Chapter 7 – The International Market Environment for Brand Promotion
TRUE/FALSE
1. Ethnocentrism is the term used to describe each individual’s tendency to view and value things from
the perspective of one’s own cultures.
2. Advertising agencies must continuously decide how to overcome cultural barriers to communicate
effectively.
3. Analyzing international audiences is easy. Researchers have only to evaluate economic conditions,
demographics, and product usage.
4. Less-developed countries depend on consumer products to heighten their standard of living.
5. While a demographic analysis of a country provides guidance in media decisions, it is of minimal use
in determining the type of advertising an agency should do.
6. Cultural values are enduring beliefs about what is important to the members of a culture, which also
has important effects on advertising.
7. One of the biggest mistakes an advertiser can make is to assume that rituals are similar among
cultures.
8. People from different cultures can see the same picture and walk away with extremely different
interpretations.
9. There are a few human expressions that are commonly interpreted in the similar ways.
10. There is a widely held belief that words are less culturally bound than are pictures.
11. The biggest challenge facing international advertisers is probably in the area of media. Meeting this
challenge is especially important in light of the fact that media costs represent a majority of the costs
in most advertising budgets.
12. Advertisers must structure their advertising to accommodate the wide variety of international
regulations.
13. Global agencies have the backing and resources to tap into local cultures better than any other type of
agency.
14. Supporters of the globalization of international advertising campaigns focus on similarities between
countries. Supporters of the localization of international advertising campaigns focus on the
differences.
15. American consumption values are being adopted by many countries around the world.
MULTIPLE CHOICE
1. When planning international advertising, managers must be careful to avoid reference to one’s own
cultural values or experiences known as ____.
a.
global misunderstanding
c.
the self-reference criterion
b.
international barriers
d.
geocentrism
2. One of the most culturally bounded approaches to advertising involves
a.
language
c.
emotion
b.
humor
d.
symbols and rituals
3. A company decides to expand distribution of its brand of spaghetti sauce to several foreign markets.
Optimally, market research should
a.
emphasize the use of secondary sources.
b.
be performed in each country the company is expanding into.
c.
be performed until there appear to be consistent results between countries.
d.
emphasize the use of self-reference criteria.
4. Nearly 75 percent of the world’s population lives in
a.
less-developed countries.
c.
emerging economies.
b.
newly industrialized countries.
d.
highly industrialized countries.
5. When a company breaks the world into three classes of economic conditions, it does so because
a.
tastes and preferences tend to be similar within economic classes.
b.
cultures in newly industrialized countries are often easier to understand.
c.
values tend to be similar within economic classes.
d.
it helps define the economic capabilities of consumers.
6. Many newly industrialized countries have a distinct opportunity to surge ahead economically; it is
called
a.
the natural resource dividend
c.
the demographic dividend
b.
the cultural dividend
d.
the technology dividend
7. Enduring beliefs about what is important to the members of a culture are
a.
rituals.
c.
attitudes.
b.
customs.
d.
values.
8. The American advertising icon the Marlboro Man is most often pictured alone. He‘s out roping and
branding and riding and smoking and doing whatever manly things he wants to do, whenever he wants
to do them. It could be said that he embodies the American spirit of individualism. When rolling out
the Marlboro Man to different cultures, it is important to see how people react to this image. Research
into ____ would be the most important type of research to conduct.
a.
economic conditions
b.
demographics
c.
values
d.
customs and rituals
e.
product use and preferences
9. There are numerous commercial research firms that can provide advertising relevant data on how
consumers around the world
a.
vote.
b.
petition their governments.
c.
display different product use characteristics and preferences.
d.
perceive the United States.
10. High per capita income and high GDP define:
a.
the G-8 countries
c.
highly industrialized countries
b.
less-developed countries
d.
newly industrialized countries
11. Which of the following is true of rituals? They
a.
perpetuate a culture’s connection to its core values
b.
seem perfectly natural to members of a culture
c.
involve many consumer behaviors
d.
all of these statements about rituals are true
12. One of the most devastating mistakes an advertiser can make is to presume that consumers in one
culture have the same ____ as those of another culture.
a.
rituals
c.
income
b.
product uses
d.
demographics
13. The book describes three distinct challenges that complicate the execution of advertising in
international settings. The three challenges that must be overcome are
a.
the verbal, the visual, and the symbolic.
b.
product, promotion, and price.
c.
creative, media, and regulatory.
d.
comprehension, retention, and interpretation.
14. Which of the following is assisting media buyers in meeting the global media-buying challenge?
a.
The reduction in the number of media options
b.
The universal acceptance of advertising in media vehicles
c.
The emergence of comprehensive, consistent cross-cultural regulations
d.
The emergence of global television networks
15. Which of the following is not associated with the high costs of international advertising?
a.
Preparing multiple ads to run in multiple languages
b.
The incredible number of markets that must be reached to get full coverage
c.
A shortage of available media space and time
d.
The expansion of Internet advertising
16. The medium with the most localized worldwide coverage is
a.
television.
c.
magazines.
b.
radio.
d.
newspapers.
17. One of the most frustrating aspects for Americans of the global media challenge is that
a.
there are not enough newspapers worldwide to reach the intended audience.
b.
media prices are subject to negotiation—no matter what the rate card says.
c.
there are no rate cards for media in foreign markets.
d.
there is no negotiation of media rates—media firms are rigid in their pricing.
18. The regulatory restrictions one must be aware of when placing international advertising
a.
are designed to protect products manufactured within each market.
b.
reflect the cultural values within each market.
c.
have not been applied to emerging media, as of yet.
d.
are fairly standard across markets.
19. Which of the following has not had a regulatory limitation placed on it in an international market?
a.
The times that certain products can be advertised
b.
The use of national symbols
c.
The type of appeal used
d.
All of these have had limits placed on them
20. The advantage of a global (or worldwide) agency in preparing international advertising is that
a.
if the agency handles the domestic (U.S.-based advertising) for a firm, it will know the
advertiser’s products well.
b.
the geographic proximity of the advertiser to the agency headquarters can facilitate
planning.
c.
the size of a global agency can provide a benefit of economies of scale.
d.
the size of a global agency can be a benefit in political leverage.
21. The single greatest advantage that international affiliates can offer over global agencies is
a.
lower production costs.
b.
more branch offices.
c.
greater understanding of product and strategy.
d.
greater knowledge of local markets.
22. A company that manufactures designer plumbing fixtures is in the process of advertising its product
internationally. However, company management has expressed frustration over poor communication
with agencies and a lack of cohesive creative work. Most likely, the company is working with
a.
in-house agencies.
c.
local agencies.
b.
global agencies.
d.
international affiliates.
23. The term localized campaign refers to
a.
presenting the same creative execution to specific local markets.
b.
using local agencies to prepare advertisements.
c.
using different creative executions in different markets.
d.
producing a campaign in the same area in which it will be run.
24. The world marketplace seems to be shifting toward conditions that increase the likelihood of
globalized campaigns. Which of the following is not a trend that will encourage this move?
a.
Younger audiences seem to be becoming more and more similar.
b.
Local values are becoming less important in the success or failure of a campaign.
c.
Global communications are making viewers more similar to each other.
d.
Demographic trends in many countries seem to be mirroring those in the United States.
25. In today’s advertising environment, conditions for globalized campaigns have become ____.
a.
impossible
c.
more favorable
b.
less favorable
d.
unpredictable
Scenario 7-1
In collaboration with the Ministries of Health and Water, PSI/Tanzania launched WaterGuard, a home
water purification solution, in 2002. This simple, low-cost technology enables parents to purify their
families drinking water conveniently at home, regardless of whether the water was obtained through a
well, community taps, or mobile water vendor. WaterGuard is manufactured in Tanzania by a well
established, private-sector soap and detergent company. Each 500 ml bottle of WaterGuard treats more
than fifty 20 liter jerry cans of water- enough to provide the average family with clean drinking for a
month. WaterGuard is being promoted through TV and radio advertising, point of sale signs, direct
marketing events, and billboards. (PSI, http://www.psi.org, January 15, 2005).
26. (Scenario 7-1) In 1990, when the first radio advertisements were aired in Tanzania, many listeners
were bewildered by the concept of advertising. They simply did not understand what they were
listening to. This is an example of
a.
the brands of products being advertised not having a global appeal.
b.
companies not understanding the unique demographic characteristics of Tanzania.
c.
culture-free communication.
d.
a low degree of shared meaning between advertiser and consumer.
27. (Scenario 7-1) If PSA began marketing water purification in Tanzania without ever asking if the
Tanzanian market knew anything about water pollution, the organization is
a.
guilty of ethnocentrism.
c.
using a self-reference criterion.
b.
using global advertising.
d.
a victim of the regulatory challenge.
28. (Scenario 7-1) A marketer of jams and jellies considers entering the Tanzanian market. As it
researches the market, it discovers that Tanzanians eat their bread dry. To discover this, the marketer
most likely performed
a.
research into economic conditions.
c.
demographic research.
b.
research into customs and rituals.
d.
product use and preferences research.
29. (Scenario 7-1) Lowe Scanad East Africa is one of the largest advertising agencies in Tanzania. With an
office in Dar es Salaam, it can lay claim to having localized knowledge of a market that is unique in
many ways. Over time, however, the development of ____ may help create consumption practices that
are similar to those in the United States.
a.
culture-free communications
c.
localized advertising campaigns
b.
its newspaper industry
d.
DBS satellite technology
Scenario 7-2
d.
creative challenges and regulatory challenges.
Scenario 7-4
It doesn’t matter where in the world you are or how well off, the fast food culture has become a way of
life for all of us. According to the latest findings from ACNielsen, the world’s leading market research
firm, nearly all Hong Kong people (97%) are fast food patrons. A fast food culture has shaped the
lifestyles of us all, and with fast food operators introducing healthier options in the form of salads and
low carb meals, consumers today have greater choice than ever before.
While building a good brand image is close to the heart of most marketers, it is worth noting that brand
image appears to have little influence on consumer choice of take away restaurants. Brand Image
ranked the least important among all respondents. Among the international fast food chains and local
operators, McDonalds was the world’s most popular with 68 percent of people in the 28 major
countries picking it as the first choice for take away food. KFC ranks No.2 at 32 percent and Pizza Hut
ranks No.3 at 29 percent. Nevertheless local fast food chains also have a strong foothold taking Hong
Kong as an example, 62 percent also chose local operators as their choice of fast food restaurants, and
as ACNielsen I-Scan ImpulseTM indicates those local chains include Caf’de Coral and Maxim’s.
(Asians the World’s Greatest Fast Food Fans.Two thirds of Hong Kongers frequent at least once a
week, December 23, 2004. http://acnielsen.com.)
39. (Scenario 7-4) In an attempt to get a fix on whether or not to enter this market, an advertiser performs
an analysis of economic conditions. Which piece of information is this analysis most likely to reveal?
a.
Television stations often charge a higher rate for foreign-owned enterprises to advertise.
b.
37.3 percent of the total population is between the ages of 15 and 34.
c.
Chinese consumer trust in advertising is among the highest in the world.
d.
Most Chinese consumers have annual incomes of less than $1000.
40. (Scenario 7-4) An international company is about to enter the Chinese market with a campaign in the
medium that requires the most local knowledge to use correctly. It is going to use
a.
direct mail.
c.
outdoor advertising.
b.
newspapers.
d.
satellite transmission television.
41. (Scenario 7-4) A small U.S.-based company that makes and markets gardening tools has entered the
Chinese market. However, management has been very frustrated by a lack of standardization in its
strategic and creative efforts to reach the different regions of the country. The company is most likely
using
a.
a regional agency.
c.
its domestic agency.
b.
a global agency.
d.
local agencies.
OBJ: 7-3
Scenario 7-5
Ash Chemical produces food additives and flavorings in the United States that are used by food
processing companies and consumers throughout the world. Ash’s products are sold under a variety of
brand names based on whether the product is sold to business or consumer users. Demand differences
in local markets are attributed to differences in culture, values, tastes, and preferences of end users. As
a result, Ash spends a great deal of time conducting market research in dozens of different locales at
any given time. Recently, Ash Chemical has devoted significant marketing effort toward Country X
and Country Y.
42. (Scenario 7-5) Country X buys a lot more of Ash’s products for use in food processing than they do for
direct sales to consumers. Which of the following classes of economic development likely best
describes Country X?
a.
a G-8 country
c.
an EU or EC country
b.
a less-developed country
d.
a newly industrialized country
43. (Scenario 7-5) Country X’s consumers are, on average, much younger than consumers in the United
States. Which of the following world regions in Country X most likely located in?
a.
North America
c.
Western Europe
b.
Asia
d.
Africa
44. (Scenario 7-5) Research has suggested that the relatively low income consumers in Country Y
constitute a market with great potential for Ash. Which of the following is most likely to be Country
Y?
a.
the United States
c.
India
b.
Japan
d.
Germany
45. (Scenario 7-5) Country X is part of a market where 75% of the world lives. Which of the following
types of country is Country X?
a.
Less developed nations
c.
Highly industrialized nations
b.
Newly industrialized countries
d.
Techno-forward countries
Scenario 7-6
Recently, an American business traveler visited a Burger King restaurant in downtown Singapore. As
the customer viewed the menu board while standing in line, she noted that the menu was almost
identical to that found in Burger Kind outlets in the United States. When she stepped up to place her
order, she said, “I would like a Whopper; hold the mayonnaise.” The man serving her at the counter,
seeing that she was not a local citizen, smiled and said, “This is not the States, you can’t ‘have it your
way.'” As a result, if she wanted to order a Whopper, she had to accept it with all of the standard
condiments already applied.
© 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
2. Explain why an understanding of the role of picturing is important to an advertiser. Describe the visual
in a print advertisement that you have seen recently. Explain why it may or may not be interpreted
differently by someone in a culture other than your own.
3. Describe the various pressures that drive the costs of a global marketing effort upward when one is
faced with buying media.
© 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
4. Describe the advantages of using a global advertising agency when you begin a global marketing
effort. How is an international affiliate different from a global agency in structure? What is the
disadvantage to an advertiser in using its agency’s international affiliate to reach a market in a different
country?
5. Make an argument for the use of a globalized campaign as opposed to a localized campaign. Then
summarize the opposing argument.