Anheuser-Busch, the brewer of Budweiser beer, lost its independence after years of
focusing primarily on the U.S. market.
Sometimes it is preferable to market to a particular age group rather than a mind-set; in
such an instance, psychographic studies can help marketers arrive at a deeper
understanding of consumer behavior than is possible with traditional segmentation
variables.
Publicity is similar to advertising in that companies pay the media for placement of
stories and news items.
Market research should focus on finding out how a potential customer can be changed
into an actual customer.
Swedish furniture retailer IKEA pulled meatballs from its cafeterias and grocery
sections in several countries after food inspectors found some samples that contained
horse meat.
Cloud computing means that archives-including music and movie files, photos, and
documents-are stored on massive remote servers and data centers rather than on
individual users’ computers.
Before executives at Ben & Jerry’s Homemade launched their ice cream in the United
Kingdom, the company conducted extensive research to determine whether the package
design effectively communicated the brand’s ‘super premium” position. This is an
example of dual-extension strategy.
Partial nudity and same-sex couples are seldom seen in ads in Latin America and
Europe.
According to Hofstede’s definition of culture a particular “category of people” may
constitute a nation, an ethnic group, a gender group, an organization, a family, or some
other unit.
There is general agreement that the matrix design is the single best organization
structure for global marketing.
According to innovation expert Clayton Christensen, an organization’s capabilities
define its disabilities.
It is advisable to treat local distributors as temporary market-entry vehicles.
CVDs are additional duties levied by exporting countries on imported videodiscs.
Michael Porter’s four generic strategies for achieving competitive advantage are product
differentiation, price leadership, promotion power, and distribution efficiency.
Music provides an interesting example of the “think globally, act locally” concept.
One reason cultural factors challenge global marketers is that many of these factors are
hidden from view.
Export management company (EMC)is an independent marketing intermediary that acts
as the export department for two or more manufacturers (principals) whose product
lines compete with each other.
An “incipient market” is a market that will emerge if a particular economic,
demographic, political, or sociocultural trend continues in a country.
Due to the European Commission’s regulation, McDonald’s can only give away soft
plastic toys with its Happy Meals in Europe.
Anheuser-Busch created a joint venture with Kirin Brewery, the market leader.
Anheuser-Busch’s 90 percent stake in the venture entitled it to market and distribute
beer produced in Los Angeles.
A “civil-law country” is one in which the legal system reflects the structural concepts
and principles of the Roman Empire in the sixth century.
Relationship marketing, which stresses an approach on developing long-term
relationships with customers, has been disliked by many U.S. companies.
Tariffs can be thought of as the “three R’s” of global business: rules, rigor, and
regulations of individual countries.
A key issue in global organization is when to achieve balance between autonomy and
integration.
Duty drawback refers to refunds of duties paid on imports that are processed or
incorporated into other goods and then re-exported.
All other things being equal, a Boeing 787 costs the same worldwide. By contrast, beer,
compact discs, and many other products that are available around the world are actually
offered in markets that are national rather than global in nature.
Levi’s non-U.S. sales represent about one-third of revenues but more than 50 percent of
profits.
Japan’s Fuji Photo Film Company invested hundreds of millions of dollars in the United
States after the U.S. government ruled that Fuji was guilty of dumping.
A recent rash of antitrust actions brought in the United States against foreign companies
has raised concerns that the United States is violating international law as well as the
sovereignty of other nations.
If a market researcher would like to know how much the typical Nigerian consumer
spends on soft drinks, the information can be obtained from GNP or GDP.
The decision to offer a global product into a global brand is risky. For example, in the
United Kingdom, Snickers may get confused with Knickers, the British slang for a
woman’s undergarment.
In December 2012, Australia implemented some of the world’s most stringent
antismoking regulations which included a ban on brand logos and prominent placement
of graphic photographic images of smoking-related illnesses and disfigurement on
cigarette packs.
When a company succeeds in creating more value for customers than its competitors
do, that company is said to enjoy competitive advantage.
Transfer pricing is a term that applies to transactions between different divisions or
units of the same company.
According to D’Aveni, in today’s business environment, short product life cycles, short
product design cycles, new technologies, and globalization undermine market stability;
thereby an acceleration of competitive forces takes place.
It is the number of domestic rivals, intensity of the competition, as well as the quality of
the competitors that make the difference.
The rate of adoption of the new Apple watch is slow, particularly in developing country
markets with low rates of literacy. This can generally be attributed to which
characteristics of innovation?
A) compatibility
B) relative advantage
C) divisibility
D) communicability
E) complexity
Which of the following could hinder the success of products labeled “Made in
Bangladesh” or “Made in Thailand” in export markets?
A) negative country-of-origin bias
B) no possible quality/price positioning
C) low acceptance of private brands
D) lack of promotion in global markets
E) high product saturation levels in global markets
Whirlpool conducts usability studies that provide insight into the ways consumers
interact with its products. In one study in an emerging market, engineers and designers
stood behind a two-way mirror and watched as a volunteer put groceries away in a
Kenmore Elite refrigerator. The Whirlpool team recorded a variety of data, such as the
amount of time required for the volunteer to finish the task and the number of features
used. The basis of this research study was based on the fact that:
A) listening to customers is only possible in America.
B) data collected in the United States should be applicable in other countries.
C) consumers in different countries prefer different types of features.
D) in China, it will be difficult to find enough space in homes to put a refrigerator.
E) in India, refrigerators are seldom used by customers.
According to EU regulations, Kraft parmesan cheese cannot be sold in Europe because:
A) it is expensive when compared to local products.
B) it is considered genetically modified agricultural product.
C) terms such as “Parmesan” is used on the package labels..
D) it does not contain salt and an enzyme.
E) it contains synthetic cellulose powder.
When Walmart stores first expanded into Mexico, management established a joint
venture with the country’s largest retailer. Judging by the approach Walmart used,
management must have viewed Mexico as:
A) culturally close and easy to enter.
B) culturally distant and easy to enter.
C) culturally close and difficult to enter.
D) culturally distant and difficult to enter.
E) culturally difficult and easy to enter.
The Russian market for imported premium vehicles is exploding as the number of
households that can afford luxury products exhibit rapid growth. The luxury cars
include all of the following except:
A) Porsche.
B) Lexus.
C) BMW.
D) Rolls-Royce.
E) Infiniti.
“Cost-based,” “market-based,” and “negotiated” are three approaches to:
A) dumping.
B) gray marketing.
C) transfer pricing.
D) price skimming.
E) counter trade.
While marketers should be secure in their own convictions and traditions, ________ are
required to appreciate the integrity and value of other ways of life and points of view.
A) standard of living and stage of economic development
B) production process and standards of measurement
C) open mind and absence of prejudice
D) degree of nationalism and economic community membership
E) fast food culture and slow food culture
An important leadership task involves articulating all of the following points except:
A) beliefs.
B) values.
C) status.
D) policies.
E) activities.
White connotes purity and cleanliness in the West, but it is often associated with death,
mourning, and funerals in China and other parts of Asia.
The domain name for Amazon.com for Germany is:
A) amazon.com.gm.
B) amazon.gr.
C) amazon.ge.
D) amazon.de.
E) amazon.gm.
Which of the following digital revolution pioneers created a “network of networks” that
is now known as the Internet?
A) Robert Noyce and Jack Kilby
B) Vincent Atanasoff and Clifford Berry
C) Vint Serf and Bob Kahn
D) Steve Jobs and Steve Wozniak
E) Tim Berners-Lee
A marketer of breakfast cereals might send researchers to preselected households at 6
A.M. to watch families go about their morning routines. The client could also assign a
researcher to accompany family members to the grocery store to record their behavior
under actual shopping conditions. This type of research method is considered as:
A) focus group.
B) invasion of privacy.
C) consumer panel study.
D) factor analysis.
E) observation.
According to Carly Fiorina, former CEO of Hewlett-Packard, leadership is about:
A) hierarchy.
B) title.
C) status.
D) connecting.
E) bragging.
According to Porter, the nature of the interaction between potential industry entrants,
buyers, substitute products, suppliers, and rival firms determines:
A) whether or not the government will launch an antitrust investigation.
B) the industry’s profit potential in terms of long-run return on invested capital.
C) whether a country can generate a balance of payments surplus.
D) whether a country can create a comparative advantage in the production of
differentiated products.
E) whether a country can generate income by innovation.
A box of Crest toothpaste contains a coupon entitling the buyer to save 50 cents when
purchasing a Crest toothbrush. What type of sales promotion does this represent?
A) cross coupon
B) product placement coupon
C) trade promotion coupon
D) freestanding coupon
E) online coupon
In accordance with GATT, new U.S. patents are granted for a period of ________ years
from the filing date.
A) 10
B) 17
C) 20
D) 27
E) 30
A massive effort dubbed as “Mose Project” is underway in Venice in order to:
A) promote passive tourism.
B) reduce the number of billboards on historic sites.
C) provide biblical information to tourists.
D) prevent flooding.
E) modernize accommodations.
Companies such as Caterpillar have been unable to protect critical innovations in Japan
because:.
A) products very similar to those made by U.S. companies can be patented without fear
of infringement.
B) the Japanese government enforces strict control over infringement rights for security
reasons.
C) inventions that are based on software can be easily downloaded.
D) U.S. patent laws now harmonize with those in the EU as well as Japan.
E) patents in Japan are broader than those in the United States.
Management experts often use terms like ________ to describe an organization in
which autonomous business units operate with their own agendas and a minimum of
horizontal interdependence.
A) sprinklers
B) fountains
C) chimneys
D) skyscrapers
E) towers
PepsiCo experienced great success in Latin America with its Numeromania contest,
which lured consumers by promising big cash prizes. They used the same contest in
Poland successfully. This shows that:
A) Numeromania can be used in different languages.
B) Numeromania can be used in cash starved countries.
C) leverage experience gained in one country can be used in another country.
D) economically squeezed consumers love Pepsi.
E) Numeromania helped in developing a taste for Pepsi in both countries.
Which of the following would not be used by an exporter with a weak home-country
currency?
A) Expand product line and add more costly feature.
B) Speed repatriation of foreign-earned income.
C) Buy advertising, insurance, and other services in home-country market.
D) Shift sourcing outside home-country market.
E) Exploit marketing opportunities in all markets.
Which form of organization design is capable of integrating geographic knowledge,
product knowledge, functional competencies, and customer knowledge?
A) matrix structure
B) international division structure
C) geographic structure
D) worldwide product division structure
E) regional management center
The only two countries where Coca-Cola is not available through authorized channels
are:
A) India and China.
B) North Korea and South Korea.
C) Cuba and North Korea.
D) Cuba and Venezuela.
E) Singapore and Indonesia.
In response to increasing worldwide concerns about obesity, diabetes, and other
food-related health issues, some of the world’s largest food companies are developing
new products. Nestl and Groupe Danone SA have developed several health-foods which
include all of the following except:
A) Souvenaid.
B) Activa.
C) NutriChoice.
D) Nutraceuticals.
E) Medical Foods.
Any western country doing business in Malaysia or the Middle East should have an
understanding of:
A) the French Civil Code.
B) Anglo-Saxon common law.
C) Islamic law.
D) the Uniform Commercial Code.
E) Roman law and the Napoleonic Code.
Anheuser-Busch, the brewer of Budweiser beer, lost its independence after years of
focusing primarily on the domestic U.S. market. This is most likely a result of:
A) management myopia.
B) national controls.
C) opposition to globalization.
D) newcomers from emerging markets.
E) organizational culture.
The formulation, imagery, and consumer appeal of Colgate’s Total brand toothpaste
were designed to translate across national boundaries. This new global brand represents
which type of product innovation?
A) discontinuous innovation
B) dynamically continuous innovation
C) continuous innovation
D) comparative innovation
E) dynamically discontinuous innovation
The Swatch Group markets watches in all price ranges, from the Swatch brand at the
low end to luxury brands such as Longines, Blancpain, and Breguet. Which target
market strategy does this illustrate?
A) standardized global marketing
B) concentrated global marketing
C) differentiated global marketing
D) psychographic global marketing
E) none of the above
The international marketing manager of an office furniture company ordered a research
report on global telecommunications equipment sales. The report noted that, in the early
1990s, AT&T was awarded a $4 billion contract to provide communication network
products and services in Saudi Arabia. The manager took this as a cue to put Saudi
Arabia on her information agenda, reasoning that office furniture sales would increase
as the country’s telephone system was improved. As described here, the marketing
manager is viewing Saudi Arabia as a(n):
A) latent market.
B) incipient market.
C) cluster market.
D) existing market.
E) primary market.
________-commerce is one of the significant marketing opportunities made possible by
the digital revolution.
A) Multinational
B) Mobile
C) Multisegment
D) Marginal-cost
E) Multilingual
Harley-Davidson’s competitive advantage is based, in part, on it’s
A) shifting production outside of the United States.
B) new production facility in China.
C) “Made in the USA” positioning.
D) simultaneous production of Buell Motorcycles.
E) acquiring MV Augusta, an Italian motorcycle manufacturer.
A vice-president of an American software company introduced himself to a group of
Korean partners and added “you may just call me John.” Although this verbal cue
shows the underlying reality that Americans have a high value on informality and
equality, it needs adaptation due to the reason that:
A) John is not a very popular name in Korea.
B) it is difficult to translate John in Korean language.
C) customs, hierarchies, and class structure of Korean culture have to be respected.
D) Korean culture requires that first and last name be used in addressing guests.
E) it is not appropriate to disclose nicknames in business meetings.
Robert Noyce and Jack Kilby are pioneers in the digital revolution. What contribution
did they make?
A) They invented the transistor.
B) They invented the spreadsheet.
C) They invented the first digital computer.
D) They invented the silicon chip.
E) They invented the Internet.
A working knowledge of Incoterms can be a source of competitive advantage to anyone
seeking an entry-level job in global marketing. What are “Incoterms,” and how are they
classified? How are Incoterms applied in global marketing?
Why is it important for a firm to have global marketing strategy?
In his 2010 State of the Union address, U.S. President Barack Obama vowed to double
U.S. exports by 2015. To this end, President Barack Obama created a National Export
Initiative and established the President’s Export Council. What is meant by export
marketing and export selling?
Historically, most of the Latin American nations have witnessed decades of slow or no
growth, crippling inflation, increasing foreign debt, protectionism, the bloated
government payrolls, money laundering problems, and currency fluctuations. What
measures are now being taken by countries in that region that will begin the process of
economic transformations?
If Coach, a luxury goods marketer, would like to study the consumer perceptions of
global luxury brands, what would be the best approach since there are several
competitors?
The Internet’s powerful capabilities and increasing importance have resulted in a
backlash that manifests itself in various ways. Giving examples, explain how this
statement is true.
Using McDonald’s as an example, show how effective global marketing can be
successfully achieved.
Suppose that a book publisher sells a textbook for $150 each to its domestic distributor.
The same publisher sells the same edition of the textbook to a distributor in Thailand
for $85 since the affordable prices by Thai students may be much less than in the
domestic market. The textbook finds its way back into the domestic market since the
Thai distributor sold it back to another marketer who sells in the domestic market for
$85. What is this type of pricing known as, and what are the consequences of such
transactions to global marketers, if any?
Discuss what makes the use of sales promotion so effective and popular. Describe
different types of sales promotions.
What are “interdependence techniques” in the analysis of data? What type of
measurement is possible with this technique, and what are different methods that are
used in marketing research?
Maslow’s hierarchy of needs provide a useful framework for understanding how and
why local products and brands can be extended beyond home-country borders. How can
Maslow’s needs hierarchy be used in global marketing?
The diversity of cultures around the world is reflected in languages and communication.
When KFC translated its slogan “Finger Licking Good” it became “Eat your fingers” in
Chinese; similarly “Pepsi is for Generations” became “your grandparents will come out
of the grave to drink Pepsi.” Studies showing how linguists have divided the study of
spoken or verbal language demonstrate how verbal and non-verbal communication can
have an impact on marketing around the world.
Export marketing is the integrated marketing of goods and services that are destined for
customers in international markets. What does the marketing require?
Giving examples show how technology is providing interesting new opportunities for
exploiting linguistics in the name of marketing.
A number of factors must be taken into account when determining the extent to which
promotion must be localized. List and describe those factors giving examples.
McDonald’s organizational design integrates the international division and geographical
structures. How does the geographical and product division structure work in a global
context?
Traditionally economists identified four main types of economic systems. However, due
to globalization it is harder to categorize the systems this narrowly. What will be more
robust descriptive criteria that can be used for classification?
Companies entering emerging markets for the first time must exercise particular care in
choosing a channel intermediary. Generally, a local distributor is required. What are
some of the guidelines that should be considered in selecting a distributor in order to
avoid any problems?
Global competition intensifies the need for effective MIS and business intelligence that
are accessible throughout the company. How can IT provide valuable tools in fulfilling
this need as well as conducting global marketing research?
What are regional management centers? What are the advantages of having such centers
in global businesses?