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Some company executives become so committed to a current, profitable technology
that they fail to provide adequate levels of investment in new, apparently riskier
technologies.
Yong Nam, CEO of LG, recently stipulated that Chinese would be required throughout
the company. He explained that the speed of innovation that is required to compete in
the world mandates that we must have seamless communication.
Implicit or explicit reference to competitors can provide the basis for an effective
positioning strategy
As Walmart extends its reach around the globe, observers are using words such as
"assault" and "invasion" to describe what it's like for a nation that the company has
fixed in its sights.
McAloo Tikka potato burger offered in India is an example of standardization.
The U.S. mass producers focus on long-term income and return on investment, whereas
Japanese see the process in terms of the short-term perspective.
The alliance between GE and Snecma got off with a feeble start due to the personal
chemistry between the top two executives of respective companies.
The strong rivalry in the U.S. market between Dell, Gateway, Hewlett-Packard, Apple,
and other computer companies has helped make the United States a world leader in
personal computers.
Antitrust laws in the United States and other countries are designed to combat
restrictive business practices and to discourage competition.
A country with a positive current account balance has a trade deficit; that is, the outflow
of money to pay for imports exceeds the inflow of money for sales of exports.
China is the first BRICS nation in the upper-middle-income category with a GNI per
capita income of $6,560 in 2013.
Unilever and other consumer goods companies often engage in differentiated target
marketing, offering a full range of brands within a given product category.
The lack of employment as seen in the recent times is indicative of the fact that
manufacturing is in decline.
It is mandatory for countries to notify the WTO when they enter into preferential trade
agreements.
By definition, a retailer that caters to the general public would be upstream in an
industry's supply chain.
Fifty years ago, Kikkoman brand soy sauce was unknown in the United States. The
company used sampling and even today continues to make extensive use of shopper
marketing as a communication tool.
Foreign investments may take the form of minority or majority shares in joint ventures,
minority or majority equity stake in another company, or outright acquisition.
Starbucks dispatches "Chill Patrols" in the summertime to pass out samples of ice-cold
Frappuccinos to overheated commuters during rush hour in busy metropolitan areas.
This is an example of "point-of-dirt" sampling.
Traditional market research is the most effective means for identifying latent markets.
If a company manufactures a product in the home-country market as well as in foreign
markets it is considered black marketing.
In a contest in 45 different languages covering 60 countries, marketers for Axe Apollo
invited consumers to fill out an "astronaut profile."
When Honda's U.S. manufacturing subsidiaries purchase parts from Japan, customs
authorities in the United States have the right to scrutinize the transfer price to make
sure it is a fair reflection of market value.
Volkswagen, Peugeot, Chrysler, and other global automakers have established
manufacturing operations in China since they consider it to be an incipient market.
Intel's focus on designing complex, expensive microprocessors for PCs enabled
competitors to develop cheaper chip sets for non-PC electronics devices. In the strategic
intent model of competitive advantage, this is an example of "loose bricks."
A Russian ban on European dairy imports has resulted in excess supplies of milk and
falling prices for small-scale Lithuanian dairy producers.
Cross coupons offer its users deal-of-the-day that are sponsored by local businesses.
Culture shapes attitudes and values in a way that directly affects people's willingness to
respond to interviewer questions.
In centrally planned socialism economic systems, the state allocates resources, whereas
production resources are privately owned.
According to research, exporting is essentially a developmental process starting with
the first stage when the firm exports to one or more markets on a trial basis.
In addition to eliminating internal barriers to trade, members of a customs union agree
to the establishment of common external tariffs.
Which one of the ASEAN members has the World's second-largest container port?
A) Singapore
B) Thailand
C) India
D) Philippines
E) Brunei
Colgate discovered that in Spanish colgate is a verb form that means "go hang
yourself." Whirlpool found that consumers in Italy, France, and Germany had trouble
pronouncing the name. These are examples which show the importance of ________ in
global marketing.
A) syntax and morphology
B) phonology and morphology
C) syntax and semantics
D) semantics and phonology
E) semantics and morphology
Officially, the EU tariffs on Chinese and Vietnamese shoe imports are known as:
A) countervailing duties.
B) antidumping duties.
C) specific duties.
D) ad valorem duties.
E) temporary surcharges.
The success of the Stratos project helps Red Bull by:
A) having their logo on NASCAR cars.
B) using YouTube as an effective marketing tool.
C) standing out from a crowded field of competitors.
D) utilizing free-standing inserts.
E) personal selling.
The country which has a massive potential for cigarette manufacturers is:
A) Egypt.
B) Spain.
C) Turkey.
D) China.
E) Vietnam.
The Walt Disney Company's decision to build a theme park in France provides an
excellent vehicle to understanding SRC (Self-Reference Criterion). All of the
statements listed below portray this meaning except:
A) Disney executives believed there is virtually unlimited demand for American
cultural exports.
B) French are sensitive about American cultural imperialism.
C) Consuming wine with the midday meal is a long-established custom which was not
realized by Disney executives.
D) Disney executives were blinded by their prior success and ethnocentrism.
E) The SRC can be a powerful negative force in global business.
Japan's Fuji Photo Film asked its advertising agency to develop an advocacy campaign
for the United States targeted to appeal both to Walmart and to its customers. This is an
example of:
A) local advertising.
B) pattern advertising.
C) global advertising.
D) advocacy advertising.
E) image advertising.
In developing countries, such as Ghana, the best way to communicate with market
segments may be through:
A) mass media.
B) written word.
C) magazine ads.
D) TV ads.
E) dance, songs, and storytelling.
All of the following basic consideration questions are important for those whose
responsibility includes setting prices on goods that cross borders except:
A) Does the price reflect the product's quality?
B) Is the price competitive given local market conditions?
C) Does the local market use target costing?
D) Should prices differ with market segment?
E) Do the foreign country's dumping laws pose a problem?
The advantages of "contract manufacturing" include all of the following except:
A) access to technical specifications by subcontractors.
B) access to technical specifications by local manufacturers.
C) a licensing firm can specialize in product marketing.
D) limited commitment of financial resources.
E) considerable commitment of management resources.
It was found that Malaysians hesitate to use coupons due to the:
A) lower power distance.
B) higher uncertainty avoidance.
C) fear of public embarrassment.
D) impact of religion.
E) general dislike for coupons.
Marketing channels exist to create utility for customers. The major categories of
channel utility include all of the following except:
A) place utility.
B) price utility.
C) information utility.
D) form utility.
E) time utility.
Management strategic options pertaining to products that are facilitated by a single
European market include:
A) standardized packaging and labeling.
B) consolidated production.
C) shift from brand to benefit segmentation.
D) seeking marketing economies.
E) all of the above
Motorola's failed Iridium venture was a global satellite telephone network designed to
allow users to make or receive calls anywhere on the globe using handsets that are
somewhat bigger than typical cellular phones. What type of innovation did Iridium
represent?
A) a continuous innovation
B) a dynamically continuous innovation
C) a discontinuous innovation
D) a platform-based innovation
E) none of the above
Wi-Fi, or wireless fidelity, permits laptop and PDA users to establish high-speed
wireless connections to the Internet via:
A) infrared rays.
B) magnetic rays.
C) hot spots.
D) laptop warriors.
E) modem.
Gillette markets its flagship MACH3 razor in more than 100 countries around the
world. The MACH3 is available virtually everywhere that consumers shop for
personal-care products; because of its advanced 3-blade design, the MACH3 typically
costs more than other wet-shaving systems. Which generic strategy is evident in
Gillette's global marketing effort of MACH3?
A) cost leadership
B) differentiation
C) cost focus
D) focused differentiation
E) consumer focus
An approach to competitive advantage that exploits weaknesses in competitors'
narrow-focus strategies is called a ________ strategy.
A) loose bricks
B) collaboration
C) layers of advantage
D) supplier power
E) generic
Suppose Apple has collected extensive survey data about its new iPhone, and
respondents have rated it on 20 different features and benefits. Now researchers want to
reduce the amount of data to a few underlying dimensions. Which data analysis
technique should the researchers use?
A) analogy
B) conjoint analysis
C) factor analysis
D) multidimensional scaling
E) cluster analysis
A proposed merger between two Swiss-based global pharmaceutical companies,
Ciba-Geigy AG and Sandoz AG, would be subject to review by regulators from which
of the following?
A) European Commission
B) UN Conference on International Trade Law
C) International Chamber of Commerce
D) International Court of Justice
E) none of the above
Having established that the matrix organizational structure is appropriate, management
can expect to integrate the following competency on a worldwide basis:
A) geographic knowledge.
B) product knowledge and know-how.
C) functional competence in finance, production and marketing.
D) knowledge of customer or industry and its needs.
E) All of the above are competencies.
GSPs (Global Strategic Partnerships) are attractive for several reasons which donot
include:
A) sharing high product development costs.
B) sharing technological developments.
C) securing access to national and regional markets.
D) continuous transfer of technology between partners.
E) focus on a single national market or a specific problem.
In 2005, representatives from several wine regions in the United States and the EU
signed a Joint Declaration to Protect Wine Place & Origin. In addition, a Wine Accord
signed by the United States and EU bans the:
A) use of alcohol in public places.
B) purchase of wine from country of origin.
C) misuse of place names by marketers of wine products that do not originate in those
places.
D) misuse of labels which does not include the origin of ingredients.
E) use of word "champagne" on wine made in the United States.
Gray markets impose several costs or consequences on global marketers, which does
not include:
A) damage to channel relationships.
B) dilution of exclusivity.
C) free riding
D) reputation and legal liability.
E) increase product demand
Singapore banned the import, manufacture, and sales of chewing gum in the country
since wads of gum were making a mess on sidewalks, buses, and subway trains.
Violators are subject to severe penalties, and before buying a pack consumers must
register their names and addresses. This, according to author William Greider,
demonstrates that Singapore's government:
A) is harshly autocratic.
B) administers a paranoid control over Singaporeans.
C) administers a paranoid control over press and politics.
D) runs an effective welfare state.
E) all of the above
When a company must decide on the composition of its foreign sales force, which
alternative is generally the most expensive?
A) expatriates
B) third-country nationals
C) host-country nationals
D) agents of any nationality
E) agents of host country
Unilever, the Anglo-Dutch consumer products company, at one time had 30 different
package designs and 48 different formulations for its Rexona deodorant brand. This is
an example of:
A) ethnocentric orientation.
B) polycentric orientation.
C) regiocentric orientation.
D) geocentric orientation.
E) transnational orientation.
Disadvantages of joint venturing can include all of the following except:
A) joint venture partners must share rewards as well as risks.
B) joint ventures allow partners to achieve synergy.
C) joint ventures can have the potential for conflict between partners.
D) a dynamic joint venture partner can evolve into a strong competitor.
E) a company incurs very significant costs by joint venturing.
"Small markets don't solve the growth needs of large companies" and "markets that
don't exist can't be analyzed" are two principles of disruptive innovation. These
principles are integral to:
A) the five forces model.
B) the flagship model.
C) strategic intent.
D) the innovator's dilemma.
E) the innovator's dream.
The company receiving the most U.S. patents in 2013 was:
A) Samsung Electronics.
B) IBM.
C) Microsoft.
D) Canon.
E) Panasonic.
According to Prahalad and Hamel, a core competence has all of the following
characteristics except:
A) potential access to a wide variety of markets.
B) a significant contribution to perceived customer benefits.
C) it is easy for competitors to imitate.
D) benefits to customers.
E) it is difficult for competitors to imitate.
Adopter categories are classifications of individuals within a market on the basis of
their innovativeness. When Apple introduced the Apple watch people waited in long
lines before the doors opened. According to experts, those people can be categorized as:
A) early adopters.
B) innovators.
C) early majority.
D) late majority.
E) laggards.
Building a prospect base is typically part of which step of the Strategic/Consultative
Selling model?
A) development of a customer strategy
B) development of a personal selling philosophy
C) development of a product strategy
D) development of a relationship strategy
E) development of a presentation strategy
Which of the following does not fit into the sequence of experiences Anheuser-Busch
had in Japan?
A) Anheuser-Busch first entered Japan by means of a licensing agreement with Suntory,
the smallest brewery in Japan.
B) Anheuser-Busch created a joint venture with Kirin Brewery, the market leader.
C) Anheuser-Busch dissolved the joint venture with Kirin Brewery.
D) Anheuser-Busch entered into a joint venture with Kirin Brewery.
E) Anheuser-Busch reverted to a licensing agreement with Kirin Brewery.
Why are alliances between Western companies and Asian competitors different as well
as difficult? What are some of the concerns, and how can those concerns be addressed?
What are brands, and what are their functions in global marketing? How do brands
develop their image, identity, and equity? Are global product and global brands the
same?
The nature of firm strategy, structure, and rivalry is the final determinant of a nation's
diamond. What does this statement refer to? How does domestic rivalry differ from
foreign rivalry? Please explain in detail.
What is a matrix organization? Describe giving examples.
What are the market entry expansion strategies which are available to retailers that wish
to cross borders? Describe these strategies in detail.
How can price be used as a strategic variable to achieve specific financial goals? Under
what conditions should skimming or penetration pricing be adapted as strategy?
How can Web sites be classified? Show how different companies fall under different
categories.
Companies like Anheuser-Busch, Corning Glass, and GM have learned a lot by using
joint venture as a mode of entry into a foreign market. Some of their experiences are not
very positive. What are the disadvantages of joint venturing?
Describe the factors that should be considered in developing new products for
international markets with particular emphasis on the consequences for not adequately
testing new products.
What is "global marketing" and how does it differ from "regular marketing"? Giving
examples of at least one major corporation that explains these differences.
A laptop manufactured in Canada and imported by Chile would not be subjected to
duty. If the same laptop was manufactured in the USA and exported to Chile, it will
have to pay duty. In order to avoid duty, can the manufacturer in the USA send the
computer via Canada?
Laws and regulations in different countries frequently lead to obligatory design. Giving
examples, show how this can have an impact in global marketing.
If a label on a product states "Made in Thailand," and a similar product has a label
"Made in Germany," why do consumers consider the latter to be better than the former?
What difference does a label make in consumer perceptions?
What factors should be considered by cosmetic companies to be successful in markets
in Brazil, Russia, India, and China?
How do the public relations differ around the world? Explain giving examples to show
the importance of public relations for a global company.
How important is the nationality of the top management position holder in global
businesses?
There have been considerable changes that have taken effect since Porter presented his
theories. One such impact is due to the tremendous technological advancement. In light
of these changes, examine what potential impact technology has on some of his
theories.
There are considerable differences and similarities among world cultures. This makes
the task of the global marketer much more difficult. Giving examples, show what
factors have to be taken into account when planning marketing strategy for different
parts of the world.
Giving examples, show how sampling can be an effective sales promotion technique.
