerial investments required. D. limited number of retailers in the foreign country who can be reached. E. large amount of commission.

B. limited control over the distribution process. A major trade-off when using home-country middlemen is limited control over the entire process. Domestic middlemen are most likely to be used when the marketer is uncertain or desires to minimize financial and management investment.

36. In countries like Japan, a sales force is likely to be most effective if it consists mostly of: A. professional expatriates. B. local nationals. C. virtual expatriates. D. third world nationals. E. expatriates from Asian countries.

B. local nationals.

Assuming that the international marketer has produced the right product, used the proper channel of distribution, and promoted the good correctly, the effort can fail badly if the international marketer fails to: A. inform the host government of all its marketing objectives. B. set the right price for the goods or services. C. work with trade union representatives. D. consider the environmental impact of its goods or services. E. work on a franchise basis in the country.

B. set the right price for the goods or services.

General Motors, _____, and DaimlerChrysler have created a single online site called Covisint for purchasing automotive parts from suppliers. A. Toyota Motor Corporation B. Honda Motor Company C. Ford Motor Company D. Nissan Motor Company E. Tata Motors

C. Ford Motor Company

General Motors, _____, and DaimlerChrysler have created a single online site called Covisint for purchasing automotive parts from suppliers. A. Toyota Motor Corporation B. Honda Motor Company C. Ford Motor Company D. Nissan Motor Company E. Tata Motors

C. Ford Motor Company General Motors, Ford Motor Company, and DaimlerChrysler have created a single online site called Covisint (www.covisint.com) for purchasing automotive parts from suppliers, which is expected to save the companies millions of dollars.

This region in China is the political and R&D center of China. The 75-mile corridor in this region hosts some 5,000 Chinese high-tech companies, and more than 1,000 international IT companies. Perhaps the key to this region is the quality of its higher education. Identify the region in discussion

Beijing-Tianjin

Which of the following regions is most likely to be considered as the information technology (IT) corridor in north China?

Beijing-Tianjin

Big Emerging Markets (BEMs)

Big emerging markets share a number of important traits. -They are all geographically large. -Have significant populations. -Represent sizable markets for a wide range of products. -Have strong rates of growth or the potential for significant growth. -Have undertaken significant programs of economic reform. -Are of major political importance within their regions. -Are "regional economic drivers." -Will engender further expansion in neighboring markets as they grow.

Which of the following is true of the effect of technology on culture?

Birth control pills have forced schools to address the issue of abstinence.

IBM entered into a venture with the Railways Ministry that allowed IBM to set up a national network of IBM service centers in railway stations that has enabled IBM to ship computer parts via the railroad around the country within 24 hours. This venture was dubbed the

Blue Express

Estimating market potential in less-developed countries involves additional challenges, but most of the difficulty arises from the _____.

coexistence of three distinct kinds of markets in each country

The AIDA Concept

cognitive (thinking) Effective (Feeling) Connotative ( doing) heard of new products and we are aware of them

A voluntary organization providing for the loosest possible relationship that can be classified as economic integration is called a (n) _____.

commonwealth of nations

Entry into many markets is based on access to appropriate _____.

communication channels to customers

Private warehouses

company operated facilities for storing and shipping products

Consumer x Producers = Consumers + Producers=

possible transactions possible transactions with intermediary

Product factors what you can control

product factors that affect channel choice product complexity product price product standardization product life cycle product delicacy shelf life...technology

Zest Corp. launches a new health drink for children and youth. Because the product is new and has a small market share, the company distributes trial packs of the product to students in schools and colleges. In this scenario, the promotional tool implemented by Zest Corp. is ______.

product sampling

When a company introduces a new product line or extension:

promotion will focus on creating awareness to initiate the product adoption process

Which mode of transportation hauls more freight than any other?

railroads

When the Indian rupee depreciated against the US dollar, PC manufacturers who were dependent on imported parts had to ____ in order to retain their profit margins.

raise the price of PCs

The ISO 9000 certification standards concerns the:

registration and certification of a manufacturer's quality system

Services are distinguished by all of the following unique characteristics EXCEPT:

repeatability

A Korean electronics company had to add detailed instructions regarding the repair and replacement of its product to make it easy for the local consumers to maintain it. Which of the following components of the product is being altered in the given scenario?

support services component

In some countries, maintenance of automobiles is not the norm. Cars are not repaired until they break down. Since the consumer is automatically angry with the manufacturer when something goes wrong with the car, repair and maintenance has become a concern of the various automobile manufacturers in this market. In which of the following components of the product component model would the management need to make improvements if problems such as the one above are to be solved?

support services component

A market in which the only marketing function performed is exchange is most like to be classified under the _____ stage.

surplus commodity product

The Global Harmonization Task Force is an international effort that is attempting to:

synchronize standards for several international industrial sectors

A(n) _____ is a tax imposed by a government on goods entering at its borders.

tariff

In the context of the Opium Wars, during the early 1800s, the British fondness for _____ was creating a huge trade deficit with China.

tea

Firms that are unfamiliar with overseas marketing and firms that produce industrial goods orient their pricing solely on the basis of:

the costs of production of the good

For most consumer services firms, the mode of entry into a foreign market is licensing, franchising, strategic alliances, or direct. This is usually done because:

the creation and consumption of services cannot be separated.

Possession Utility

the customers having access to the product to use now or store and use later

Distribution

the decisions and activities that make products available to customers when and where they want to purchase them

Industrial goods differ from consumer goods in that:

the demand for industrial goods is largely derived demand.

Demand in industrial markets differs from demand in consumer markets in that:

the demand for industrial goods is more volatile than the demand for consumer goods

usage rate

the rate at which a products inventory is used or sold during a specific time period

Privatization of state-owned enterprises results in _____.

the release of capital to invest in strategic areas

Goods are likely to be standardized if:

their uses are the same across markets

Sales promotions can take the place of advertising when

there are environmental constraints on advertising.

The growing importance of word-to-mouth communication

funny ads that capture consumer interest, can go viral and generate a significant amount of free impact and exposure

RCD:

governments agree to participate jointly to develop basic industries beneficial to each economy. Each country makes an advance commitment to: -participate in the financing of a new joint venture -to purchase a specified share of the output of the venture

HT motors is introducing a new technology in its cars to improve mileage to improve its production facilities in order to reduce its carbon emissions. The company is also taking measures to improve its production facilities in order to reduce its carbon footprint. These measures employed by HT motors to meet guidelines issued by the government shows that the company is engaging in _____.

green marketing

In the context of social responsibility and environmental management, by 2020, China's _____ will be more than double the closest rival, the United States.

greenhouse-gas emissions

Country X is likely to be in the age of mass consumption according to Rostow's five-stage model of eco development if:

it is primarily a service eco

UN classification criticized because:

it no longer seems relevant in the rapidly industrializing world

Marketing intermediaries

link producers to consumers through the purchase and reselling of products or contractual agreements - goal is to link producers other middlemen or to consumers

Cause-related marketing

links the purchase of an organization's products to support of philanthropic organizations favored by the target market

In the context of social institutions, the _____ of a country is a potent force in economic development.

literacy rate

Which of the following is true?

The United States' granting of normal trade relations (NTR) to China on a permanent basis (PNTR) had a profound impact on the country's economy.

Which of the following is an example of the primary attribute of a product?

The ability of a camera to take a picture

Using newspapers or magazine ads as a channel of communication when the majority of the intended uses are illiterate, is an example of ineffective ____ in the communications process.

media channel selection

With reference to the communication process in advertising, using the internet as a medium when only a small % of intended market has access to it, is an example of an error related to

media channel selection

The final price of an imported product is likely to be high if:

middleman markups are not standardized

To properly perceive actual market needs, an international marketer should rely ______.

more on effective research

Which of the following is true of family in the context of global marketing?

Family forms and functions vary substantially around the world.

Business-to-business marketers frequently misinterpret the concept of quality. Which of the following examples best illustrates this idea?

Farmers in developing countries often prefer less-efficient but easier-to-maintain products

At which level of economic integration do member countries maintain individual tariff schedules for external countries but eliminate customs duties and nontariff trade barriers among themselves?

Free Trade Area

Which of the following is true of counter trading?

Frequently there is inadequate time to conduct a market analysis in a countertrade negotiation

____, Jilin, and Heilongjiang have long represented a cohesive unit in terms of culture and the political economy. The three are referred to as dongbei, meaning Northeast, or dong sansheng, meaning Northeastern Three Provinces, instead of identifying each province individually

Liaoning

How do the vast majority of services enter a foreign market?

Licensing, franchising, or direct investment

Describe the information search characteristic that should lead to each of the following strategies: Capture

Limited decision (limited search), brand in evoked set.

_____ allows ESPN to fill visual real estate-blank walls, streets, stadium sidings- with computer-generated visuals that look like they belong in the scene.

Princeton video imaging

Which of the following is true of the ISO 9000 certification?

The ISO 9000 standards are a certification of the quality control system that a company has in place

Which of the following is the reason why most of the 1.3 billion potential consumers are not accessible?

The distribution network is poor or is absent.

Which of the following factors account for greater market similarities among industrial goods customers than among consumer goods customers?

The inherent nature of the product

____ suffer(s) from issues such as difficulty in assessing taxes, unfair competition, import duties, and privacy.

The internet

____ classifies a country's stage of economic development on the basis of its level of industrialization into three categories and the three categories are MIDCs, LDCs, and LLDCs.

The United Nations

Which of the following countries would be characterized as being in Stage 2 of Rostow's five-stage model of eco growth?

Vietnam

____ is known as China's Silicon Valley.

Zhongguancun

Public relations

a broad set of communication efforts used to create and maintain favorable relationships between an organization and its stakeholders -maintaining a positive relationship with one or more stakeholders can affect a firms current sales and profits, as well as its long-term survival -Communication through the use of brochures, annual reports, event sponsorships, and news stores -should be handled on a continuos basis

Retailer channel

a channel with only 1 intermediary

Promotion mix

a combination of promotional methods used to promote a specific brand

Multinational Market Regions (definition)

groups of countries that seek mutual economic benefit from reducing interregional trade and tariff barriers - the most important global trends today

Chapter 10

h

One of the reasons that channels of distribution often pose longevity problems is that most middle men______.

have little loyalty to their vendors

Newly industrialized countries (NICs) differ from less-developed countries in that NICs:

have moved away from restrictive trade practices and instituted significant free market reforms.

Dynamic economies differ from static economies in that dynamic economies:

have rapidly changing consumption patterns.

Channel decisions are important to marketers mostly because

they involve long-term commitments and affect customer accessibility

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. Trading companies C. Export associations D. Direct sales force E. Complementary marketers

D. Direct sales force Maximum investment is usually required when a company establishes its own internal channels, that is, its own sales force. Use of distributors or dealers may lessen the capital investment, but manufacturers often have to provide initial inventories on consignment, loans, floor plans, or other arrangements.

35. _____ refers to an increase in national production that is reflected by an increase in the average per capita gross domestic product (GDP) or gross national income (GNI). A. Economic repression B. Economic duress C. Economic equilibrium D. Economic development E. Economic sustainability

D. Economic development

Countries such as Germany allow for greater use of expatriates in international sales forces. Which of the following is most likely to be the reason for this? A. Germany is a member of the World Trade Organization. B. Germany is a relationship-oriented culture. C. The German language is easy to master. D. Germany is an information-oriented culture. E. Germany is a member of the European Union.

D. Germany is an information-oriented culture.

1. Which of the following is true of the distribution process? A. It does not involve the physical handling and distribution of goods. B. It includes activities related to the promotion of goods and services. C. The ownership title remains with the distributor even on completion of the transaction. D. It includes buying and selling negotiations. E. The behavior of channel members is not affected by the cultural environment.

D. It includes buying and selling negotiations.

31. Which of the following is true of the distribution process? A. It does not involve the physical handling and distribution of goods. B. It includes activities related to the promotion of goods and services. C. The ownership title remains with the distributor even on completion of the transaction. D. It includes buying and selling negotiations. E. The behavior of channel members is not affected by the cultural environment.

D. It includes buying and selling negotiations.

Which of the following is true of the distribution process? A. It does not involve the physical handling and distribution of goods. B. It includes activities related to the promotion of goods and services. C. The ownership title remains with the distributor even on completion of the transaction. D. It includes buying and selling negotiations. E. The behavior of channel members is not affected by the cultural environment.

D. It includes buying and selling negotiations. In every country and in every market, urban or rural, rich or poor, all consumer and industrial products eventually go through a distribution process. The distribution process includes the physical handling and distribution of goods, the passage of ownership (title), and—most important from the standpoint of marketing strategy—the buying and selling negotiations between producers and middlemen and between middlemen and customers.

35. Which of the following is true about international corporate planning? A. It addresses marketing and advertising questions. B. It deals with a company's products, capital, and research. C. It deals with the tactical issues of marketing. D. It is essentially long-term in nature. E. It refers to the plans that are made at the local level.

D. It is essentially long-term in nature.

17. Which of the following are frequently criticized for not representing the best interests of a manufacturer? A. Global wholesalers B. Trading companies C. Consumers D. Merchant middlemen E. Brokers

D. Merchant middlemen

Who are frequently criticized for not representing the best interests of a manufacturer? A. Global wholesalers B. Trading companies C. Consumers D. Merchant middlemen E. Brokers

D. Merchant middlemen Merchant middlemen actually take title to manufacturers' goods and assume the trading risks, so they tend to be less controllable than agent middlemen. Because merchant middlemen primarily are concerned with sales and profit margins on their merchandise, they are frequently criticized for not representing the best interests of a manufacturer.

50. _____ is an area that should be on a checklist of criteria for evaluating middlemen servicing a market. A. Flexibility B. Hypersensitivity C. Cultural empathy D. Productivity E. Breadth of knowledge

D. Productivity

_____ is a subject area that should be on the checklist of criteria for evaluating middlemen servicing a market. A. Flexibility B. Hypersensitivity C. Cultural empathy D. Productivity E. Breadth of knowledge

D. Productivity The checklist of criteria differs according to the type of middlemen being used and the nature of their relationship with the company. Basically, such lists are built around four subject areas: productivity or volume, financial strength, managerial stability and capability, and the nature and reputation of the business.

Which of the following is the most important criterion for consumers while purchasing products? A. Appearance B. Size C. Technology D. Quality E. Service

D. Quality

7. _____ are considered to be the foundation of the Japanese distribution system. A. Consumers B. Brokers C. Manufacturers D. Small retailers E. Wholesalers

D. Small retailers

_____ are considered to be the foundation of the Japanese distribution system. A. Consumers B. Brokers C. Manufacturers D. Small retailers E. Wholesalers

D. Small retailers The Japanese system has four distinguishing features: (1) a structure dominated by many small middlemen dealing with many small retailers, (2) channel control by manufacturers, (3) a business philosophy shaped by a unique culture, and (4) laws that protect the foundation of the system—the small retailer.

In the context of designing an international sales force, which of the following is true of information-oriented cultures? A. They require the most complete local knowledge possessed only by natives. B. Personal selling has to be localized for even the most global of corporations. C. People belonging to such cultures are hostile toward third-country nationals. D. Such cultures allow for greater use of expatriates in the sales force. E. Virtual expatriates are more efficient in selling consulting services in these countries.

D. Such cultures allow for greater use of expatriates in the sales force.

31. Which of the following is a fully industrialized country? A. Brazil B. Russia C. Germany D. Argentina E. China

C. Germany

Which of the following was primarily instrumental in decreasing the historical tension between People's Republic of China (PRC) and the Republic of China (ROC)? A. ROC acquiring U.N membership. B. Rise of communism. C. Increase in direct trade. D. American military involvement in peacekeeping. E. ASEAN mandates overruling former hostilities between member nations.

C. Increase in direct trade.

Along with industrial goods, the most rapidly growing sector of U.S. international trade today consists of: A. social services. B. consumer products. C. manufactured goods. D. business services. E. governmental services.

D. business services.

Home-country middlemen are also known as _____ middlemen. A. area B. local C. merchant D. domestic E. regional

D. domestic

Which of the following is true regarding the impact of global competition on the business activities in the marketplace? A. It has shifted the focus in the marketplace from a consumer's market to a seller's market. B. It has improved the financial position of domestic industries. C. It has put more power in the hands of the customer. D. It has shifted the focus away from the performance quality of a product. E. It has limited the choices of the consumers.

C. It has put more power in the hands of the customer.

10. In Japan, under the Large-Scale Retail Store Law, all proposals for new "large" stores are first judged by the _____. A. Transport and Tourism Department B. Internal Affairs and Business Council C. Ministry of International Trade and Industry D. Health and Welfare Committee E. Local Retailers Union

C. Ministry of International Trade and Industry

In Japan, under the Large-Scale Retail Store Law, all proposals for new "large" stores were first judged by the _____. A. Transport and Tourism Department B. Internal Affairs and Business Council C. Ministry of International Trade and Industry D. Health and Welfare Committee E. Local Retailers Union

C. Ministry of International Trade and Industry In Japan, under the Large-Scale Retail Store Law, all proposals for new "large" stores were first judged by the Ministry of International Trade and Industry.

34. Which of the following statements regarding national stereotypes is true? A. Americans are the best negotiators because they will spend days trying to get to know their opponents. B. The image of the cowboy used as a cultural stereotype reflects the organizational loyalty of the Americans. C. Negotiations are conducted between people rather than national stereotypes. D. The Japanese are the worst negotiators because they think everything works in foreign countries as it does in Japan. E. The fierce, samurai-warrior stereotyped image of the Japanese embodies their brand of competitiveness.

C. Negotiations are conducted between people rather than national stereotypes.

32. In general, price decisions are viewed in two ways. Which of the following is one of them? A. Pricing depends on factors that are often beyond the control of a company. B. Pricing is more a phenomenon of luck than planning. C. Pricing is an active instrument of accomplishing marketing objectives. D. The less control a company has over the final selling price of a product, the better it is able to achieve its marketing goals. E. The broader the company's product line, the less complex is the process of controlling prices to the end user.

C. Pricing is an active instrument of accomplishing marketing objectives.

9. Which of the following statements is true of the Japanese market? A. The costs of Japanese consumer goods are among the lowest in the world. B. Manufacturers are independent of wholesalers for a multitude of services to other members of the distribution network. C. The Japanese distribution structure supports long-term dealer-supplier relationships. D. Japanese law favors the establishment of large retail stores. E. Japanese consumers favor price over personal service.

C. The Japanese distribution structure supports long-term dealer-supplier relationships.

Which of the following statements is true of the Japanese market? A. The costs of Japanese consumer goods are among the lowest in the world. B. Manufacturers are independent of wholesalers for a multitude of services to other members of the distribution network. C. The Japanese distribution structure supports long-term dealer-supplier relationships. D. Japanese law favors the establishment of large retail stores. E. Japanese consumers favor price over personal service.

C. The Japanese distribution structure supports long-term dealer-supplier relationships. Coupled with the close economic ties and dependency created by trade customs and the long structure of Japanese distribution channels is a relationship-oriented business philosophy that emphasizes loyalty, harmony, and friendship. The value system supports long-term dealer-supplier relationships that are difficult to change as long as each party perceives economic advantage.

21. Which of the following statements is true regarding merchant middlemen? A. They represent the best interests of a manufacturer. B. They can be controlled better than agent middlemen. C. They assume trading risks. D. They work on commission and arrange for sales in the foreign country. E. They do not take title to manufacturers' goods.

C. They assume trading risks.

Which of the following statements is true regarding merchant middlemen? A. They represent the best interests of a manufacturer. B. They can be controlled better than agent middlemen. C. They assume trading risks. D. They work on commission and arrange for sales in the foreign country. E. They do not take title to manufacturers' goods.

C. They assume trading risks.

Companies with marketing facilities or contacts in different countries with excess distribution capacity or a desire for a broader product line sometimes take on additional lines for international distribution. The formal name for such activities is _____. A. skimming B. backhauling C. complementary marketing D. export marketing E. demand shifting

C. complementary marketing

33. Companies with marketing facilities in different countries with excess marketing capacity sometimes take on additional product lines for international distribution. The formal name for this type of marketing is: A. skimming. B. backhauling. C. complementary marketing. D. export marketing. E. demand shifting.

C. complementary marketing.

49. One of the reasons that channels of distribution often pose longevity problems is that most middlemen _____. A. do not maintain sufficient inventory to serve customers B. lack product knowledge resulting in low sales volume C. have little loyalty to their vendors D. tend to slow down distribution to extract higher commissions E. do not have sufficient knowledge of the target market

C. have little loyalty to their vendors

One of the reasons that channels of distribution often pose longevity problems is that most middlemen _____. A. do not maintain sufficient inventory to serve customers B. lack product knowledge resulting in low sales volume C. have little loyalty to their vendors D. tend to slow down distribution to extract higher commissions E. do not have sufficient knowledge of the target market

C. have little loyalty to their vendors

Groups of countries that seek mutual economic benefit from reducing interregional trade and tariff barriers are called: A. multilateral economic associations. B. cartels. C. multinational market regions. D. trade associations. E. political and cultural associations.

C. multinational market regions.

32. Complementary marketing is commonly known as _____. A. backhauling B. demand shifting C. piggybacking D. shape shifting E. skimming

C. piggybacking

Mary is a new international sales rep for an industrial supply company. She will learn that the inherent nature of industrial goods creates a market where: A. firms engage in a high degree of customization. B. most of the production and sale of a good takes place in the domestic market. C. product and marketing mix standardization are commonplace. D. the demand for the good produced is relatively predictable and stable. E. the buyer seeks satisfaction from the product.

C. product and marketing mix standardization are commonplace.

43. In the context of factors affecting choice of channels, one of the key elements in distribution decisions includes _____. A. the selection of optimum container sizes B. volume discounts and rebates C. the functions performed by middlemen D. the local advertising modes E. the target market culture

C. the functions performed by middlemen

32. Goods are likely to be standardized if: A. they are being produced by the same firm. B. the cost of producing each unit is the same. C. their uses are the same across markets. D. they are being sold to different income groups. E. they are being sold in different countries.

C. their uses are the same across markets.

The three members of the North American Free Trade Agreement (NAFTA) are:

Canada, Mexico, and the United States.

Which of the following is one of the highest costs of doing business in China?

Capital required to maintain effective distribution

Integrated Marketing Communication (IMC)

Carefully coordinating all promotional messages to assure the consistency at every touch point between a company and the consumer sales promotion personal selling packaging communication customer based direct marketing public relations media advertising

A _____ exists when various companies producing similar products or services work to ether to control markets for the types of goods and services they produce.

Cartel

Which of the following is an example of a price-fixing arrangement?

Cartels

Sales promotions examples

Cents-off In-Store Demonstrations Samples Coupons Gifts Product Tie-Ins Contests Sweepstakes Sponsorship of Special Events, Point-Of-Purchase Displays - In markets in which the consumer is difficult to reach because of media limitations, the percentage of the promotional budget allocated to sales promotions may have to be increased. In some less developed countries, sales promotions constitute the major portion of the promotional effort in rural areas of the market. In India, trucks with loudspeakers with brand names painted on the sides drive through villages to promote their products. They also stop and do giveaways to encourage people to try their products. - Nestle baby food's entry into the French market and Oreo's pairing of milk and cookies in China (even though most Chinese are lactose intolerant!) are examples of sales promotions used to make inroads into international markets. Sample vs. Coupon: coupon you get a certain amount off, sample is free. Which is better? Sample may be better than coupon

ASEAN+3 consists of the members of ASEAN plus South Korea, Japan, and _____.

China

During the early growth of many countries, the first large open market was _____.

China

People queued for a Chinese made bus at city center in Havana. China is making major sales and investments in the infrastructures of the developing world, including in Cuba, a member country of LAIA and a fellow "communist" country.

China

Which of the following countries has the largest number of retailers

China

Receiver

Consumer action by those who receive the message and are the target for the thought transmitted

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 with a season or a year if they fail to produce during that period. THis is an example of problems associated with which of the following six Cs of channel strategy?

Continuity

Which of the following is one of the six Cs of distribution channel strategy

Continuity

Channel Control in Japanese Distribution Systems

Control is maintained through the following elements: -Inventory financing with credits extending for several months. -Cumulative rebates -Merchandise returns that are allowed to the manufacturer. -Promotional support to intermediaries in the form of displays, advertising layouts, and management education programs

_____ might be classified as an aspect of sales promotions or public relations, though their connections to advertising are also manifest.

Corporate sponsorships

The decision-making body of the European Union is the _____.

Council of Ministers

International 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—is the role of public relations (PR)

Know when creativity becomes especially important for international marketers.

Creativity is especially important when a budget is small or where there are severe production limitations, such as poor-quality printing and a lack of high-grade paper

Which of the following would be considered an uncontrollable element in the foreign environment?

Cultural forces

Sean Jay's, a successful retail chain from Spain, failed to establish their market in Germany. The main reasons for their failure were designing their retail outlets in the same way as in Spain and selling their products at low prices. The people in Spain like to purchase products at prices they feel as bargain price, whereas people in Germany often associate low prices with a poor quality product. This shows that Sean Jay's failed to adapt to which of the following uncontrollable factors?

Cultural influences

A clothing company in Singapore which specialized in women's clothing, had to modify its clothes before introducing them to Iranian markets, to suit the needs of women in that country. Women in Iran expected to cover themselves completely. The company mostly used opaque material and provided accessories like scarves. Which of the following factors is dictating product adaptation in the above scenario?

Cultural requirements

When using the internet for distribution purposes, the following factors should be considered:

Culture Adaptation (especially of language) Local contact information Payment form Delivery Promotion

Which of the following is true with respect to the importance of culture to an international marketer?

Culture is pervasive in all marketing activities and the marketer's efforts are a part of the fabric of culture.

Which of the following would be the balance-of-payments account that records all merchandise exports, imports, and services plus unilateral transfers of funds?

Current account

____ is/are rapidly becoming a major after-sales service when selling technical products in countries that demand the latest technology.

Customer training

26. James Barker is the marketing manager of a firm with small international sales volume. He is looking for a middleman who can take responsibility for promotion of the company's products, credit arrangements, physical handling, and market research. Also, the middleman must be able to provide information on financial, patent, and licensing matters. In addition, the middleman should agree to work under the name of the firm. Which of the following types of middlemen would be the best choice for Mr. Barker if he wants to meet his objectives? A. A manufacturer's export agent. B. An export merchant. C. A trade representative. D. An export management company. E. A complementary marketer.

D. An export management company

James Barker is the marketing manager of a firm with small international sales volume. He is looking for a middleman who can take responsibility for promotion of the company's products, credit arrangements, physical handling, and market research. Also, the middleman must be able to provide information on financial, patent, and licensing matters. In addition, the middleman should agree to work under the name of the firm. Which of the following types of middlemen would be the best choice for Mr. Barker if he wants to meet his objectives? A. A manufacturer's export agent B. An export merchant C. A trade representative D. An export management company E. A complementary marketer

D. An export management company The EMC functions as a low-cost, independent marketing department with direct responsibility to the parent firm. The export management company may take full or partial responsibility for promotion of the goods, credit arrangements, physical handling, market research, and information on financial, patent, and licensing matters.

25. In the context of the different types of middlemen, which of the following is an example of a manufacturer's retail store? A. Toys "R" Us B. Walmart C. Costco D. Benetton E. IKEA

D. Benetton

In the context of the different types of middlemen, which of the following is an example of a manufacturer's retail store? A. Toys "R" Us B. Walmart C. Costco D. Benetton E. IKEA

D. Benetton

Which of the following is one of the highest costs of doing business in China? A. Money required for the transportation of goods B. Money required for obtaining appropriate permits C. Cost of local advertising D. Capital required to maintain effective distribution E. Cost of customizing products for the Chinese market

D. Capital required to maintain effective distribution

In the context of cultural reactions when engaging in e-commerce, the color red is associated with socialism in _____. A. the United States B. China C. Brazil D. Uruguay E. Spain

E. Spain The different cultural reactions to color can be a potential problem for websites designed for global markets. While red may be highly regarded in China or associated with love in the United States, in Spain it is associated with socialism.

Which of the following statements is true regarding an export management company (EMC)? A. It acts as a middleman for firms with relatively large international sales volume. B. It operates under its own name while providing services to another firm. C. It does not have direct responsibility to the parent firm. D. It acts as a middleman for firms willing to involve their own personnel in international functions. E. It calls for minimum investment from the parent firm to get into international markets.

E. It calls for minimum investment from the parent firm to get into international markets. The export management company (EMC) is an important middleman for firms with relatively small international volume or those unwilling to involve their own personnel in the international function. Two of the chief advantages of EMCs are minimum investment on the part of the company to get into international markets, and no commitment of company personnel or major expenditure of managerial effort.

Which of the following is true of a physical distribution system? A. It involves only the physical movement of goods. B. It is a total systems approach to the management of the distribution process. C. It includes decisions involving an activity that has no impact on the cost and efficiency of one or all others. D. It excludes the interdependence of the costs of each activity. E. It includes transportation mode, inventory quantities, and packing.

E. It includes transportation mode, inventory quantities, and packing. A physical distribution system involves more than the physical movement of goods. It includes the location of plants and warehousing (storage), transportation mode, inventory quantities, and packing. The concept of physical distribution takes into account the interdependence of the costs of each activity; a decision involving one activity affects the cost and efficiency of one or all others. In fact, because of their interdependence, the sum of each of the different activity costs entails an infinite number of "total costs."

In the context of distribution patterns, the rate of change in retailing around the world appears to be directly related to the _____. A. literacy rate B. rate of inflation C. population growth D. speed of economic development E. currency exchange rate

D. speed of economic development Retailing around the world has been in a state of active ferment for several years and the rate of change appears to be directly related to the stage and speed of economic development, and even the least developed countries are experiencing dramatic changes. Supermarkets of one variety or another are blossoming in developed and underdeveloped countries alike

NEXT SECTION: CHAPTER QUIZZES

DOE

Which of the following was the main objective behind the United States' efforts to improve world trade by fostering economic growth in Europe and the underdeveloped world just after World War II?

Dampening the spread of communism

Some business services have intrinsic value that can be embodied in some tangible form; they can be produced in one country and exported in another. Which of the following is an example of this?

Data processing services

For managers selling capital equipment and big-ticket industrial services, understanding the concept of _____ is absolutely fundamental to their success.

Derived demand

____ is the process by which innovation spreads.

Diffusion

The Internet

E-commerce is used to market business-to-business services, consumer services, and consumer and industrial products via the World Wide Web The Internet is an important distribution method for multinational companies When using the internet for distribution purposes, the following factors should be considered: -Culture -Adaptation (especially of language) -Local contact information -Payment form -Delivery -Promotion

Which of the following is a critical element associated with using a particular type of middleman? A. Knowledge of the culture of the target market B. Number of employees C. Mode of transportation for moving goods D. Influence over the target market E. Cash-flow patterns

E. Cash-flow patterns Capital requirement and cash-flow patterns are critical elements associated with using a particular type of middleman.

44. Which of the following is a critical element associated with using a particular type of middleman? A. Knowledge of the culture of the target market. B. Number of employees. C. Mode of transportation for moving goods. D. Influence over the target market. E. Cash-flow patterns.

E. Cash-flow patterns.

Which of the following arrangements is undertaken when a firm wants to keep its seasonal distribution channels functioning throughout the year? A. Price skimming B. Using the services of a trading company C. Establishing a retail store D. Using the services of an export management company E. Complementary marketing

E. Complementary marketing Most complementary marketing arrangements are undertaken when a firm wants to fill out its product line or keep its seasonal distribution channels functioning throughout the year. Companies may work either on an agency or merchant basis, but the greatest volume of piggyback business is handled on an ownership (merchant) purchase-and-resale arrangement.

31. Which of the following arrangements are undertaken when a firm wants to keep its seasonal distribution channels functioning throughout the year? A. Price skimming. B. Using the services of a trading company. C. Establishing a retail store. D. Using the services of an export management company. E. Complementary marketing.

E. Complementary marketing.

35. In the context of designing an international sales force, which of the following is true of Japan? A. Japan has an information-oriented culture. B. Japan allows for greater use of expatriates. C. In Japan, personal selling need not be localized. D. Japan is not a member of World Trade Organization. E. In Japan, complete local knowledge is important for salespeople.

E. In Japan, complete local knowledge is important for salespeople.

The Floral Group, an importing organization in New York, has just bought an excessive amount of perfume from perfume manufacturer in Paris. Unknown to the perfume manufacturer, the Floral Group has sold 25 percent of its order to distributors in France that have been unable to purchase any products from the perfume manufacturer. Which of the following best describes the transaction that has just taken place? A. Black-listed importing B. Direct importing C. Circular importing D. Co-mingled importing E. Parallel importing

E. Parallel importing

27. Which of the following statements is true regarding an export management company (EMC)? A. It acts as a middleman for firms with relatively large international sales volume. B. It operates under its own name while providing services to another firm. C. It does not have direct responsibility to the parent firm. D. It acts as a middleman for firms willing to involve their own personnel in international functions. E. It calls for a minimum investment from the parent firm to get into international markets.

E. It calls for a minimum investment from the parent firm to get into international markets.

Import-Oriented Distribution Structures

In an import-oriented or traditional distribution structure, an importer controls a fixed supply of goods The marketing system develops around the philosophy of selling a limited supply of goods at high prices to a small number of affluent customers In the resulting seller's market, market penetration and mass distribution are not necessary because demand exceeds supply, and in most cases

Coverage

In large, less developed countries advertising media such as television may not be geographically dispersed.

Production and Cost Limitations

In some markets costs are prohibitive to advertise on conventional advertising media; other countries may have low quality paper to print advertising

What factors might influence the search the effort of consumers who are essentially one-stop shoppers? How do these factors differ in terms of how they influence limited information searchers and extended information searchers?

In terms of perceived benefits, one‑stop shoppers may not perceive much price or quality difference between alternative brands. In addition, they may attribute a higher cost to the search effort. That is, the human cost of each search effort may exceed the expected benefit, even when accurately perceived. Those who seek considerable information prior to purchase generally perceive the expected benefits of the search to be greater than the perceived costs of that search effort. Likewise, those who engage in limited information search generally perceive the costs of extended search to exceed the benefits of that search.

Which of the following characterizes the variable-cost pricing approach?

In this approach, any contribution to fixed cost after variable costs are covered is profit to the company

Which of the following is true of the full-cost pricing approach?

In this approach, prices are often set on a cost-plus basis, that is, total costs plus a profit margin.

Which of the following was instrumental in decreasing the historical tension between People's Republic of China (PRC) and the Republic of China (ROC)?

Increase in direct trade

India continued:

India has taken the following steps: - Privatizing state-owned companies as opposed to merely selling shares in them - The government is now willing to reduce its take below - 51 percent and to give management control to so-called strategic investors - Recasting the telecom sector's regulatory authority and demolishing the monopolies enjoyed by SOEs - Signing a trade agreement with the United States to lift all quantitative restrictions on imports - Maintaining momentum in the reform of the petroleum sector - Planning the opening of domestic long-distance phone services, housing, and real estate and retail trading sectors to foreign direct investment *Profitizing private sector. *Profitizing = gov't sales its ownership and allows people to own it. People want more efficiency, while government would just care about control

Which of the following is a result of state ownership?

Inflated public-sector bureaucracies.

When does information search occur?

Information search occurs in response to a recognized problem that is deemed important enough to resolve.

Goals and Tasks of promotion

Informative promotion *increases awareness *Explain how product works *suggest new uses *Build company image *apple smart watches

Insurance, dry cleaning, and hotel accommodations have intrinsic value resulting from a process, a performance, or an occurrence that only exists while it is being created. Which of the following characteristics of services best matches the above?

Intangibility

IMC

Integrated Marketing Communications (IMC) is becoming more popular because of the challenges of communicating across national borders "We have an integrated marketing model that involves all elements of the marketing mix from digital to sports marketing, from event marketing to advertising to entertainment, all sitting at the table driving ideas."

One of the key functions of global account managers revolves around the notion of:

Intelligence gather

Which is the largest services export of the US, ranking behind only capital goods and industrial supplies when all exports are counted?

International tourism

Which of the following are especially vulnerable as EU member states decide which area of regulation should apply to these services?

Internet services

Which of the following statements is true regarding NAFTA?

It has three members: Canada, South Africa, and the United States.

Based on the market metrics for the eight most populous countries of the Asia Pacific region, which of these countries has the best healthcare system in that region?

Japan

The Four Asian Tigers were the first countries in Asia, after ____, to move from a status of developing countries to newly industrialized countries.

Japan

The economic crisis in _____ in the 1990s took place due to faulty economic policies, inept political apparatus, disadvantages due to global circumstances, and cultural inhibitions.

Japan

The vigorous economic growth of the ASEAN can be linked to the emergence of _____ as a major provider of technology and capital necessary to upgrade manufacturing capability and develop new industries.

Japan

Which of the following is true of the relationship between cultural values and consumer behavior?

Japanese and French values favor group activities and face-to-face conversations.

Channel Management Continued

Locating Middlemen Selecting Middlemen Motivating Middlemen Terminating Middlemen Controlling Middlemen

At present, which of the following industries account for the majority of Shanghai's industrial employment?

Medium value-added industries

An important dimension of quality is how well the product:

Meets the specific needs of the buyer

_____ is a free trade group formed by Argentina, Brazil, Paraguay, and Uruguay.

Mercosur

AIDA Concept

Model that outlines the process for achieving promotional goals in terms of stages of consumer involvement with the message *see slide*

Citizens of the U.S. see the _____ as protection for Latin America from European colonization

Monroe Doctrine

Latin Americans tend to see the _____ as an offensive expression of U.S. influence in Latin America.

Monroe Doctrine

According to the United Nations' stages of economic development for classifying countries with respect to levels of industrialization, which category does an industrialized country with high per capita income fall under?

More-developed countries.

Newspapers

Most U.S. cities have just one or two major daily newspapers, but in many countries, there are so many newspapers that an advertiser has trouble achieving even partial market coverage (see Exhibit 16.5)

Which of the following statements is true?

Most business services companies enter international markets to service their local clients

According to C. K. Prahalad, which of the following represents the misconception that leads international markets to ignore the bottom-of-the-pyramid markets?

Most products will not be appropriate for BOPMs

Which of the following is the largest common-market agreement in the Americas?

NAFTA

Which of the following is most likely to be recorded on the minus side of the U.S. balance of payments?

New overseas investments

NICs

Newly Industrialized Countries; -Countries that are experience rapid economic expansion and industrialization and do not exactly fit as LDCs or MDCs. -These show rapid industrialization of targeted industries -They have per capita incomes that exceed other developing countries -Moved away from restrictive trade practices and instituted significant free market reforms - They attract both trade and foreign direct investment

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. Issue a request-for-proposal to all distributors in the target market and evaluate their responses C. Consult other manufacturers of similar products and select the distributor recommended by them D. Consult trade organizations and select the distributor recommended by them E. Talk personally to ultimate consumers to find whom they consider to be the best distributors

E. Talk personally to ultimate consumers to find whom they consider to be the best distributors Experienced exporters suggest that the only way to select a middleman is to go personally to the country and talk to ultimate users of your product to find whom they consider to be the best distributors. Visit each possible middleman once before selecting the one to represent you; look for one with a key person who will take the new product to his or her heart and make it a personal objective to make the sale of that line a success.

3. Which of the following statements is true of a traditional distribution structure? A. The distribution system is national in scope. B. The relationship between the importer and any middleman is similar to that found in a mass-marketing system. C. The idea of a channel as a chain of intermediaries performing specific activities and each selling to a smaller unit beneath it until the chain reaches the ultimate consumer is common. D. Independent agencies providing functions such as advertising, marketing research, and financing are a part of this distribution structure. E. The marketing system develops around the philosophy of selling a limited supply of goods at high prices to a small number of affluent customers.

E. The marketing system develops around the philosophy of selling a limited supply of goods at high prices to a small number of affluent customers.

33. Which of the following statements is true of a traditional distribution structure? A. The distribution system is national in scope. B. The relationship between the importer and any middleman is similar to that found in a mass-marketing system. C. The idea of a channel as a chain of intermediaries performing specific activities and each selling to a smaller unit beneath it until the chain reaches the ultimate consumer is common. D. Independent agencies providing functions such as advertising, marketing research, and financing are a part of this distribution structure. E. The marketing system develops around the philosophy of selling a limited supply of goods at high prices to a small number of affluent customers.

E. The marketing system develops around the philosophy of selling a limited supply of goods at high prices to a small number of affluent customers.

What is the primary determinant in deciding how materials will be handled?

Product Characteristics

____ is the term ted to describe the changes mandated by local product and service standards

Product homologation

Which of the following statements is true of a traditional distribution structure? A. The distribution system is national in scope. B. The relationship between the importer and any middleman is similar to that found in a mass-marketing system. C. The idea of a channel as a chain of intermediaries performing specific activities and each selling to a smaller unit beneath it until the chain reaches the ultimate consumer is common. D. Independent agencies providing functions such as advertising, marketing research, and financing are part of this distribution structure. E. The marketing system develops around the philosophy of selling a limited supply of goods at high prices to a small number of affluent customers.

E. The marketing system develops around the philosophy of selling a limited supply of goods at high prices to a small number of affluent customers. In an import-oriented or traditional distribution structure, an importer controls a fixed supply of goods, and the marketing system develops around the philosophy of selling a limited supply of goods at high prices to a small number of affluent customers. In the resulting seller's market, market penetration and mass distribution are not necessary because demand exceeds supply, and in most cases, the customer seeks the supply from a limited number of middlemen.

Which of the following is true of foreign sales corporations? A. They are commonly called piggybackers. B. They can only be related to a manufacturing parent and not an independent broker. C. They virtually control distribution through all levels of channels in Japan. D. They accumulate, transport, and distribute goods from many countries. E. They can function as principal or commissioned agents.

E. They can function as principal or commissioned agents. A foreign sales corporation can function as a principal, buying and selling for its own account, or a commissioned agent. It can be related to a manufacturing parent or can be an independent merchant or broker.

In the context of integrated marketing communications, in many markets, the availability of appropriate _____ to customers can determine entry decisions. A. demonstrations B. cultural appeal C. technological aid D. services E. communication channels

E. communication channels

Labeling Americans "cowboys" and associating the Japanese with the image of a samurai warrior are examples of: A. national symbols. B. linguistic identifiers. C. social hierarchy. D. racial discrimination. E. cultural stereotypes.

E. cultural stereotypes.

19. The distribution channel process includes all activities, beginning with the manufacturer and ending with the _____. A. wholesaler B. agent middlemen C. merchant middlemen D. retailer E. final consumer

E. final consumer

37. A(n) _____ is a domestic middleman set up in a foreign country or U.S. possession that can obtain a corporate tax exemption on a portion of the earnings generated by the sale or lease of export property. A. Webb-Pomerene export association B. manufacturer's export agent C. export management company D. complementary marketer E. foreign sales corporation

E. foreign sales corporation

A(n) _____ is a domestic middleman set up in a foreign country or U.S. possession that can obtain a corporate tax exemption on a portion of the earnings generated by the sale or lease of export property. A. Webb-Pomerene export association B. manufacturer's export agent C. export management company D. complementary marketer E. foreign sales corporation

E. foreign sales corporation A foreign sales corporation (FSC) is a sales corporation set up in a foreign country or U.S. possession that can obtain a corporate tax exemption on a portion of the earnings generated by the sale or lease of export property. Manufacturers and export groups can form FSCs. An FSC can function as a principal, buying and selling for its own account, or a commissioned agent.

34. A(n) _____ is an individual agent middleman or an agent middleman firm providing a selling service for manufacturers that covers only one or two markets. A. complementary marketer B. export management company C. Webb-Pomerene export association D. global retailer E. manufacturer's export agent

E. manufacturer's export agent

A(n) _____ is an individual agent middleman or an agent middleman firm providing a selling service for manufacturers that covers only one or two markets. A. manufacturer's retail store B. export management company C. Webb-Pomerene export association D. global retailer E. manufacturer's export agent

E. manufacturer's export agent The manufacturer's export agent (MEA) is an individual agent middleman or an agent middleman firm providing a selling service for manufacturers. Unlike the EMC, the MEA does not serve as the producer's export department but has a short-term relationship, covers only one or two markets, and operates on a straight commission basis.

52. Experienced exporters suggest that the only way to select a middleman is: A. to conduct a background check on all the distributors available in the target market. B. to issue a request-for-proposal to all distributors in the target market and evaluate their responses. C. consult other manufacturers of the similar products and select the distributor recommended by them. D. consult trade organizations and select the distributor recommended by them. E. to personally talk to ultimate consumers to find whom they consider to be the best distributors.

E. to personally talk to ultimate consumers to find whom they consider to be the best distributors.

_____ is generally a problem when managers from affluent countries work with managers and markets in less-affluent countries.

Ethnocentrism

Which of the following has been at the forefront of the "green movement"?

Europe

What is happening in BEMs today is analogous to what happened in:

Europe after World War II.

Which of the following, because it encourages retailers to stock large assortments, often creates a favorable condition for parallel importing?

Exclusive distribution

Which of the following factors spurs demand for technology advanced products in the world?

Expanding eco and industrial growth in Asia

Which of the following is a type of domestic middleman?

Export Management Companies

Describe the information search characteristic that should lead to each of the following strategies: Preference

Extended decision (extensive search), brand in evoked set.

Which of the following is an indicator of economic development?

Extent of social overhead capital.

True or false: Certain companies cannot standardize the brand names of their products because those products lack equity.

False

Half of Shanghai's GDP is derived from which of the following industries?

Financial services

Which of the following is true about the present state of foreign businesses in most developing countries?

Foreign investors are seen as vital partners in economic development.

Standardization vs. Adaptation

Four difficulties that compromise an organization's communication efforts: 1-The message may not get through to the intended recipient (lack of knowledge of media). 2-The message may reach the target audience but may not be understood or may even be misunderstood (encoding). 3-The message may reach the target audience and may be understood but still may not induce the recipient to take the action desired by the sender (lack of cultural knowledge). 4-The effectiveness of the message can be impaired by noise.

Which of the following approaches to pricing is suitable when a company has high variable costs relative to its fixed costs?

Full cost pricing

Simone Francis is a specialist in product design. She is responsible for a product's aesthetic as well as functional appearance. With respect to the product component model, in which of the following component categories would Simone's talents most likely be used?

Functional component

until the ______ and ________ agreements, there were few international rules of fair play governing trade in services

GATT and NAFTA

Which of the following is a fully industrialized country?

Germany

International Advertising (Germany)

Germany Advertisements on specific hours of the day (20 minutes per day; not after 8 p.m.), except on Sundays and holidays

Identify the statement that is LEAST likely to be an international advertising goal.

Gillette Company attempting to gain distributor cooperation in Japan.

Almost all the Chinese you deal with in _____ will be bilingual and speak at least English fluently.

Hong Kong

In the context of international advertising, ___ is the neon capital of the world.

Hong Kong

All of the following are true regarding Hong Kong EXCEPT that:

Hong Kong became a special administrative region (SAR) of the People's Republic of China in 1944.

Describe each of the strategies: Disrupt

If our brand is not part of the evoked set and our target market engages in habitual decision making, our first task is to disrupt the existing decision pattern. This is a difficult task because the consumer does not seek external information or even consider alternative brands before a purchase. Low‑involvement learning over time could generate a positive product position for our brand but this alone would be unlikely to shift behavior. In the long run, a major product improvement accompanied by attention‑attracting advertising could shift the target market into a more extensive form of decision making. In the short run, attention‑ attracting advertising aimed specifically at breaking habitual decision making can be successful.

International Distribution Systems

Import-Oriented Distribution Structure Tight distribution structures: Japan Trends: From Traditional to Modern Channel Structures

In this distribution structure, an importer controls a fixed supply of goods and the marketing system develops around the philosophy of selling a limited supply of goods at high prices to a small number of affluent customers. Identify the distribution structure in the discussion.

Import-oriented

Marketers of consumer services face four kinds of barriers in the global marketplace. Which of the following of these barriers is in force when a foreign market requires that services (such as banking or insurance) originate within the country itself and not from outside sources?

Protectionism

What is the most serious threat to the continued expansion of international services trade?

Protectionism

Which of the following is true of the strategy of planned and unplanned change in global marketing?

Protein-rich diets were marketed using the strategy of planned change.

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?

Public relations

Which of the following explains why most of the companies with Indian operations are saying that they are not leaving, but planning on expanding their Indian operations?

Qualified labor is cheap, and the market potential is massive.

which of the following is the most important criterion for consumers while purchasing products?

Quality

which of the following was designated China's first Special Economic Zone?

Shenzen

What do barter houses do?

Specialize in trading goods and acquired through barter arrangements

According to the product component model, installation, repair and maintenance, deliveries, and warranties are all part of the ______ component of the product.

Support services

The washing machines marketed by Taichi failed in Asian markets as those countries lacked the skills necessary to repair and maintain their products. Also the washing machines spares available in the local markets were not compatible with these machines. This product failure was a result of lack of attention by the company to the _____ component of the product.

Support services

Goals and Tasks of promotion

Reminder Promotion *Remind customers that product may be needed *Remind customers where to buy product *Maintain customer awareness

Factors Affecting Channel Choice:

Selection Process 1. Identify specific target markets within and across countries. 2. Specify marketing goals in terms of volume, market share, and profit margin requirements. 3. Specify financial and personnel commitments to the development of international distribution. 4. Identify control, length of channels, terms of sale, and channel ownership

Which of the following holds true for the effect of media on culture?

TV has replaced family time to the detriment of American culture.

Managers in this part of China are known to be simultaneously down-to-earth and practical but on occasion daring.

Taiwan

Which part of China is considered conservative in both behavior and language?

Taiwan

A country has reached a level of economic development where there is focus on manufacturing of both semidurable and nondurable consumer goods. Also, the goods demanded relate to equipment and supplies to support manufacturing. Which of the following stages of Rostow's five-stage model of economic growth is the country in?

Takeoff

Russia and Eastern European countries have been characterized as being in which of the following stages of Rostow's five-stage model of eco growth?

Takeoff

____ are the primary discriminatory tax that must be taken into account in reckoning with foreign competition.

Tariffs

Nuan a television manufacturer in Korea, had to modify its televisions before introducing it to the Zimbabwean markets, as the country did not have the skills to repair the product in case of malfunction. The local salesforce too, did not have the sufficient knowledge regarding the installation of the product. The factor that is influencing product adaptation in the above scenario is_____.

Technological requirements

Which of the following is NOT one of the Four Asian Tigers?

Thailand

Which of the following statements is true?

The European Union, European Economic Area, and the European Free Trade Area (EFTA) are the most established cooperative groups in Europe.

This region in China includes three cities of over 5 million inhabitants (Hong Kong, Guangzhou, and Shenzhen); five cities with more than 1 million inhabitants (Zhuhai, Huizhou, Foshan, Zhongshan, and Dongguan); and a number of cities that each contain approximately half a million inhabitants, such as Macau. Identify the region

The Greater Pearl River area

One of Phillipe Ortiz's difficulties in marketing his line of Philippine cabinetry in Los Angeles is that he is still tied culturally to the business models that work in the Philippines. These models do not work well in the United States. Which of the following best explains the difficulty Philippe is experiencing?

Self-reference criterion

With respect to the evolution of the marketing process, which of the following would be considered to be the most fundamental substage (first substage)?

Self-sufficient

Which of the following is considered to be an important competitive marketing tool in Europe?

The adoption of ISO 9000 by a company

Which of the following stages of Rostow's five-stage model of eco growth do highly-industrialized countries like Japan and Germany fit into?

The age of mass consumption

Differences in Business Negotiation Styles Within The Greater China

- Northeastern Negotiators - Beijing Area - Shanghai Area - The Pearl River Delta - Hong Kong - Taiwan

What are the components of integrated marketing communications?

1. Trade shows 2. Personal Selling 3. Advertising 4. Direct Selling 5. Sales Promotions

The ___ measures customers' satisfaction and perceptions of quality of a representative sample of America's goods and services

American Customer Satisfaction Index (ACSI)

Which of the following is one of the six Cs of distribution channel strategy? A. Communication B. Continuity C. Capacity D. Commission E. Contribution

B. Continuity cost, capital, control, coverage, character, and continuity.

Which of the following makes Walmart's transactions with suppliers highly efficient and lowers its cost of operations? A. Clean business reputation B. Internal Internet-based system C. Ability to beat competitors D. Outreach programs to placate small retailers E. Ability to influence foreign governments

B. Internal Internet-based system One of Walmart's strengths is its internal Internet-based system, which makes its transactions with suppliers highly efficient and lowers its cost of operations.

51. Which of the following actions should be taken to begin with the search for prospective middlemen? A. Short listing the middlemen. B. Studying the target market. C. Evaluating the available financial resources. D. Designing the sales force required. E. Understanding the mission of the manufacturing firm.

B. Studying the target market.

32. Multinational market groups form: A. a large organization that promotes harmony by mutual agreement to a common peace treaty. B. large markets that provide potentially significant opportunities for international business. C. a conglomerate that seeks to undertake foreign trading ventures as one company. D. a non-profit entity that works together to help the development of under-developed countries. E. regional trading blocs without trade restrictions internally but with borders protected from outsiders.

B. large markets that provide potentially significant opportunities for international business.

A major goal of the Export Trading Company (ETC) Act was to: A. allow U.S. companies to bypass tax laws with respect to international trading. B. remove antitrust disincentives to export activities. C. bypass trade barriers in foreign countries. D. earn the highest possible profits in foreign countries. E. combine export shipments within single containers.

B. remove antitrust disincentives to export activities. The Export Trading Company (ETC) Act allows producers of similar products to form export trading companies. A major goal of the ETC Act was to increase U.S. exports by encouraging more efficient export trade services to producers and suppliers to improve the availability of trade finance and to remove antitrust disincentives to export activities

In the 1970s, international marketers framed the approach toward market segmentation as _____. A. global integration versus one-to-one marketing B. standardization versus adaptation C. adaptation versus one-to-one marketing D. global integration versus local responsiveness E. standardization versus local responsiveness

B. standardization versus adaptation

22. A disadvantage when using home-country middlemen as intermediaries in the distribution process is: A. the large financial investment required. B. the limited control over the distribution process. C. the large managerial investments required. D. the limited number of retailers in the foreign country who can be reached. E. the large amount of commission.

B. the limited control over the distribution process.

Social media such as blogs and social networking permits consumers to:

Become authorized virtual brand agents for the product manufacturers

_____ is the capital of China

Beijing

Which of the following countries has the largest number of retailers? A. United States B. Argentina C. China D. South Africa E. Japan

C. China

In the context of factors affecting choice of channels, which of the following is one of the key elements in distribution decisions? A. Selection of optimum container sizes B. Volume discounts and rebates C. Functions performed by middlemen D. Local advertising modes E. Target market culture

C. Functions performed by middlemen Distribution channels vary depending on target market size, competition, and available distribution intermediaries. Key elements in distribution decisions include the functions performed by middlemen (and the effectiveness with which each is performed), the cost of their services, their availability, and the extent of control that the manufacturer can exert over middlemen activities.

Complementary marketing is commonly known as _____. A. backhauling B. demand shifting C. piggybacking D. shape shifting E. skimming

C. piggybacking

Continuity

Channels of distribution often pose a longevity problem. Most agent middlemen firms tend to be small institutions. When one individual retires or moves out of line, the company may find it has lost its distribution in that area.

Which of the following is a physical attribute of a product that is essential for its primary function?

Components

46. Which of the following is one of the highest costs of doing business in China? A. Money required for the transportation of goods. B. Money required for obtaining appropriate permits. C. Cost of local advertising. D. Capital required to maintain effective distribution. E. Cost of customizing products for the Chinese market.

D. Capital required to maintain effective distribution.

45. 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. Trading companies. C. Export associations. D. Direct sales force. E. Complementary marketers.

D. Direct sales force.

____ in advertising is a thorny issue, because most member countries of the European Commission have different interpretations of what constitutes a misleading advertisement.

Deception

Direct Mail

Direct mail is a viable medium in an increasing number of countries. It is especially important when other media are not available. Even if direct mail is available, it may not work due to high illiteracy rates in some countries

Which of the following modes of distribution affords the most control over the distribution channels but often at a cost that is not practical?

Direct sales force

In which of the following modes of distribution in the foreign market will a company have to make max. financial investment?

Direct sales force.

Which of the following has proved to be an important way to break the trade barrier imposed by the Japanese distribution system?

Direct sales through catalogs

60. Which of the following is true of a physical distribution system? A. It involves only the physical movement of goods. B. It is a total systems approach to the management of the distribution process. C. A decision involving an activity has no impact on the cost and efficiency of one or all others. D. It excludes the interdependence of the costs of each activity. E. It includes transportation mode, inventory quantities, and packing.

E. It includes transportation mode, inventory quantities, and packing.

Which of the following companies has been known for its ability to adapt to local needs and wants in the international marketplace since its inception in 1866? A. Kodak B. C.W. Post C. R.J. Reynolds Tobacco D. Ralston Purina E. Nestlé

E. Nestlé

_____ is the term used to describe the changes mandated by local product and service standards. A. Product localization B. Product blending C. Product standardization D. Product dilution E. Product homologation

E. Product homologation

59. In the context of cultural reactions when engaging in e-commerce, the color red is associated with socialism in _____. A. the United States B. China C. Brazil D. Uruguay E. Spain

E. Spain

34. The World Trade Organization is wholly dedicated to ____. A. the expansion of capitalism B. the elimination of language barriers in trade C. free and open national borders D. the enforcement of international anti-bribery laws E. making trade among nations more efficient

E. making trade among nations more efficient

31. Integrated marketing communications are composed of all of the following EXCEPT: A. advertising. B. sales promotions. C. trade shows. D. public relations. E. political rallying.

E. political rallying.

Which of the following is true of communication infrastructures as a part of international commerce?

Each new communications technology has spawned new business models.

Which of the following is a domestic environment uncontrollable that can have a direct effect on the success of a foreign venture?

Economic climate

_____ refers to an increase in national production that is reflected by an increase in the average per capita gross domestic product (GDP) or gross national income (GNI).

Economic development

Which of the following is the biggest threat for the fast pace of growth China is experiencing?

Economic volatility that accompanies fast growth

Booster bar is a popular brand of energy bars in Canada. The company sold these bars singly or in packs of two in the South Asian markets, instead of their regular multiple-item packaging containing 10 or 20 bars to make it more affordable for the consumers. Which of the following requirements of the local market is influencing product adaptation in the above scenario?

Economical requirements

The institutions of the _____ comprise executive, parliamentary, and judicial branches.

European Union

The most successful multinational market region since World War II is the ______.

European Union

Describe the information search characteristic that should lead to each of the following strategies: Acceptance

Extended decision (extensive search), brand not in evoked set.

Which of the following is the stereotype of businesspeople in the Northeast?

Forthrightness

Describe the information search characteristic that should lead to each of the following strategies: Disrupt

Habitual decision (no search), brand not in evoked set.

International Advertising (India)

If consumers see an advertisement, which they consider misleading or offensive, they can write to Advertising Standard Council of India

Which of the following distribution structures is also known as a traditional distribution structure?

Import-oriented

Know what decoding problems can be caused by.

Improper encoding, accidentally, noise

According to the text, which of the following are the two important steps China has to take if the road to economic growth is to be smooth?

Improving human rights and reforming the legal system

Entrepreneurship

In all of these nations, free enterprise in the hands of the self employed was the seed of the new economic growth

Even though, in many markets, standardized products may be possible, know how marketers should approach advertising. (e.g., What determines if standard products or advertising is appropriate in a market?)

Intense competition for world markets and the increasing sophistication of foreign consumers have led to a need for more sophisticated advertising strategies In many cases, standardized products may be marketed globally. But because of differences in cultures, they still require a different advertising appeal in different markets.

In the international business arena, which of the following is considered to be one of Walmart's strengths?

Internal Internet-based system

In which of the following countries is the time spent on social media sites the highest?

Israel

According to the text, in China, which of the following can cause some problems for television and radio advertisers in the country that print media can usually avoid?

Lack of common language

____ is one of the major barriers to effective communication through advertising.

Language

Which of the following is true with respect to market integration?

Many national markets, too small to bother with individually, take on new dimensions and significance when combined with markets from cooperating countries.

____Pricing is a practical approach to pricing when a company has high fixed costs and unused production capacity.

Marginal-cost

Which of the following factors is mainly responsible for a perceptual bias when interpreting the characteristics of a product?

Market analyst's self-reference criterion

What are two dimensions that help in defining the quality of a product of quality?

Market-perceived quality and performance quality

Which are two dimensions of quality?

Market-perceived quality and performance quality

Dr. Mark Townes is a dentist practicing in Denver. During a four-day stretch in March, it snowed so heavily that not a single patient was able to visit him. Since all the appointments were missed, he did not make any money for those four days, even though his normal expenses remained. Which of the following characteristics of services is affecting Dr. Townes' business?

Perishability

Materials Handling

Physical handling of tangible goods, supplies, and resources

The company that follows the approach of pricing as a static element:

Places a low priority on foreign business

Economic Growth Factors

Political stability in policies, economic and legal reforms, entrepreneurship, planning, outward orientation, factors of production, and industries targeted for growth

Which of the following statements is true?

Political, geographical and cultural factors determine how successful an economic union is.

Allen's is a cosmetics company in the UK. When Allen's ventured into the Chinese market by setting up a manufacturing plant in China, the activists in China rallied against the company claiming that they are exploiting the cheap labor available there. They demanded that the manufacturing plant be closed down. Which of the following foreign environment uncontrollables is posing a challenge to Allen's in the above scenario?

Political/legal forces

In the context of Hofstede's four dimensions, the _____ Index measures the tolerance of social inequality within a social system.

Power Distance

_____ is the practice whereby a foreign producer intentionally sells its products in a market for less than the cost of production to undermine the competition and take control of the market.

Predatory pricing

____ results from the added costs incurred as a result of exporting products from one country to another.

Price escalation

If promotion does not do its job of stimulating demand, then the:

Price of the promoted product is likely to increase

Which of the following is essential while making price quotations for international sale?

Price quotations must specify the currency to be used and the credit terms of the transaction

Standardization vs. Adaptation, Primary Issue

Primary Issue Must the specific advertising message and media strategy be changed from region to region or country to country? Think of cultural and legal issues

Problems associated with broadcast through cable or satellite television can be overcome, and advertising to many cultures and locations can be facilitated, with the use of _____.

Princeton Video Imaging

Outward Orientation

Production for the domestic market and export markets with increases in efficiencies and continual differentiation of exports from competition was the focus

___ is an arena that should be on a checklist of criteria for evaluating middlemen servicing a market.

Productivity

Encourage product trial

Promotional efforts designed to reduce the risk to consumers for using a product for the first time

Patterns of Multinational Cooperation

Regional Cooperation Groups, Free Trade Area, Customs Union, Common Market, Political Union

Other Media

Restrictions on traditional media or their availability cause advertisers to call on lesser media to solve particular local-country problems. The cinema is an important medium in many countries, as are billboards and other forms of outside advertising. Billboards are especially useful in countries with high illiteracy rates.

Retail Patterns

Retailing shows even greater diversity in its structure than does wholesaling Size Patterns -Large dominant retailers can be sold to directly, but there is no adequate way to reach small retailers who, in the aggregate, handle a great volume of sales -Underdeveloped countries present similar problems -The rate of change appears to be directly related to the stage and speed of economic development

The World Bank estimates that five countries whose share of world trade is barely one-third that of the European Union will, by 2020, have a 50 percent higher share than that of the European Union. Which of the following is one of the countries included in this list?

Russia

Which of the following is true of open accounts?

Sales on open accounts are not generally recommended when there is political unrest in the importer's country

____ are short-term efforts directed to the consumer or retailer to achieve specific objectives as consumer product trial or immediate purchase.

Sales promotion

_____ are marketing activities that stimulate consumer purchases and improve retailer or middlemen effectiveness and cooperation

Sales promotions

Blogs, social networking, and video sharing are examples of media commonly known as ____.

Social media

Availability

Some countries have too few advertising media and others have too many. In some countries, certain advertising media are forbidden by government edict to accept some advertising materials.

Foreign-Country Middlemen Continued

Some of the more important foreign-country middlemen, who find markets for foreign manufacturers include: -Manufacturer's Representatives -Distributors -Foreign-Country Brokers -Managing Agents and Compradors -Dealers -Import Jobbers, Wholesalers, and Retailers

Which of the following statements is true of a traditional distribution structure?

The marketing system develops around the philosophy of selling a limited supply of goods at high prices to a small number of affluent customers.

Control

The more involved a company is with the distribution, the more control they exert. A company's own sales force can afford the most control but often at a cost that is impractical to the company.

Factors Affecting Channel Choice

The selection process involves the following: 1. Identify specific target markets within and across countries 2. Specify marketing goals in terms of volume, market share, and profit margin requirements 3. Specify financial and personnel commitments to the development of international distribution 4. Identify control, length of channels, term of sale, and channel ownership

In 1479, under the _____, Venice agreed to pay tribute to the Ottoman Empire in exchange for trading rights in the Black Sea.

Treaty of Constantinople

Describe each of the strategies: Acceptance

Very similar to preference strategy. However, it is complicated by the fact that the target is not seeking information about our brand. Therefore, in addition to the activities involved in the preference strategy described above, we must attract their attention or otherwise motivate them to learn about our brand.

inventory management

developing and maintaining adequate assortments of products to meet customers needs

The Internet

- E-commerce is used to market business-to-business services, consumer services, and consumer and industrial products via the World Wide Web - The Internet is an important distribution method for multinational companies

Trends: From Traditional to Modern Channel Structures

-Traditional channel structures still appear in many places -But such channel structures also are giving way to new forms, new alliances, and new processes -Direct marketing, door-door selling, hypermarkets, discount houses, shopping malls, catalog selling, the Internet, and other distribution methods are being introduced in an attempt to provide efficient distribution channels -Importers and retailers also are becoming more involved in new product development

Marketing's Condition

-Unfortunately, marketing (or distribution) is not always considered meaningful to those responsible for planning. Economic planners frequently are more production oriented than marketing oriented -Marketing is an economy's arbitrator between productive capacity and consumer demand -It can create a balance between higher production and higher consumption

International Advertising ( France)

-Up to 9 minutes of advertising per hour on average in a day. -For public channels, advertising is forbidden after 8 p.m. and will completely disappear in 2012

What happens when media limits companies' creative strategies? (Check all that apply.)

1. Advertising becomes a smaller part of the promotional program. 2. Marketers must stress other components of the promotional mix.

Selecting Middlemen

1. Screening based on the following criteria: a) reputation b) creditworthiness c) markets served d) products carried e) number of stores f) store size 2. The Agreement that details terms of the contract and the functions to be performed on behalf of the foreign manufacturer

35. Which of the following is an important lesson with respect to negotiation? A. Regional generalizations very often are not correct. B. The Japanese tend to be in the middle of the scale on almost every dimension of negotiation style. C. National stereotypes tend to closely reflect the reality, more often than not. D. On almost every dimension of negotiation style considered, the Americans are on or near the end of the scale. E. Asian negotiation styles tend to be collectively similar across all dimensions.

A. Regional generalizations very often are not correct.

_____ are short-term efforts directed to the consumer or retailer to achieve such specific objectives as consumer product trial or immediate purchase. A. Sales promotion B. Advertising C. Trade shows D. Direct selling E. Public relations

A. Sales promotion

54. 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 that period. This is an example of problems associated with which of the following six Cs of channel strategy? A. Character B. Continuity C. Control D. Cost E. Capital requirement

B. Continuity

Which of the following modes of distribution affords the most control over the distribution channels but often at a cost that is not practical? A. Complementary marketers B. Direct sales force C. Export associations D. Trading companies E. Export management companies

B. Direct sales force

In the context of the different types of middlemen, which of the following is an example of manufacturer's retail store?

Benetton

Aside from the United States and Japan, _____ is the most important single national market. A. United Arab Emirates B. Union of Soviet Socialist Republics C. People's Republic of China D. Dominican Republic E. French Southern Territories

C. People's Republic of China

With regard to consumer products, which of the following is the major limitation of the Internet?

Coverage of the internet

A _____ provides a selling service for a manufacturer, has a short-term relationship, and operates on a straight commission basis. A. manufacturers' retail store B. trading company C. global retailer D. manufacturer's export agent E. complementary marketer

D. manufacturer's export agent

During which step of the international communications process does the receiver of the message interpret symbolism transmitted from the info source?

Decoding

______ is often the approach of choice in markets with insufficient or underdeveloped distribution systems.

Direct marketing

The Internet

E-commerce is used to market business-to-business services, consumer services, and consumer and industrial products via the World Wide Web The Internet is an important distribution method for multinational companies When using the internet for distribution purposes, the following factors should be considered: -Culture -Adaptation (especially of language) -Local contract information -Payment form -Delivery -Promotion

Which of the following is the term used to refer to both the People's Republic of China (PRC) and the Republic of China (ROC) or Taiwan? A. Integrated China B. The Yellow Route C. Neo China D. Mainland China E. The Greater China

E. The Greater China

40. Which of the following is true of foreign sales corporations? A. They are commonly called piggybackers. B. They can only be related to a manufacturing parent and not an independent broker. C. They virtually control distribution through all levels of channels in Japan. D. They accumulate, transport, and distribute goods from many countries. E. They can function as a principal or a commissioned agent.

E. They can function as a principal or a commissioned agent.

34. A company that views pricing as a static element in a business decision: A. places a high priority on foreign business. B. sets prices to achieve specific objectives such as targeted return on profit. C. customizes its products for the foreign market. D. views domestic sales as an insignificant source of revenue. E. exports only excess inventory.

E. exports only excess inventory.

57. E-commerce is more developed in _____ than the rest of the world, partly because of the lower cost of access to the Internet than found elsewhere. A. China B. Brazil C. Switzerland D. South Africa E. the United States

E. the United States

E-commerce is more developed in _____ than the rest of the world, partly because of the lower cost of access to the Internet than found elsewhere. A. China B. Brazil C. Switzerland D. South Africa E. the United States

E. the United States E-commerce is more developed in the United States than the rest of the world, partly because of the vast number of people who own personal computers and partly because of the much lower cost of access to the Internet than found elsewhere.

Which of the following is considered as the single most important environmental element of a country to which the foreign marketer must adjust the marketing task?

Economic level

Which of the following represents the shift of power in the marketplace?

From a sellers' to a customers' market

Which of the following is true of global awareness in the context of international marketing?

Global awareness can be generated by selecting individual managers specifically for their demonstrated levels of global awareness.

Which of the following barriers require the importers who want to buy a foreign good to apply for an exchange permit?

Government approval

Which of the following holds true for the effect of governments on cultural values?

Governments try to influence the thinking and behaviors of adult citizens for the citizens' "own good."

Which of the following is the term used to refer to both the People's Republic of China (PRC) and the Republic of China (ROC) or Taiwan?

Greater China

Factors of Production

If deficient in land (raw materials), labor, capital, management, and technology - these factors come from the outside the country and be directed to development objectives

Know why an international marketer may want to forego using direct mail in Chile.

In Chile, direct mail is virtually eliminated as an effective medium because the sender pays only part of the mailing fee; the letter carrier must collect additional postage for every item delivered. Obviously, advertisers cannot afford to alienate customers by forcing them to pay for unsolicited advertisements.

Which of the following is true of free trade zones (FTZ)?

In an FTZ, payment of import duties is postponed until the product leaves the FTZ area and enters the country

Which of the following is true regarding an export management company (EMC)?

It calls for a minimum investment from the parent firm to get into international markets

Which of the following is true of the Japanese economy?

It grew very quickly in the 1970s and 1980s.

EU Institutions

It has executive, parliamentary, and judicial branches: - the European Commission: initiates policies - the Council of Ministers: is the decision-making body of the European Union - the European Parliament: can amend and adopt legislation - the Court of Justice: is responsible for challenging any measures incompatible with the Treaty of Rome, for passing judgment at the request of a national court, on the interpretation or validity of points of EU law

Which of the following is true regarding the impact of global competition on the business activities in the marketplace?

It has put more power in the hands of the customer

Which of the following is true of the distribution process?

It includes buying and selling negotiations

Which of the following is true about privatization of state-owned enterprises?

It often leads to modernization.

Which of the following is NOT true of the marketing opportunities in Greater China?

Just like in the U.S., the same lines of cosmetics or shampoos are sold nationwide.

Hyundai, Kia, Samsung, and Lucky-Goldstar (LG) are among the familiar brand names in automobiles, microwaves, and televisions from _____.

Korea

Government-Affiliated Middlemen

Marketers must deal with governments in every country of the world Products, services, and commodities for the government's own use are always procured through government purchasing offices at federal, regional, and local levels In many countries such as the Netherlands, the Government purchases from a lot of suppliers, and a large percentage of the suppliers may be located in other countries

Marketing communications

Marketing communications tell customers about the benefits and values that a company, product, or service offers.

Which of the following are driving a strong level of interest in the ISO 9000 certification?

Marketplace requirements

Which of the following substages best characterizes the United States today with respect to the evolution of the marketing process?

Mass distribution

Identify the substage in the evolution of the marketing process, when the only marketing functions performed are demand creation and physical distribution.

Mass production

Cost

Media prices are susceptible to negotiation in most countries. Agency space discounts are often split with the client to bring down the cost of media. The advertiser may find that the cost of reaching a prospect through advertising depends on the agent's bargaining ability.

Which of the following are frequently criticized for not representing the best interests of a manufacturer?

Merchant middlemen

____ take title to manufacturers' goods and assume the trading risks.

Merchant middlemen

Which of the following leave(s) sellers in a position where most of the problems of international commercial finance work to their disadvantage?

Open accounts

Economic and Legal Reforms

Poorly defined and/or weakly enforced contract and property rights are features the poorest countries have in common

Radio and Television

Possibly because of their inherent entertainment value, radio and television have become major communications media in almost all nations. Now high definition television (HDTV) appears to be starting to take off worldwide as well. Television and radio advertising availability varies between countries. Some countries do not permit any commercial radio or television.

Globalization and Product Cultures

Products such as coffee and beer have emerged as true global products Starbucks and the coffee culture -Irish pubs in the U.S. -German-style beer halls in Japan

Which of the following is NOT a factor that has contributed to the rapid economic growth of NICs (newly industrialized countries)?

Rapid increase in population.

Which of the following can be used as a measure to manage volatility in industrial demand in the domestic market?

Reducing advertising expenditures during booms

RP Continued

Resistance to Change -Efforts to improve the efficiency of the distribution system, new types of middlemen, and other attempts to change traditional ways are typically viewed as threatening and are thus resisted *Direct sales through catalogs have proved to be a successful way to enter foreign markets. In Japan, it has been an important way to break the trade barrier imposed by the Japanese distribution system. *For example, a U.S. mail-order company, Shop America, teamed up with 7-Eleven Japan to distribute catalogs in its 4,000 stores. *A classic example of resistance to change is the restructuring of the film distribution business being caused by the fast changing technologies of digitization and piracy. Laws abound that protect the entrenched in their positions.

Which key provision of NAFTA restricts Japan from assembling autos in Mexico and avoiding U.S. or Canadian tariffs and quotas, unless the auto had a specific percentage of Mexican (i.e., North American) content?

Rules of origin

In the context of cultural reactions when engaging in e-commerce, the color red is associated with socialism in ____.

Spain

Immediately after World War II, a shattered Japanese nation arrived at a consensus goal for national recovery. That consensual goal provided the incentive for its spectacular progress, decade after decade. Then during the late 1980s, the Japanese people stepped back and looked around at their manifest achievement. It was easy to conclude they had reached their coveted goal. So the question for them became, "all right, what's next?" This theory tries to explain the Japanese crisis of the 90's. Which of the following theory are we talking about?

The Cultural Capital theory

The Webb-Pomerene Act of 1918 made it possible for American business firms to join forces in export activities without being subject to which of the following acts?

The Sherman Antitrust Act

Which of the following countries is not officially on the metric system?

The US

Which of the following is true of a company that views prices as an active instrument of accomplishing marketing objectives?

The company sets prices to achieve specific objectives

Which of the following out-of-control factor explains Japan's end-of-the-century economic problems?

The complex Japanese language

Outsourcing

The contracting of physical distribution tasks to third parties who do not have managerial authority within the marketing channel -example: hired a shipper and an information technology firm to assist with these functions

Import-Oriented Distribution Structures Continued

The customer seeks the supply from a limited number of middlemen and this affects the development of intermediaries and their functions. Distribution systems are local rather than national in scope The relationship between the importer and any middleman in the marketplace is considerably different from a mass-marketing system, the importer performs all the functions

Channel-of-Distribution Structures

The distribution process: -physical handling and distribution of goods, -the passage of ownership (title), and -the buying and selling negotiations between producers and middlemen and between middlemen and customers Channel structures range from those with little developed marketing infrastructure such as those found in many emerging markets to the highly complex, multi-layered system found in Japan

receiver

The individual or group that decodes a coded message

How do non-searchers, limited information searchers, and extended information searchers differ in their search for information?

The search effort most appropriate for any given individual depends on the perceived benefits and costs of different levels of search effort. For non-searchers, the perceived benefits of a search are apparently less than the expected costs of that search, while extended information searchers have a much different perception of benefits and costs, as they exhibit considerable effort before feeling a purchase decision can be made.

The Message: Creative Challenges

There are many problems in communicating a firm's product offerings to its various target markets around the world. Some of these include: - Global Advertising and the Communications Process - Legal Constraints - Linguistic Limitations - Cultural Diversity - Media Limitations - Production and Cost Limitations

Which of the following statements is true regarding merchant middlemen?

They assume trading risks

Which of the following is true of foreign sales corporations?

They can function as a principal or commissioned agent

What roles do the evoked set, insert set, and inept set play in a consumer's information search?

Those brands that a consumer is aware of (i.e., in his or her awareness set) can be classified as belonging to either an evoked, inert, or inept set. Evoked Set: "good" alternatives to consideration - Consumers' evoked sets include brands that they would readily consume. Inert Set: "neutral," backups -are brands they are aware of but are indifferent toward and not likely to consume as long as brands in their evoked set are available. Inept Set: "unacceptable" -are brands they are aware of, but dislike enough that they would not consume them.

According to Everett Rogers, what is the element that differentiates diffusion from other types of communications research?

Time

How do situational characteristics influence a consumer's information search effort?

Time availability: The more time available for the purchase, the greater the search. Purchase for others: Gift purchases generally evoke more search effort than purchases for self. Pleasant surroundings: Increase search within that store or mall, but may reduce total search. Social surroundings: May increase or decrease search depending on the nature of the social situation. Physical/mental energy: Increase search compared to a fatigued situation.

The first step in the international communication process is ______.

encoding by an information source

Canada is classified under the category of _____.

more-developed countries

Place Utility

products are available in locations where consumers want to buy them

One of the possible reasons for manufacturing in a third country could be an attempt to_____

reduce manufacturing costs.

____ are the primary discriminatory tax that must be taken into account in reckoning with foreign competition

tariffs

Warehousing

the design and operation of facilities for storing and moving goods -involves design and operation of facilities for storing goods -enables companies to compensate for dissimilar production and consumption rates and stabilize prices and availability of seasonal items

Order Processing

the receipt and transmission of sales order information

feedback

the receivers response to a decoded message

One of the drawbacks of satellites is:

their ability to span a wide geographical region

Many suppliers are adopting ISO 9000 standards because:

their buyers require them to be ISO 9000 registered

The Big Idea

"The Big Idea is easier to illustrate than define, and easier to illustrate by what it is not than by what it is. It is not a "position"...It is not an "execution"... It is not a slogan. The Big Idea is the bridge between an advertising strategy, temporal and worldly, and an image, powerful and lasting." -Randall Rothenberg, author

Deceptive advertising

"a customer only pays one dollar for every pound he or she wants to lose but specifies in fine print that the cost of meals is extra"

Marketing Communication Process

*See slide*

Goals and Tasks of promotion

*see slide*

Marketing communication tools

*see slide*

Why adapt?

1-Written and spoken language differences 2-Differences in symbolic meaning 3-Differences in humour 4-Lack of cross cultural icons 5-Difference in value systems 6-Collectivism and individualism 7-Government regulation

Foreign Country Middlemen

-Using foreign-country middlemen moves the manufacturer closer to the market and involves the company more closely with problems of language, physical distribution, communications and financing -Foreign middlemen may be agents or merchants, they may be associated with the parent company to varying degrees, or they may be hired temporarily for special purposes Some of the more important foreign-country middlemen, who find markets for foreign manufacturers include: -Manufacturer's Representatives -Distributors -Foreign-Country Brokers -Managing Agents and Compradors -Dealers -Import Jobbers, Wholesalers, and Retailers

Combating competitive promotional efforts

-if ford advertises its towing services then dodge does the same -most seen in fast food industries

4 Distinguishing Features of Japanese Distribution Structure:

1. A structure dominated by many small middlemen dealing with many small retailers—high density of middlemen 2. Channel control by manufacturers 3. A business philosophy shaped by a unique culture and 4. Laws that protect the foundation of the system—the small retailer

Arrange the steps of an international advertising campaign in the correct order, with the first step at the top.

1. Perform marketing research 2. Specify the goals of communication 3. Develop the most effective messages for the market segments selected 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

Producer Factors

1. Resources: the more financial, managerial, marketing resources — the more direct channels should be used 2. The more desire to control price, position, brand Image & customer support — the more to use direct channel

Identify the problems that are associated with advertising coverage.

1. Sufficient information about coverage cannot be obtained. 2. Some demographic groups cannot be reached.

Global Media Decisions

1. Which medium or media to use? -Print such as daily and weekly newspapers to magazines with regional, national, or international audiences -Electronic media like broadcast TV, cable TV, radio, and the internet -Other such as outdoor, transit, and direct mail 2. Must know country-specific regulations -Ex. France bans TV ads by retailers -Belgium and Luxembourg explicitly ban comparative advertising, whereas it is clearly authorized in the United Kingdom, Ireland, Spain and Portugal

Identify techniques used by advertisers that can lead to difficulties for translators. (Check all that apply.)

1. Word economy 2. Terse writing 3. Abstractions

Know the top three industries (in order) when it comes to spending on global advertising. (Exhibit 16.2)

1. automotive 2. personal care 3. food

Possible objectives of promotion:

1. create awareness (when a new line is introduced) 2. simulate demand ( primary promotion, pioneer promotion, selective demand) 3. encourage product trial (reduce risk to consumer for using a product the first time) 4. identify prospects (direct-response info) 5. retain loyal customers (rewards cards) 6. facilitate reseller support 7. combat competitive promotional efforts 8. reduces sales fluctuations

Selecting Marketing Channels

1. customer characteristics 2. product attributes 3. type of organization 4. competition 5. marketing environmental forces 6. characteristics of intermediaries

The three major levels of intensity at which a company can choose to distribute its products are:

1. exclusive 2. selective 3. intensive

two main reasons for criticism of promotional activities are that promotion:

1. has some flaws 2.it pervades our daily lives

A company may limit or decrease print advertising _______.

1. if printing is of poor quality 2. if high-grade paper is not available

3 primary task of order processing:

1. order receipt 2. order checking 3. order delivery

4 possible elements of the promotion mix

1. personal selling 2. public relations 3. sales promotion 4. advertising

3 types of utility for consumers

1. place 2. time 3. possession

Virtual meetings are difficult to execute:

1. they can disrupt sleep and family life 2. of the three kinds of distances (miles, time zones, and cultural distances), time zones have the greatest influence on the success of their commercial efforts abroad

INformation flow

1.Info about customers and marketing environment forces 2. integrated marketing communications plan 3. Customers 4. feedback

International Advertising ( Malaysia)

20 minutes with 10 - 15 advertisement per commercial break.

The true consumer market in China is probably limited to no more than _____ percent of those who live in the more affluent cities.

25

Latin America and other emerging markets will account for ___ % of the world's total growth in the next two decades and beyond

75

Channel Strategy

A Channel Strategy involves the decisions a manufacturer makes to effectively and efficiently move its products to the customer

Know the basic definition of a market offering (product).

A bundle of the satisfactions a buyer receives This includes the primary function (usually same across cultures) and many other benefits imputed by the values and customs of the culture.

Planning

A central plan with observable and measurable development goals linked to specific policies was in place

When the marketer wishes to enter a new geographic market but does not wish to expand the existing sales force

A channel that includes both a manufacturers' agent and an industrial distributor is appropriate

electronic data interchange

A commonly used computerized means of integrating order processing with production, inventory, accounting, and transportation

Channel Captain

A single leader who controls and organizes a marketing channel is called a

15. _____ is often the approach of choice in markets with insufficient or underdeveloped distribution systems. A. Direct marketing B. A big wholesale store C. Internet selling D. A discount house E. Television advertising

A. Direct marketing

58. In the context of the Internet in international marketing channels, technically, e-commerce is a form of _____ selling. A. direct B. parallel C. dual D. mass E. targeted

A. direct

Home-Country Middlemen

AKA domestic middlemen, provide marketing services from a domestic base and find foreign markets for products for local manufacturers

The primary multinational trade group in Asia is

ASEAN

The primary multinational trade group in Asia is _____.

ASEAN

What happens if a market is segmented by too many newspapers?

Advertisers cannot afford to buy sufficient coverage.

____ is a typical payment procedure for established customers where the good are delivered, and the customer is billed on an end-of-the-month basis.

An open account

In international business, global marketing strategies are almost always implemented through _____ with business partners and customers from foreign countries. A. video-conferencing B. face-to-face negotiations C. online collaborations D. international treaties E. a memoranda of cooperation

B. face-to-face negotiations

For most companies, which of the following are the major components in the marketing communications (p. 454) mix? A. Public relations and advertising. B. Direct selling and trade shows. C. Advertising and personal selling. D. Public relations and sales promotions. E. Direct selling and sales promotions.

C. Advertising and personal selling.

Which of the following techniques of motivating middlemen work best when cultural distances are great?

Communication

24. Home-country middlemen are also known as _____ middlemen. A. area B. local C. merchant D. domestic E. regional

D. domestic

35. A _____ provides a selling service for a manufacturer, has a short-term relationship, and operates on a straight commission basis. A. manufacturers' retail store B. trading company C. global retailer D. manufacturer's export agent E. complementary marketer

D. manufacturer's export agent

14. In the context of distribution patterns, the rate of change in retailing around the world appears to be directly related to the _____. A. literacy rate B. rate of inflation C. population growth D. speed of economic development E. currency exchange rate

D. speed of economic development

23. A major trade-off when using home-country middlemen is: A. the large financial investment required. B. the limited control over the entire distribution process. C. the large managerial investments required. D. the limited number of retailers in the foreign country who can be reached through the home-country middlemen. E. the large amount of commission charged by the home-country middlemen.

E. the large amount of commission charged by the home-country middlemen.

Chapter 9

Economic Development

What are evaluative criteria and how do they relate to information search?

Evaluative criteria are those characteristics that are important to the consumer in the evaluation and choice of alternatives. Evaluative criteria guide information search by specifying what information should be sought in order to resolve a particular problem.

Which of the following steps of a communications process is important as a check on the effectiveness of the other steps?

Feedback

Home-Country Middlemen

Home-country middlemen, or domestic middlemen, provide marketing services from a domestic base and find foreign markets for products for local manufacturers

Describe each of the strategies: Maintenance

If our brand is purchased habitually by the target market, our strategy is to maintain this behavior. This requires consistent attention to product quality and distribution (avoiding out‑of‑stock situations). In addition, it is necessary to defend against the disruptive tactics of competitors. Thus, we need to maintain product development and improvements and to counter short‑term strategies such as coupons, point‑of‑purchase displays, or rebates.

Know why many Europeans (and their governments) are concerned when it comes to satellite television.

If some member states opt to apply television-broadcasting rules to the Internet while other countries apply print-media advertising

Advertising Agencies: Organizations and (Brands)

Individual agencies are considered brands Full service brands create advertising, and provide services such as market

Which of the following statements regarding the industrial goods market is true?

Industrial goods are more standardized than consumer goods

Logistics

Logistics management is a total systems approach to the management of the distribution process that includes all activities involved in physically moving raw material, in-process inventory, and finished goods inventory from the point of origin to the point of use or consumption. A physical distribution system involves more than the physical movement of goods. It includes the location of plants and warehousing (storage), transportation mode, inventory quantities, and packing. The concept of physical distribution takes into account the interdependence of the costs of each activity; a decision involving one activity affects the cost and efficiency of one or all others.

Which of the following characterizes the business philosophy of the Japanese distribution channels?

Loyalty

The national language of China is standard _____ but more than 56 dialects and other languages are spoken across the country.

Mandarin

A(n) ____ is an individual agent middleman or an agent middleman firm providing a selling service for manufacturers that covers only one or two markets.

Manufacturer's export agent

Channel Management

Many companies have been stopped in their efforts to develop international markets by their inability to construct a satisfactory system of channels. Construction of the middleman network includes seeking out potential middlemen, selecting those who fit the company's requirements, and establishing working relationships with them The closer the company wants to get to the consumer in its channel contact, the larger the sales force required

A prominent monument at the entrance of Chapultepec Park recognizes Los Niños Heroes (the boy heroes), who chose death over surrender during the _____.

Mexican War of 1847

Which of the following countries is considered as a BEM (big emerging market)?

Mexico

In Japan, under the Large-Scale Retail Store Law, all proposals for new "large" stores are first judged by the _____.

Ministry of International Trade and Industry

A _____is the most fully integrated form of regional cooperation.

Political Union

Integrated marketing communications are composed of all of the following EXCEPT:

Political rallying

Martin is comparing the characteristics of his company's water filters with those that are already being marketed in the local market. He realizes that there is lot of scope for his filters as they are functionally more advanced, have longer life, and also can be marketed at a competitive price in these markets. The characteristic of his product that will help in wide acceptance of his product is its _____

Relative advantage

____ are considered to be the foundation of the Japanese distribution system.

Small retailers

Know which step is related to uncontrollable and unpredictable influences that can confuse or detract from the rest of the communications process.

Step 7-Noise

The Four Asian Tigers are Hong Kong, South Korea, Singapore, and _____.

Taiwan

Which of the following is NOT one of the factors changing the way countries trade and prosper in the twenty-first century?

The expansion of military interventions around the world.

Which of the following is true regarding balance-of-payments records?

The fact that assets and liabilities balance does not mean that a nation is in particularly good financial condition.

USSR

The hammer and sickle logo of the old USSR has been replaced by signs of free enterprise in Russia. Here in the main shopping district of St. Petersburg, Nike Sport is prominent, along with Coca-Cola red umbrellas.

Which of the following statements is true of universal standards in the sale of international products?

The lack of universal standards limits the expansion of an industry

What are the primary sources of information available to consumers?

The primary sources of information available to consumers are: (1) memory of previously acquired information (2) personal sources such as friends and family (3) independent sources such as consumer groups, government agencies, and nonpartisan organizations (4) marketing sources such as advertising, promotion, packaging, and sales personnel (5) experiential sources such as direct product inspection or trial.

Which of the following is the first stage of Rostow's five-stage model of eco development?

The traditional society

Why are German and Japanese firms generally better at managing market volatility than American firms?

They value employees highly and eschew layoffs.

Lack of Market Data

This makes it difficult to reach specific target markets

Which of the following was a goal of the Export Trading Company Act?

To remove antitrust disincentives to export activities

Which step immediately succeeds encoding in the international communication process?

Transmitting a message to a receiver

Which of the following is true of commercial relationships in countries with collectivistic and high-context cultures?

Trust will be a crucial aspect of commercial relationships.

E-commerce is more developed in ____ than the rest of the world, partly because of the lower cost of access to the internet than found elsewhere.

US

Marketing Channel

a group of organizations and individuals that directs the flow of products from producers to the ultimate consumer -channel of distributions

Identifying Prospect

a magazine advertisement with a direct-response information form that requests the reader to complete and mail the form to receive additional information

What is a primary difference between an industrial distributor and a manufacturers' agent?

a manufacturers agent does not acquire a title nor usually take possession of the products whereas an industrial distributor does

Vertical Marketing System VMS

a marketing channel managed by a single channel member to achieve efficient, low- cost distribution aimed at satisfying target market customers -When channel members are linked by legal agreements that specify each member's rights and responsibilities -achieved by informal coordination -informal coordination brings about a high level of interorganizational management but channel member remain anonymous

Economic Development

an increase in national production reflected by an increase in the average per capita gross domestic product (GDP) or gross national income (GNI)

J.J. Servan-Schreiber's prediction about the U.S. economy did not come true for many reasons, but one of the more important was that American MNCs confronted:

a resurgence of competition from all over the world.

In Europe, there are variations in laws that control ______ advertising from country to country.

comparative

communication

a sharing of means

Exclusive dealing

a situation which a manufacturer forbids an intermediary from carrying products of competing manufacturers -An arrangement where a producer forbids an intermediary to carry products made by competing manufacturers is called

The product platform, design features, and functional features are all found in the ____ component of the product, according to the product component model.

core

Viral marketing

a strategy to get consumers to share marketer's message, often through e-mail or online videos, in a way that spreads dramatically and quickly -

What the four core ASEAN countries have in common is

a wealth of natural resources (minerals, copper, gold and more). Japan relies heavily on these countries for trade in raw materials. Agreement btw Asian nations

Michele Phillips has just begun to understand French culture, even though she has lived in France for two years. She is nearly fluent in French. However, learning to live in France will take some time. The process of how a person learns and adjusts to a new culture is called:

acculturation.

physical distribution

activities used to move products from producers to consumers and other end users -Order processing, inventory management, materials handling, warehousing, and transportation -notation is: the movement of products from producers to end users - by wholesaler, retailer producer or outsourcer -main objective: decrease costs while increasing service

Lower prices to the buyer may also mean lower tariffs, because most tariffs are levied on a(n) ____ basis.

ad valorem

Tying agreement

an agreement in which a supplier furnishes a product to a channel member with the stipulation that the channel member must purchase other products as well -supplier furnishes a product to a channel member with the stipulation that the channel member must purchase other products as well.

Strategic channel alliance

an agreement whereby the products of one organization are distributed through the marketing channels of another

Buzz marketing

an attempt to indicate publicity and public excitement surrounding a product through a creative event -An attempt to create a trend or acceptance of a product through word-of-mouth communication

Import Oriented or Traditional Distribution

an importer controls a fixed supply of goods

Information Source

an international marketing executive with a product message to communicate

Just in time (JIT)

an inventory management approach in which supplies arrive just when needed for production or resell

International marketers are most likely to consider _____ to be "customs and administrative entry procedures."

antidumping practices

noise

anything that reduces a communications clarity and accuracy

One approach to defining the pricing policy of dumping is to say that it is a case where a product is sold in the international market:

at a price below the cost of production

Most newly industrialized countries (NICs) have moved away from restrictive trade practices and instituted significant free market reforms. As a result these countries have:

attracted both trade and foreign direct investment.

The cost of reaching a prospect using advertising depends on the _____.

bargaining ability of agents

____ are primary outside source of aid for companies beset by the uncertainty of a countertrade.

barter houses

Alexia is geographically large and represents a sizable market for a wide range of products. It has a potential for significant growth. It is considered as the regional economic driver. Based on this information, Alexia can be classified as a(n) _____.

big emerging market

C. K. Prahalad and associates introduced the concept of a global market, not necessarily defined by national borders but rather by the pockets of poverty across countries, and consisting of 4 billion people across the globe with annual incomes of less than $1,200. These consumers, concentrated in the LDCs and LLDCs, are referred to as _____ markets.

bottom-of-the-pyramid

C.K Prahalad and his associates referred to consumers who had been relatively ignored by international marketers because of misconceptions about their lack of resources as the _____ market.

bottom-of-the-pyramid

All of the following are specific objectives of sales promotion EXCEPT:

building brand loyalty

Along with industrial goods, the most rapidly growing sector of US international trade today consists of:

business services

With a proper feedback system, errors ______.

can be corrected before significant damage occurs

Promotion tends to:

capitalize on exisiting demand -can encourage materialism

Contractual Vertical marketing

channel members are linked by legal agreements that spell out the obligations and rights of each member

The feedback step of the international communications process ______.

checks the other steps for their effectiveness

is now Japan's most important trading partner.

china

The emergence of pan-European communications media will most likely cause companies to:

choose more standardized promotional efforts

Companies with marketing facilities in different countries with excess marketing capacity sometimes take on additional product lines for international distribution. The formal name for this type of marketing is:

complementary marketing

A company focusing its efforts on making its new innovation more user-friendly is working on the _____ of the product.

complexity

In general, the rate of diffusion can be postulated as negatively related to _____.

complexity

Mark Harmon has found that using his new digital camera is a snap. He did not even have to read the instruction manual to determine how to turn the camera on, snap a digital picture, and export the picture to his computer. The signs (symbols) on the camera body made it very clear what he was to do to achieve digital photography success. Which of the following characteristics of Mark's "new product" made it easy for him to begin his digital experience?

complexity

direct-marketing channel

consumers who purchase straight from manufacturers -many producers selling on the internet

Firms unfamiliar with overseas marketing and firm producing industrial goods orient their pricing solely on:

cost basis

In the international communication process, symbols that are transmitted from information sources are interpreted by receivers in the _____ step.

decoding

In the international communications process, ____ is defined as the interpretation by the receiver of the symbolism transmitted from the info source

decoding

The first meeting of the members of the ASEAN+3 was devoted to devising a system whereby the member countries could

defend their currencies against future attack

Derived demand can be defined as demand that is:

dependent on another source

With _____, the seller assumes all risk until the actual dollars received

dollar drafts

When the marketing process is characterized by mass distribution, all of the following marketing functions are performed EXCEPT _____.

exchange

Flow of information about the effectiveness of a message from a receiver back to a source occurs in the ______ step of the international communication process.

feedback

When Rita Thomas' clothing company began to market its line of inexpensive cotton shirts in Africa, it assumed that it would be able to use its television and print advertising measures that had worked very well in the United States and other countries. However, the company soon learned that literacy rates and ability to access television in other areas of the world were not comparable to the level prevalent in the home country. This pushed the company to think of other promotional measures that were not heavily dependent on literacy and technology. The factors that created difficulties for Rita's company in this scenario can be regarded as:

foreign environment uncontrollables.

A(n) ______ is a domestic middleman set up in a foreign country or US possession that can obtain a corporate tax exemption on a portion of the earnings generated by the sales or lease of export property.

foreign sales corporation

An understanding of the origins and differences of culture will help international marketers:

foresee changes in current markets of operation.

supply managment

in its broadest form, refers to the processes that enable the progress of value from raw material to final customer and back to design and final disposition -sourcing of necessary resources, products, and services to support all supply-chain memebers

The only way to avoid linguistic problems in advertising communication is by:

in-country testing with the target consumer group

The lack of universal standards in the industrial goods market:

increases the cost of doing business

Manufacturers' Agent

independent businessperson who is paid a commission to sell complementary products of different producers in an assigned territory without actually taking title of the merchandise - when a firm is small and presently does not generate enough volume to justify a sales force

The process of total quality management (TQM) starts with:

involving customers in the product development process

Personal selling

kinesic communication, proxemic communication, tactile communication -paid personal communication that seeks to inform customers and persuade them to purchase products in an exchange situation Advantage: can provide more immediate feedback Disadvantage: cost more than advertising -Example: a consultant for mary k -Example: Epson places a small box asking for the names and addresses of individuals or companies seeking more information -when companies have limited budget

According to C. K. Prahalad, consumers in the bottom-of-the-pyramid markets have been relatively ignored by international marketers because of misconceptions about their:

lack of resources.

Distribution centers

large centralized warehouses that focus on moving rather than storing

An importing selling technique to alleviate high prices and capital shortages for capital equipment is the ____ system.

leasing

Which of the following would be considered an advantage of leasing equipment rather than owning it?

leasing helps guarantee better maintenance on overseas equipment

Channel capacity is determined by

least efficient component of the communication process

What is search engine optimization?

techniques designed to ensure a companies web page is "accessible to search engines and focuses in ways that help improve the chances they will be found"

A ____ provides a selling service for a manufacturer, has short-term relationship, and operates on a straight commission basis.

manufacturer's export agent

In general, tariffs restrict:

manufacturers' supply sources.

market factors you cannot control

market factors that affect channel choices customer profiles... cannot change the factors customer or industrial customer size of market geographic location

Producer to business buyer

markets a product directly to a business

Given the fact that NAFTA is now effective among the U.S., Mexico and Canada, an American company which has its production plant in Sri Lanka will be willing to relocate its production plant to Mexico mostly because:

moving goods from Mexico to the United States is cheaper and faster than moving them from Sri Lanka.

Groups of countries that seek mutual economic benefit from reducing interregional trade and tariff barriers are called _____.

multinational market regions

Market segmentation strategies that are used by multinational companies often ignore _____.

national boundaries

If a company is altering the price of its product to compete with the local companies in the international market, it is focusing on the ___ component of the product, according to the product component model.

packaging

Apple Computer had difficulties when it first entered the Japanese market with its Macintosh computers. Some of the computers were returned unused after customers found the wrapping on the instruction manual damaged. Though this would probably be no big deal in the U.S., it was certainly a cause for concern in quality-conscious Japan. To fix the problem, Apple needed to concentrate on which of the following components of the product component model?

packaging component

Word of mouth communication

personal informal exchanges of communication that customers share with one another about products, brands, and companies

High-priced products usually depend heavily on which promotion mix ingredient?

personal selling

If the supply of a good in a market is limited, a company may follow a ____ approach to maximize rev and to match demand to supply.

price skimming

Push policy

promoting a product only to the next institution down the marketing channel -promotes only to the next marketing institution down the marketing channel (manufacturers to wholesalers to retailers to consumers)

Promotion can help keep prices lower because

promotion of prices intensifies price competition

Pioneer promotion

promotion that informs consumers about a new product -informs potential customers about a product and what it is -during the introduction stage of the product life cycle

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-is the role of____.

public relations

China has two important steps to take if the road to economic growth is to be smooth: improving human rights and _____.

reforming the legal system

the most basic economic integration and cooperation is the

regional cooperation for development (RCD)

Economic growth and trade is more likely to take place within:

regions in the same time zone due to the ease of doing business

inventory stockout

result from lost sales

As compared to ISO 9000 standards, the American Customer Satisfaction Index (ACSI) focusses on:

results, that is, quality as perceived by product and service users.

In the context of international advertising, companies are moving from the commission system to a ____ system.

reward-by-results

Consumer purchases and retailer cooperation can be increased by implementing marketing activities known as ______.

sales promotions

In-store demonstrations, samples, coupons, contests, and sweepstakes are examples of ____ devices.

sales promotions

Assembly in the importing country is a way companies attempt to lower prices and avoid dumping charges. These assembly plants are known as ____ plants.

scewdriver

Characteristics of the Target Market

size, geographic distribution, and demographic characteristics of an organizations target market help dictate the methods to include in a product's promotional mix -market size and diversity determine composition of the mix

In Eastern Europe, countries are trying to move from:

socialism to capitalism

A(n) ____ duty is a flat charge per physical unit imported.

specific

In the context of distribution patterns, the rate of change in retailing around the world appears to be directly related to the ____.

speed of eco development

Exporting countries agree to voluntary export restraints (VERs) generally as an alternative to the threat of:

stiffer quotas and tariffs.

public warehouses

storage space and related physical distribution facilities that can be leased by companies

The US congress and business have been resisting conversion to the metric system because they fear:

that it will be too costly to implement

Based on time zones, there are three multinational regions the comprise major trading blocs:

the Americas, Europe, and Asia

Integrated Marketing Communications

the coordination of ppromotion and other marketing efforts for maximum informational and persuasive impact

in most cases, the reason that products which cost relatively little in one country cost more in another is:

the cost of exporting

Retain loyal customers

the cost of retaining existing customers is substantially lower than the cost of acquiring new customers -rewards cards

Decoding

the interpretation by the receiver of the symbolism transmitted from the information source

reorder point = (Order lead time x Usage rate) + safety stock

the inventory level that signal the need to place a new order

Direct mail is an unpopular medium in Chile because:

the letter carrier must collect additional postage for every item delivered.

Channel capacity

the limit on the volume of information a communication channel can handle effectively -a one-minute advertising message should not exceed 150 words because most announcers cannot articulate words into understandable messages at faster rates

Encoding

the message from the source converted into effective symbolism for transmission to a receiver

In the case of cellular phones, the physical product is practically given away to gain the phone services contract. This could be because:

the revenues from associated services exceed the revenues from the cellular phone.

Message Channel

the sales force and/or advertising media that convey the encoded message to the intended receiver

Product placement

the strategic location of products or product promotions within entertainment media content to reach the product's target market

Cycle Time

the time needed to complete a process

operations management

the total set of managerial activities used by an organization to transform resource inputs into products, services or both -organizational and system-wide coordination of operations and partnerships to meet customers product need

Experienced exporters suggest that the only way to select a middle man is:

to personally talk to ultimate consumers to find whom they consider to be the best distributors.

The assault on advertising of ____ is escalating international, as evidenced by the World Health Organization launching a global campaign against it.

tobacco

example of noise that originates with the receiver in the communication process

tunes out pop-up ads on the Internet so that they don't even enter his awareness

intermodal transportation

two or more transportation modes used in combination -is the combining and coordinating of two or more modes of transportation to take advantage of benefits offered by each of the different types of carriers.

The costs of production may be lowered if a firm ships unassembled goods to FTZ in an importing country because:

unassembled goods may qualify for lower freight rates

Noise

uncontrollable and unpredictable influences such as competitive activities and confusion that detract from the process and affect any or all of the other six steps.

A marketer may face lower costs by shipping unassembled goods to a FTZ in an importing country because:

wages may be lower in the importing country

Create awareness

when introducing a new line or extension

Cost

The capital or investment cost of developing the channel and the continuing cost of maintaining it.

Character

The channel of distribution system selected must fit with the character of the company and the market in which it is doing business. Some product requirements relate to the perishability or bulk of the product, complexity of the sale, sales service required, and value of the product.

Channel of Distribution Structures

The distribution process - physical handling and distribution of goods, - the passage of ownership (title), and - the buying and selling negotiations between producers and middlemen and between middlemen and customers Channel structures range from those with little developed marketing infrastructure such as those found in many emerging markets to the highly complex, multi-layered system found in Japan *The behavior of channel members is the result of the interactions between the cultural environment and the marketing process. *Channel structures range from those with little developed marketing infrastructure in less developed countries, to the highly complex, multilayered system found in Japan.

Which of the following will expand demand, particularly for industrial goods and business services in Latin America?

The privatization of state-owned enterprises

the coding process

The process of putting one's thoughts (meaning) into signs (symbols)

Which of the following is possibly the best indicator of a country's ability to use technology to leap several stages of eco development in a very short time?

The quality of the educational system

Feedback

The receiver's response to a message

Product life Cycle

The stages through which goods and services move from the time they are introduced on the market until they are taken off the market.

What factors have to be considered in the total cost of the information search? How might these factors be different for different consumers?

The total cost of a search includes direct costs such as transportation, parking, and baby‑sitting, and indirect costs such as time loss, fatigue, and psychological stress. Individuals have different perceptions of the direct and indirect costs of search, differing values for time, and differing tolerances for the potential frustrations of information search.

Which of the following statements is true regarding agent middlemen?

They work on commission and arrange for sales in the foreign country.

Japanese Distribution Structure Continued

This is changing slowly due to MITI and the SII. -Specialty stores -Supermarkets -Discounters -Convenience stores (Konbini)

What are the particular cultural hurdles, the overcoming of which can transform China into a vast market in the long run?

Thrift and xenophobia

__ is China's third largest industrial city after Shanghai and Beijing, but it is also the fastest growing one

Tianjin

What is the function of a countervailing duty?

To restrict the amount a country will import

overall role of promotion:

To stimulate product demand

Sixty percent of the Japanese population lives in the ____ market area, which essentially functions as one massive city.

Tokyo-Nagoya-Osaka

Trends: From Traditional to Modern Channel Structures

Traditional channel structures still appear in many places But such channel structures also are giving way to new forms, new alliances, and new processes Direct marketing, door-to-door selling, hypermarkets, discount houses, shopping malls, catalog selling, the Internet, and other distribution methods are being introduced in an attempt to provide efficient distribution channels Importers and retailers also are becoming more involved in new product development

Which of the following represent the "three direct links" leading to the establishment of One China?

Transportation, trade, and communications

Advertising Agencies: (Organizations) and Brands

Understanding the term organization is key Umbrella corporations/holding companies have one or more 'core' advertising agencies Each 'organization' has units specializing in direct marketing, marketing services, public relations, or research Individual agencies

In which of the following rounds of intergovernmental tariff negotiations was the World Trade Organization created?

Uruguay Round (1994)

selective

Work with selected intermediaries. Shopping and some specialty goods. # of intermediaries several

exclusive

Work with singleintermediary. Specialty goods and industrial equipment. # of intermediaries one

In general, the end goal of all ____ pricing activities is to reduce the impact of price competition or eliminate it.

administered

in general, the end goal of all ____ is to reduce the impact of price competition or eliminate it.

administered pricing activities

Cultural differences among various countries most often affect marketing decisions related to ______.

advertising

supply chain

all the activities associated with the flow and transformation of products from raw materials through to the end customer -start at the customer - all members should determine their position in the chain, identify their partners and roles, and establish partnerships that focus on customer relationships

The use of countertrade in international trade:

allows trade with countries short of hard currency

Firms that sell industrial goods in the international market should focus on after-sale services because these services:

are almost always more profitable than the actual sale of the good itself.

Sales Promotions

are marketing activities that stimulate consumer purchases and improve retailer or middlemen effectiveness and cooperation; are short-term efforts directed to the consumer or retailer to achieve such specific objectives as consumer-product trial or immediate purchase *For example, Procter & Gamble's introduction of Ariel detergent in Egypt included the "Ariel Road Show," a puppet show (not the Little Mermaid!) that was taken to local markets in villages, where more than half of all Egyptians still live. *Effective sales promotions can support and enhance advertising and personal selling efforts and, in some instances, it may be a effective substitute when there are constraints in the use of advertising in the market.

If a market is characterized as being geographically large, has significant population, is a regional economic driver, and has undertaken significant programs of economic reform, the market is classified as a(n) _____.

big emerging market

Objectives of Developing Countries

-Industrialization is the fundamental objective of most developing countries. -Because foreign businesses are outsiders, they often are feared as having goals in conflict with those of the host country. -Today, foreign investors are seen as vital partners in economic development. Many countries have deregulated industry, opened their doors to foreign investment, lowered trade barriers, and begun privatizing SOEs. The trend toward privatization is currently a major economic phenomenon in industrialized as well as in developing countries.

Market Barriers

- Provide an advantage to the companies within the market in their dealings with other countries of the market group - Companies willing to invest in production facilities in multinational markets may benefit from protectionist measures - Exporters to these markets are in a considerably weaker position - Meeting product and other standards within each multinational marketing region like the EU is a challenge

Marketing and economic development

- Argentina, Brazil, Mexico, China, South Korea, Poland, Turkey, India, and Vietnam are emerging as vast markets. - As countries prosper and their people are exposed to new ideas through global communications new patterns of consumer behavior emerge. -The economic level of a country is the single most important environmental element. -These and other countries have an ever-expanding and changing demand for goods and services. Luxury cars in China; Avon cosmetics in South Korea; Walmart discount stores in Argentina, Brazil, Mexico, China, and Thailand; McDonald's Big Macs with chicken patties in India; Whirlpool washers and refrigerators in eastern Europe; Sara Lee food products in Indonesia; and Amway products in the Czech Republic represent opportunities in emerging markets.

Bottom of the Pyramid Markets (BOM)

- C. K. Prahalad and his associates introduced a new concept into the discussion of developing countries and markets—bottom-of-the pyramid markets (BOPMs)—consisting of the 4 billion people across the globe with annual incomes of less than $1,200 - These markets are not necessarily defined by national borders but rather by the pockets of poverty across countries. - These 4 billion consumers are, of course, concentrated in the LDCs and LLDCs.

Channel Management

- Many companies have been stopped in their efforts to develop international markets by their inability to construct a satisfactory system of channels. - Construction of the middleman network includes seeking out potential middlemen, selecting those who fit the company's requirements, and establishing working relationships with them - The closer the company wants to get to the consumer in its channel contact, the larger the sales force required

Infrastructure and Development

-Included in a country's infrastructure are paved roads, railroads, seaports, communication networks, financial networks, and energy supplies and distribution -Infrastructure is a crucial component of the uncontrollable elements facing marketers -Countries begin losing opportunities when their infrastructure cannot support the population and the economy. For example, Mexico's economy has been throttled by its archaic transport system.

Political Factors

- Political amenability among countries is another basic requisite for the development of a market agreement - Typically, marketing arrangements are made in response to external political threats - Participating countries must have comparable aspirations and general compatibility before surrendering any part of their national sovereignty - The communist threat no longer exists, but the importance of political unity to fully achieve all the benefits of economic - Integration has driven European countries to move towards a political union.

What are the various sales promotion devices that are designed to supplement advertising and personal selling in the promotional mix? (Check all that apply.)

1. Product tie-ins and sponsorship of special events 2. In-store demonstrations 3. Coupons and gifts 4. Samples and cents-off 5. Contests and sweepstakes

What causes international communications to fail?

1. The needs and wants of a target market may not have been assessed properly. 2. Different cultural interpretations may hinder the understanding of messages. 3. Media inadequacy may hinder the flow of messages.

Market Factors

1. Type of Consumer - Industrial - needs more service - Final Customer - may accept less service 2. Geographical Location - Concentrated - use direct selling (short channel) - Dispersed - use intermediaries (long channel)

When do companies across Europe seek commonality in branding and advertising?

1. When they need to ensure efficiency 2. When they need to avoid confusion related to multiple label names

Which of the following is true of a physical distribution system?

It includes transportation mode, inventory quantities, and packing.

International Time Zones

- Time zones make a difference - Jet lag is an important problem - Most countries maintain good trade relationships with contiguous countries - An associated pattern of economic growth and global trade has emerged

The Greater China

- "The Greater China" refers to both the People's Republic of China (PRC) and the Republic of China (ROC) or Taiwan - Aside from the United States and Japan, there is no more important single national market than the PRC - The economic and social changes occurring in China since it began actively seeking economic ties with the industrialized world have been dramatic.

Order handling

-The order-processing task that involves verifying product availability, checking prices and customer credit ratings, and filling orders -credit department approves the purchase. -order is transmitted to the warehouse. -availability of product is verified. -warehouse is instructed to fill the order.

Expansion continued

- In 2007 the European Union celebrated its golden anniversary - The 2008-2009 global recession has posed daunting short-term challenges to the integrity of the Union - An early recovery stalled in late 2009; and Ireland, Portugal, Spain, and particularly Greece are experiencing continuing problems.

Customs Union

- Represents the next stage in economic cooperation - It enjoys the free trade area's reduced or eliminated internal tariffs and adds a common external tariff on products imported from countries outside the union. - The European Union was a customs union before becoming a common market - Customs unions exist between France and Monaco, Italy and San Marino, and Switzerland and Liechtenstein, to name some examples.

Import-Oriented Distribution Structures

- The marketing system develops around the philosophy of selling a limited supply of goods at high prices to a small number of affluent customers - In the resulting seller's market, market penetration and mass distribution are not necessary because demand exceeds supply, and in most cases

The Greater China: PRC

- Two major events that occurred in 2000 are having a profound effect on China's economy: admission to the World Trade Organization and the United States' granting normal trade relations (NTR) to China on a permanent basis (PNTR). - Because of China's size, diversity, and political organization, it can be more conveniently thought of as a group of regions rather than a single country

APEC has as its common goals a commitment to:

- open trade - increase economic collaboration - sustain regional growth and development - strengthen the multilateral trading system - reduce barriers to investment and trade without detriment to other economies

Information Technology, the Internet, and Economic development

-A country's investment in information technology (IT) is an important key to economic growth. -Innovative electronic technologies can be the key to a sustainable future for developed and developing nations alike. -Because the Internet cuts transaction costs, it has enabled small firms in Asia or Latin America to work together to develop a global reach. -The Internet accelerates the process of economic growth by speeding up the diffusion of new technologies to emerging economies. -Mobile phones and other wireless technologies greatly reduce the need to lay a costly telecom infrastructure. -The Internet accelerates economic growth by accelerating diffusion of new products and innovations. Mobile phones and other technologies greatly reduce the cost of infrastructure, particularly in LDCs and LLDcs. The Internet allows for innovative services at a relatively inexpensive cost.

Alternative Middlemen Choices

-A marketer's options range from assuming the entire distribution activity (by establishing its own subsidiaries and marketing directly to the end user) to depending on intermediaries for distribution of the product -Channel selection must be given considerable thought, because one initiated, is difficult to change, and if it proves inappropriate, future growth of market share may be impacted -The channel process includes all activities, beginning with the manufacturer and ending with the final consumer

Channel Management

-Locating Middlemen -Selecting Middlemen -Motivating Middlemen -Terminating Middlemen -Controlling Middlemen Many companies have been stopped in their efforts to develop international markets by their inability to construct a satisfactory system of channels Construction of the middleman network includes seeking out potential middlemen, selecting those who fit the company's requirements, and establishing working relationships with them The closer the company wants to get to the consumer in its channel contact, the larger the sales force required

supply-chain management

-Long-term partnerships among channel members working together to reduce inefficiencies, costs, and redundancies in the entire marketing channel is called-a set of approaches used to integrate the functions of operations to management, logistics management, supply management, and marketing channel management so products are produced and distributed in the right quantities, to the right locations, and at the right time -operation management, supply management, logistics management, and channel management

Government-Affiliated Middlemen

-Marketers must deal with governments in every country of the world -Products, services, and commodities for the government's own use are always procures through government purchasing offices at federal, regional, and local levels -In many countries such as the Netherlands, the Government purchases from a lot of suppliers, and a large percentage of the suppliers may be located in other countries

Latin American Economic Cooperation

-Other Latin American market groups (Exhibit 9.7) Latin American Integration Association (LAIA) -The long-term goal of the LAIA is a gradual and progressive establishment of a Latin American common market - There was is the differential treatment of member countries according to their level of economic development - The provision that permits members to establish bilateral trade agreements among member countries Caribbean Community and Common Market (CARICOM) - It has worked toward a single-market economy and in 2000 established the CSME (CARICOM Single Market and Economy) with the goal of a common currency for all members. - The introduction of a common external tariff structure was a major step toward that goal.

Privatization os state owned enterprises (SOEs) that had placed a drain on national budgets

-Privatization released immediate capital to invest in strategic areas -Provided relief from a continuing drain on future national resources -When industries are privatized, the new investors modernize, thus creating new economic growth

Industries Targeted for Growth

-Strategically directed industrial and international trade policies. -Key industries encouraged to achieve better positions directing resources into promising target sectors

industrial distributor

-independent business that takes title to products and carries inventories -taking inventories of the goods, reduces capital requirements for the producers -disadvantage: They are unlikely to handle bulky items or items that are slow sellers -advantage: They help reduce a producer's financial burdens by extending credit to customers -not likely to receive aggressive promotion of its brand

Target market Characteristics

-most important: size, geographic distribution, and demographic characteristics

Channel Conflict

-when produce companies bypass wholesalers and sell directly to retailers -allowing companies to distribute and discount -If a wholesaler continually emphasizes and promotes one company's products over a competing company's products

Alternative Middlemen Choices

A marketer's options range from assuming the entire distribution activity (by establishing its own subsidiaries and marketing directly to the end user) to depending on intermediaries for distribution of the product Channel selection must be given considerable thought, because once initiated, is difficult to change, and if it proves inappropriate, future growth of market share may be impacted The channel process includes all activities, beginning with the manufacturer and ending with the final consumer

source

A person, group, or organization that has a meaning it intends and attempts to share with a receiver or an audience

What happens in the first step of the international communication process?

A product message is selected for transmission.

How do different consumer characteristics influence a consumer's information search effort?

A). Learning and experience: A satisfying experience and repeat purchase of a particular brand of product has the effect of reducing prepurchase information search. B). Shopping orientation: Shopping is a part of everyone's lifestyle and individuals develop unique and consistent approaches to shopping for a particular type of product. C). Perceived risk: The greater the perceived risk in a particular purchase (whether financial or psychological), the greater the motivation to find a satisfactory choice and, hence, the greater pre-purchase search. D). Social status: Using occupation, education, and income as measures of status, information search has been found to be greater for those higher in status. E). Age and household life cycle: Age and stage of household life cycle have been found to be inversely related to information search. That is, younger consumers and those in early stages of the household life cycle exhibit greater pre-purchase information search than older consumers and those in later stages of the household life cycle.

In the context of controlling middlemen, parallel importing is also known as _____. A. secondary wholesaling B. black marketing C. backwashing D. industrial piracy E. smuggling

A. secondary wholesaling

_____ is a unique forum that has evolved into the primary regional vehicle for promoting trade liberalization and economic cooperation in the Asia-Pacific region.

APEC

intensive

Achieve mass marketselling. Convenience goods # of intermediaries many

Cultural Diversity

Ad campaigns and product brand names being communicated may mean different things to different cultures

____ duties are levied as a percentage of the value of the goods imported.

Ad valorem

Two major events that occurred in 2000 are having a profound effect on China's economy. One of these is the United States' granting normal trade relations (NTR) to China on a permanent basis (PNTR). Which of the following is the other one?

Admission to the World Trade Organization

For most companies, which of the following are the major components in the marketing communications mix?

Advertising and personal selling

Public relations versus advertising:

Advertising is paid for. PR is more neutral. You don't control the message, try to put positive spin on it.

____ in countries can distort media choice by changing the cost ratios of various media.

Advertising taxation

Which of the following is NOT one of the theories explaining the persistence of stagnation in Japan in the 1990s

Aggressive competition, especially from East Asian economies

Chapter 11

Aisa

How does a consumer's awareness set influence information search?

An awareness set includes those alternative solutions (alternative brands) that the consumer is aware of. The consumer generally searches for information on a subset of the brands in the awareness set (the evoked set).

James Barker is the marketing manager of a firm with small international sales volume. He is looking for a middleman who can take responsibility for promotion of the company's products, credit arrangements, physical handling, and market research. Also, the middleman must be able to provide information on financial, patent, and licensing matters. In addition, the middleman should agree to work under the name of the firm. Which of the following types of middlemen would be the best choice for Mr. Barker if he wants to meet his objectives?

An export management company.

KFC sells Youtiao, a kind of Chinese doughnut, at its outlets in China. The Youtiao is considered an important part of a Chinese breakfast menu. In marketing terms, KFC is practicing a _____ strategy. A. positioning B. localization C. segmentation D. indigenous

B. localization

Grameen Bank is a private commercial enterprise in

Bangladesh

Which of the following characterizes negotiators from the Beijing area?

Bureaucratic sloth

Which of the following is a critical element associated with using a particular type of middleman?

Cash-flow patterns

In which of the following countries is the literacy rate 100 percent?

Canada

International Advertising ( Denmark)

Commercial breaks are strictly prohibited and advertising targeted to children is restricted

Carolyn is interested in marketing her company's diet product in Asia. She is studying the acceptable behavior, norms, and values in Asian markets. Carolyn is studying _____.

Compatibility

Which of the following arrangements are undertaken when a firm wants to keep its seasonal distribution channels function throughout the year?

Complementary marketing

The ____ effect refers to the possibility that the place of manufacture may affect product or brand image.

Country-of-origin

Which of the following is characteristic of Stage 2 of Rostow's five-stage model of eco growth?

Infrastructure development is a primary requirement in the economy

Randy, the marketing manager at Bryte Systems Inc., decides to sell to foreign markets as goods are available in surplus amounts. He has little or no intention of maintaining continuous market representation. Randy's firm is at which of the following stages of international marketing involvement?

Infrequent global marketing

Which of the following is true of the influence of religion on global marketing?

Marketers with little or no understanding of a religion may deeply offend customers.

_____ is an economy's arbitrator between productive capacity and consumer demand.

Marketing

be able to define "Sales promotions"

Marketing activities that stimulate consumer purchases and improve retailer or middlemen effectiveness and cooperation

Capital Requirement

Maximum investment usually required when a company establishes it's own internal channels or it's own sales force. The use of distributors may lessen the capital investment, but manufacturers often have to provide initial inventories on consignment, loans, floor plans or other arrangements.

Coverage

May be assessed by geographic segments, market segments, or both. Difficult to extend in highly developed market because of the high competition, and in sparse markets because of inadequate channels.

What is the tenet that China follows to ensure that Hong Kong's exuberant capitalism is retained despite the communist leanings of mainland China?

One country, two systems

Describe each of the strategies: Intercept

Our objective will be to intercept the consumer during the search for information on the brands in the evoked set. Again, our emphasis will be on local media with cooperative advertising and at the point‑of‑purchase with displays, shelf space, package design, and so forth. Coupons can also be effective. We will have to place considerable emphasis on attracting the consumers' attention, as they will not be seeking information on our brand. In addition to the short‑run strategies mentioned above, low‑involvement learning, product improvements, and free samples can be used to move the brand into the target market's evoked set.

Goals and Tasks of promotion

Persuasive Promotion *Encourage brand switching change customers perceptions of product attributes *influence immediate buying decision *persuade customers to call *change your mind *comparative advertising

Standardized products must be advertised differently in different markets because

cultures of different regions are not the same.

Which of the following is a factor that exacerbates the volatility in demand in industrial markets?

Professional buyers in the market tend to act in concert

Which of the following is an additional reason for marketing industrial goods abroad that does NOT necessarily apply to consumer goods?

Reducing the volatility of demand

Social Media

Social media (such as social networking, blogs, virtual worlds, and video sharing) can be powerful marketing tools, but marketers are just beginning to loosen control and let consumers interact with brands on their own terms. Consumer- generated content is having an impact on brands (both positive and negative), and new media are on the agendas of marketers of all products, not just those targeted at young people. Thus, it is vital that marketers follow, and participate in, the conversations consumers are having online.

Distribution Patterns

The "traditional" system will not change overnight Nearly all international firms are forced by the structure of the market to use at least some middlemen in the distribution arrangement Because the structural arrangements of foreign and domestic distribution seem alike, does not mean that foreign channels are similar to domestic channels The differences in retail patterns is an example of the variety of distribution patterns that exist at all levels

Which of the following is true of ISO 9000 certification?

The ISO 9000 is generally voluntary except for certain regulated products

Which of the following statements is true regarding the Internet?

The Internet enables smaller firms in emerging economies to sell into a global market.

Monitor Man

The Japanese beverage company Suntory promotes its products with "Monitor Man" during a football match at National Stadium. "Monitor Man" puts on an LCD display, showing ads for Pepsi and other products, and walks around the stadium. The job requires some muscle, as the equipment weighs about 15 pounds. All this effort is perhaps purposely reminiscent of the Simpson's "Duff Man." Ohhh yaaaa!

___ has long been considered the most effective non tariff barrier to the Japanese market.

The Japanese distribution structure

Which of the following statements is true of the Japanese market?

The Japanese distribution structure supports long-term dealer-supplier relationships.

As they have been the closest to foreign influences, negotiators from this part of China are famous for their special forms of entrepreneurship and spontaneity. Identify the region.

The Pearl River Delta

The Chinese in this area are less calculating than folks in Shanghai. But they are excellent traders and particularly interested in making short-term gains. These negotiators belong to:

The Pearl River Delta

________ contains Hong Kong, Macau, Guangzhou, and Shenzhen and it is considered as the world's manufacturing base for the IT industry.

The Pearl River Delta

Which of these regions in China is the world's manufacturing base for the IT industry?

The Pearl River Delta.

Which of the following is probably the most significant factor affecting the international market for industrial goods and services?

The degree of industrialization

An important first step in adapting a product to a foreign market is to determine:

The degree of newness as perceived by the intended market.

Which of the following is the most fundamental reason for an economic union?

The development and enlargement of markets

Channel-of-Distribution Structures

The distribution process -Physical handling and distribution of goods -The passage of ownership (title) -The buying and selling negotiations between producers and middlemen and between middlemen and customers -Channel structures range from those with little developed marketing infrastructure such as those found in many emerging markets to the highly complex, multi-layered system found in Japan

Which of the following statements is true regarding an import-oriented distribution structure?

The importer-wholesaler traditional performs most of the marketing functions.

Political explanations of Japan's crisis during the 1990s identified two villains. One of them was the powerful Japanese bureaucracy. Which of the following is the other one?

The long entrenched Liberal Democratic Political Party

Which of the following is true of stage 1 of Rostow's five-stage model of eco development?

The most important industrial demand relations to natural resources extraction

Buyers in country X preferred to use the older version of Firm A's product although it was bulkier and less user-friendly. Buyers in Country Y, however, preferred to use the newer, lightweight version for its new user interface. What can be inferred from this info?

The perception of quality can differ across countries

Based on the growing popularity of smaller families worldwide, what do experts predict for the future?

The planet's population will actually begin to decline after 2040 unless major breakthroughs in longevity intervene.

Foreign Country Middlemen

The variety of agent and merchant middlemen in most countries is similar to that in the United States International marketers seeking greater control over the distribution process may elect to deal directly with middlemen in the foreign market They gain the advantage of shorter channels and deal with middlemen in constant contact with the market Using foreign-country middlemen moves the manufacturer closer to the market and involves the company more closely with problems of language, physical distribution, communications, and financing Foreign middlemen may be agents or merchants, they may be associated with the parent company to varying degrees, or they may be hired temporarily for special purposes

Factors Affecting Channel Choice

The selection process involves the following: 1. Identify specific target markets within and across countries. 2. Specify marketing goals in terms of volume, market share, and profit margin requirements. 3. Specify financial and personnel commitments to the development of international distribution. 4. Identify control, length of channels, terms of sale, and channel ownership

Which of the following statements about advertising laws around the world is correct?

Toy, tobacco, and liquor advertising is restricted in numerous countries

Which of the following is true of world trade routes?

Trade routes represent the attempts of countries to overcome economic imbalances created by the influence of geography.

Which of the following has become the primary vehicle for business-to-business promotion and selling in many foreign countries?

Trade shows

_____ provide(s) the facilities for a manufacturer to exhibit and demonstrate products to potential users and to view competitors' products.

Trade shows

In ____ pricing, the firm is concerned only with the marginal or incremental cost of producing goods to be sold in overseas markets.

Variable-cost

As part of the "green movement", the European Commission has passed legislation to control all kinds of packaging waste through the European Union. Two critical issues that affect product development are the control of packaging component of solid waste and ____.

consumer demand for environmentally friendly produts

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 that period. This is an example of problems associated with which of the following six Cs of distribution channel strategy?

continuity

The success achieved by firms when they take their inventions to market is referred to as ____.

conversion-ability

If a company wished to alter a product's platform so that the product could be manufactured in a variety of forms, to meet local differences in five different foreign markets, the _____ of the product component model would be in consideration.

core component

A shoe manufacturer in Puerto Ria shipped his entire production to San Francisco and brought it back to his home country to market it as "Made in the U.S." He knew that people would prefer buying products made in the U.S. rather than those that are domestically produced. The factor that is influencing the perception of the customers in the above scenario is called _____.

country-of-origin

The Red Lobster seafood restaurant is considering opening branch operations in China. However, the restaurant chain's labor union has already pointed out a potential problem with this expansion. In China, it is considered to be in bad taste to allow employees to collect tips for service. Since a great portion of a typical wait-staff person's compensation comes in the form of tips, the union would like to know how employees would be compensated for this loss. The above example illustrates which of the following barriers a consumer services marketer faces in a foreign market?

cultural requirements for adaptation

Global advertising expenditures tend to be _____.

cyclical

In the context of international advertising, it has been observed that advertising expenditures are generally _____.

cyclical

The perception of quality:

depends solely on the customer

Ron Thorne is an international marketing manager. He has just succeeded in creating a new advertising campaign for a new teenage deodorant from a well-known U.S. manufacturer. As he reviews his successes and failures with his campaign, he is reminded that his most daunting task (the most difficult) during the construction of the campaign came from a particular step in the process. This step also frustrates and challenges almost all international marketing managers. Which step is Mr. Thorne most likely referring to?

develop the most effective message(s) for the market segments selected

To combat media limitations, advertisers in some countries have

developed their own media

Of the seven steps involved in international advertising, _____ almost always represents the most daunting task for international marketing managers

developing messages

The ISO 9000 certification will allow a company to

differentiate its product from its competitors

In the context of the Internet of international marketing channels, technically, e-commerce is a form of ____ selling.

direct

shorter channels

distribute fragile products that require special handling

Economic planners are most likely to be least concerned with the problems related to _____.

distribution

In Russia, products are divided into two categories- "ours" and "imported". This is an example of:

ethnocentrism

Product Cycle

evolution of traded goods and manufacturers (intro, growth, maturity, decline) MP3 players

Since it encourages retailers to stock large assortments of a product, the practice of ____ distribution often creates a favorable condition for parallel importing.

exclusive

A major disadvantage of ____ is that they can seldom afford to make the kind of market investment needed to establish deep distribution for products.

export management companies

A company that views pricing as a static element in a business decision:

exports only excess inventory

In ____, a company has an ongoing relationship with a bank that routinely buys its short-term accounts receivable at a discount

factoring

In____, a company has an ongoing relationship with a bank that routinely buys its short-term accounts receivable at a discount

factoring

channel choice factors

factors affecting channel choice market factors product factors producer factors Levels of distribution intensity intensive distribution selective distribution exclusive distribution

Reduce sales fluctuations

factors: climate, seasons, and holidays lead to this promotional objective

Time utility

having products available when the customer wants them

Adam, a hairstylist at a salon in Seattle, styles his customers in various ways. His work looks different on different people even though he has styled all of them. This unique character of a service that is unique for every customer as it is individually produced is referred to as_____.

heterogeneity

Because a service is individually produced and is virtually unique, the service is said to have _____.

heterogeneity

Vital Health products found out that they had to reduce the length of the tread in their treadmills sold in China owing to the shorter legs of the average Chinese person. By doing this vital has achieved product_____.

homologation

Rules governing comparative advertising in Europe allow ______.

implicit comparisons if they do not name competitors

Media Limitations

in some underdeveloped countries, there is a shortage of advertising media such as radio stations, print media (newspapers, magazines), and television stations, cable TV, and satellite TV *Procter & Gamble's initial advertisement for Pampers brand diapers failed because of cultural differences between the United States and Japan. A U.S. commercial that showed an animated stork delivering Pampers diapers to homes was dubbed into Japanese with the U.S. package replaced by the Japanese package and put on the air. *A marketer's creativity is certainly challenged when a television commercial is limited to 10 showings a year with no two exposures closer than 10 days, as is the case in Italy.

Meta Garbon, 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 IMC process did Meta Garbon go wrong?

info source selection

Effective management of integrated marketing communications is based upon

information about the customer

Ingrid is developing promotional materials and product demonstrations to easily communicate the benefits of her cleaning products. Ingrid is trying to enhance the _____ of her products.

observability

Most newly industrialized countries (NICs) have moved away from restrictive trade practices and instituted significant free market reforms. As a result these countries have:

obtained significant amount of loans from World Bank.

Of all the energy sources, _____ and gas contribute over 60 percent of world energy consumption.

oil

In the 1970s, Frank Gibney had called Japan The Fragile Superpower, which was confirmed with the crisis of the 1990s. In his new appraisal, Gibney writes that Japan has become the victim of:

one-party sickness

In the 1970s, Frank Gibney had called Japan The Fragile Superpower, which was confirmed with the crisis of the 1990s. In his new appraisal, Gibney writes that Japan has become the victim of:

one-party sickness.

In US domestic trade, the typical payment procedure for established customers is a(n):

open account

Which of the following obviously leave(s) sellers in a position where most of the problems of international commercial finance work to their disadvantage?

open accounts

The impact of satellite television is a matter of concern for governments because _____.

they are afraid of losing control of the media

All of the following are traits of big emerging markets (BEMs) EXCEPT:

they import less than smaller markets.

S&F Advertising Agency has just acquired a significant piece of Miracle's multimillion-dollar advertising business. Miracle would particularly like S&F to come up with creative ideas for Miracle's recent expansion into South Asian markets of India and Indonesia. In order to accommodate Miracle, S&F has now opened offices in two Indian cities and one Indonesian city. What would be the proper term to use to describe what S&F is doing with its own expansion into the above Asian markets?

client following

Vertical channel integration

combining two or more stages of the marketing channel under one management -is made possible by purchasing the operations of a link in the channel -example: Warner Bros. sells cookie jars, puzzles, photo albums, and other items featuring its popular cartoon characters directly through its own retail outlets

According to the evolution of the marketing process, when the only marketing functions performed are demand creation, physical distribution, and market information analysis, the marketing process is in the _____ substage.

commercial-transition

Proxemic Communication

communicating by varying the physical distance in face to face interactions -walking behind someone..

Kinesic Communication

communicating through the movement of head, eyes, arms, hands, legs, and torso examples: Head nodding, winking, hand gestures, and arm motions

Tactile communication

communicating through touching -handshake

One of the great creative challenges in advertising in diverse cultures is the problems associated with ______.

communicating to individuals

Public Relations

communication designed to improve mutual understanding and positively influence relationship between the marketer and its internal and external publics *lose control role *third party information gains credibility

Promotion

communication to build and maintain relationships by informing and persuading one or more audiences

Maxcare, an insurance firm based in California had difficulties expanding their operations to Asian markets, as most of their target countries had strict regulations on transferring the details of the customers among the different branches of the firm. The company had to obtain an approval from its customers before sharing their personal information with their branches in other countries. Which of the following barriers is affecting the services of the insurance firm in the above scenario?

controls on transborder data flows

Omega appliances, a Korean company that manufactures kitchen appliances had to alter the design of its chimneys to suit the needs of the consumers in its Japanese market. The Japanese preferred compact and efficient appliances to fit their small kitchens. The component of the product that had to be altered in the above scenario is the _____.

core component

When the value of the dollar is weak relative to the buyer's currency, sellers generally employ _____ pricing.

cost-plus

When Polar Inc., an American fast-food company, wanted to market its burgers and fries in France, it was asked to accept French wine in return. This is an example of:

countertrade

For ____ duties to be levied on a good, it must be shown that prices are lower in the importing country than in the exporting country and that producers in the importing country are being directly harmed by dumping.

countervailing

With respect to advertising,____ is especially important when a budget is small or where there are severe production limitations.

creativity

Which of the following is true of advertising agencies for international advertising?

cross-cultural communication between a foreign client and a local agency can be problematic

The effectiveness of an advertisement can be ensured if all the characteristics of the advertisement coincide with ______ norms.

cultural

The adoption of yoga as a means of physical fitness in the U.S. demonstrates:

cultural borrowing.

In the context of international advertising, global mass media advertising is a powerful tool for ____.

cultural change

Relationship marketing is particularly important in international markets where ___ dictates strong ties between people and companies

culture

In a ____ market, it is essential for a company to keep prices low and raise brand value to win the trust of consumers.

deflationary

Primary demand

demand for a product category rather than for a specific brand -example: "oranges aren't just for breakfast"

selective demand

demand for a specific brand -When a marketer makes an effort in promotion to point out the strengths and benefits of a specific brand -for a particular BRAND

Dumping in the world markets is likely to increase when:

demand in the home country is low

With ____, the seller assumes all risk until the actual dollar is received

dollar drafts (bills of exchange)

Home-country middlemen are also known as ____ middlemen.

domestic

In the ______ stage of Rostow's five-stage model of eco development, an industrialized eco's focus is more on low-cost manufacturing of a variety of consumer and some industrial products; they buy from all categories of industrial products and services.

drive to maturity

Which of the following stages of Rostow's five-stage model of eco growth do industrialized ecos such as Korea and Czech Republic fit into?

drive to maturity

Communication can be viewed as a circular process because

during feedback, the receiver can be viewed as the source of the message while the original source becomes the receiver

By shipping unassembled goods to a FTZ in an importing country, a marketer can lower costs because:

duties are assessed at lower rates for unassembled goods

Unit loading

easier movement of items between internal destinations in the warehouse -example: Mogul places several boxes of products or materials on pallets in order to load them efficiently using forklifts

The level of market development roughly parallels the stages of _____.

economic development

In the context of the communications process in advertising, problems of literacy, media availability, and types of media create challenges in the communications process at the _____ step.

encoding

In the international communication process, before a source message is transmitted to a receiver, a sender first converts it into effective symbolism. This step is known as _____.

encoding

In the international communications process, during _____, the message from the source is converted into effective symbolism for transmission to a receiver.

encoding

One of the reasons for the notably low use of foreign national consumer magazines by international advertisers is that:

few magazines provide reliable circulation data

The distribution channel process includes all activities, beginning with the manufacturer and ending with the _____.

final consumer

More household money goes for _____ in emerging markets than in developed markets.

food

Elements such as structure of distribution and cultural forces are regarded as _____.

foreign environment uncontrollables

In the context of types of domestic middlemen, the WTO in 2003 ruled ____ to be in violation of international trade rules, thus starting a major trade dispute with the European Union.

foreign sales corporations

In a(n) ____, the seller makes a one-time arrangement with a bank or other financial institution to take over responsibility for collecting the account receivable.

forfeiting transaction

Megacarriers

freight transportation firms that provide several modes of shipment

In____pricing, the philosophy is 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 the total fixed and variable cost.

full cost

A name, term, sign, symbol, design, or combination used worldwide to identify goods or services of one seller and to differentiate them from those of competitors is called a(n) _______.

global brand

The Norton group, a manufacturer of toiletries and cleaning products uses the name Cleanex, for most its products in all of their international markets. The name has created a universal appeal for their products as customers identify their products with the name. Hence, Cleanex can be regarded as a _____.

global brand

Change in culture can be brought about through _____.

global mass media advertising

Direct mailings are largely used by ______ advertisers.

industrial

Feedback

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

In the international communications process, an international marketing executive with a product message to communicate acts as a(n) _____.

information source

Promotion helps consumers because:

informs consumers and places them in a position to specify the products they seek

Paved roads, railroads, seaports, communication networks, and financial networks are illustrations of _____.

infrastructure

From a sociological viewpoint, any idea perceived as new by a group of people is considered as a(n)____.

innovation

In knowledge-based services such as consulting, engineering, education, and info technology, _____ is a key driver of success and failure.

intellectual property issues

According to Everett Rogers, the goals of the diffusion researcher and the marketer are to shorten the time lag between:

introduction of an idea or product and its widespread adoption

Domestic marketing differs from international marketing as domestic marketing:

involves business activities like pricing, production and distribution, aimed toward a single market.

The communications mix

involves the various elements companies can use to communicate with the target market including advertising, public relations, sales promotion, and personal selling

What is behavioral targeting?

involves tracking consumer click patterns on a Web Site and using that information to decide on banner and placement

A(n) _____ means that once the seller has accepted the credit, the buyer cannot alter it in any way without permission of the seller.

irrevocable letter of credit

NAFTA differs from Mercosur in that NAFTA:

is a comprehensive trade agreement that addresses and improves all aspects of doing business within North America.

Logistics Management

is a total systems approach to the management of the distribution process that includes all activities involved in physically moving raw material, in-process inventory, and finished goods inventory from the point of origin to the point of use or consumption.

Physical Distribution cost trade off goal

is to reduce time it takes to complete cycle time

A product is said to be compatible if:

it complies with the accepted norms, values, and culture of the local market.

LLDC's

least developed countries; industrially underdeveloped, agrarian, subsistence societies with rural populations with extremely low per capita income levels, and little world trade involvement. EX: Central Africa and parts of Asia

According to the United Nations' stages of economic development for classifying countries with respect to levels of industrialization, a country that is industrially underdeveloped, agrarian, has subsistence society with rural populations and extremely low per capita income levels falls under the category of _____.

least-developed countries

A wine company had to market its products with a different name in a foreign market as it was mandatory to translate the name in the local language. The factor that is influencing product adaptation in the above scenario is____.

legal requirements

Companies that rely on television infomercials and television shopping are restricted by the limitations placed on the ____ of television commercials permitted when their programs are classified as advertisements.

length and number

LDC's

less developed countries; industrially developing countries just entering world trade. EX: Asia, Latin America *Many countries that are classified as LDCs are industrializing at a very rapid rate.

According to the United Nations' stages of economic development for classifying countries with respect to levels of industrialization, _____ consist of industrially developing countries just entering world trade with relatively low per capita income.

less-developed countries

The marketing process in the U.S between 1885 to 1914 mainly focused on _____.

mass production

In an international communication process carried out by a company, the sales force of the company acts as a ______.

message channel

In the international communications process, the sales force of a company that conveys the encoded content to the intended receiver acts as a _____.

message channel

A ____, which restricts the amount a country will import, may be imposed on foreign goods benefiting from subsidies, whether in production, export, or transportation

minimum access volume

MDC's

more developed countries; industrialized countries with high per capita incomes. EX: Canada, England, France, Germany, Japan, and US

In most countries, media prices are ______.

negotiable

Chile, Brazil, Mexico, South Korea, Singapore, and Taiwan are _____ countries.

newly industrialized

A company whose products reach foreign markets even though the company is not actively involved in cultivating customers outside the national boundaries is at the _____ stage of international marketing.

no direct foreign marketing

The United Nations' classification of stages of economic development has been criticized because it:

no longer seems relevant in the rapidly industrializing world.

Publicity

nonpersonal communication in news stories such as press releases for products -press conferences, feature articles, news releases, news stories -should be handled on a continuous basis

Drew's company imports materials and parts into a free trade zone (FTZ) within the US and then exports finished products to other countries. Her company will:

not have to pay tariffs on the imported material and parts

In the context of the Treaty of Nanjing, the East India Company discovered that _____ was a good product to trade with the Chinese because it was easy to ship and was addicting to customers.

opium

In the context of the Treaty of Nanjing, the circular windows of the Jardine-Matheson Trading House in Hong Kong are reminiscent of the portholes of its clipper-ship beginnings in the _____ trade.

opium

freight forwards

organizations that consolidate shipments from several firms into efficient lot sizes -reduces transit time

If a country is in Stage 5 of Rostow's five-stage model of eco development, it purchases most of its highest-tech products and services from _____.

other stage 5 suppliers

Bagel's foods had to change the labeling on their products to meet specifications regarding vegetarian and non-vegetarian foods, set by the government in the Japanese market. They also had to mention the ingredients in Japanese to make it clear for the local customers. The component of the product that is in focus in the above scenario is the ____.

packaging component

Apex Corporation is a wholesaler for Global Electronics in the French market. Global Electronics discovered that Apex Corp. was diverting some of their goods to the English market. Apex Corp. could get a greater profit in the English market because the goods were bought by the firm at a cheaper price in France. In the context of the above scenario, which of the following forms of business is Apex engaged in?

parallel importing

The Floral Group, an importing organization in New York, has just bought an excessive amount of perfume from perfume manufacturer in Paris. Unknown to the perfume manufacturer, the Floral Group has sold 25 percent of its order to distributors in France that have been unable to purchase any products from the perfume manufacturer. Which of the following best describes the transaction that has just taken place?

parellel importing

A ___ policy is used to stimulate market and sales growth by deliberately offering products at low prices.

penetration pricing

A characteristic of a service is that it is _____ , since it cannot be stored and must be consumed simultaneously with its creation.

perishable

An increasing reliance on _____ supplies from areas of political instability, creates a global interdependence of energy resources.

petroleum

Complementary marketing is commonly known as____.

piggybacking

logistics management

planning, implementing, and controlling the efficient and effective flow and storage of products and information from the point of origin to consumption to meet consumers needs and wants -all activities designed to move the product through the marketing channel to the end user, including warehouse and inventory management

A disadvantage of advertising through direct mail in some countries is that _____.

postage fees have to be collected from the consumer when the mail is delivered

The crucial problem confronting a seller in a countertrade negotiation is determining the ____ for the goods offered as payment.

potential demand

A company uses _____ when the objective is to reach a segment of the market that is relatively price insensitive and thus willing to pay a premium price for the value received.

price skimming

Lush Cosmetics, a firm based in the U.S., recently started exporting cosmetics to India. Lush introduced a new range of mineral-based makeup for the first time in the Indian market. It was also priced much higher than the other brands in the market. This is an example of _____.

price skimming

In general, price decisions are viewed in two ways. Which of the following is one of them?

pricing as an active instrument of accomplishing marketing objectives.

In Spain, a new medium for advertising called Publicoche includes:

private cars that are painted with advertisements

most commonly used channel for distributing business products

producer and organizational buyers

producer factors you decide how many cities to open up

producer factors that affect channel choice producer resources number of product lines desire for channel control

Mary is a new international sales rep for an industrial supply company. She will learn that the inherent nature of industrial goods creates a market where:

product and marketing mix standardization are commonplace

An especially effective promotional tool when a product concept is new or has a very small market share is known as ____.

product sampling

Companies can successfully promote products that have small market shares or that represent new concepts by using ______.

product sampling

Economic planners are often more _____ oriented than marketing oriented.

production

In some countries, policies related to radio and television advertising have changed in recent years because _____.

production costs are high

Without wholesalers and other intermediaries

products would likely be more expensive due to the use of less efficient channel members

Pull policy

promoting a product directly to consumers to develop strong consumer demand that pulls products through the marketing channel -requires heavy expenditures on advertising and sales promotion

To gain maximum benefit from promotional efforts, marketers:

properly plan, implement, coordinate, and control communications

channels and marketing decisions

push strategy.....the company working with the retailer Advertising and promotional strategies geared toward your distribution partners to encourage them to promote your product business to business Pull Strategy Advertising and promotional strategies geared toward consumers to increase desire for the product the end user to create demand

Geographic coverage is generally known for _______.

radio and television

Which of the following are considered to be major communications media in most countries due to their inherent entertainment value?

radio and television

Certain advertising media are forbidden by government edict to accept some advertising materials. Such restrictions are most prevalent in:

radio and television broadcasting

In the communications process in advertising, during the ____ stage, a consumer takes certain actions to respond to a decoded message.

receiver

decoding

receiver attempts to convert signs or symbols into concepts and ideas

The creation of a free trade zone leads to:

reduced price escalation

At the _____ stage of international marketing involvement, a firm has permanent productive capacity devoted to the production of goods and services to be marketed in foreign markets. In addition to this, the primary focus of operations and production is to service domestic market needs.

regular foreign marketing

When countries sell off state-owned enterprises, it usually results in a(n):

release of capital to invest elsewhere.

Restrictions on cross-border data flows are most damaging to industries that:

rely on info transfers across country

Infrastructure

represents those types of capital goods that serve the activities of many industries.

To meet the needs of advertisers and agencies for high-quality information, ______ is growing increasingly reliable.

research data

What is local mobile search?

searches for information from a mobile device pertaining to the current (or future planned) geographic location of a consumer

In context of controlling middlemen, parallel importing is also known as _____.

secondary wholesaling

Containerization

sells boxes for shipping to decrease loss and damage -Piggyback (railroads and trucks), fishyback, and birdyback

Assuming that international marketer has produced the right product, used the proper channel of distribution, and promoted the good correctly, the effort can fail badly if the international marketer fails to:

set the right price for the goods or services

The company that follows the approach of viewing prices as an active instrument:

sets prices to achieve targeted returns on profit

Which media do governments most commonly prohibit from accepting advertising materials?

television and radio

The Internet (tactical considerations)

the Internet has emerged as a viable medium for advertising and must be included in a company's possible media mix. Its use in business-to-business communications and promotion via catalogs and product descriptions is rapidly gaining in popularity. Although limited in its penetration of households globally, the Internet is being used by a growing number of companies as an advertising medium for consumer goods.

In the context of the Opium Wars, _____ did not resolve the issue of foreign access to Chinese trade.

the Treaty of Nanjing

safety stock

the amount of extra inventory a firm keeps to guard against stockout resulting from above average usage rates and/or longer than expected lead time -used to guard against stockouts

Order lead time

the average time lapse between placing the order and receiving it

the single most important economic element is the:

the economic level of a country

The significance of providing feedback in the international communications process is that ______.

the effectiveness of the process can be evaluated

In the context factors affecting choice of channels, one of the key elements in distribution decisions includes _____.

the functions performed by middlemen.

A disadvantage when using home-country middlemen as intermediaries in the distribution process is:

the limited control over the distribution process

transportation

the movement of products from where they are made to intermediaries and end users -most expensive -adds time and place utility to a product by moving it from where it is made to where it is purchased and used.

International marketing can be defined as:

the performance of business activities to sell a company's goods and services for a profit in more than one nation.

Ken is the marketing executive of a multinational company. The company launches a new product into the market, and Ken is responsible for globally promotion of the product. However, the effort undertaken by Ken to communicate the message internationally fails. In this case, a probable reason for failure is that ______.

the requirements and desires of the target markets were not assessed properly

Dual distribution

the use of two or more marketing channels to distribute the same products to the same target market

For companies seeking entrance into the complicated Japanese distribution system, ____ offer one of the easiest routes to success because they virtually control distribution through all levels of channels in Japan.

trading companies

Advertising campaigns often fail due to perceptions based on heritage and _____.

tradition

In a ___ distribution structure, an importer controls a fixed supply of goods and the marketing system develops around the philosophy of selling a limited supply of goods at high prices to a small number of affluent customers

traditional

Fiona asked her product manager for samples to give to potential consumers in Madrid, her new European market. Fiona is trying to reduce the degree of eco and/or social risk, or _____ associated with product use.

triability

Which major mode of freight transportation provides the most flexible schedules and routes?

trucks

In some countries, numerous different media have split markets into ______.

uneconomical advertising segments

The best way to reduce overall distribution costs is to

use a total-cost approach to analyze and evaluate the entire system

Organizations that sell products to industrial markets or a few wholesalers

use personal selling

exclusive distribution

using a single outlet in a fairly large geographic area to distribute a product -The product is very expensive and targeted to upscale consumers

Intensive Distribution

using all available outlets to distribute a product -connivence products -Sales are most likely to have a direct relationship to product availability

Selective Distribution

using only some available outlet in an area to distribute a product -Durable goods such as television sets and DVD players generally reach their target markets

According to the text, physical distribution cost tradeoffs enable firms to

utilize resources for greatest cost-effectiveness

In the context of media planning and analysis, billboards are especially useful in countries:

with high literacy rates

Agent Middlemen:

work on commission and arrange for sales in the foreign country

Which of the following has proved to be an important way to break the trade barrier imposed by the Japanese distribution system? A. Direct sales through catalogs B. Large wholesale stores C. Street corner kiosks D. Internet shopping E. Television advertising

A. Direct sales through catalogs Direct sales through catalogs have proved to be a successful way to enter foreign markets. In Japan, it has been an important way to break the trade barrier imposed by the Japanese distribution system.

16. Which of the following has proved to be an important way to break the trade barrier imposed by the Japanese distribution system? A. Direct sales through catalogs. B. Large wholesale stores. C. Street corner kiosks. D. Internet shopping. E. Television advertising.

A. Direct sales through catalogs.

Due to differences in culture in different markets, standardized products that are marketed globally will require:

A different advertising appeal

Know the various reasons, cited in the chapter, why international communications may fail - when it comes to global advertising and the communications process.

A message may not get though because of media inadequacy, the message may be received by the intended audience but not be understood because of different cultural interpretations, or 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.

Pattern Advertising

A middle ground between 100% standardization and 100% adaptation A basic pan-regional or global communication concept for which copy, artwork, or other elements can be adapted as required for individual countries eg. Dove, Kit-Kat

8. Which of the following characterizes the business philosophy of the Japanese distribution channels? A. Loyalty B. Direct sales C. Fast delivery D. Variety E. Price competition

A. Loyalty

Which of the following characterizes the business philosophy of the Japanese distribution channels? A. Loyalty B. Direct sales C. Fast delivery D. Variety E. Price competition

A. Loyalty Coupled with the close economic ties and dependency created by trade customs and the long structure of Japanese distribution channels is a relationship-oriented business philosophy that emphasizes loyalty, harmony, and friendship. The value system supports long-term dealer-supplier relationships that are difficult to change as long as each party perceives economic advantage.

18. _____ take title to manufacturers' goods and assume the trading risks. A. Merchant middlemen B. Brokers C. Buying offices D. Export agent E. Agent middlemen

A. Merchant middlemen

_____ take title to manufacturers' goods and assume the trading risks. A. Merchant middlemen B. Brokers C. Buying offices D. Export agent E. Agent middlemen

A. Merchant middlemen Merchant middlemen actually take title to manufacturers' goods and assume the trading risks, so they tend to be less controllable than agent middlemen. Merchant middlemen provide a variety of import and export wholesaling functions involved in purchasing for their own account and selling in other countries.

Every type of economic union shares the development and enlargement of market opportunities as a basic orientation. Which of the following best describes the primary way market opportunities are enlarged by economic unions? A. Preferential tariff treatment for participating members. B. A common economic defense force with costs shared by all members. C. Formulation of cartels. D. Seeking economic dominance through boycotts of rivals. E. Movement towards a common language as a means to overcoming economic hurdles.

A. Preferential tariff treatment for participating members.

_____ are marketing activities that stimulate consumer purchases and improve retailer or middlemen (p. 454) effectiveness and cooperation. A. Sales promotion B. Advertising C. Trade shows D. Direct selling E. Public relations

A. Sales promotion

The Webb-Pomerene Act of 1918 made it possible for American business firms to join forces in export activities without being subject to the _____. A. Sherman Antitrust Act B. Federal Communications Act C. Trade Commission Act D. Food, Drug, and Cosmetics Act E. Robinson-Patman Act

A. Sherman Antitrust Act

36. The Webb-Pomerene Act of 1918 made it possible for American business firms to join forces in export activities without being subject to which of the following acts? A. The Sherman Antitrust Act. B. The Federal Communications Act. C. The Trade Commission Act. D. The Food, Drug, and Cosmetics Act. E. The Robinson-Patman Act.

A. The Sherman Antitrust Act

Which of the following is true of a company that views prices as an active instrument of accomplishing marketing objectives? A. The company sets prices to achieve specific objectives. B. The company follows market prices to achieve specific objectives. C. The company exports only excess inventory. D. The company views its export sales as an insignificant source of revenue. E. The company places a low priority on foreign business.

A. The company sets prices to achieve specific objectives.

Which of the following images is a cultural stereotype attributed to American negotiators by foreign business negotiators? A. The cowboy. B. The suave, smooth-talker. C. The pretentious connoisseur. D. The "stiff upper lip". E. The unpunctual, bungling fool.

A. The cowboy.

Know and be able to explain the situation surrounding legality and illegality of the use of comparative advertising. (You do NOT have to memorize the laws in each country but you should be able to characterize the legality and illegality of comparative ads around the globe.)

- Laws that control comparative advertising vary around the world. Germany- illegal to use any comparative terminology UK, Ireland, Spain, and Portugal- comparative terminology is ok Asia- comparative advertising is heavily regulated. - A variety of restrictions on advertising of specific products exist around the world. - Advertising of pharmaceuticals is restricted in many countries. - Advertising on television is strictly controlled in many countries. - China is relaxing some regulations while strengthening others. - Some country laws against accessibility to broadcast media seem to be softening. Australia- ended a ban on cable television spots Malaysia- considering allowing foreign commercials to air on newly legalized satellite signals - Companies that rely on television infomercials and television shopping are restricted by limitations placed on length and number of commercials permitted when their programs. - Internet services are especially vulnerable - Some countries have special taxes that apply to advertising, which might restrict creative freedom in media selection.

Association of Southeast Asian Nations (ASEAN)

- Like all multinational market groups, ASEAN has experienced problems and false starts in attempting to unify the combined economies of its member nations. - Most of the early economic growth came from trade outside the ASEAN group. - Four major events account for the vigorous economic growth of ASEAN countries: the ASEAN governments' commitment to deregulation, liberalization, and privatization of their economies; the decision to shift their economies from commodity based to manufacturing based; the decision to specialize in manufacturing components in which they have a comparative advantage (which created more diversity in their industrial output and increased opportunities for trade) Japan's emergence as a major provider of technology and capital necessary to upgrade manufacturing capability and develop new industries.

Government Affiliated Middlemen

- Marketers must deal with governments in every country of the world - Products, services, and commodities for the government's own use are always procured through government purchasing offices at federal, regional, and local levels - In many countries such as the Netherlands, the Government purchases from a lot of suppliers, and a large percentage of the suppliers may be located in other countries

Eastern Europe

- Most eastern European countries are privatizing state-owned enterprises - Establishing free market pricing systems - Relaxing import controls - But struggling with inflation - The very different paths taken toward market economies have resulted in different levels of progress

Implications of Market Integration

- Multinational provide opportunity through access to greatly enlarged markets - Production, financing, labor, and marketing decisions are impacted - World competition will continue to intensify as businesses become stronger and more experienced in dealing with large market groups. - Regulation of business activities has been intensified throughout multinational market groups *For example, in an integrated Europe, U.S. multinationals had an initial advantage over expanded European firms because U.S. businesses were more experienced in marketing to large, diverse markets and are accustomed to looking at Europe as one market. *Each group now has management and administrative bodies specifically concerned with business. The U.S did not have the complex task of integrating multiple currencies.

Integrated Marketing Communications

- Once a market offering is developed to meet target market needs, intended customers must be informed of the offering - Integrated marketing communications (IMC) comprises: advertising sales promotions personal selling direct selling, and public relations - All these mutually reinforcing elements of the promotional mix have as their common objective the successful sale of a product or service *Although for most companies in international markets, advertising and personal selling are major parts of their selling effort. The goal of most companies, large and small, is to achieve the synergies possible when sales promotions, public relations efforts, and advertising are used in concert. Luxury goods = high ticket items that aren't purchased frequently

35. Which of the following statements is true regarding an import-oriented distribution structure? A. The importer-wholesaler traditionally performs most of the marketing functions. B. The relationship between the importer and any middleman is similar to that found in a mass-marketing system. C. Several independent agencies providing functions such as advertising, marketing research, financing are a part of this distribution structure. D. The idea of a channel as a chain of intermediaries performing specific activities is common. E. This distribution system is national in scope.

A. The importer-wholesaler traditionally performs most of the marketing functions.

5. Which of the following statements is true regarding an import-oriented distribution structure? A. The importer-wholesaler traditionally performs most of the marketing functions. B. The relationship between the importer and any middleman is similar to that found in a mass-marketing system. C. Several independent agencies providing functions such as advertising, marketing research, financing are a part of this distribution structure. D. The idea of a channel as a chain of intermediaries performing specific activities is common. E. This distribution system is national in scope.

A. The importer-wholesaler traditionally performs most of the marketing functions.

Africa

- Recent global economic problems have not impeded the growth among African countries - Ethiopia, Angola, and Malawi each experienced annual growth rates of greater than 8 percent between 2007 and 2011 - Several other countries in the sub-Saharan region have grown faster than 5 percent annually - However, Africa's multinational market integration activities can be characterized as a great deal of activity but little progress - Despite the large number and assortment of paper organizations, there has been little progress towards economic integration because of political instability *South Africa's economic growth has increased significantly. Upbeat economic predictions, a stable sociopolitical environment, and the reinforced vigor of the South African government in addressing the issues of privatization and deregulation while maintaining the long-term goal of making the country more investor friendly.

Free Trade Area (FTA)

- Requires more cooperation and integration than the RCD. - It's an agreement between two or more countries to reduce or eliminate customs duties and non tariff trade barriers among partner countries. -Members maintain individual tariff schedules for external countries. - An FTA provides its members with mass market without barriers to impede the flow of goods and services - NAFTA and Mercosur are examples of Free Trade Areas.

Retail Patterns

- Retailing shows even greater diversity in its structure than does wholesaling - Size Patterns Large dominant retailers can be sold to directly, but there is no adequate way to reach small retailers who, in the aggregate, handle a great volume of sales Underdeveloped countries present similar problems The rate of change appears to be directly related to the stage and speed of economic development *In Italy and Morocco, retailing is composed largely of specialty houses that carry narrow lines, whereas in Finland, most retailers carry a more general line of merchandise.

India

- Since its independence in 1950, the world's largest democracy had set a poor example as a model for economic growth - It was among the last of the economically important developing nations to throw off traditional insular policies. - India's growth had been constrained and shaped by policies of import substitution and an aversion to free markets - Now however, times have changed, and India has embarked on the most profound transformation

Foreign Country Middlemen continued

- Some of the more important foreign-country middlemen, who find markets for foreign manufacturers include: Manufacturer's Representatives Distributors Foreign-Country Brokers Managing Agents and Compradors Dealers Import Jobbers, Wholesalers, and Retailers

Expansion of the European Union

- Ten new countries were added in 2004, some ahead of schedule - Bulgaria and Romania entered as planned in 2007 - Talks with Turkey, Macedonia, and Croatia are continuing - Negotiations with Turkey have had their ups and downs, but the Muslim majority nation has economically benefited from its new openness

Distribution Patterns

- The "traditional" system will not change overnight - Nearly all international firms are forced by the structure of the market to use at least some middlemen in the distribution arrangement - Because the structural arrangements of foreign and domestic distribution seem alike, does not mean that foreign channels are similar to domestic channels - The differences in retail patterns is an example of the variety of distribution patterns that exist at all levels

MENA Continued

- The Arab Gulf states, Egypt, and Morocco formed an Arab Free Trade Area, sometimes called the Greater Arab Free Trade Area (GAFTA) - Iran, Pakistan, and Turkey, formed the Regional Cooperation for Development (RCD), recently renamed to the Economic Cooperation Organization (ECO) - The organization, led by Iran, is the Organization of the Islamic Conference (OIC), a common market composed of Islamic countries

Asia Pacific Trade Associations

- The Asia Pacific region is preparing for the next economic leap driven by trade, investment, and technology, aided by others in the region - Though few in number, trade agreements among some of the Asian newly industrialized countries are seen as movement toward a region-wide, intra-Asian trade area - Once a source of inexpensive labor for products shipped to Japan or to third markets, these countries are now seen as viable markets.

Baltic States

- The Baltic states—Estonia, Latvia, and Lithuania—are a good example of the difference that the right policies can make - All three countries started off with roughly the same legacy of inefficient industry and Soviet-style command economies - Government bureaucracy, corruption, and organized crime—common problems found in the countries of the former Soviet Union continue - These issues represent the most significant hurdles to U.S. trade and investment *Although Latvia and Lithuania have made steady progress, government bureaucracy, corruption, and organized crime—common problems found in the countries of the former Soviet Union—continue.

Economic and Monetary Union (EMU)

- The EMU, a provision of the Maastricht Treaty, established the parameters of the creation of a common currency for the EU, the euro - Established a timetable for its implementation - In 2002, a central bank was established, conversion rates were fixed, circulation of euro banknotes and coins was completed - The 12 member states employed the euro beginning in January 1, 2001, some did not join voluntarily

International Advertising Framework

- The basic framework and concepts of international advertising are essentially the same wherever employed. - Seven steps are involved: 1. Perform marketing research 2. Specify the goals of the communication 3. Develop the most effective message(s) for the market segments selected 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

Media Planning and Analysis

- The changes in media in the 21st century are proceeding at a blinding speed - A revolution in communications is under way even in the last couple of years - Political events and natural disasters can dramatically impact many millions of people overnight, but the network effects of the burgeoning electronic communication media—in the form of PCs, the Internet, and mobile phones -The Arab Spring and the uprising in Egypt in particular, and how fast it spread is a case in point

Multinational Market Regions

- The common time zones give the Europeans advantages in both Africa and the Middle East. Being in Europe is an advantage for trade with Africa and the Middle East, both due to time zones and geographic proximity. - Within each trading bloc described in Exhibit 9.1 are: fully industrialized countries such as the United States, Germany, and Japan rapidly industrializing countries such as Brazil, Russia, and China other countries that are achieving economic development but at more modest rates

Import continued

- The customer seeks the supply from a limited number of middlemen and this affects the development of intermediaries and their functions. -Distribution systems are local rather than national in scope - The relationship between the importer and any middleman in the marketplace is considerably different from a mass-marketing system, the importer performs all the functions *Channel structures in countries that have historically evolved from an import-oriented base will usually have vestiges of their beginnings reflected in a less than fully integrated system. *China is evolving from such a structure where as Japan is on the other extreme with an advanced distribution structure.

Campaign Execution and Advertising Agencies

- The development of advertising campaigns and their execution are managed by advertising agencies. - Just as manufacturing firms have become international, so too have U.S., Japanese, and European advertising agencies expanded internationally to provide assistance worldwide. - The international marketer has a variety of alternatives available. - In most commercially significant countries, an advertiser has the opportunity to employ a local domestic agency, its company-owned agency, or one of the multinational advertising agencies with local branches.

Logistics

- The difficult part is not making the sale but getting the correct quantity of the product to customers in the required time frame at a cost that leaves enough margins for a profit. - At some point in the growth and expansion of an international firm, costs other than transportation are such that an optimal cost solution to the physical movement of goods cannot be achieved without thinking of the physical distribution process as an integrated system.

Regional Segmentation

- The emergence of pan-European communications media is causing many companies towards more standardized promotional efforts - To avoid the confusion when a market is exposed to multiple brand names and advertising messages, as well as for reasons of efficiency, companies strive for harmony in brand names, advertising, and promotions across Europe - Along with changes in behavior patterns, legal restrictions are slowly being eliminated, and viable market segments across country markets are emerging

Commonwealth of Independent States

- The first Soviet republics to declare independence were the Baltic states - The remaining 12 republics of the former USSR, collectively known as the Newly Independent States (NIS), regrouped into the Commonwealth of Independent States - The CIS is a loose economic and political alliance with open borders but no central government *The 12 members of the CIS share a common history of central planning. Membership in the former USSR is what these countries have in common. Of all the former republics, Azerbaijan, Georgia, and Armenia have been the most economically successful since leaving the former USSR.

Advertising Strategy and Goals

- The goals of advertising around the world vary substantially - Intense competition in world markets and savvy foreign consumers have created a need for more sophisticated advertising strategies. - Increased costs, problems of coordinating advertising programs in multiple countries, and a desire for a broader company or product image have caused multinational companies (MNCs) to seek greater control and efficiency without sacrificing local responsiveness. - More multinational companies are balancing between standardization and customization of advertising themes internationally. *Some brand names cannot be standardized like Unilever's Gif, Vif and Cif, because consumers are already familiar with that brand name in each country market. *M&M Mars however, was able to standardize its brand name Twix between Continental Europe and Great Britain where it was called the Marathon Bar. *It is now called Twix everywhere. In many cases, standardized products may be marketed globally. But because of differences in cultures, they still require a different advertising appeal in different markets.

Long Term Challenges for the EU

- The long term challenges facing the Union in the next 50 years appear to fall into three categories: improving the Union's economic performance deciding how to limit the political aspect of union and deciding about further enlargement - The admission to the Euro Zone had two conditions for each country that a few countries did not meet but the commission made exceptions: debt 60 percent or less of GDP and annual deficit 3 percent or less of GDP to qualify to be part of the monetary union. This is the part of the cause for the financial turmoil first in Greece followed by Spain and Portugal which fall at the bottom of the EU region economically. - Germany and Luxembourg have very high GNPs per capita. Greece and Portugal have relatively low GNPs per capita. Differences in income spending patterns, values and lifestyles. Ethnic groups, religious groups and languages.

Political Union

- The most fully integrated form of regional cooperation - It involves complete political and economic integration, either voluntary or enforced - The most notable enforced political union was the Council for Mutual Economic Assistance (COMECON), a centrally controlled group of countries organized by the Soviet Union - Two new political unions came into existence in the 1990s: the Commonwealth of Independent States (CIS), made up of the republics of the former Soviet Union, and the European Union (EU) *COMECON is an enforced political union and the EU is a voluntary one.

The Four Asian Tigers

- The most rapidly growing economies in this region during the 1980s and 1990s were the group referred to as the Four Asian Tigers (or Four Dragons): Hong Kong, South Korea, Singapore, and Taiwan - Often described as the "East Asian miracle," they were the first countries in Asia, after Japan, to move from a status of developing countries to newly industrialized countries. - Each has become a major influence in trade and development in the economies of other countries

Regional Market Regions and Regional Economic Cooperation

- The most successful one is the European Union (EU), the world's largest multinational market region and foremost example of economic cooperation - Multinational market groups form large markets that provide potentially significant opportunities for international business.

Middle East/ North Africa (MENA)

- The ongoing political turmoil in Middle East/North Africa (MENA) region accelerated in 2011 and has resulted in economic disaster in several countries in the region - The Arab Common Market set goals for free internal trade but has not really succeeded The aim was to integrate the economies of the 22 Arab countries, but a long history of border disputes, and internal political turmoil will have to be overcome.

Asia-Pacific Economic Cooperation(APEC)

- The other important grouping that encompasses the Asian-Pacific Rim is the Asia-Pacific Economic Cooperation Formed in 1989, APEC provides a formal structure for the major governments of the region, including the United States and Canada, to discuss their mutual interests in open trade and economic collaboration It is a unique forum for promoting trade liberalization and economic cooperation

Global Markets and Multinational Groups

- The restructuring of the eastern European bloc into independent market-driven economies - The dissolution of the Soviet Union into independent states - The worldwide trend toward economic cooperation -Enhanced global competition - All of these warrant the study of three multinational regions: Europe, Africa and Middle East

Foreign Country Middlemen

- The variety of agent and merchant middlemen in most countries is similar to that in the United States - International marketers seeking greater control over the distribution process may elect to deal directly with middlemen in the foreign market They gain the advantage of shorter channels and deal with middlemen in constant contact with the market - Using foreign-country middlemen moves the manufacturer closer to the market and involves the company more closely with problems of language, physical distribution, communications, and financing - Foreign middlemen may be agents or merchants, they may be associated with the parent company to varying degrees, or they may be hired temporarily for special purposes

Marketing Opportunities in The Greater China

- There are extreme differences in economic well-being, cultures, and political structures. - The rich municipalities like Beijing and Shanghai are quite comparable to Paris, New York, or Tokyo in terms of the availability of luxury products. - In terms of the stages of economic development, they are large and rich enough to be thought of as "more-developed countries." - As in the United States, luxury cars sell better on the coast, and trucks sell better in rural areas of the west. - Unlike the United States, in China you cannot sell the same lines of cosmetics or shampoos nationwide.

Trends: From Traditional to Modern Channel Structures

- Traditional channel structures still appear in many places - But such channel structures also are giving way to new forms, new alliances, and new processes - Direct marketing, door-to-door selling, hypermarkets, discount houses, shopping malls, catalog selling, the Internet, and other distribution methods are being introduced in an attempt to provide efficient distribution channels - Importers and retailers also are becoming more involved in new product development *Large hypermarkets like Carrefour and El Cortes Ingles have evolved. *Stores like Tesco in Britain are moving retail banking into their stores. *With online retailers like EBay, Priceline and Amazon, distribution channels have become shorter and faster. *Wal Mart has expanded all over the world. *Stores like Costco are moving into Europe because of the high margins.

Economic Factors

- Usually markets are enlarged through preferential tariff treatment for participating members, common tariff barriers against outsiders, or both Enlarged, protected markets stimulate internal economic development - External and internal barriers are reduced because of the greater economic security afforded to domestic producers - For a union to survive, it must have agreements and mechanisms in place to settle economic disputes - Every type of economic union shares the development and enlargement of market opportunities. - The total benefit of economic integration must outweigh individual differences as member countries adjust to new trade relationships.

Vietnam

- Vietnam's economy and infrastructure were in shambles after 20 years of socialism and war, - However, this country of more than 88 million people is poised for significant growth. - A bilateral trade agreement between the United States and Vietnam led to NTR status for Vietnam - This will lower tariffs on Vietnamese exports to the United States from an average of 40 percent to less than 3 percent. - If Vietnam follows the same pattern of development as other Southeast Asian countries, it could become another Asian Tiger.

Europe and European Integration

- Within Europe, every type of multinational market grouping exists: The European Union European Economic Area, The European Free Trade Area - No other group is more secure or more important economically than the EU - It has made progress toward achieving the goal of complete economic integration and, ultimately, political union - There are language and cultural differences, individual national interests, political differences, and centuries-old restrictions designed to protect local national markets - Historically, standards have been used to effectively limit market access to individual countries (Germany: Beer, Italy: Pasta) *The goal is to end specific physical, technical and fiscal barriers. Combined GDP of US$7.58 trillion. Population of over 371 million consumers.

Physical Distribution System

- involves more than the physical movement of goods. It includes the location of plants and warehousing (storage), transportation mode, inventory quantities, and packing. - takes into account the interdependence of the costs of each activity; a decision involving one activity affects the cost and efficiency of one or all others.

Examples for Regional Segmentation

- the example of standardizing the Twix brand across Europe as well as the advertising is an example. - Another example is the advertising campaign for Mentos, a brand of mints owned by a French company, which uses the same advertising theme and concept in Europe and across the world.

encoding

- the source should use signs and meanings that the target market will understand

Advertising

-A paid form of nonpersonal communication about an organization and/or its products that is transmitted to a target audience through a mass medium -Disadvantage: Slow feedback, high absolute-dollar outlay, and difficulty in measuring effects on sales -Advantage: Cost efficiency, repetition, and adding product value

Sales promotion

-An activity and/or material that offers added value or incentive to resellers, salespeople, or consumers -just one part of the comprehensive area of promotion -marketers spend more on sales promotion than on advertising, and sales promotion appears to be faster-growing area than advertising -free toy with a happy meal -Marketers of highly seasonal products tend to have more irregular use -coupons and free samples -consumer contest

Strategic Implications for Marketing

-As a country develops, incomes change, population concentrations shift , expectations for a better life adjust to higher standards, new infrastructures evolve, and social capital investments are made - Large households can translate into higher disposable incomes -Markets are changing rapidly, and identifiable market segments with similar consumption patterns are found across many countries -Emerging markets will be the growth areas of the 21st century

Copy and Copywriters

-Copy is written or spoken communication elements -Copywriters are language specialists who develop headlines, subheads, and body copy

Japanese Distribution Structure

-Distribution in Japan has long been considered the most effective non-tariff barrier to the Japanese market. The Japanese distribution structure is different enough from its U.S. or European counterparts It has four distinguishing features: 1. A structure dominated by many small middlemen dealing with many small retailers-high density of middlemen 2. Channel control by manufacturers 3. A business philosophy shaped by a unique culture 4. Laws that protect the foundation of the system-the small retailer

Demand in Developing Countries

-Estimating market potential in less-developed countries involves challenges -Most of the difficulty is from the coexistence of three distinct kinds markets in each country: (1) the traditional rural/agricultural sector (2) the modern urban/high-income sector and (3) the often very large transitional sector usually represented by low-income urban slums -One of the greatest challenges of the 21st century is to manage and market to the transitional sector in developing countries. The large-city slums perhaps present the greatest problems for smooth economic development. The biggest difficulty is also the growing disparity between the rich and the poor.

Home-Country Middlement

-Home-Country middlemen, or domestic middlemen, provide marketing services from a domestic base and find foreign markets for products for local manufacturers

International Distribution Systems

-Import-Oriented Distribution Structure -Tight distribution structures: Japan -Trends: From Traditional to Modern Channel Structures *International distribution systems can be characterized by the distribution structures and each of these three types are described in detail in the following slides.

International Distribution Systems

-Import-Oriented Distribution Structure -Tight distribution structures: Japan -Trends: From traditional to Modern Channel Structures

Advertising Copy Mistakes

-In Asia, Pepsi's "Come Alive" was interpreted as asking to bring ancestors back from the dead -In China, Citicorp's "Citi Never Sleeps" was taken to mean that Citi had a sleeping disorder, like insomnia -McDonald's does not use multiple 4's in advertising prices in China; "four" sounds like the word "death"

United States-Central American Free Trade Agreement- Dominican Republic Free Trade Agreement (DR-CAFTA)

-In August 2005, President George Bush signed into law a comprehensive free trade agreement among Costa Rica, the Dominican Republic, El Salvador, Guatemala, Honduras, Nicaragua, and the United States -The agreement includes a wide array of tariff reductions aimed at increasing trade and employment among the seven signatories

Import-Oriented Distribution Structures

-In an import-oriented or traditional distribution structure, an importer controls a fixed supply of goods -The marketing system develops around the philosophy of selling a limited supply of goods at high prices to a small number of affluent customers -In the resulting seller's market, market penetration and mass distribution are not necessary because demand exceeds supply, and in most cases

Cultural Considerations- Japanese & American Differences

-Indirect rather than direct forms of expression are preferred in the messages -There is often little relationship between ad content and the advertised product -Only brief dialogue or narration is used in television commercials, with minimal explanatory content -Humor is used to create a bond of mutual feelings -Famous celebrities appear as close acquaintances or everyday people -Priority is placed on company trust rather than product quality -The product name is impressed on the viewer with short, 15-second commercials

NAFTA to FTAA or SAFTA?

-Initially NAFTA was envisioned as the blueprint for a free trade area extending from Alaska to Argentina -The first new country to enter the NAFTA fold was to be Chile, then membership was to extend south until there was a Free Trade Area of the Americas (FTAA) by 2005 Will there will be an FTAA or a tri-country NAFTA in the north and a South American Free Trade Area (SAFTA) led by Brazil and the other member states of Mercosur in the south? -Future political and economic policies will determine the future of all of these plans

TGC: Taiwan

-Mainland-Taiwanese economic relations continue to improve as both have entered the World Trade Organization. -Taiwanese companies have invested over $50 billion in China -Taiwanese companies face rising costs at home; China offers a nearly limitless pool of cheap labor and engineering talent -Taiwan's tech powerhouses also seek access to China's market *The One China debate needs to be tied to three major links: transportation, trade, and communications. *The three direct links issue must be faced because each country has joined the WTO, and the rules insist that members communicate about trade disputes and other issues. *Taiwanese companies face rising costs at home; China offers a nearly limitless pool of cheap labor and engineering talent. *Taiwan offers plenty of jobs to Beijing and also continues to contribute to technological innovations which PRC needs.

Southern Cone Free Trade Area(Mercosur)

-Mercosur (including Argentina, Bolivia, Brazil, Chile, Paraguay, and Uruguay) is the second-largest common-market agreement in the Americas after NAFTA -The Treaty of Asunción, which provided the legal basis for Mercosur, was signed in 1991 and formally inaugurated in 1995. -The treaty calls for a common market that would eventually allow for the free movement of goods, capital, labor, and services among the member countries, with a uniform external tariff -Because Mercosur members were concerned about sacrificing sovereign control over taxes and other policy matters, the agreement envisioned no central institutions similar to those of the European Union institutions.

Southern Cone Free Trade Area(Mercosur) Continued

-Mercosur has become the most influential and successful free trade area in South America. -With the addition of Bolivia and Chile in 1996, Mercosur became a market of 220 million people with a combined GDP of nearly $1 trillion and the third largest free trade area in the world. -More recently Colombia and Ecuador have become associate members, with Venezuela to follow shortly Mexico has observer status as well

Global Advertising Expenditures and Media Vehicles

-More money spent in U.S. than anywhere else in the world; $160 billion in 2012. -Japan is #2 at $52 billion. -1/3 of current growth in ad spending in BRIC -Russia has a $9.7 billion ad market with 13% growth annually; U.S. and European growth is 3.5-4.5%. -Worldwide, TV is the #1 medium with estimated spending of $163 billion in 2012; TV captured slightly more than 40% of global ad spending -In Germany newspapers are #1 advertising vehicle -In Mexico - pay for full page as and get front coverage, India booking is 6 months in advance

La Raison d'Etre

-Successful economic union requires favorable economic, political, cultural, and geographic factors as a basis for success -The advantages of economic union must be clear-cut and significant -Benefits must greatly outweigh the disadvantages before nations forgo any part of their sovereignty - Many of the associations formed in Africa and Latin America have had little impact because perceived benefits were not sufficient to offset the partial loss of sovereignty.

The Americas -CFTA

-The United States and Canada had the world's largest bilateral trade agreement -Each was the other's largest trading partner. -Despite this unique commercial relationship, tariff and other trade barriers still hindered even greater commercial activity. -They established the United States-Canada Free Trade Area (CFTA), designed to eliminate all trade barriers. The CFTA created a single, continental commercial market for all goods and most services. Shortly after, Mexico announced that it would seek free trade with the United States. -The agreement between the United States and Canada was not a customs union like the European Community; no economic or political union of any kind was involved. It provided only for the elimination of tariffs and other trade barriers.

International Public Relations continued

-The job consists of not only encouraging the press to cover positive stories about companies, but also of managing unfavorable rumors, stories, and events -Recent negative examples include managing the aftermath of the suicides in Foxconn in Shenzhen, China that manufactures most iPhone components, the contamination of milk and milk products imported from China and the controversy about the amount of lead in children's toys sold in the United States (again the manufacturing was done in China) Good public relations is an important part of international IMC as it helps alleviate negative reputation and enhance the image of the company.

Level of Market Development

-The level of market development roughly parallels the stages of economic development -The more developed an economy, the more sophisticated and specialized the institutions become to perform marketing functions -As countries develop, the distribution channel systems develop -Marketing structures of many developing countries are simultaneously at many stages

Continued

-There are major changes forthcoming in world regions, with emerging markets accounting for a majority of the growth in the next 20 years. -The liberalization of markets due to transition to capitalist governments or just change in political parties as well as the emergence of many regional trade alliances will bring about many changes.

The countries will trade and prosper in the 21st century is changing because of:

-Transition from socialist to market-driven economies -The liberalization of trade and investment policies in developing countries -The transfer of public-sector enterprises to the private sector -The rapid development of regional market alliances Argentina, Brazil, Mexico, China

Cultural Considerations

-Use of colours - Images of male/female intimacy are in bad taste in Japan; illegal in Saudi Arabia -Wedding rings are worn on the right hand in Spain, Denmark, Holland, Germany -European men kiss the hands of married women only, not single women - In Germany, France and Japan, a man enters a door before a woman; no ladies first!

NAFTA

-When NAFTA was ratified and became effective in 1994, it became a single market of 360 million people with a $6 trillion GNP -NAFTA required the three countries to remove all tariffs and barriers to trade over 15 years -In 2008, all tariff barriers were officially dropped The purpose was to: Generate income and employment gains Enhance global competitiveness of NAFTA firms -The purpose of the NAFTA was to generate income and employment gains and enhance global competitiveness of NAFTA firms. Combined intra-regional trade represents 40 percent of NAFTA exports. 378 million people and a combined GDP of US$7.68 trillion. -Each member will have it's own tariff arrangements with non-member countries. Mexican export grew to both the U.S. and Canada. Mexico was expected to grow at 6 percent annually.

Horizontal channel integration

-combining organizations at the same level of operation under one management -advantage: Efficiencies in advertising, marketing research, and purchasing are increased -example: To expand the number of its retail outlets in the Washington, D.C., area, the Dress Barn bought out a small chain of women's apparel stores in northern Virginia

Facilitate reseller support

-cooperative advertising efforts between manufacturers and retailers demonstrate -special offers to supermarkets to purchase the new product and supplemented these offers with consumer advertising

Selecting an Advertising Agency

1- Company organization: Companies that are decentralized may want to leave the choice to the local subsidiary 3-National responsiveness: Is the global agency familiar with local culture and buying habits of a particular country? 3-Area coverage Does the agency cover all relevant markets? 4-Buyer perception What kind of brand awareness does the company want to project?

GLOBAL ADVERTISING

1-Advertising is any sponsored, paid message that is communicated in a non-personal way -Single country -Regional -Global 2-Global advertising is the use of the same advertising appeals, messages, art, copy, photographs, stories, and video segments for worldwide suitability

Creating Global Advertising

1-Creative strategy—a statement or concept of what a particular message or campaign will say 2-Big idea— "The flash of insight that synthesizes the purpose of the strategy, joins the product benefit with consumer desire in a fresh, involving way, brings the subject to life, and makes the reader or audience stop, look, and listen." John O'Toole, legendary ad man Absolut Vodka, Mastercard 3. Advertising Appeal Rational approach Depend on logic and speak to the consumer's intellect; based on the consumer's need for information Emotional approach Tugs at the heartstrings or uses humor 4. Selling proposition -The promise or claim that captures the reason for buying the product or the benefit that ownership confers -Since products are at differing stages of the product life cycle in different national markets and because of cultural, social and economic differences, the most effective appeal or selling proposition may vary. 5. Creative execution The way an appeal or proposition is presented straight sell scientific evidence demonstration comparison slice of life animation fantasy dramatization

Copywriting decision

1-Prepare new copy for foreign markets in host country's language 2-Translate the original copy into target language 3-Leave some or all copy elements in home country language

Why are highly developed advertising strategies needed?

1. Because competition for world markets has intensified 2. Because sophistication of foreign consumers has increased

What objectives do good public relations accomplish? (Check all that apply.)

1. Companies are helped to communicate messages to their customers. 2. Media and press are encouraged to cover positive stories about companies. 3. Unfavorable events, rumors, and stories about companies are managed.

Identify the examples of noise that affect any or all of the other six steps of the international communications process.

1. Competitive activities 2. Confusion

Product Factors

1. Complexity, Customization & Expensiveness - More complex, more customized, more expensive - use direct sales force - More standardized, less expensive - use intermediaries 2. Life Cycle: the more mature it is - the more outlets you should use 3. Delicacy/Perishability: the more delicate, the shorter the channel should be

Six C's of Channel Strategy

1. Cost 2. Capital Requirements 3. Control 4. Coverage 5. Character 6. Continuity

In the context of advertising strategy and goals, why do multinational companies strive to increase control and efficiency without sacrificing local responsiveness?

1. Costs of advertising have increased. 2. Companies desire a broader company or product image. 3. Promotional programs in multiple countries have given rise to coordination problems.

Public Relations

1. Gauge public opinion 2. Establish dialogue 3. Enhance company image 4. build/ rebuild trust 5. Build on marketing efforts

Identify the parties to whom companies aim to convey their messages. (Check all that apply.)

1. General public 2. Customers 3. Governmental regulators

What will happen if television coverage is expanded? (Check all that apply.)

1. Global standardized messages will become more prevalent. 2. Advertiser creativity will be challenged.

Identify the conditions in which creativity in advertising holds special importance.

1. If production limitations exist 2. If a budget is small

Explain how different market characteristics affect information search.

A). Price range: The higher the price difference between brands, the greater the financial benefit of a search effort. B). Number of alternatives: The larger the number of alternative solutions (brands and products), the greater the search. C). Store distribution: The density of retail trade outlets affects search such that a lower density increases the cost of visiting a number of retail outlets and, hence, reduces the level of pre-purchase information search. High store density lowers this cost and thus increases the likelihood of a search effort. D). Information availability: The more information available, the greater the search, unless the ready availability of information has already produced sufficient learning. Information availability is increased by: (1) advertising (2) point‑of‑purchase displays (3) sales personnel (4) package information (5) other experienced consumers (6) independent sources.

C. K. Prahalad and his associates introduced a new concept into the discussion of developing countries and markets — bottom-of-the-pyramid markets (BOPMs) 23 — consisting of the 4 billion people across the globe with annual incomes of less than

$1,200

Be able to define "integrated marketing communications."

(IMC) are composed of advertising, sales promotions, trade shows, personal selling, direct selling, and public relations. All these mutually reinforcing elements of the promotional mix have a common objective: the successful sale of a product or service. In many markets the availability of appropriate communication channels to customers can determine entry decisions. For most companies, advertising and personal selling are the major components in the marketing communications mix. The goal of most companies, large and small, is to achieve the synergies possible when sales promotions, public relations efforts, and advertising are used in concert.

Examples of same products in international markets that have different perceived benefits are:

- A bicycle in the U.S. is viewed as something used for recreation or exercise, while in China it is viewed as a means of transportation - The perceived benefits of a camera in different country markets (high tech, precision, design, convenience) - A wristwatch (tells time, is a piece of jewelry, design) - Yogurt and its consumption around the world (homemade yogurt is more popular in countries like India and Thailand)

Product Attribute and Benefit Segmentation

- A market offering really is a bundle of satisfactions the buyer receives. - This package of satisfactions, or utilities, includes the primary function of the product or service, along with many other benefits imputed by the values and customs of the culture. - Different cultures often seek the same value or benefits from the primary function of a product - But while usually agreeing on the benefit of the primary function of a product, consumers may perceive other features and psychological attributes of the item differently

Alternative Middlemen Choices

- A marketer's options range from assuming the entire distribution activity (by establishing its own subsidiaries and marketing directly to the end user) to depending on intermediaries for distribution of the product - Channel selection must be given considerable thought, because once initiated, is difficult to change, and if it proves inappropriate, future growth of market share may be impacted - The channel process includes all activities, beginning with the manufacturer and ending with the final consumer

Legal Contraints continued

- A variety of restrictions on advertising of pharmaceuticals is restricted in many countries - Advertising on television is strictly controlled in many countries, e.g., in Germany, for example, commercials must be spaced at least 20 minutes apart and total ad time may not exceed 12 minutes per hour. - China is relaxing some regulations while strengthening others. -For example, recently the government began to require concrete proof of ad claims and banned pigs in advertising—the latter in deference to its Muslim minorities.

Legal Contraints

- Advertising campaigns must comply with legal regulations around the world - Comparative advertising is heavily regulated in other parts of the world - In Asia, an advertisement showing chimps choosing Pepsi over Coke was banned from most satellite television; the phrase "the leading cola" was accepted only in the Philippines. - An Indian court ordered Lever to cease claiming that its New Pepsodent toothpaste was "102% better" than the leading brand. *Must comply with legal constraints throughout the world

Linguistic Limitations

- Advertising from culture does not often translate well in another culture due to differences in languages and dialects - For example, Chrysler Corporation translated its U.S. theme that advertised "Dart Is Power." To the Spanish, the phrase implied that buyers sought but lacked sexual vigor - The Bacardi wanted to sell the drink in Germany called Pavane, but it is perilously close to pavian, which means "baboon" - A company marketing tomato paste in the Middle East found that in Arabic the phrase "tomato paste" translates as "tomato glue"

TGC: Hong Kong

- After 155 years of British rule, Hong Kong reverted to China in 1997 when it became a special administrative region (SAR) of the PRC - The Basic Law of the Hong Kong SAR forms the legal basis for China's "one country, two systems" agreement that guarantees Hong Kong autonomy - The social and economic systems, lifestyle, and rights and freedoms enjoyed by the people of Hong Kong prior to the turnover were to remain unchanged for at least 50 years *The Hong Kong dollar continues to be freely convertible. Hong Kong is a free society with legally protected rights. It also has a highly developed infrastructure.

Common Market

- Agreement that eliminates all tariffs and other restrictions on internal trade - Adopts a set of common external tariffs, and removes all restrictions on the free flow of capital and labor among member nations - It is a unified economy and lacks only political unity to become a political union *The EU evolved from the development of a common market, the European Economic Community (EEC).

Geographic and Temporal Proximity

- Although not absolutely imperative for cooperating members of a customs union, such closeness facilitates the functioning of a common market - More important than physical distance are differences across time zones - Trade tends to travel more easily in north-south directions than it did in ancient times - Transportation networks are interrelated and well developed when countries are close together - Issues of immigration, legal and illegal, also promote closer economic integration

Dynamic Growth in the Asia Pacific Region

- Asia has been the fastest growing area in the world for the past three decades - Starting in 1996, the leading economies of Asia (Japan, Hong Kong, South Korea, Singapore, and Taiwan) experienced a serious financial crisis, which resulted in the crash of the Asian stock market. A tight monetary policy, an appreciating dollar, and a deceleration of exports all contributed to the downturn -The 1993 estimates by the International Monetary Fund (IMF) that Asian economies would have 29 percent of the global output by the year 2000 were on target. - Both as sources of new products and technology and as vast consumer markets, the countries of Asia—particularly those along the Pacific Rim—are just beginning to gain their stride

TGC: PRC continued

- Because of China's size, diversity, and political organization, it can be more conveniently thought of as a group of regions rather than a single country - Human rights and the legal system are major issues in China - Two other problems face China in the longer run: the well-known environmental decline associated with its fast growth the demographic disaster associated with its one-child policy. *The human rights issues and the treatment of Tibet by the Chinese government. *The one child policy will lead to a huge elderly population that cannot be supported economically by the working population.

International Control of Advertising: Broader Issues

- Consumer criticisms of advertising are not a phenomenon of the U.S. market only. - Consumer concern with the standards and believability of advertising may have spread around the world more swiftly than have many marketing techniques. - European Commission officials are establishing directives to provide controls on advertising as cable and satellite broadcasting expands. - International advertising associations are striving to forestall laws by imposing self-regulation, but it may be too late; some countries are passing laws that will define acceptable standards.

Cultural Factors

- Cultural similarity eases the shock of economic cooperation with other countries Members understand the outlook and viewpoints of their colleagues - Language, as a part of culture, has not created as much a barrier for EU countries as was expected Nearly every educated European can do business in at least two or three languages - Religion, however still seems to be an issue, as evidenced by the impending membership of turkey into the EU Key members share a long-established Christian heritage

International Advertising

- Decisions involving advertising are those most often affected by cultural differences among country markets - Consumers respond in terms of their culture, its style, feelings, value systems, attitudes, beliefs, and perceptions - Advertising's function is to interpret the qualities of products in terms of consumer needs, wants, desires, and aspirations, the emotional appeals, symbols, and persuasive approaches - Reconciling an international advertising campaign with the cultural uniqueness of markets is the challenge confronting the international or global marketer

Japanese Distribution Structure

- Distribution in Japan has long been considered the most effective non-tariff barrier to the Japanese market The Japanese distribution structure is different enough from its U.S. or European counterparts *The density of middlemen, retailers, and wholesalers in the Japanese market is unparalleled in any Western industrialized country.

Eastern Europe and the Baltic States

- Eastern Europe and the Baltic states, satellite nations of the former Soviet Union, have moved steadily toward establishing post communist market reforms - New business opportunities are emerging - Countries continue to adjust to the political, social, and economic realities of changing to free markets and capitalism. *These countries are moving away from State Owned Enterprises to privatization. There are other problems in Eastern Europe such as the political turmoil in the former Yugoslavian region, currently FYRM, Croatia, Slovenia, Croatia, Slovenia. In spite of this, countries in Eastern Europe are adopting legislation that conforms to that of advanced economies.

Opportunities

- Economic integration creates large mass markets. - Most multinational groups have coordinated programs to foster economic growth - Major savings will result from the billions of dollars now spent in developing different versions of products to meet a variety of national standards.

European Union

- Even though several member states are not fully implementing all the measures, they are making progress - The proportion of directives not yet implemented in all 27 member states has fallen dramatically - Taxation has been one of the areas where implementation lags and reform continues to be necessary *The most heterogeneous of all blocs. Differ significantly on Hofstede's values. Nationalities are distinct.

Market Metrics

- Exhibits 11.3- 11.5 display the fundamental market metrics for the eight most populous countries of the Asia Pacific region - Exhibit 11.5 briefly enumerates consumption patterns - Japan stands out and there is a noticeable difference between the Chinese and Indian emphases on education

Linguistic Limitations continued

- In Spanish-speaking countries words have different meanings. The word ball translates in Spanish as bola, which means ball in one country, revolution in another, a lie or fabrication in another, and is an obscenity in yet another - Even pronunciation causes problems: Wrigley had trouble selling its Spearmint gum in Germany until it changed the spelling to Speermint

Marketing Mix Implications

- In the past: Companies charged different prices in different countries Non-tariff barriers between member countries supported such price differentials - Companies are adjusting their marketing mix strategies to reflect anticipated market changes in the single European market. Price standardization due to parallel importation Fairer competition due to single currency (EU) Reduced number of brands due to standardization Increased competition among retailers

Control is maintained through:

- Inventory financing, with credits extending for several months. - Cumulative rebates - Merchandise returns that are allowed to the manufacturer - Promotional support to intermediaries in the form of displays, advertising layouts, and management education programs

Japan

- Japan's fast growth in the 1970s and 1980s amazed the world. - Japan's economy slowed abruptly in the 1990s - Four reasons for this may be: 1. faulty economic policies 2. inept political apparatus 3. disadvantages due to global circumstances and 4. cultural inhibitions - Each of these four has their proponents, each their own rationale

Know and be able to explain each of the seven steps in the international communications process. Also, know how each step may affect the accuracy of the process.

1. Information source. An international marketing executive with a product message to communicate 2. Encoding. The message from the source converted into effective symbolism for transmission to a receiver. 3. Message channel. The sales force and/or advertising media that convey the encoded message to the intended receiver. 4. Decoding. The interpretation by the receiver of the symbolism transmitted from the information source. 5. Receiver. Consumer action by those who receive the message and are the target for the thought transmitted. 6. Feedback. 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 7. Noise. Uncontrollable and unpredictable influences such as competitive activities and confusion that detract from the process and affect any or all of the other six steps. Most promotional misfires or mistakes in international marketing are attributable to one or several of these steps not properly reflecting cultural influences or to a general lack of knowledge about the target market.

Identify the accurate statements about noise. (Check all that apply.)

1. It frequently interferes with the process of communication. 2. It creates a disrupting effect.

Which factors can cause errors at the receiver end of the international communications process? (Check all that apply.)

1. Lack of proper knowledge of use patterns 2. Selection of poor media 3. Poor encoding 4. Incorrect decoding

Identify the potential disadvantages of advertising in newspapers. (Check all that apply.)

1. Lack of separation between advertising and editorial content 2. Long time lag before publication of advertisements 3. Lack of space due to equipment limitations

Which linguistic limitations do advertisers face? (Check all that apply.)

1. Low literacy rates 2. Translation issues 3. Diverse education and social norms

Identify the factors that can cause an international marketer to symbolize a message incorrectly at the encoding step.

1. Tastes of spokespersons 2. Timing and appropriateness of spokespersons 3. Problems of media availability and literacy 4. Humor of spokespersons 5. Values and beliefs of spokespersons

Identify the instances when advertisers use lesser media to create solutions.

1. When traditional media is restricted 2. When traditional media is not available

The rural population, which accounts for almost three-fourths of the Chinese population, usually receives about _____ percent of the central government budget

10

_____ is often the approach of choice in markets with insufficient or underdeveloped distribution systems. A. Direct marketing B. A big wholesale store C. Internet selling D. A discount house E. Television advertising

A. Direct marketing Sometimes called direct marketing, selling directly to the consumer through mail, by telephone, or door-to-door is often the approach of choice in markets with insufficient or underdeveloped distribution systems. The approach, of course, also works well in the most affluent markets.

Which of the following statements is true regarding an import-oriented distribution structure? A. The importer-wholesaler traditionally performs most of the marketing functions. B. The relationship between the importer and any middleman is similar to that found in a mass-marketing system. C. Several independent agencies providing functions such as advertising, marketing research, financing are part of this distribution structure. D. The idea of a channel as a chain of intermediaries performing specific activities is common. E. This distribution system is national in scope.

A. The importer-wholesaler traditionally performs most of the marketing functions. An import-oriented distribution structure is considered as a traditional distribution structure. The import-oriented distribution systems are local rather than national in scope, and the relationship between the importer and any middleman in the marketplace is considerably different from that found in a mass-marketing system. Since the importer-wholesaler traditionally performs most marketing functions, independent agencies that provide advertising, marketing research, warehousing, and storage are nonexistent or underdeveloped.

Which of the following factors account for greater market similarities among industrial goods customers than among consumer goods customers? A. The inherent nature of the product. B. The motive of both groups of customers being individual satisfaction. C. Government control over design specifications. D. Industrial goods being associated with after-sales services. E. The restriction on international sale of industrial goods.

A. The inherent nature of the product.

Which of the following is the reason why global retailers like IKEA, Costco, Sears Roebuck, and Walmart are becoming major domestic middlemen for international markets? A. They maintain their core marketing approaches while localizing the array of products, promotions, and other peripheral aspects of their operations. B. They work under the names of the manufacturers and function as low-cost, independent marketing departments with direct responsibility to the parent firms. C. They have minimum investment costs as they do not commit to investing in company personnel. D. They serve as the producer's export department but have a short-term relationship, cover only one or two markets, and operate on a straight commission basis. E. They offer reduction of export costs, demand expansion through promotion, trade barrier reduction, and improvement of trade terms through bilateral bargaining.

A. They maintain their core marketing approaches while localizing the array of products, promotions, and other peripheral aspects of their operations. As global retailers like IKEA, Costco, Sears Roebuck, Toys "R" Us, and Walmart expand their global coverage, they are becoming major domestic middlemen for international markets. Their successes seem to result from maintaining their core marketing approaches while localizing the array of products, promotions, and other peripheral aspects of their operations.

Identify Europe-wide promotional strategies.

1. Market segments across European countries should be identified. 2. Advertising concepts should be designed to appeal to market segments.

Know the seven steps in the development of international advertising (in order) and be able to identify the step that represents the most daunting task.

1. Perform marketing research 2. Specify the goals of the communication 3. Develop the most effective messages for the market segments selected *(most daunting) 4. Select effective media 5. Compose and secure a budget 6. Execute the campaign 7. Evaluate the campaign relative to the goals specified. Of these seven steps, developing messages almost always represents the most daunting task for international marketing managers

Why do international advertisers seldom bother with foreign national consumer magazines?

1. Placement problems may be caused due to paper shortages. 2. Magazines may accept more advertisements than they have space to run. 3. Circulation figures may not always be dependable.

Selecting Middlemen

1. Screening based on the following criteria: -reputation -creditworthiness -markets served -products carried -number of stores -store size 2. The Agreement that details terms of the contract and the functions to be performed on behalf of the foreign manufacturer

Selecting Middlemen

1. Screening based on the following criteria: reputation a. reputation b. creditworthiness c. markets served d. products carried e. number of stores f. store size 2. The Agreement that details terms of the contract and the functions to be performed on behalf of the foreign manufacturer

Which of the following is true of international currencies

All major currencies are free floating relative to one another

Which of the following countries has the largest number of retailers? A. United States B. Argentina C. China D. Brazil E. Japan

C. China has the largest number of retailers. Refer to Exhibit 15.2-Retail Structure in Selected Countries.

Of all the elements in the marketing mix, decisions involving which of the following are those most often affected by cultural differences among country markets?

Advertisement of the product

Which of the following factors affects the choice of distribution channels? A. Distance from manufacturer B. Language spoken in the target market C. Available distribution intermediaries D. Consumer literacy levels E. Country's per capita income

C. Available distribution intermediaries

41. Which of the following factors affects the choice of distribution channels? A. Distance from manufacturer. B. Language spoken in the target market. C. Available distribution intermediaries. D. Consumer literacy levels. E. Country's per capita income.

C. Available distribution intermediaries.

A European chocolate manufacturer received several complaints from customers about the quality of its product when it began selling them in a tropical country. the firm had to repackage its chocolate bars in extra plastic wrapper to protect it from the head and dust. Which of the following factors in the local market dictated product adaptation in the current scenario?

Climatic requirements

Adore cosmetics had to increase the SPF value of their sunscreen lotions marketed in the Middle East to provide more protection against UV radiation. Which of the following factors is dictating product adaptation in the above?

Climatic requirements

The European _____ Community was the first institution that was created to restore prosperity, stability, and peace in Europe after World War II.

Coal and Steel

BEMs continued

Commerce researchers also predict that imports to the countries identified as big emerging markets (BEMs) , with half the world's population and accounting for 25 percent of the industrialized world's GDP today, will by 2010 be 50 percent of that of the industrialized world. With a combined GDP of over $2 trillion, BEMs already account for as large a share of world output as Germany and the United Kingdom combined, and exports to the BEMs exceed exports to Europe and Japan combined. India, China, Brazil, Mexico, Poland, Turkey, and South Africa are prominent examples of countries the Department of Commerce has identified as BEMs.

Company X, Y, and Z have eliminated all tariffs and other restrictions on internal trade, adopted a set of common external tariffs, and removed all restrictions on the free flow of capital and labor among member nations. However, they lack political unity. These companies are most likely a _____.

Common Market

____ will most likely use the services provided by a home-country middleman.

Companies which want to sell abroad with minimum financial commitment

Retail Patterns continued

Direct Selling -Sometimes called direct marketing, selling directly to the consumer through mail, by telephone, or door-to-door is often the approach in markets with insufficient or underdeveloped distribution systems - The approach works well in the most affluent markets too

Retail Patterns Continued

Direct Selling -Sometimes called direct marketing, selling directly to the consumer through mail, by telephone, or door-to-door is often the approach in markets with insufficient or underdeveloped distribution systems -The approach works well in the most affluent markets too Resistance to Change -Efforts to improve the efficiency of the distribution system, new types of middlemen, and other attempts to change traditional ways are typically viewed as threatening and are thus resisted

Japanese Distribution Structure

Distribution in Japan has long been considered the most effective non-tariff barrier to the Japanese market The Japanese distribution structure is different enough from its U.S. or European counterparts It has four distinguishing features: 1. A structure dominated by many small middlemen dealing with many small retailers—high density of middlemen 2. Channel control by manufacturers 3. A business philosophy shaped by a unique culture and 4. Laws that protect the foundation of the system—the small retailer

Which of the following uncontrollable elements is likely to have an adverse effect on a company's competitive position in foreign markets due to its influence on the company's investment capabilities?

Disturbed domestic economy

The most rapidly growing economies in the Asian region during the 1980s and 1990s were sometimes referred to as the Four Asian Tigers or the Four ____.

Dragons

Cremics, a multinational drug manufacturing company, used a saffron trident in a promotional campaign for one of their drugs in India. The saffron trident, a religious symbol in India was meant to indicate the three levels of efficacy of the drug, but mistakenly conveyed a religious message to Indians. This miscommunication indicates a problem associated with which of the following steps of an international communications process?

Encoding

Janet works for a media agency based in Japan. Janet is helping the IMC manager of Siljure, a French cosmetics company, with the design and language to be used in an upcoming promotional campaign in Japan. The IMC manager knows what to convey but wants to advertise it in a culturally relevant manner. Which step of the IMC process is Janet helping Siljure with?

Encoding the message

According to the text, which of the following is perhaps the best way to stimulate economic development and growth from within developing countries?

Encouraging entrepreneurial activities

General Motors, _____, and DaimierChrysler have created a single online site called Covisint for purchasing automotive parts from suppliers.

Ford Motor Company

Frequently Used Types of Domestic Intermediaries

Manufacturers' Retail Stores Global Retailers Export Management Companies Trading Companies U.S. Export Trading Companies Complementary Marketers Manufacturer's Export Agent Home-Country Brokers Buying Offices Selling Groups Webb-Pomerene Export Associations Foreign Sales Corporation Export Merchants Export Jobbers

Frequently Used Types of Domestic Intermediaries

Manufacturers' Retail Stores Global Retailers Export Management Companies Trading Companies U.S. Export Trading Companies Complementary Marketers Manufacturer's Export Agent Home-Country Brokers Buying Offices Selling Groups Webb-Pomerene Export Associations Foreign Sales Corporation Export Merchants Export Jobbers

A product's _____ refers to the ease with which it benefits can be communicated to the customers.

Observability

While developing an international advertisement campaign, which of the following is the first step of the process?

Perform marketing research

How do product characteristics influence a consumer's information search effort?

Price: The higher the price of the object, the greater the level of search. Product differentiation: The greater the product differentiation (i.e., difference in product benefits among brands), the greater the benefits of a search effort. Positive/negative products: Consumers generally enjoy shopping for positive products, whose acquisition results in positive reinforcement such as hobby items. Consumers do not like to shop for negative products, those whose primary benefit is negative reinforcement such as car repairs.

What are negotiators from the Shanghai area famous for?

Shrewdness

Describe each of the strategies: Preference

Since extensive decision making generally involves several brands, many attributes, and a number of information sources, we want to structure an information campaign that will result in our brand being preferred by members of the target market. The first step is adequate product quality on those attributes important to the target market. Next, information must be provided in all the appropriate sources. This may require extensive advertising to groups that do not purchase the item but recommend it to others (e.g., druggists for over‑the‑counter drugs, veterinarians and county agents for agricultural products). Independent groups should be encouraged to test the brand, and sales personnel should be provided detailed information on the brand's attributes. In addition, it may be wise to provide the sales personnel with extra motivation (e.g., extra commissions paid by the manufacturer) to recommend the product. Point‑of‑purchase displays and pamphlets should also be available.

Which of the following actions should be taken to begin with the search for prospective middlemen?

Studying the target market

Political explanations of Japan's crisis during the 1990s identified two villains. One of them was the long entrenched Liberal Democratic political party. Which of the following was the other one?

The hidebound Japanese bureaucracy

Which of the following may explain the difference in interpretation of historical events, especially if the historians are from different cultures?

The historian's self-reference criteria

Which section of the Omnibus Trade and Competitiveness Act recognizes that foreign penetration of U.S. markets can cause serious competitive pressure, loss of market share, and, occasionally, severe financial harm?

The import relief section

Which of the following is considered to be one of the extraneous variables that affects the rate of diffusion of an object?

The method used to communicate the idea.

Magazines

The use of foreign national consumer magazines by international advertisers has been notably low for many reasons. Few magazines have a large circulation or provide dependable circulation figures. Technical magazines are used rather extensively to promote export goods, but paper shortages cause placement problems

communication channels.

The vehicle through which the coded message is transmitted from the source to the receiver is -Radio and television signals as well as ink on the paper of a magazine or newspaper

Which of the following statements is true regarding MDCs (more-developed countries)?

These countries have high per capita incomes.

Channel power

When one company in a marketing channel has the ability to influence another member's goal achievement