International Business Chapter 18
Which scenario demonstrates the concept of market segmentation?
- At the computer company Selena works at, both low-end and high-end computers are sold to meet the different economic needs of customers.
________ may be influenced by the level of economic development of a country, resulting in different features of a product being sold to less developed nations than to developed nations, such as basic model cars sold in less developed nations.
- Consumer behavior
Why is it especially important to integrate R&D and marketing when involved in international business?
- It may be necessary to create different versions of a product for various countries.
The text presents three arguments in support of global advertising. What are those three arguments?
- Many brand names are global - Significant economic advantages - One large advertising effort will produce better results
Karen's boss told the marketing department that a pull strategy should be implemented to sell the new line of footwear. Which communication strategy should the department use?
- Mass media advertising
What are the three elements of strategic pricing?
- Predatory pricing - Experience curve pricing - Multipoint pricing
Which four elements make up a firm's marketing mix?
- Product attributes - Distribution strategy - Communication strategy - Pricing strategy
In order to reduce the possibility of new product failure, a company should dedicate itself to creating tight cross-functional coordination and integration among which three core functions involved in the development of new products?
- Production - R&D - Marketing
In which two situations would a company want to emphasize a push strategy?
- Short distribution channels - Limited amount of media
Following a month-long social media attack on German imports, German electronic manufacturers decided to implement an advertising campaign to negate the attack and reassure US consumers that German-made electronics were of the highest quality and relied on US parts to complete the product. Which international communication barrier was the company trying to overcome?
- Source effects
What is an accurate depiction of standardized advertising?
- Standardized advertising spreads the costs of ad development over many countries thereby lowering the costs of value creation.
What three characteristics are found in countries where new product development is strong?
- Underlying demand is strong - More money spent on R&D - Consumers are affluent
A pull strategy would be emphasized in which two situations?
- When distribution channels are long - When selling consumer goods
A key attraction of research centers like Silicon Valley and Kobe is
- availability of skilled research talent.
At Clark HealthCare Systems, the amount of data the company must store has become so large that it must be stored on the cloud and cannot be processed using traditional software. This type of data is known as _____ data.
- big
The knowledge, skills, and technology that allow for the exploration and deeper investigation of a company's international business strategies and activities to gain insight and drive future strategy development and implementation is known as _____.
- business analytics
Heidi's company works through an import agent to get their products to retailers throughout Europe. In this situation, there are two intermediaries between the manufacturer and the consumer. This refers to the _____.
- channel length
Although American Express may sell the same basic charge card service worldwide, differences in national regulations require it to vary aspects of its ______ strategy from country to country.
- communication
Direct selling, sales promotion, direct marketing, and advertising are all examples of a company's ______ channels.
- communication
A company relies on a ______ to advise prospective customers about the attributes of a product.
- communication strategy
When a few retailers supply the majority of the market, it is called a ______ retail system.
- concentrated
The frozen food division of Nestle markets fish cakes and fish fingers in Great Britain but focuses on marketing boeuf bourguignon and coq au vin in France. This reflects how Nestle is taking _____ differences into account when selling products.
- cultural
Price _____ exists when customers in different countries are charged different prices for the same product.
- discrimination
The method a company chooses for delivering a product to the consumer is called the _____ strategy.
- distribution
When Tomas learned that the inventory levels were still at 90%, he instructed the sales team to sell the product 35% lower than the cost to produce the product in order to bring the inventory down to acceptable levels. This demonstrates the idea of _____.
- dumping
When a firm sells a product for a price that is less than the cost of producing the product, it is called _____
- dumping
Members of a product development team should be comprised of individuals from
- each key function in the company.
The price _____ of demand is a measure of the responsiveness of demand for a product to change in price.
- elasticity
Jonah's company is trying to gain access to shelf space in supermarkets for its new line of crackers. However, it is very difficult to get the stores to carry the product because so many stores prefer to carry crackers from established manufacturers. Jonah's company's efforts are being hampered by a(n) ______ distribution channel.
- exclusive
Which type of distribution channels are most likely in place when it is difficult for new firms to gain access to retail space?
- exclusive
True or false: Levitt's concept of a fully-standardized international marketplace is represented in most consumer brands today.
- false
True or false: Technological innovation is always viewed as a creative rather than a destructive force.
- false
In a concentrated retail system, most of the market is supplied by (few or many?) retailers
- few
A proliferation of retailers in a given market would be found in a ______ retail system.
- fragmented
Sooyoung reported to the management team that since there were so many retailers supplying the product, none of them held a major share of the market. She is describing an example of a(n) ______ retail system.
- fragmented
Critics of Levitt note that his implications apply more to basic _____ products.
- industrial
In which type of distribution channel is it more likely for the consumer to end up paying a higher price for the final product?
- long
Jason's report outlined that consumers living on the west coast had purchased 80% more of the company's line of "green" products compared to consumers living in the southeastern part of the country. His report demonstrates the concept of _____.
- market segmentation
Grayson's department is responsible for assessing the distribution and pricing strategies for the company's main product lines. This department is responsible for two of the elements that comprise the ______.
- marketing mix
It is best if members of a product development team are placed in ____________ (one or many?) location(s).
- one
Manuel's company decided to implement a push strategy for its new line of health care products. That means the company will use _____ to promote the products.
- personal selling
When consumers in Belgium are charged lower prices for no particular reason for Nike shoes than consumers in Italy, it is an example of _____.
- price discrimination
After the company lowered the cost of the shoes, sales increased by 30%. This demonstrates the concept of
- price elasticity of demand.
Tomas is not able to find any data on the number of households using an electric stove so he devises a survey to obtain the information. His survey results are an example of _____ data.
- primary
What are the two types of data that can be used in market research -- both domestic and international?
- primary - secondary
According to the text, a ______ can be viewed as a cluster of attributes.
- product
The three core functions involved in the development of new products are R&D, marketing and ______.
- production
For most companies, each intermediary in a channel adds its own markup to products, which creates a link among channel length, the final selling price, and the company's
- profit margin
Charles works for a company that makes toothpaste. He realizes that the best way to advertise the product line to the international market is through mass media advertising because it will reach more consumers and it would be impossible to reach every consumer with a personal sales call. He recognizes that his company should use a _____ communication strategy.
- pull
Consumer goods industries, such as Procter & Gamble, that are trying to sell to a large segment of the market are more inclined to use a ___________ (push or pull?) strategy.
- pull
If a company chooses to use mass media advertising rather than personal selling as a communication strategy, it is engaging in a __________(push or pull?) strategy.
- pull
When a company sells consumer goods, such as shampoo and lotion, it would be common for the company to use a _____ strategy.
- pull
Paul's company sells complex products to hospitals and medical facilities. It would be best for his company to use a _____ strategy as a communications tool.
- push
When a company uses a ___________ (push or pull?) strategy, it emphasizes personal selling rather than mass media advertising.
- push
When a company uses a _____________(push or pull?) strategy, it emphasizes personal selling rather than mass media advertising.
- push
Market ______ is a tool companies use when trying to identify distinct groups of consumers whose purchasing behaviors differ from that of other consumers.
- segmentation
Jim's shoe company manufactures shoes and sells them directly to the consumer. In this situation, the channel length can be described as _____.
- short
Technological innovations occur at a rapid pace and as a result product life cycles have become _____.
- shorter
Nigel works at a British advertising agency and has advised his client that it's not worth the company's money to advertise its products in China because he knows there is a strong bias against foreign firms for this particular product. This demonstrates how _____ can impact international marketing.
- source effects
Despite minor variations in its menu from country to country, McDonald's is usually described as a company that follows a _____________ (standardized or localized?) strategy in international markets.
- standardized
Predatory pricing, multipoint pricing, and experience curve pricing are all aspects of ______ pricing.
- strategic
New product development seems to be strongest in countries where competition is _____.
- strong
After his company introduced a new line of hair dryers, Jeremy realized that the dryers could not be sold in Europe because the electrical adapters would not fit into the existing design. Jeremy's company failed to take into account ______ standards that limited globalization.
- technical
DVD equipment manufactured in the US will not play DVDs recorded on equipment manufactured in Great Britain. This limits the market for selling DVDs from Great Britain in the US and shows how _____ can influence consumer behavior.
- technical standards
When viewed as a product, what are three attributes of a bottle of shampoo?
- texture - scent - bottle size
The most important aspect of cultural differences that companies need to recognize when marketing to another country is the impact of _____.
- tradition
True or false: Consumers buying a car in a less-developed nation are more likely to be concerned with product reliability over extra features.
- true
If a company manufactures in the United States and only wants to sell products in the US, then which three resources can the firm sell to directly? (check all that apply)
- wholesaler - retailer - consumer
The goal of a cross-functional product development team is to take a product from ______ to ______.
Initial concept development; market introduction
It is ___ (less or more?) important to integrate R&D and marketing when dealing with international business.
More
Disney's Mickey Mouse is one of the most globally recognized brands ever. Which of the following statements does not depict Mickey Mouse and Walt Disney Company?
Pressures for local responsiveness require the Mickey Mouse character to be adapted to local market
Iron Man and Avengers movies represent which part of the marketing mix?
Product
The Walt Disney empire includes its motion picture studios, theme parks, cable TV networks, publishing, and merchandising. We can thus conclude that Walt Disney uses a ________ communications strategy.
Pull
Which of the following is a main difference between a concentrated retail system and a fragmented retail system?
a few retailer supply most of the market in a concentrate system; many retailer are presented in a fragments systems
Walt Disney theme parks have proved to be successful in multiple countries around the world. Disney's theme-park visitors can be described as being a segment that spans multiple countries, transcending national borders. This type of segment is called
an intermarket
Marvel Studios' Avengers: End Game premiered in international markets in 2019. Any rebates or coupons encouraging people to go to see the movie are considered to be part of Disney's ________ strategy.
communication
