Chapter 7: International Strategic Planning
TRUE/FALSE
1. An international marketing strategy involves developing and maintaining a strategic fit between the
international company’s objectives, competencies, and resources and the challenges presented by its
international market or markets.
2. At the corporate level, the strategic plan allocates resources and establishes objectives for the whole
enterprise, worldwide.
3. At the corporate level, within each country, decisions are made regarding which consumer segments to
target.
4. At the corporate level, the strategic plan allocates funds to each business unit based on division goals
and objectives.
5. At the product level, a marketing plan is developed for achieving objectives.
6. A product will most likely be first manufactured in a low-cost labor country and exported to the rest of
the world to take advantage of low-cost labor.
7. A product in the later stages of its life cycle will be sold to consumers worldwide, regardless of
country development level.
8. The company selling a product in a later stage of the life cycle will most likely manufacture the
product in a developing country, where labor is inexpensive, to sell it all over the world.
9. The Wonderbra’s failed introduction into the Middle East serves as an example of what not to do in
terms of target marketing.
10. Communicating with Indian and Chinese consumers necessitates expensive translation into the local
languages.
11. Stability of a segment over times used to be a primary consideration mainly for developing,
low-income, countries.
12. Individual market segments should be easy to identify and measure.
13. Market segments should be similar to each other to improve marketing efficiency.
14. Market segments should be homogeneous in relation to other segments to improve marketing
efficiency.
15. PepsiCo International did not consider profit as the main criterion when they approached the former
Soviet Union to establish a countertrade agreement.
16. The potential of a market can be evaluated based on the rate of economic development, as expressed
through validated, reliable market indicators such as consumer buying power.
17. The Baltic Republics, Russia and Belarus are attractive markets that are being actively targeted by
multinationals.
18. According to the text, Sri Lanka is an attractive, small country that has a strong export market.
19. The recent discovery of oil reserves in the Sudan has helped to stabilize the economy and make it an
attractive country for foreign direct investment.
20. Ambiguities in a legal system can create an environment that renders the company vulnerable to
competitive theft, to lack of trademark protection, to bribery, and to employee theft.
21. The lead/lag concept is closely linked to the political structure of a country and is particularly relevant
to firms that sell products of mass consumption.
22. Firms that are at the forefront of technology usually first introduce their products in lead countries.
23. The purpose of macro-segmentation is to identify clusters of consumers that respond in a similar
fashion to a company’s marketing strategies.
24. Demographics are easy to measure and to compare across countries.
25. The Scandinavian counties have a rapidly aging population and present different challenges to
international firms than countries with half of their population under the age of twenty, like Brazil.
26. While multinationals such as Coca-Cola and Kodak actively target middle class consumers in the
industrialized countries with their global brands, in China, they target their global brands primarily to
the very large lower class.
27. Countries that were formerly communist, and countries that are under communist rule have a high
literacy rate and heavily emphasize education.
28. The gay and lesbian segment is a market segment characterized by brand switching behavior.
29. The marketing mix typically used to target the “global elite” segment focuses on selective distribution,
value pricing, and status-oriented advertising messages.
30. In the youth-driven Euroculture, national heritage is becoming increasingly important.
31. The majority of consumers in developing countries are very concerned with brand names since they
portray a Western image.
32. Bounty brand paper towels failed in Europe because consumers prefer to use cloth towels in the
kitchen.
33. Geographic segmentation can be performed at the macro-segmentation level.
34. Companies that have ample resources can, and often do, address the needs of all segments of
consumers.
35. Procter & Gamble pursues a differentiated target strategy.
36. Mont Blanc pursues a concentrated targeting strategy.
37. Coke is marketed using a standardized, undifferentiated strategy throughout the world.
38. Most services do not lend themselves to a standardized strategy.
39. Both K-Mart and Mercedes-Benz use a price/quality positioning.
40. When Airbus asks readers of The Financial Times whether they would be more comfortable with two
or four engines when they are up in the air, they engage in product class positioning.
MULTIPLE CHOICE
1. The international strategic plan creates a link between the company resources and its
a.
International goals
c.
International market
b.
International objectives
d.
All of the above
2. An international marketing strategy involves developing and maintaining a strategic fit between the
international market and all those elements listed below, except
a.
Objectives
c.
Government
b.
Competencies
d.
Resources
3. At which level does the strategic plan allocate resources and establish objectives for the company’s
worldwide operations?
a.
Corporate level
c.
Product level
b.
Division level
d.
Business unit level
4. Decisions on which country or countries to target take place at the ____ level.
a.
Corporate level
c.
Product level
b.
Division level
d.
Business unit level
5. At which level does the strategic plan allocate funds to each business unit level?
a.
Corporate level
c.
Product level
b.
Division level
d.
Business unit level
6. At which level of the strategic plan is a marketing plan is developed for achieving brand or product
line objectives?
a.
Corporate level
c.
Product level
b.
Division level
d.
Business unit level
7. At which level of the strategic plan are decisions made regarding which consumer segments to target,
within each country?
a.
Corporate level
c.
Product level
b.
Division level
d.
Business unit level
8. An international marketing strategy involves developing and maintaining a strategic fit between the
international market and the company’s
a.
Objectives
c.
Resources
b.
Competencies
d.
All of the above
9. A product in the early stages of its life cycle will
a.
Be most likely sold to consumers in industrialized countries.
b.
Be most likely sold for a high prices.
c.
Be most likely accompanied by heavy promotion.
d.
All of the above.
10. A product in the later stages of its life cycle, such as a videocassette recorder, will be
a.
Sold to consumers worldwide, regardless of country development level.
b.
Compete on price.
c.
Most likely manufactured in a developing country where labor is inexpensive.
d.
All of the above.
11. When a marketer identifies countries and segments of international consumers that are similar with
regard to key traits, who would respond well to a product and related marketing mix, he or she is
engaging in:
a.
international market segmentation.
c.
market positioning.
b.
international market targeting.
d.
a concentrated targeting strategy.
12. When a marketer selects the countries and segments that the company can serve most efficiently he or
she is engaging in:
a.
international market segmentation.
c.
market positioning.
b.
international market targeting.
d.
psychographic segmentation.
13. Which requirement does not apply to both country and consumer segmentation?
a.
Measurability
c.
Differential response
b.
Accessibility
d.
All of the above apply.
14. The level of foreign direct investment in a country is a measure of which segmentation requirement?
a.
Measurability
c.
Accessibility
b.
Substantiality
d.
Actionability
15. Which segmentation requirement may be adversely affected by expensive translation required to
communicate with Indian consumers?
a.
Measurability
c.
Stability over time
b.
Substantiality
d.
Accessibility
16. Which segmentation requirement is most likely to be affected by a country with a large rural
population?
a.
Measurability
c.
Accessibility
b.
Substantiality
d.
Differential response
17. What is the first step in the segmentation process?
a.
Micro-segmentation
c.
Demographic segmentation
b.
Macro-segmentation
d.
Psychographic segmentation
18. Which of the following is not a criteria that a firm should use to group countries to determine which
country held the most opportunity for the firm?
a.
Market potential
c.
Marketing support infrastructure
b.
Political environment
d.
All of the above could be used.
19. Which statement regarding the countries of the former Soviet Union is not true?
a.
The countries are experiencing high inflation.
b.
The countries have a high illiteracy rate.
c.
The countries have an excess of highly qualified labor.
d.
The countries have a consuming public that is eager to experience new products.