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Apple, Levi Strauss, Nike, Sony, well-known fashion design houses, and other
companies with strong brands sometimes establish flagship retail stores as a means of
obtaining marketing intelligence.
The foreign exchange market consists literally of a buyer's and a seller's market where
currencies are traded for both spot and future delivery on a continuous basis. The
forward market is for immediate delivery and the spot market is for future delivery.
The world economy has changed profoundly as evident by the fact that the global
competitors have steadily displaced or absorbed local competitors.
Companies that are centralized typically allow managers at the local subsidiary to make
ad agency selection decisions.
A useful way of gaining insight into competitors is through industry analysis.
A dynamic joint venture partner can evolve into a strong competitor.
A critical reason why companies need to take global marketing seriously is survival.
In China, a humorous TV ad showing a student humiliating a teacher in the classroom
would be an effective execution for a soft drink brand.
The differences between lean producers and U.S. mass producers in the way they deal
with their respective dealers, distributors, and customers are as dramatic as the
differences in the way they deal with their suppliers.
The increasing importance of the European Union (EU) as a regional market has
prompted a number of companies to change their organizational structures by setting up
regional headquarters there.
Americans typically want to "go it alone." As a result, they may be outnumbered in a
negotiation situation.
The export marketer takes the domestic product "as is" and sells it to international
customers.
Localizing a Web site in native language can be done by translating a Web site from the
home-country language.
Eighty percent of McDonald's restaurants are located globally in more than 20
countries.
When MCI Communications first entered Latin America, it utilized expatriate
Americans to work for them despite the high cost of doing so.
When the roster of ASEAN members expanded to include Japan, Korea, and India, it
was dubbed "ASEAN + 3."
Google's myriad product development initiatives illustrate the point that products and
brands are arguably the most crucial element of a company's marketing program.
Sony, Sharp, Panasonic, and other Japanese manufacturers are all experiencing
declining sales of traditional electronics products, whereas Apple and Samsung have
risen to prominence in the competitive landscape once dominated by the Chinese.
The cherry picker is most interested in developing a market for a new product, which
helps an expanding international company.
The struggle between capitalism and socialism that began in 1917 is over.
For some consumer products such as cigarettes, soft drinks, and candy that have a low
per-unit cost, income is often a more valuable segmentation variable than is population.
The important fact to recognize about the overall balance of payments is that it is
always in balance, although imbalances do occur in subsets of the overall balance.
Sweden's smaller population explains why IKEA, Saab, and Ericsson have looked
beyond their borders for significant growth opportunities.
Marketers of domestically manufactured finished products may be forced to switch to
offshore sourcing of certain components to keep costs and prices competitive.
By pursuing a joint venture entry strategy, a company can limit its financial risk as well
as its exposure to political uncertainty.
The Intranet is a private network that allows authorized company personnel or outsiders
to share information electronically in a secure fashion without generating mountains of
paper.
As markets globalize, and as Japan opens its own market to more competition from
overseas, more Japanese companies are likely to stick to the traditional organization
patterns.
Industry experts expect marketers to integrate SMS with communication via other
digital channels, such as the Internet and e-mail.
"Convergence" is a term that describes a world in which the telecommunications,
consumer electronics, computer, and entertainment industries are entering each other's
markets.
When creating global advertising, it is important to remember that the "advertising
appeal" should be based on the agency's understanding of the target audience's buying
motives.
In 2008, the largest merger and acquisition deal in the pharmaceutical industry, Roche's
acquisition of Genentech, is an example of an equity stake.
The high level of political risk currently evident in Russia can be attributed in part to
excessively low taxes on business operations.
About 25% of the world population is included in the low-income economic countries
category as per the World Bank classification system.
Eventually, an affiliate-based strategy gives way to an export-driven strategy.
Globaphobia is a term which describes a hostile attitude toward global brands or
company policies that appear to result in hardship for some individuals or countries
while benefiting others.
In Greece, ads show ketchup pouring over pasta, eggs, and cuts of meat. This is an
example which shows that ketchup is the product category most likely to elicit cultural
sensitivity.
Nonmonetary costs do not factor into the equation of value, which is represented by the
equation Value = Benefits/Price.
The term "Safe Harbor" agreement applies to privacy issues pertaining to the companies
that wish to transfer data to the United States from Europe.
According to Fortune Magazine, Walmart is ranked number one in revenue, although it
currently generates only about one-third of its revenues outside the United States.
In Singapore, gum is available at pharmacies; before buying a pack, however,
consumers must register their names and addresses.
A company in which an ethnocentric orientation prevails is likely to utilize primarily
________ in its sales force.
A) host-country nationals
B) third-country nationals
C) expatriates
D) agents of any nationality
E) agents of host country
For positive proof that dumping has occurred in the United States, both ________ and
injury must be demonstrated.
A) black marketing
B) market skimming
C) gray marketing
D) price discrimination
E) price fixing
Around the world, various brands of personal computers are sold with Pentium
processors. This fact is often used as a selling point, with advertising that proclaims
"Intel Inside." Which branding concept does such advertising reflect?
A) brand equity
B) co-branding
C) brand image
D) brand extension
E) tiered branding
To fight counterfeiting, the "Disney Magical Journey" promotion was keyed to mail-in
hologram stickers on genuine Disney products. Participants could win Disney DVDs,
TV sets, and trips to Hong Kong Disneyland. This is an example of:
A) promotion of different types for marketing.
B) promotion of Disney Magical Journey.
C) people in many countries prefer mail-in hologram.
D) "Disney Magical Journey" is popular worldwide.
E) sales promotion by global marketer.
An example of a trap that marketers can set for themselves while targeting a foreign
market is to:
A) overstate the size and short-term attractiveness of individual country markets.
B) realize that short-term profit and revenue growth objectives may be hard to achieve.
C) restrain from being persistent to enter a country market.
D) ignore shareholders' or competitors' pressure not to "miss out" on a strategic
opportunity.
E) enter a market based on time-consuming rigorous market analysis.
A global segment is referred to as "global elite," which includes:
A) people between the ages of 12 and 19.
B) affluent, well-traveled persons.
C) the graying population.
D) technology professionals.
E) persons having power.
"Discussion and consensus must be the norms. Partners must be viewed as equals."
When applied to global strategic partnerships, this statement indicates the importance of
which factor?
A) mission
B) strategy
C) governance
D) culture
E) organization
________are variously referred to asbuyer for export, export commission house, or
export confirming house.
A) Export brokers
B) Export merchants
C) Foreign purchasing agents
D) Export managers
E) Manufacturer's agents
SRI International developed Values and Lifestyles (VALS). Such a consumer profile
would be helpful for which type of segmentation?
A) demographic
B) occupational
C) psychographic
D) behavioral
E) gender
Factors which determine suppliers' ability to gain leverage over industry firms include
all of the following except:
A) large numbers and relatively few in number.
B) suppliers' products or services are important to user firms.
C) suppliers' products or services are highly differentiated.
D) alternative products do not threaten suppliers' business.
E) buyers preferences are highly differentiated.
Generally speaking, a company has little control over media. To compensate for this
lack of control, many companies utilize:
A) image advertising.
B) advocacy advertising.
C) corporate advertising.
D) TV advertising.
E) radio advertising.
When British entrepreneur Richard Branson established the first Virgin Megastore in
France, he invested a great deal of money to develop a retail space on the famous
Champs-Elyses. Judging by the approach Branson used, he and his management team
must have viewed France 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.
Upper-middle-income countries that achieve the highest rates of economic growth are
sometimes referred to collectively as:
A) LDCs.
B) BEMs.
C) BRICs.
D) NIEs.
E) BOPs.
Saab markets two luxury car models, both prized by drivers for their "quirkiness."
About 30 percent of Saab's sales come from the USA, with most of the rest from
Western Europe. Which strategy does Saab appear to be using?
A) country concentration/market segment concentration
B) country diversification/market segment concentration
C) country concentration/market segment diversification
D) country diversification/market segment diversification
E) none of the above
"Containerization" refers to a company's:
A) designing attractive product packaging that will help a product 'sell itself."
B) use of computer technology to keep a lid on ("contain") distribution costs.
C) use of refrigerated warehouses for perishable products.
D) use of standard-sized shipping boxes that can be transported in various ways.
E) method of shipment by using oval size steel containers to fit different commodities.
Reference to one's own cultural values or self-reference criterion (SRC) can create a
cultural myopia. It can consciously or unconsciously create considerable problems for
marketing professionals. Using Walt Disney's decision to build a theme park in France,
address the problem, following a systematic framework.
Various types of political risk insurance to U.S. companies is provided by:
A) BERI (Business Environment Risk Intelligence).
B) PRS Group.
C) EIU (Economist Intelligence Unit).
D) WTO (World Trade Organization).
E) OPIC (Overseas Private Investment Corporation).
The Big Mac Index shows that the price of the Big Mac in China converted from the
local currency, the yuan, to be $2.18, whereas its price in the United States is $3.73.
This shows that:
A) the Big Mac is more popular in China than in the United States.
B) the Big Mac is less expensive in the United States than in China.
C) the Chinese yuan is overvalued when compared to US $.
D) the Chinese yuan is undervalued against the US $.
E) beef is less expensive in China than in the United States.
The European Commission has jurisdiction over European-based companies as well as
non-European ones that generate significant revenues in Europe. If Microsoft applies in
Europe, the Commission has a right to all of the following except:
A) it can block a proposed merger.
B) it can block a proposed joint venture.
C) it can approve with minor modifications.
D) it can demand substantial concessions before granting approval.
E) it can refer serious matters to the UN Security Council.
In July 2001, the euro's value relative to the dollar was about €1.00 = $0.85. By
November 2009, the euro had strengthened to €1.00 = $1.48. In February 2012, one
euro was equal to $1.33 and in August 2015 €1.00 = $0.99 All other things being equal,
if a European-based global company wants to preserve margins for goods exported to
the U.S. market, the company should:
A) raise prices in dollars.
B) switch to cost-based pricing.
C) adopt a policy of market penetration pricing.
D) reduce prices in dollars.
E) use skimming pricing.
In West Africa, Burkina Faso, the Ivory Coast and Senegal are former French colonies,
while Nigeria, Sierra Leone, and Ghana are former British colonies. Based on this
information, which of the following would be correct?
A) Burkina Faso, the Ivory Coast and Senegal are civil-code countries, while Nigeria,
Sierra Leone, and Ghana are common-law countries.
B) Burkina Faso, the Ivory Coast and Senegal are common-law countries, while
Nigeria, Sierra Leone, and Ghana are civil-code countries.
C) West Africa, the Ivory Coast and Senegal are the only common-law countries.
D) All the West African nations mentioned are likely to be civil-code countries.
E) All the West African nations mentioned are likely to be common-law countries.
The only marketing mix element that is applicable in export selling is:
A) price.
B) product.
C) promotion.
D) place.
E) process.
The strategy to use joint ventures has several advantages which do not include:
A) risk sharing.
B) reduced financial risk.
C) reward sharing.
D) achieve synergy.
E) the only way to enter a country or region.
The Organization for Economic Cooperation and Development (OECD) is comprised
of:
A) the 34 high-income countries.
B) countries that believe in market-allocation economic systems.
C) pluralistic democracies.
D) countries that demonstrate progress toward economic reform.
E) All of the above statements are applicable.
The issue of sustainability is central to this strategy concept:
A) cost leadership.
B) differentiation.
C) cost focus.
D) focused differentiation.
E) consumer differentiation.
Which of the following principles of disruptive innovation pertains to the notion of
agnostic marketing?
A) Companies depend on customers for resources.
B) Small markets don't satisfy the growth needs of large companies.
C) Markets that don't exist can't be analyzed.
D) Technology supply may not equal market demand.
E) A company's capabilities define its weaknesses.
Having partners from another country can have advantages which include all of the
following except:
A) reducing product development costs.
B) securing technology.
C) access to capital.
D) shared risks.
E) increased competition.
According to Transparency International's Corruption Perceptions Index scores for
2014, the country which was listed as most corrupt was:
A) Iraq.
B) Uzbekistan.
C) Chad.
D) Afghanistan.
E) Somalia.
Which of the following is true about the innovation diffusion process in Asia?
A) Japan has a high-context culture with a relatively homogeneous population.
B) Because risk avoidance is a cultural value, there are fewer innovators in Asia than in
the United States.
C) Once innovators in Asia have tried a product, early adopters and the early majority
quickly follow suit.
D) After a new product has achieved success in one Asian market, it is likely to be
adopted in other Asian markets at an even faster rate.
E) All of the above are true.
It is advisable to start a double-ACSII platform when designing a Web site's
architecture since:
A) the English language can store only a maximum of 256 characters.
B) French and German languages use the Latin alphabet.
C) German-language Web sites require double the English Web site's capacity.
D) French and German languages cannot be used in Web site's architecture.
E) Japanese and Chinese languages require a database which supports such platform.
Research has shown that exporting is essentially a developmental process that proceeds
in different stages. Before a firm reaches stage 4, it must do which one of the following
activities?
A) explore the feasibility of exporting
B) commit resources for exporting
C) receive unsolicited export orders
D) believe in attractiveness of exporting
E) build confidence in firm's ability for exporting
Canon introduced the first full-color copiers and the first copiers with
"connectivity"-the ability to print images from such sources as video camcorders and
computers. This Canon example shows how an innovative marketing strategy-with
fresh approaches to the product, pricing, distribution, and selling leads to overall
competitive advantage in the marketplace. This strategy can be classified under:
A) collaborating.
B) loose bricks.
C) changing the rules.
D) layers of advantage.
E) differentiation.
An intern from the United Kingdom was working in an American software company
during summers. One day her boss gave her a memo asking her to post it, with the
intention of having it put on the bulletin board. To her boss's surprise the letter was
mailed by the intern since the word "post" means "mail" in British English. In
communication terms this error can be attributed due to:
A) syntax.
B) phonology.
C) morphology.
D) semantics.
E) semiotics.
What is the difference between emic and etic analysis? Explain with examples as to
how these analyses can be used in marketing research.
Describe how competitive advantage can be created via strategic intent, giving
examples of successful approaches of competitors.
Explain with examples the benefits of competitive advantage and show how
globalization presents companies with unprecedented opportunities?
What is m-commerce, and what are some of the technological innovations that fall
under this type of commerce?
The newly independent countries of the former Soviet Union present an interesting
situation: income is declining, and there is considerable economic hardship. The
potential for disruption is certainly high. Are these disruptions problem cases, or are
they attractive opportunities with good potential for moving out of the low-income
category?
Nippon Paper Industries was found guilty in a U.S. court of conspiring with other
Japanese companies to raise fax paper prices in the United States under the antitrust
laws. What are the implications of such a law, and how does it affect international
business?
What is meant by e-commerce? How can e-commerce activities be classified?
Many of the fast food operations are entering markets in Middle Eastern countries. In
the United States, breakfast items are very popular and are responsible for a majority of
the profit from sales, primarily from drive-in customers. However, to their dismay,
managers found that there was practically no demand for breakfast items. Firstly, due to
hot weather conditions, people sleep late and wake up late. Secondly, they do not eat
burgers, and sausage or bacon is prohibited. Also, drive-in business is not popular since
people go to work at different periods of time. Explain the reasons why these facts were
not discovered by marketing research.
In most of the European Union countries, the influence of regulatory agencies is
pervasive. What steps will be necessary of a corporation to protect business interest and
advance new programs?
Distribution channels around the world are highly differentiated. However these
differences cannot be explained just by culture and income level of the existing market.
What is the difference between organic growth and franchising?
What is convergence? What kind of challenges does it present?
Exporting is considered as essentially a developmental process. What are the stages in
which this process can be divided?
One of the issues facing advertisers is which medium or media to use when
communicating with global target markets. Discuss how these media differ from
country to country, giving examples.
A true global strategic partnership is unique and different. Using the example of Sony's
strategic alliance with Samsung, discuss attributes that are needed for a productive
working partnership.
A joke among the Japanese says that the only way to escape from the salesperson is to
leave the country. Explain this statement highlighting the differences between lean
producers and U.S. mass producers.
In spite of forming an economic bloc, the 10 ASEAN nations have many problems that
need to be solved. List any two problems?
