International Marketing 3304 Chpt. 12 LearnSmart
In which decade was the market segmentation argument framed as "global integration versus local responsiveness"?
1990s
Identify the market segmentation dispute in the 1970s.
Adaptation versus standardization
Match the type of company (in the left column) with its description (in the right column). Centralized Companies Decentralized companies
Company information and data are located in one place. Executives have a localized view of the company, not an all-encompassing one.
What must global businesses understand about doing business in emerging markets?
Consumers in emerging countries have a variety of yearly incomes.
Place the stages of building a strategic alliance in order, starting with the first stage at the top.
Dating Imagining Initiating Interfacing Committing Fine-tuning
Identify a measure that companies take when corporate objectives do not match foreign market opportunities.
Developing a new company objective to match the opportunity
Wavetel, a hardware company based in Europe, acquires Telior, its competitor in a neighboring country. Identify the market-entry strategy that best describes Wavetel's move.
Direct foreign investment
True or false: Corporate planning plans for the immediate future.
False
True or false: Strategic planning takes place only at the lowest level of management.
False
True or false: Tactical planning is done at the national level and deals with products, research, and long-term goals of the company.
False
Identify the scenario that describes a consortium.
Five technology corporations and ten consulting corporations come together to form a telecommunications company in Africa for the first time.
Match the partners in the franchising process (in the left column) with their description (in the right column).
Franchiser Offers homogenized company products Franchisee Offers information about host country market
Identify an accurate statement about franchising.
Franchisers have some direction over the activities of the franchisees.
Identify the three typical company structures. (Check all that apply.)
Geographical divisions Matrix organizations Global product divisions
Match the company structure (in the left column) with its description (in the right column). Global product division Geographical division
Handles product sales throughout the world Handles products within a particular region
Identify an accurate statement about a joint venture.
It helps an outsider firm comprehend cultural differences and niceties.
Which statement is true of planning for global markets?
It is a structured way of thinking about anticipated and unanticipated events.
Identify a market-entry strategy that will help a multinational company gain entry into a country market that is not receptive to companies with foreign owners.
Licensing
Rank the four phases of planning for global marketing, starting from the first phase and ending with the last phase.
Preliminary analyzing and screening Defining market segments and adapting the marketing mix accordingly Developing the marketing plan Implementing and controlling
Identify benefits of global marketing. (Check all that apply.)
Reducing the cost of producing a product Sharing experience across markets Sharing knowledge across markets
Identify an accurate statement about strategic international alliances (SIAs).
SIAs decrease marketing expenses.
Match the stage of building a strategic alliance (in the left column) with its description (in the right column). Dating Imaging Initiating Interfacing Committing Fine-tuning
Senior managers leveraging personal networks Creating shared visions Building trust through face-to-face interactions Combining social and business time Managing conflicts inherent in making hard choices Relying on mature and established relationships
_____ planning deals with capital, products, research, and the short-term and long-term goals of the company. The highest levels of management are involved with this type of planning.
Strategic
_____ planning relates to the allocation of resources used to implement strategic planning goals in particular markets.
Tactical
True or false: The problem of locating and overseeing licensees can contribute to the failure of licensing agreements.
True
Research suggests that multinational firms like to focus on specific regions because _____.
a regional focus minimizes problems caused by cultural distance
A joint venture between two multinational corporations helps an international marketer _____.
access a partner's local supply and delivery methods
A strategic international alliance (SIA) is a(n)
business relationship between two or more companies.
As a result of direct foreign investment, local companies that are acquired by large multinationals _____.
can export goods to new consumers
The third phase of planning for global marketing involves _____.
choosing a mode of entry into the target country
In the first phase of planning for international marketing, companies _____.
collect information to evaluate the potential of a country market
General planning for a company over a long period of time is called _____.
corporate planning
In many global companies, a wider portfolio of markets served _____.
decreases revenue instability
Investing in a foreign company is a means of foreign market development and entry known as
direct foreign investment
Unlike decentralized organizations, centralized organizations _____.
direct planning
When making decisions for international marketing, managers should
ensure that policies define the decisions to be made at each managerial level.
Solinol Inc. is one of the largest oil refineries in Europe. Three years ago, it entered the Central African Republic and started production on several oil fields. The access to these oil fields made Solinol one of the largest oil companies in the world. Soon after that, the political situation in the Central African Republic deteriorated. Many of its assets are now under siege by rebel groups. The result has been losses of over $5 billion to Solinoil. In this scenario, the market opportunities for Solinol in the Central African Republic clashed with the _____.
firm's business objectives
P&L, a French luxury goods company, launched a new line of leather accessories in four countries. The company devised an aggressive marketing strategy to promote this line of products. After 6 months, the CEO of P&L calls a meeting to evaluate the success of the marketing campaigns in each country. In the context of global marketing, this meeting would fall under the _____ of the planning process.
fourth phase
A partnership between legally incorporated entities that join forces to create a separate, legal entity, where each partner holds an equity position, is known as a(n)
joint venture
A partnership of two or more companies with the goal of creating a separate legal entity is known as a ______.
joint venture
Two companies decide to pool their resources and create a company to exploit opportunities in a developing market. Their agreement is a good example of a _____.
joint venture
Identify the factors that influence the performance and structure of direct investment.
knowledge of local firms complicated contracts investment timing
Market entry through direct foreign investment helps multinational corporations in _____.
lowering the costs of shipping
Tactical choices for international marketing should be made at the ______ of an organization.
lowest level
A strategic international alliance aids international marketing by _____.
making a company more profitable
One advantage of clustering operations in specific regions is that clustering _____.
minimizes problems caused by varying time zones
In the process of franchising, franchisers _____.
offer management assistance to franchisees
In global marketing, the major objective of the fourth phase of the planning process is to _____.
organize and direct implementation
Joint ventures are
partnerships between legally incorporated entities and not between individuals.
A major element that influence the success of a franchise is
past international experience of the franchiser.
Planning for global markets involves _____.
preparing for unknown and uncontrollable circumstances that may affect the company
In global marketing, the results of the first phase of planning help marketers _____.
recognize potential issues in a new country market
A drawback of licensing is that licensees
require supervision.
Rachel owns a small business that deals in custom wear and accessories. She wants to expand her business worldwide and is launching an online portal under her label. To open an effective online business, she will have to ensure that _____.
she has easy access to delivery services that operate internationally
A business relationship in which two or more companies share risks in achieving common objectives and cooperate out of mutual need is known as a ______.
strategic international alliance
Consortia reduce hazards associated with big investments because _____.
they generally involve a greater amount of participants
The ______ phase of planning for global markets begins with a situation analysis and ends with the selection of specific action plans for a new country market.
third
Emerging markets may _____.
have rudimentary frameworks for doing business
Identify the statement that relates to the "timing" factor of direct foreign investments.
Early foreign investment in a market has benefits, but it is more uncertain.
Match the phase of planning for global marketing (in the left column) with its description (in the right column). Phase 1 Phase 2 Phase 3 Phase 4
Exploratory assessment of potential country markets Branding products keeping cultural specificities in mind Choosing an approach into a country market Evaluating a firm's operation in a country market
Deal City, an online shopping portal based in China, supplies cost-effective household products to customers in North America. Identify the type of alternate market-entry strategy that best describes this scenario.
International Internet marketing
Licensing is an appropriate choice when _____.
a company wants to enter a country that places strict limits on imports