Marketing Chapter 15 Us Firms Rarely Use Advertising Firms That

1

The soft-sell approach to advertising is popular in ^___^.

2

ABC Corporation is considering employing extensive advertising standardization across its

many national markets. What would be a reason not to do this?

(A)

Competition is global

(B)

Cost savings would be minimal

(C)

Standardization is not appropriate for global brands

(D)

None of the above

3

LeBlanc Enterprises , a producer of high-end purses and scarves, is considering a global

theme approach. What advice would you give LeBlanc?

(A)

A global theme approach is inappropriate for luxury goods

(B)

Develop a simple theme in the United States that then can be used abroad with minor changes

undertaken at the discretion of the foreign subsidiaries

(C)

Develop a theme in the United States but allow headquarters to later consider and approve

minor adaptations proposed by foreign subsidiaries

(D)

Incorporate input from the subsidiaries in the original design of a global theme campaign

4

General Motors is considering a global theme approach. What advice would you give GM?

(A)

Develop a simple theme in the United States that then can be used abroad with minor changes

undertaken at the discretion of the foreign subsidiaries

(B)

Develop a theme in the United States but allow headquarters to later consider and approve

minor adaptations proposed by foreign subsidiaries

(C)

Incorporate input from the subsidiaries in the original design of a global them campaign

(D)

Use of global theme advertising is declining

5

Superlative adjectives such as “best quality” are banned in

(A)

China.

(B)

the USA

(C)

most countries

(D)

None of the above

6

A centralized approach towards advertising is preferred when customer needs are

(A)

different, and the firm faces the same competitors in most markets

(B)

homogenous, and the firm faces different competitors in most markets

(C)

homogenous, and the firm faces the same competitors in most markets

(D)

different, and the firm faces different competitors in most markets

7

The advantage of working with global advertising agencies is

(A)

their knowledge of local customs

(B)

they help to guarantee consistency across countries

(C)

they finance clients

(D)

All of the above

8

Sales peaks for consumer products are influenced by

(A)

climate and local customs

(B)

the budgetary cycle

(C)

nothing

(D)

None of the above

9

Cell phone ads may be particularly successful in India because

(A)

they are economical

(B)

cellphone penetration is high compared to other electronic media

(C)

literacy rates are high

(D)

All of the above

10

A higher literacy rate would favor which advertising media?

(A)

Newspaper

(B)

Television

(C)

Radio

(D)

None of the above

11

National media habits are affected by

(A)

income levels

(B)

inflation rates

(C)

exchange rates

(D)

population

12

A soft-sell approach will be most successful in

(A)

the United States

(B)

Japan

(C)

Britain

(D)

Germany

13

In a soft-sell approach,

(A)

advertising campaigns convince customers emotionally

(B)

the main focus is on price

(C)

extensive humor is used

(D)

comparative advertising is used

14

Taco Bell’s Gidget the talking dog was inappropriate for a global campaign because

(A)

dogs are taboo in Russia

(B)

dogs are eaten in Asia

(C)

the use of animals in ads is very controlled

(D)

many Muslim countries forbid dogs to be depicted in advertisements

15

More awareness advertising may be needed in one country versus another because

(A)

of different national laws

(B)

of different national norms

(C)

the same product may vary in its product life cycle stage across countries

(D)

consumers may have different attitudes towards humor

16

In a global theme approach towards advertising,

(A)

different themes are used for different countries

(B)

the advertisement varies greatly across countries

(C)

the same advertising theme is used worldwide but varied slightly with each local execution

(D)

None of the above

17

Global campaigns work better if

(A)

the target market is broadly defined

(B)

there is no target market

(C)

the target market is narrowly defined

(D)

None of the above

18

Advertising of __________ is regulated in most countries.

(A)

automobiles

(B)

cosmetics

(C)

apparels

(D)

cigarettes

19

Kraft is considering allowing its subsidiary to develop their own localized advertising for

Kraft’s Macaroni and Cheese. What would not be a reason to adopt this policy?

(A)

Competition is local

(B)

The product category is new to some markets

(C)

A global theme approach would be more expensive

(D)

Standardized advertising is always preferable to local advertising when marketing products of

MNCs

20

Karavel Foods has a line of soups that are in the mature stage in triad markets but have

only recently been introduced in some major developing countries. What type of

advertising approach is most appropriate for this line?

(A)

Standardized

(B)

Localized

(C)

Global theme

(D)

Global cycle

21

Tottenham Tartans is planning an advertising campaign in Malaysia. It should not

(A)

use any child actors

(B)

attempt to make product placements

(C)

depict women in sleeveless dresses

(D)

attempt to advertise on television

22

Using a common advertising theme across the world but varying it slightly with each local

execution is known as a(n) ^___^ approach to advertising.

23

In the European Union, advertisers use ^___^ communications to overcome language

barriers.

24

ABC Auto is considering developing a regional advertising plan for their African markets.

What would be a reason to implement such a plan?

(A)

ABC mainly competes against other MNCs in these markets

(B)

ABC mainly competes against local auto manufacturers in these markets

(C)

ABC mainly competes against SOEs in these markets

(D)

None of the above

25

Framad is a successful Italian advertising agency in with several MNC accounts. What can

Framad expect in the future?

(A)

Framad will lose some MNC accounts due to the increased use of global theme advertising

(B)

Framad will lose some MNC accounts due to increasing MNC ethnocentrism

(C)

All MNCs will eventually move to global agencies

(D)

None of the above

26

Karotu is a successful local advertising agency in South Africa with several MNC accounts.

What can Karotu expect in the future?

(A)

Karotu will lose some MNC accounts due to increasing MNC ethnocentrism

(B)

Karotu will lose some MNC accounts due to the increased use of global theme advertising

(C)

All MNCs will eventually move to global agencies

(D)

All of the above

27

Way2 Agency is a successful local German advertising agency with several MNC accounts.

What can Way2 expect in the future?

(A)

All MNCs will eventually move to global agencies.

(B)

Way2 will lose some MNC accounts due to increasing MNC ethnocentrism.

(C)

Way2 will lose some MNC accounts due to the increased use of global theme advertising.

(D)

All of the above.

28

Omnitalia is a local advertising agency in Italy seeking the Italian account of Kraft. What

advice would you give the agency?

(A)

Stress your ability to execute a global campaign

(B)

Stress your local knowledge and experience

(C)

You will have to discount your price considerably in order to compete with the preferred global

advertising firms

(D)

U.S. firms only use international advertising networks

29

Omniturkia is a local advertising agency in Turkey seeking account of Karavel Foods in

Turkey. What advice would you give the agency?

(A)

U.S. firms only use international advertising networks

(B)

U.S. firms rarely use advertising firms that are not based in the U.S.

(C)

You will have to discount your price considerably in order to compete with the preferred global

advertising firms

(D)

Stress your local knowledge and experience

30

Omnia is a local advertising agency in Switzerland seeking the Swiss account of Texas

Tents. What advice would you give the agency?

(A)

Stress your local knowledge and experience

(B)

U.S. firms rarely use advertising firms that are not based in the U.S.

(C)

U.S. firms only use international advertising networks

(D)

You will have to discount your price considerably in order to compete with the preferred global

advertising firms.

31

Samsung wants to use global media to reach consumers in the Middle East and Asia. Which

option would you suggest?

(A)

Elle

(B)

The Economist

(C)

Star Satellite System

(D)

None of the above

32

Samsung wants to use global media to target the youth market. Which option would you

suggest?

(A)

MTV

(B)

CNN

(C)

Time

(D)

The Economist

33

U.S.-based Texas Taffy is planning a new advertising campaign for the U.K. market. What

advice would you give the firm?

(A)

Language should not be a problem

(B)

Britons are taught in school to be critical of advertising

(C)

Britons dislike humor in their ads

(D)

All of the above

34

Tottenham Tartans is planning a new advertising campaign in the Japanese market. It

should not

(A)

use any English in the ads

(B)

depict women in sleeveless dresses

(C)

utilize child actors

(D)

None of the above

35

ABC Autos is planning a new advertising campaign in the Japanese market. It should

(A)

stress how its autos are better than competitors

(B)

avoid U.S. themes

(C)

not use any English words

(D)

appeal to consumers’ emotions

36

Tottenham Tartans is planning to launch a clothing line in China using a billboard

campaign. What advice would you give the firm?

(A)

Do not depict women in sleeveless dresses.

(B)

You should stress your product’s high quality by claiming “best quality.”

(C)

Do not depict children in the ads

(D)

You will need approval of multiple government agencies

37

Proctor & Gamble is planning to launch a new shampoo in China using a billboard

campaign. What advice would you give P&G?

(A)

Low literacy in China makes this inappropriate

(B)

High literacy in China makes this very appropriate

(C)

You will need approval of multiple government agencies

(D)

You should stress your product’s high quality by claiming “best quality.”

38

Latin Shoes is planning an advertising campaign in Malaysia. It should not

(A)

depict women in sleeveless dresses

(B)

use any child actors

(C)

attempt to make product placements

(D)

attempt to advertise on television

39

Which country forbids the use of superlatives such as “best quality” or “finest ingredients”

in advertisements?

(A)

China

(B)

Germany

(C)

Russia

(D)

Saudi Arabia

40

Which country prohibits ads showing women in sleeveless dresses?

(A)

Israel

(B)

Malaysia

(C)

Mexico

(D)

Poland

41

To evoke a similar positive feeling, Mars candy used the slogan “August” in France and

__________ in Germany.

(A)

“July”

(B)

“weekend”

(C)

“the last parking space”

(D)

“Berlin United”

42

Pan-regional advertising campaigns can be undermined in the Middle East because of

different literacy rates in different countries.

(A)

True

(B)

False

43

If consumers doubt the credibility of advertising, they cannot find it interesting.

(A)

True

(B)

False

44

In Asia, consumers are more positive towards advertisements than are consumers in the

United States.

(A)

True

(B)

False

45

Japanese television commercials are full of U.S. themes.

(A)

True

(B)

False

46

In a soft-sell approach, the main focus is on price.

(A)

True

(B)

False

47

A soft-sell approach to advertising is used extensively in Japan.

(A)

True

(B)

False

48

Cultural differences forced Taco Bell to adopt a different advertising campaign for Asian

and Muslim countries.

(A)

True

(B)

False

49

A standardized approach to advertising reduces costs for companies by allowing them to

reuse the same advertisements in many countries.

(A)

True

(B)

False

50

A global theme is an example of the modularized approach to global advertising.

(A)

True

(B)

False

51

In a global theme approach to advertising, the same advertisement is used in all countries

with no changes.

(A)

True

(B)

False

52

The modularized approach to developing advertising is appropriate at a regional level (such

as European or Pan-Asia) but is rarely appropriate at a global level.

(A)

True

(B)

False

53

In a modularized approach to global advertising, a company selects some features as

standard for all its advertisements while localizing others.

(A)

True

(B)

False

54

Standardized advertising campaigns have decreased over the years.

(A)

True

(B)

False

55

Advertising directed at children is regulated in China.

(A)

True

(B)

False

56

Cigarette advertising is deregulated in most countries because of the high tax revenue they

generate for governments.

(A)

True

(B)

False

57

Advertisers need to consider the cultural attitudes of consumers in foreign markets before

deciding on advertisements.

(A)

True

(B)

False

58

Comparative advertising is against the law in Japan.

(A)

True

(B)

False

59

Most translation problems occur when global advertisements are literally translated.

(A)

True

(B)

False

60

Consumers in the former Soviet Union are very trustful of advertisements and consider

them to provide reliable information.

(A)

True

(B)

False

61

The advertising media used by companies varies from country to country depending on

availability of the different types of media.

(A)

True

(B)

False

62

To evoke a similar positive feeling, Mars candy used the slogan “Saturday 3 p.m.” in Britain

and __________ in France.

(A)

“Paris”

(B)

“August”

(C)

“weekend”

(D)

“the last parking space”

63

Which ad campaign offended local sensitivities towards nudity?

(A)

FedEx’s “naked soccer players” in Romania

(B)

Playtex’s WonderBra in Mexico

(C)

Asaki celebrity beer ads in Britain

(D)

Snickers ads in Russia

64

The __________ Language Board encourages the use of its traditional languages in

advertisements.

(A)

Chaldean

(B)

Chinese

(C)

Hindi

(D)

Welsh

65

Which is not true about visual advertisements?

(A)

They are more culturally specific

(B)

They are appropriate for the EU market

(C)

They rely more on pictures than words

(D)

Cartier used them in a campaign destined for over 100 countries

66

In the European Union, advertisers use __________ to overcome language barriers.

(A)

visual communications

(B)

verbal communications

(C)

sign language

(D)

English

67

Most translation problems occur when advertisements are

(A)

locally translated

(B)

literally translated

(C)

domestically translated

(D)

All of the above

68

Pepsi ran afoul of Russia’s advertising watchdog agency because

(A)

of health regulations

(B)

of the use of English in an advertisement

(C)

of comparative advertising

(D)

one of its advertisements was deemed to advocate violence

69

China has experienced a decline in traditional media such as television and radio

advertisements while mobile Internet advertising has surged.

(A)

True

(B)

False

70

Online advertising is rarely used in the Middle East.

(A)

True

(B)

False

71

In China, advertising regulations have not changed in nearly 30 years.

(A)

True

(B)

False

72

Russia forbids advertisements that advocate violence or cruelty.

(A)

True

(B)

False

73

Cellular adspend in India is growing because mobile phone penetration is high compared to

television.

(A)

True

(B)

False

74

If companies face the same set of competitors in most markets, a decentralized approach

to decision making for advertising is preferred.

(A)

True

(B)

False

75

For products whose customer needs vary from country to country, a decentralized

approach to decision making for advertising is preferred.

(A)

True

(B)

False

76

International advertising networks are preferred because of their ability to handle global

campaigns.

(A)

True

(B)

False

77

Sales peaks are influenced by climatic changes and local customs.

(A)

True

(B)

False

78

Low income levels and high illiteracy rates in countries correspond with high penetration of

newspapers and the Internet.

(A)

True

(B)

False

79

Comparative advertising is common in Japan.

(A)

True

(B)

False