Global Marketing - Chapter 16

Identify the conditions in which creativity in advertising holds special importance.

- If a budget is small - If production limitations exist

Identify the accurate statements about noise. (Check all that apply.)

- It frequently interferes with the process of communication. - It creates a disrupting effect.

Identify the accurate statements about the role of the Internet in advertising. (Check all that apply.)

- It is used as a promotion medium for consumer goods by many companies. - It uses catalogs and product descriptions for promotions.

Identify the potential disadvantages of advertising in newspapers. (Check all that apply.)

- Long time lag before publication of advertisements - Lack of space due to equipment limitations - Lack of separation between advertising and editorial content

Which linguistic limitations do advertisers face? (Check all that apply.)

- Low literacy rates - Translation issues - Diverse education and social norms

What causes international communications to fail?

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

Why do international advertisers seldom bother with foreign national consumer magazines?

- Placement problems may be caused due to paper shortages. - Circulation figures may not always be dependable. - Magazines may accept more advertisements than they have space to run.

Identify the traditional major determinants of brand choice. (Check all that apply.)

- Recommendations by peers - Word-of-mouth advertising

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

- Terse writing - Abstractions - Word economy

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

A product message is selected for transmission.

Tim is the marketing manager of a beverage manufacturing company. He is responsible for conducting an international advertising campaign to launch and promote a new product. In this scenario, identify the first step that Tim should take.

Marketing research should be performed.

What are the components of integrated marketing communications?

Personal selling Trade shows Direct selling Sales promotions Advertising public relations

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

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

With a proper feedback system, errors ______.

can be corrected before significant damage occurs

Satellites ______.

cover many different countries

A major limitation of using the Internet to advertise consumer products is the Internet's lack of _____.

coverage

The effectiveness of an advertisement can be ensured if all the characteristics of the advertisement coincide with ______ norms.

cultural

Global advertising expenditures tend to be _____.

cyclical

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

decoding

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

The first step in the international communication process is ______.

encoding by an information source

Radio and television have become major communications media worldwide, likely because of their ______ value.

entertainment

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

Change in culture can be brought about through _____.

global mass media advertising

The big trend is mobile phones is from holding it to your ear to _______.

holding it in your hand

Billboards are more useful in countries where ______.

illiteracy rates are high

Rules governing comparative advertising in Europe allow ______.

implicit comparisons if they do not name competitors

Direct mailings are largely used by ______ advertisers.

industrial

Companies can effectively use direct mail for advertising in countries where there is ______.

limited availability of other media

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

more on effective research

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

national boundaries

In most countries, media prices are ______.

negotiable

Any or all of the first six steps of the international communications process can be affected by unpredictable and uncontrollable influences. These influences are collectively known as

noise

The ultimate effectiveness of the international communications process can be diminished by factors such as competitive advertising, confusion at the receiving end, and other sales personnel. These factors are referred to as

noise

In some countries, policies related to radio and television advertising have changed in recent years because _____.

production costs are high

Unlike multinational advertising agencies, local domestic advertising agencies ______.

provide companies with good interpretation of local culture

The probability of a misunderstanding between a sender and a receiver can be minimized if a(n) ______ exists between them.

psychological overlap

The significance of providing feedback in the international communications process is that ______.

the effectiveness of the process can be evaluated

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

Sales promotions can take the place of advertising when

there are environmental constraints on advertising.

The impact of satellite television is a matter of concern for governments because _____.

they are afraid of losing control of the media

Advertising campaigns often fail due to perceptions based on heritage and _____.

tradition

In some countries, numerous different media have split markets into ______.

uneconomical advertising segments

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

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

Identify Europe-wide promotional strategies.

- Advertising concepts should be designed to appeal to market segments. - Market segments across European countries should be identified.

Why are highly developed advertising strategies needed?

- Because sophistication of foreign consumers has increased - Because competition for world markets has intensified

True or false: Overall, newspapers' advertising revenue is increasing.

Reason: This statement is false. The decline in ad revenues going to the print media is dramatic.

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

Reason: This statement is false. Certain companies cannot standardize the brand names of their products because each brand is established in its market and therefore has equity.

True or false: The decoding step of the international communications process precedes the encoding step.

Reason: This statement is false. Decoding comes after encoding in the international communication process.

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

advertising

The development and execution of advertising campaigns are generally managed by ______ agencies.

advertising

The most important elements of marketing communications for most companies are _____ and personal selling.

advertising

The feedback step of the international communications process ______.

checks the other steps for their effectiveness

One of the great creative challenges in advertising in diverse cultures is the problems associated with ______.

communicating to individuals

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

comparative

To combat media limitations, advertisers in some countries have

developed their own media.

True or false: Errors at the receiver end of the international communications process result from inaccurate decoding by a sender.

Reason: This statement is false. Errors at the receiver end of a communications process result from inaccurate decoding by a receiver so that a message is garbled or incorrect.

True or false: Sales promotions involve long-term efforts that are aimed at consumers or retailers.

Reason: This statement is false. Sales promotions are short-term efforts directed to consumers or retailers to achieve specific objectives.

True or false: There is a set of global rules that govern the standards of decency in advertisements across the world.

Reason: This statement is false: One of the problems in controlling decency and sex in advertisements is the cultural variations found around the world.

True or false: Message channels must be carefully selected if an encoded message is to reach a consumer correctly.

Reason: This statement is true. Message channels must be carefully selected if an encoded message is to reach a consumer correctly.

True or false: The success of a sales promotion depends on local adaptation, promotional types, and cultures.

Reason: This statement is true. The success of a sales promotion depends on local adaptation, promotional types, and cultures.

Which media do governments most commonly prohibit from accepting advertising materials?

Television and radio

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

Companies can successfully promote products that have small market shares or that represent new concepts by using ______.

product sampling

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

To meet the needs of advertisers and agencies for high-quality information, ______ is growing increasingly reliable.

research data

Identify the parties to whom companies aim to convey their messages. (Check all that apply.)

Customers General public Governmental regulators

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

Advertisers cannot afford to buy sufficient coverage.

Word-of-mouth advertising works especially well ________. (Check all that apply.)

- where people exhibit uncertainty avoidance tendencies - where people show an orientation toward information

Identify the examples of noise that affect any or all of the other six steps of the international communications process.

- Confusion - Competitive activities

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 the 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.

The reach and pace of word-of-mouth advertising have been changed by the power of _____.

the Internet

Which factors can cause errors at the receiver end of the international communications process? (Check all that apply.)

- Selection of poor media - Poor encoding - Incorrect decoding - Lack of proper knowledge of use patterns

Identify the problems that are associated with advertising coverage.

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

How are large volumes of international business generated by industrial advertisers?

- Through catalogs - Through sales sheets

What objectives do good public relations accomplish? (Check all that apply.)

- Unfavorable events, rumors, and stories about companies are managed. - Media and press are encouraged to cover positive stories about companies. - Companies are helped to communicate messages to their customers.

Geographic coverage is generally known for _______.

radio and television

When do international promotions commonly contain mistakes?

- When adequate knowledge about target markets is not available - When cultural influences are improperly reflected by the communication process

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

- When they need to avoid confusion related to multiple label names - When they need to ensure efficiency

Identify the instances when advertisers use lesser media to create solutions.

- When traditional media is restricted - When traditional media is not available

A company may limit or decrease print advertising _______.

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

Identify the concerns that are being raised in the advertising industry. (Check all that apply.)

- Companies are practicing deception in advertising. - Certain advertisements demean women. - It is difficult to define and control decency in advertisements.

Why are multinational advertising agencies with local branches preferred to local domestic advertising agencies?

- Companies can be guaranteed global representation. - Worldwide advertising campaigns can be better coordinated.

In the context of advertising strategy and goals, why do multinational companies strive to increase control and efficiency without sacrificing local responsiveness?

- Companies desire a broader company or product image. - Promotional programs in multiple countries have given rise to coordination problems. - Costs of advertising have increased.

Which types of advertising agencies might a company choose to hire when it is seeking local modification and the best cultural interpretation of its advertising message?

- Company-owned agencies - Local domestic agencies - Multinational agencies with local branches

How are mobile devices used in advertising? (Check all that apply.)

- Consumers are allowed to ask marketers questions. - Information and web services are offered to users. - Innovative answers are delivered by marketers to users.

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

- Coupons and gifts - Samples and cents-off - Contests and sweepstakes - Product tie-ins and sponsorship of special events - In-store demonstrations - the olympics - fairs - point-of-purchase

What will happen if television coverage is expanded? (Check all that apply.)

- Global standardized messages will become more prevalent. - Advertiser creativity will be challenged.

Identify the factors that can cause an international marketer to symbolize a message incorrectly at the encoding step.

- Humor of spokespersons - Timing and appropriateness of spokespersons - Tastes of spokespersons - Problems of media availability and literacy - Values and beliefs of spokespersons

Which step immediately succeeds encoding in the international communication process?

Transmitting a message to a receiver

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

bargaining ability of agents

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

bargaining ability of agents