Global market segmentation is based on the premise that companies should attempt to
identify consumers in different countries who share similar needs and desires.
In developing countries, globalization’s opponents accuse companies of placing
intellectual property rights ahead of human rights.
A critical factor in India’s media environment is the lack of penetration by cable
television and the fact that only about 4 million Indians currently subscribe to an
Internet service.
The term logistics management describes the integration of activities necessary to
ensure the efficient flow of raw materials, in-process inventory, and finished goods
from producers to customers.
According to data published by Advertising Age in 2012, Proctor & Gamble ranks # 2 in
worldwide advertisement spending.
Japanese strive to achieve cooperation, consensus, self-denial, and harmony. Because
these all represent feelings about modes of conduct, they are beliefs.
The four tigersSingapore, South Korea, Taiwan, and Hong Konglearned from the
Japanese experience and built strong export-based economies of their own.
Myanmar, a low-income country in Southeast Asia with a population of 65 million
people, can be considered as an emerging markets.
Retailers are increasingly using a technique known as efficient consumer response
(ECR) in an effort to work more closely with vendors on stock replenishment.
“Back translation” is a technique whereby a survey or other document that has been
translated is returned (i.e. ‘sent back”) to the translator for corrections.
Worldwide, the popularity of direct marketing has been steadily decreasing in recent
years.
The 34 nations that belong to the OECD, who believe in market-allocation economic
systems and pluralistic democracy, are also addressed as “economic think tank” or the
“rich man’s club.”
If rivalry among firms forces companies to rationalize costs, it is a negative force.
Franchising is a variation of licensing strategy in which there is a contract between the
parent company franchiser and a franchisee that allows the franchisee to operate a
business developed by the franchiser in return for all rights for operations.
Long-term values include persistence (perseverance), defined as a general tenacity in
the pursuit of a goal.
A company that assigns a sufficiently high priority to its export business will establish
an in-house organization. It then faces the question of how to organize it effectively.
The Harmonized Tariff System (HTS) is currently the dominant system for determining
the correct classification number.
At concerts and other events, street teams pass out free samples while driving specially
modified cars with giant Red Bull cans mounted on them. This is an example of
regiocentric orientation.
Sigismundus W. W. Lubsen, the former president and CEO of Quaker Chemical
Corporation, is a good example of today’s cosmopolitan executive. Born in the
Netherlands and educated in Rotterdam as well as New York, Lubsen speaks Dutch,
English, French, and German.
The value equation can be represented as Value = Price/Benefits.
Foreign direct investment figures reflect investment flows out of the home country as
companies invest in or acquire plants, equipment, or other assets.
Advocacy advertising enhances the public’s perception of a company, creates goodwill,
or announces a major change.
In Indonesia, home of the world’s largest Muslim population, KFC uses
Ramadan-themed outdoor advertising to encourage Indonesians to come to the
restaurants at buka puasa, the end of each day’s fast.
The virtual corporation will seem to be a single entity with vast capabilities but will
really be the result of numerous collaborations assembled only when needed.
Former Whirlpool CEO David Whitwam described his own staffs’ resistance in the
early 1990s after he had approved the acquisition of Royal Philips Electronics’
European home appliance division.
Distribution channels for automobiles in Japan and the United States are similar in that
most car buyers in both countries visit dealerships before making a purchase.
The Buy American Act of 1933, which stipulates that U.S. federal agencies must buy
articles produced in the United States unless domestically produced goods are not
available, is an example of discriminatory procurement policies.
In 2013, U.S. goods and services exports totaled $2.3 trillion, which comes to about 15
percent of the GDP. This means that nearly 85 percent of the goods and services
produced in the United States are consumed at home.
Middle eastern airlines have encountered some opposition. United Continental,
American Airlines, and Delta have filed complaints with the US Government that the
state-owned carriers are benefiting from substantial government subsidies.
To counteract the negative perception and publicity about Coke, the company launched
its own print ad campaign that featured smaller-format cans and bottles.
Tesco made vigorous effort to penetrate the U.S. market.
Western advertising agencies still find markets such as China and Japan to be very
complex, as Asian agencies find it just as difficult to establish local agency presence in
western markets.
Which of the following statements is not an example of local products or brands?
A) Coca-Cola developed several branded drink products for Japan.
B) Coca-Cola markets Kinely brand bottled water in India.
C) BMW uses “the ultimate driving machine” slogan in India.
D) Diageo PLC markets Gordon’s Edge, a gin-based ready-to-drink beverage in the
United Kingdom.
E) Coca-Cola developed a noncarbonated, ginseng-flavored beverage for Japan.
Which of the following was a major U.S. tax incentive for exporters that the WTO
recently ruled was an illegal subsidy?
A) NTR
B) CVD
C) FSC
D) NTB
E) HTS
When Mattel first introduced Barbie in Japan, managers assumed that Japanese girls
would find the doll’s design just as appealing as American girls did. This may be due to:
A) Barbie’s physical features such as long legs and blonde hair.
B) Barbie being a symbol of American lifestyle.
C) the SRC tendency on the part of American managers.
D) the SRC tendency on the part of Japanese consumers.
E) the limited competition for dolls in Japan.
Nissan’s earlier vehicles were difficult to start in many parts of the United States during
the cold winter months. In northern Japan, it was customary for many car owners to put
blankets over the hoods of their cars during winter months. Nissan’s assumption was
that Americans would do the same thing. This is an example of:
A) ethnocentric orientation.
B) polycentric orientation.
C) regiocentric orientation.
D) geocentric orientation.
E) geopolitic orientation.
Predicting economic and income growth rates is particularly important when
researching which type of market?
A) existing markets
B) latent markets
C) parallel markets
D) incipient markets
E) local markets
According to the international Licensing Industry Merchandisers Association (LIMA),
the United States and Canada account for about 90 percent of licensed goods sales.
Thomas Burke, an executive at Saatchi & Saatchi, is quoted as saying ________ are
“the most powerful form of advertising ever created.”
A) corporate advocacy ads
B) infomercials
C) banner ads on the Internet
D) direct mail campaigns
E) catalog sales
Agricultural subsidies are particularly controversial because, although they protect the
interests of farmers in some countries, they work to the detriment of farmers in
countries such as:
A) Singapore.
B) the United States.
C) India.
D) Switzerland.
E) Japan.
Benefits for using sales agents include all of the followingexcept:
A) agents work under contract rather than as full-time employees.
B) agents are less expensive than full-time, in-country national sales representatives.
C) agents possess the same market knowledge as in-country nationals.
D) agents can eventually replace manufacturer’s sales agents.
E) agents possess the same cultural knowledge as in-country nationals.
Traditionally economists identified main types of economic systems, which include all
of the following except:
A) market capitalism.
B) market socialism.
C) centrally planned socialism.
D) centrally planned capitalism.
E) centrally planned nationalism.
Lessons that are learned from Starbucks’ company’s cooperation with NGOs include all
of the following except:
A) don’t wait for a crisis to collaborate.
B) recognize that collaboration involves some compromise.
C) think strategically about relationships with NGOs.
D) appreciate the value of the NGOs dependence.
E) understand that building relationships with NGOs takes time.
In the summer of 2006, it was announced that the company’s Smart car would be
offered for sale in the United States. Which global company was responsible for
bringing the Smart car to market?
A) Swatch
B) Volkswagen
C) Nissan
D) Ford
E) DaimlerChrysler
Custom unions or a common market does not create a free trade area as compared to
NAFTA due to:
A) no common external tariffs.
B) decreased production costs.
C) reduced competition.
D) ease of exporting commodities.
E) creation of a continental demand.
In an effort to attract assembly operations, Brazil allows certain product components to
be imported at reduced tariff rates. This is an example of:
A) offsets.
B) preferential tariffs.
C) the effect of the Customs Valuation Code.
D) an EMC.
E) discriminatory procurement.
Psychographic segmentation involves grouping people in terms of their:
A) combined household income.
B) age and income.
C) attitudes, values, and lifestyle.
D) psychological well being.
E) gender.
As a result of the digital revolution, a variety of companies in all parts of the world are
developing a new generation of products, services, and technologies; which include all
of the following except:
A) broadband network.
B) mobile commerce.
C) wireless connectivity.
D) smart cell phones.
E) landline connectivity.
Interactive television (ITV) allows viewers to see an ad in its entirety by pressing a
remote button; to order products from home-shopping channels; or choose different
camera angles, such as for sporting events. Comments by James Pennefather, brand
manager for Smirnoff, UK, based on comparison of traditional TV ads to ITV features
included all of the following except:
A) “it allows viewers to interact with programming.”
B) “it is a lot more unproven.”
C) “it needs further testing.”
D) “it is a calculated risk.”
E) “it may or may not succeed.”
The benefits of strong brands include all of the following except:
A) greater loyalty.
B) less vulnerability to marketing actions.
C) less inelastic consumer response to price increases.
D) more elastic consumer response to price decreases.
E) larger margins.
Marketers must be aware of the impact of SRC and other cultural assumptions since:
A) it can have several positive effects on market planning.
B) it enhances management’s willingness to pursue market research.
C) it can help ensure that the research effort is designed with minimal home-country
bias.
D) it can help ensure that the research effort is designed with minimal second-country
bias.
E) All of the above are correct.
There are several preferred trading arrangements in Latin America which include all of
the following except:
A) SICA.
B) the Andean Community.
C) CARICOM.
D) Mercosur.
E) BRIC.
Direct representation, as opposed to representation by independent intermediaries, for
exporting by the market country, has several advantages which do not include:
A) facilitates control and communications.
B) allows decisions concerning program development and resource allocation.
C) benefits when a product is not yet established in a market.
D) ensures marketer’s interest and special efforts.
E) helps selling products directly to the consumer in the market country.
A global segment is referred to as “global teens” which includes:
A) people with shared interest in fashions.
B) affluent, well-traveled persons.
C) movie stars.
D) technology professionals.
E) persons having power.
Facebook, Google, Pinterest, Twitter, and Wikipedia represent which element of the
marketing mix?
A) Price
B) Product
C) Place
D) Promotion
E) People
Parallel importing occurs when companies employ a(n) ________ multinational pricing
policy that calls for setting different prices in different country markets.
A) ethnocentric
B) polycentric
C) regiocentric
D) geocentric
E) extension
McDonald’s success in franchising in global markets can be attributed to several factors
which do not include:
A) a well known global brand name.
B) a business system that can be easily replicated.
C) local market knowledge.
D) cross licensing.
E) granting franchisees leeway to tailor menu offerings to suit local tastes.
The best country using mobile advertising is:
A) India.
B) South Korea.
C) Sudan.
D) Japan.
E) Indonesia.
Which of the following types of duties would be imposed on a company whose
home-country government provides export subsidies?
A) ad valorem duty
B) countervailing duty
C) antidumping duty
D) specific duty
E) customs duty
In October 2011, the U.S. Congress finally ratified the long-delayed free trade areas
with South Korea, Panama, and Colombia.
In a joint venture with Russian manufacturer AvtoVAZ, GM executives were planning
to have a stripped-down reengineered car based on its Opel model. However, the market
research revealed that a “Made-in-Russia” car would only be acceptable if:
A) it has a German name.
B) it sported a very low sticker price.
C) it has an American name.
D) it has a very high sticker price.
E) it has a Russian name.
A company stands a better chance of having an international arbitration award upheld if
its home-country government has signed:
A) the Paris Convention.
B) the Prague Convention.
C) the New York Convention.
D) the Vienna Convention.
E) the Geneva Convention.
The Organization for Economic Cooperation and Development (OECD) has become
more focused on global issues, social policy, and labor market regulations as seen by:
A) addressing the vexing problem of bribery.
B) requiring members to cooperate when pursuing bribery allegations.
C) helping members candidly assess their own economic policies.
D) member nations working together in committees to review social policies.
E) all of the above
A vice president of a shoe company was in India to assess the market. He found that
many people in the southern part of India were walking bare footed. This can be
indicative of either the fact that there is a potential market for shoes or there is no
market for shoes in that part of the world. To formally confirm one instinct or the other
the vice president should:
A) establish an office to start manufacturing shoes in India.
B) give free shoe samples to a selected group of customers.
C) conduct research to find potential and actual customers.
D) find out if that is true for other Asian countries.
E) give up the idea of doing business in India.
The top Digital Agency Network by 2014 Interactive Marketing Revenue is:
A) IBM Interactive Experience.
B) Deloitte Digital.
C) Accenture Interactive.
D) Epsilon.
E) Wunderman.
Considering the fact that the “message” is at the heart of advertising, discuss how
creative strategy and different types of appeals can be created in global advertising.
Explain giving examples as to why “Jurisdiction” plays an important role in global
marketing?
A global company that has the ability to successfully transform a domestic campaign
into a worldwide one or to create a new global campaign from the ground up possesses
a critical marketing advantage. Explain this statement in light of the global advertising.
What important lessons did Virgin chief executive Richard Branson learn in the
mid-1990s when he launched Virgin Cola, directly targeting Coca-Cola’s core market?
What are customs duties? How do they work in controlling imported goods?
Describe the principles developed by Christensen in order to help managers recognize
the innovator’s dilemma and develop appropriate responses to environmental change.
When a company invents a product or service, it should have a right to defend its
creativity with intellectual patents. However, there are some countries like Italy and
China where piracy and copyright violations are common. How can a corporation
prevent this by having some built-in measures in products and services?
The world economic environment is changing very rapidly and has become increasingly
competitive. In order to achieve success, based on author William Greider’s analysis,
what are the realities that executives and marketers should take into account in such a
dynamic environment?
What is psychographic segmentation, and how do marketers use it in targeting different
world markets?
What are global retail categories? Describe these categories giving examples.
What are some of the marketing problems in the Middle East and how are these
problems different than faced by other regions of the world?
What should a U.S. company do if competitors are willing to offer a bribe for business
in a foreign country?
Describe guidelines that are recommended by David Arnold for data gathering and
explain their importance in marketing research.
In addition to the five forces model of industry competition, Michael Porter has
developed a framework of so-called generic business strategies. Explain these generic
strategies, describing their aims and application.
Due to globalization, “it is a small world after all.” Also, vast scale migration of
populations due to various reasons, including opportunities, has created large segments
of ethnic population. Considering these facts, highlight the ethnic segmentation and its
importance.
What are some of the entities that an exporter should be familiar with? Describe and
explain the role played by each of these entities, separating those that have
responsibilities from exporters from those that have no responsibilities from the
exporters.
What are the distinguishing features between Centrally Planned Socialism and
Centrally Planned Capitalism? Give examples of two or more countries which follow
these systems.
What is offset and why is it important in global marketing? How can it be distinguished
from counterpurchase?
Why would any firm, whether global or otherwise, seek to collaborate with another
firm, be it local or foreign?