18. Which language should be used if a marketer is targeting a more educated consumer in India?
a.
Hindi
c.
Tamil
b.
Malealam
d.
Telegu
19. Why do some non-U.S. firms choose to advertise in English?
a.
It is used to stress a cosmopolitan attitude.
b.
English requires less space in print than many languages.
c.
It endows the product with status.
d.
All of the above are true.
20. What language is most used in advertising around the world?
a.
French
c.
Chinese
b.
English
d.
Hindi
21. Which language requires less print space and provides a cosmopolitan and status image?
a.
French
c.
Chinese
b.
English
d.
Spanish
22. If advertising to less educated consumers, the advertisements need to be translated into the local
language. What country would present most problems because the campaign would need to be
translated into multiple languages?
a.
Switzerland
c.
China
b.
India
d.
Pakistan
23. According to the text, which country permits comparative advertising?
a.
The United Kingdom
c.
The Netherlands
b.
Belgium
d.
Luxembourg
24. Which country limits the use of children as endorsers in advertising and prohibits the use of children’s
heroes as endorsers?
a.
Germany
c.
France
b.
The United Kingdom
d.
Singapore
25. Which product is not allowed to be advertised on television according to the European Union Directive
Concerning Television Broadcasting?
a.
Liquor
c.
Firearms
b.
Tobacco
d.
Children’s toys
26. Which country forbids the use of English in all broadcast advertisements?
a.
France
c.
Saudi Arabia
b.
Spain
d.
Russia
27. Which advertising agency has been handling the Coca-Cola account in 60 countries since 1942 and
until recently?
a.
Leo Burnett
c.
Ogilvy & Mather
b.
Young and Rubicam
d.
McCann Erickson
28. Which of the following is not an advantage offered by local agencies?
a.
Knowledge of the local market
b.
Facilitation of interaction with the local media
c.
Quality of advertising
d.
All of the above are advantages of local agencies.
29. Which of the following is not in the top five international advertising agencies according to the text?
a.
Omnicom Group
c.
Young & Rubicam
b.
The Interpublic Group
d.
Leo Burnett
30. Which item is not a good reason for using a standardized message strategy?
a.
Differing literacy rates across regions
b.
Shrinking product life cycles
c.
Common product preferences
d.
Cost reductions by avoiding duplicating creative effort
31. Firms from which country are the most likely to transfer a campaign across markets (i.e., use a
standardized campaign)?
a.
The United States
c.
Canada
b.
Germany
d.
Japan
32. Which method of budget setting is the most popular method used by multinational corporations?
a.
Objective-and-task
c.
Historical
b.
Percent-of-sales
d.
Competitive-parity
33. Which method of budget allocation is difficult to adopt for firms entering new markets?
a.
Objective-and-Task
c.
Competitive-parity
b.
Percent-of-Sales
d.
Executive-judgment
34. Which method of budget allocation is the most popular in Brazil and Hong Kong?
a.
Objective-and-task
c.
Historical
b.
Percent-of-sales
d.
Competitive-parity
35. Which method of budget allocation is not recommended for firms that operate in unstable economic,
political, or competitive environments?
a.
Objective-and-task
c.
Competitive-parity
b.
Historical
d.
All-you-can-afford
36. Which type of budget allocation method should not be used for firms that are entering a new market or
whose brands are not known locally?
a.
Objective-and-task
c.
Competitive-parity
b.
Executive-judgment
d.
All-you-can-afford
37. For firms with financial limitations, which budgeting method is the most likely to be used?
a.
Objective-and-task
c.
Executive-judgment
b.
Percent-of-sales
d.
All-you-can-afford
38. In determining the advertising budget, research has shown that, on average, ____ percent is allocated
to trade (wholesaler, retailer, dealer) advertising for firms worldwide.
a.
10
c.
80
b.
20
d.
90
39. Which country spends most on advertising?
a.
United States
c.
Japan
b.
United Kingdom
d.
The Netherlands
40. Which countries are greatly increasing their advertising expenditures?
a.
Russia, Hungary, China, and Indonesia
b.
France, Belgium, and Morocco
c.
Japan and North Korea
d.
The Netherlands and South Africa
COMPLETION
1. Companies use the _________________________ to communicate with the international consumer
about their products and services.
2. The international ____________________, usually represented by an advertising agency, encodes the
message into words and images.
3. The message is translated into the language of the target market and transmitted through a
______________________________ to the target market.
4. Print, broadcast and interactive media are examples of ____________________ media.
5. A telemarketer calling on consumers is an example of a(n)____________________ medium.
6. ____________________ is defined as all the potential interference in the communication process.
7. When ____________________ the message, the source determines if the attitudes, interests, and
motivations of consumers in the international target market are different from those in the
home-country.
8. _________________________ is defined as a nonpersonal communication by an identified sponsor
across international borders, using broadcast, print, and/or interactive media.
9. The European Union only allows ____________________ minutes per hour for advertising on
television for each television station.
10. In France the ____________________ movement of modern art, whose works are displayed in major
museums worldwide, used layers of posters displayed for decades torn off of walls and placed on
canvas.
11. Studies have found that _________________________ can produce a greater level of advertising
recall than television advertising.
12. Continental Europe condemns ____________________ advertising as denigration and unfair
competition.
13. ____________________ law limits the use of children as endorsers in advertising and prohibits the
use of children’s heroes as endorsers.
14. In general, if a company uses a(n) ____________________ strategy for its products or services, it is
more likely to use an international agency with local offices that can manage advertising in the
respective markets.
15. Companies have as options hiring ____________________ advertising agencies,
____________________ advertising agencies, or ____________________ advertising agencies
implementing international agency messages.
16. In the Latin American market, advertisers use ____________________ and ____________________
to communicate with consumers.
17. If a company uses a ____________________ strategy for its products or services, it is more likely to
use an international agency with local offices that can manage advertising in the respective markets.
18. As product _________________________ shrink, companies are pressured to accelerate worldwide
rollout of new products.
19. Companies using the _________________________ method first identify advertising goals in terms of
communication goals such as target audience reach, awareness, and comprehension.
20. The _________________________ method determines the total budget allocated to advertising based
on past or projected sales.
21. The _________________________ method may use the historical method as a first step.
22. Most small and medium enterprises entering a new market use the _________________________
method of budget allocation.
ESSAY
1. Describe how the international communication process works.
2. Discuss the media challenges that international advertisers often face.
3. What are the advantages and disadvantages of hiring a local advertising agency?
4. Discuss the advantages of using a standardized (global) campaign.
5. Discus the barriers to advertising standardization.