International Marketing, 18e (Cateora)
Chapter 12 Global Marketing Management: Planning and Organization
1) In the 1970s, the market segmentation argument in global marketing was framed as “global
integration versus local responsiveness.”
2) The most successful companies in the global marketplace today focus on country as the
primary segmentation variable.
3) From the marketing perspective, the ideal market segment size, if customer satisfaction is the
goal, is one.
4) Age and gender have been the most obvious international market segmentation variables,
particularly for Americans.
5) Spreading the portfolio of markets served stabilizes revenues and operations for many global
companies.
6) Tactical planning is essentially long term, incorporating generalized goals for an enterprise as
a whole.
7) Strategic planning deals with products, capital, research, and the long- and short-term goals of
a company, and is conducted at the highest levels of management.
8) In the context of planning for global markets, the planning process is a primary medium of
organizational learning.
9) The first step in the international planning process is to adapt the marketing mix to target
markets.
10) Incorrect decisions taken in Phase 2 of the international planning process lead to products
inappropriate for the intended market or costly mistakes in pricing, advertising, and promotion.
11) In Phase 2 of the international planning process, the results of an analysis frequently indicate
that the marketing mix would require such drastic adaptation that a decision not to enter a
particular market is made.
12) Phase 3 of the international planning process involves developing a marketing plan and
deciding budgets and profit expectations.
13) An international marketing plan begins with a situation analysis and culminates in the
selection of an entry mode and a specific action program for a market.
14) The amount of equity required by a company to use different modes of entry in a new market
affects the risk, return, and control that it will have in each mode.
15) With indirect exporting, a company sells to a customer in another country without the use of
any intermediaries or distributors.
16) A Belgium company sells its products to a large retailer in Belgium, who in turn sells the
products all over Europe and Asia. This is an example of indirect exporting.
17) Exporting is a common market-entry approach for mature international companies with
strong marketing and relational capabilities.
18) Patent rights, trademark rights, and the rights to use technological processes are granted in
foreign licensing.
19) In the context of foreign market entry, licensing is least suitable when capital is scarce.
20) With franchising, a franchiser provides a standard package of products, systems, and
management services, and a franchisee provides market knowledge, capital, and personal
involvement in management.
21) A strategic international alliance involves a business relationship established by two or more
companies that cooperate out of mutual need and share risk in achieving a common objective.
22) Joint ventures are similar in structure and organization to minority holdings by a
multinational company in a local firm.
23) The first step in building strategic international alliances is called dating.
24) An American company has just entered into an agreement with a German firm to create a
separate legal entity. This new firm will be allowed to conduct business and actively compete in
various European Union markets. This is a joint venture.
25) When U.S. companies face unfamiliar legal and cultural barriers in another country, it is
preferable to buy an existing business than to enter into a joint venture.
26) Six high-technology companies joined forces to produce and market their products in Japan.
By joining together, these companies were able to enter the Japanese market for the first time.
This is an example of a consortium.
27) An Australian television manufacturer recently invested in a plant to build tuners in Mexico.
This form of international business is aptly named international licensing.
28) Free trade areas that are tariff-free among members but have a common tariff for
nonmembers create an opportunity that can be capitalized on by direct investment.
29) An advantage of a matrix organizational structure in international business is that it permits
management to respond to the conflicts that arise among functional activity, product, and
geography.
30) If a product is culturally sensitive, then decisions related to the product are more likely to be
centralized.
31) Dell Corporation is a good example of mass customization because it
A) maintains a large inventory of products.
B) builds computers to order.
C) markets to countries all over the word.
D) provides one-to-one customer service support.
E) uses local companies to build its computers.
32) 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.
33) Company M was weighing whether it could be competitive if it standardized its products for
the global market. It should consider three criteria: ease of control, flexibility, and
A) global regularity.
B) degree of adaptation.
C) marketing capabilities.
D) diversity.
E) communication capabilities.
34) In the context of global marketing management, international marketers framed the argument
toward market segmentation during the 1970s 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.
35) Company G takes advantage of the Internet and flexible manufacturing to create products
that vary depending on the market it is sold into. This demonstrates Company G’s focus on
A) localization.
B) centralization.
C) diversity.
D) competition.
E) standardization.
36) What is the crucial question facing international marketers today?
A) What are the most efficient ways to segment markets?
B) When is adaptation more relevant than customization?
C) How can I better segment by country?
D) How can I avoid segmenting on the basis of language, age, and income?
E) How can I become more ethnocentric?
37) Which company 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) General Foods
C) R.J. Reynolds Tobacco
D) Ralston Purina
E) Nestlé
38) Alcoa sent line workers and managers to foreign locations to seek out new techniques and
processes, and they brought them back to the home country to improve operations. This shows
the benefits of
A) hiring diversity.
B) standardization.
C) improvisation.
D) global marketing.
E) transfers of knowledge.
39) What statement is a feature of international corporate planning?
A) It only addresses marketing and advertising questions.
B) It specifically deals with a company’s products, capital, and research.
C) It predominantly 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.
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40) What statement relates to strategic planning?
A) It is conducted at the lowest levels of management.
B) It deals with a company’s products, capital, and research.
C) It excludes the research component of a company.
D) It is designed to solely address marketing and advertising questions at the local level.
E) It is most commonly referred to as market planning.
41) Tactical plans are
A) designed to address questions that relate to advertising and marketing.
B) associated with a company’s products, capital, and research at a global level.
C) conducted at the highest levels of management.
D) unlike plans that are made at the local level.
E) most commonly referred to as corporate plans.
42) Harry and his team draft a plan for their organization, HD Corp. They primarily establish the
overall goals that HD should accomplish in the next 25 years. In this case, Harry and his team are
most likely engaged in ________ planning.
A) tactical
B) market
C) corporate
D) strategic
E) personnel
43) What type of planning is conducted at the highest levels of management and deals with
products, capital, research, and the long- and short-term goals of a company?
A) market
B) tactical
C) single-use
D) strategic
E) personnel
44) Jared wants to know how to reach potential customers in small towns on the Spanish coast,
so he should focus his planning on the ________ level.
A) corporate
B) strategic
C) global
D) tactical
E) functional
45) The CEO and the board of directors at a large multinational company meet once a quarter to
review the long- and short-term goals of the company and to make changes as required. They are
engaged in ________ planning.
A) corporate
B) strategic
C) global
D) tactical
E) functional
46) If a company focuses on market planning that involves specific actions and allocation of
resources, the company is most likely implementing ________ planning.
A) tactical
B) strategic
C) corporate
D) operational
E) synergistic
47) Why might the process of planning be as important as the plan itself?
A) It involves everyone in the organization.
B) It forces decision makers to examine all factors that affect the success of a marketing
program.
C) It is necessary to share all plans with shareholders annually.
D) The process of planning is a standard course business schools.
E) Decision makers face more challenges managing a domestic marketing program than a global
one.
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48) The first-time foreign marketer must decide what products to develop, in which markets, and
A) the resources needed.
B) the method of distribution.
C) relevant foreign currency issues.
D) the level of staffing needed.
E) the method of entry.
49) What is the first phase in the international planning process?
A) adapting the marketing mix to target markets
B) developing the marketing plan
C) matching company and country needs
D) implementation and control
E) defining market segments