Nokia’s reversal of fortune at the hands of Apple and Google underscores the fact that
today’s executives must rethink the concept of the corporation if they wish to
operationalize the concept of core competencies.
Today, market capitalism is widely practiced around the world, most notably in North
America and the European Union.
Sampling can be especially important if consumers are persuaded by claims made in
advertising or other channels.
One of the four basic competencies that a matrix design can achieve on a worldwide
basis is that it helps in providing a knowledge of the customer and its needs.
The WTO’s neutral trade experts also serve as mediators in global trade disputes.
A key issue is global patent protection for software. Although copyright law protects the
computer code, it does not apply to the idea embodied in the software.
Some legal experts believe that the pressures of global competition have resulted in an
increased incidence of price-fixing and collusion among companies.
In France, laws forbid the use of foreign words such as le weekend or le marketing in
official documents.
EDI links with vendors to enable retailers to improve inventory management and
restock hot-selling products in a timely, cost-effective manner.
The development of the MP3 file format for music was accompanied by the increased
popularity of peer-to-peer (p-to-p) file swapping among music fans.
According to President Obama, “The more American companies export, the more they
produce. And the more they produce, the more people they hire”and that means more
jobs.”
“Switching costs” are one of the barriers to entry in Porter’s five forces model.
Most of the agency brands identified among the network agencies are full-service
agencies involved in creating advertising as well as other services, such as market
research, media buying, and direct marketing.
Potential export problems include packaging, government red tape, warehousing,
advertising, and trade restrictions.
The requirement that all restaurants declare that the meat is “halal” is based on Islamic
Laws.
Anxious to retain control of a valuable agricultural export, officials at Peru’s National
Commission Against Biopiracy have ramped up efforts to prevent maca seeds from
being smuggled out of the country for cultivation elsewhere.
Volkswagen Auto Group of America markets both the VW and Audi nameplates in the
United States; in 2014, unit sales for the group totaled nearly 550,000 vehicles.
However, the VW brand has been hampered by perceptions of hit-and-miss quality.
Affluent Russians can now shop at Versace, Burberry, Bulgari, and other exclusive
brands.
Red Bull has been involved in Music Academy which is a series of concerts,
workshops, art installations, and other cultural events that rotate from year to year
among different international cities.
In Korea 4 5683 968 can be interpreted as “I love you.”
Sushi, falafel, tandoori chicken or pizza is in demand in many parts of the world. This
phenomenon can be due to the pluralization of consumption and segment simultaneity.
Volkswagen’s business environment includes a significant wage differential between
Mexico and Germany.
According to innovation expert Clayton Christensen, the creation of the Internet
represented a disruptive technology for Dell Computer.
Channel strategy involves an analysis of each shipping mode to determine which mode,
or combination of modes, will be both effective and efficient in a given situation.
Lexus developed new diesel models as well as a gas-hybrid engine because Germans
want the option of buying vehicles with diesel engines.
If interaction between two variables is desired, factor analysis can be used to transform
large amounts of data into manageable units.
A psychographic segmentation, “Comfortable Belongers” refers to “up-and-comers” of
a country’s population.
It is illegal for representatives of two or more companies to secretly set similar prices
for their products. This practice is known as transfer pricing.
Analyzed in terms of Porter’s five forces model, Walmart’s ability to dictate terms to the
music industry is one indication of the retail giant’s supplier power.
One of the forces restraining the growth of global business and global marketing is the
functioning of globalization.
A preferential trade agreement is a mechanism that confirms special treatment on select
trading partners, thereby at times discriminating against other trading partners.
The “wave” that appears on red Coke cans and bottle labels is an example of a brand
symbol.
Some of the world’s most memorable advertising campaigns originate from big ideas
with an unlimited number of new executions. Such a campaign is said to have legs.
Outsourcing means shifting undesirable jobs or work assignments to another company
to cut costs. When the outsourced work moves to another country, the terms “global
outsourcing” or “offshoring” are used.
Research by Morgan Stanley indicates that the United States is home to more
companies with global competitive advantage than any other country.
A single correct organizational structure exists for global marketing.
If Avon would like to sell cosmetics in India, a good estimate can be achieved by
researching the average wage of an office secretary.
The close long-term relationships between auto salespersons and the Japanese people
can be considered as a consumer version of the keiretsu system.
If Nestl decides not to market biscuits (cookies) in the United States due to competitive
reasons, it is considered to be having a lack of strategic focus and missed opportunity.
Which of the following completely eliminates the risk of nonpayment by an importer or
a bank in an international transaction?
A) documentary credit (letter of credit)
B) documentary collection
C) cash in advance
D) sales on open account
E) draft
Which of the following is not an appropriate guideline for companies selecting
independent distributors in international markets?
A) Select distributors; don’t let them select you.
B) Look for distributors capable of developing markets.
C) Give local distributors control over marketing strategy.
D) Treat local distributors as long-term partners.
E) All of the above are appropriate guidelines.
Which of the following establishes classification numbers that must be used by
importers and exporters?
A) NTR
B) CVD
C) FSC
D) NTB
E) HTS
McDonald’s has been in many country markets long enough that a new generation of
consumers has grown up with McDonald’s and are not aware of the company’s U.S.
origins. On the basis of this summary, what is the highest stage of corporate
development that McDonald’s arguably has achieved?
A) international
B) multinational
C) global
D) transnational
E) myopic
Chinese authorities ratified the WHO’s Framework Convention on Tobacco Controls;
which means:
A) Chinese TV can show tobacco ads only after midnight.
B) tobacco companies cannot show ads on TV but can sponsor sports events.
C) all forms of tobacco promotion and sponsorships will be phased out.
D) tobacco companies can use sponsorships of health and sporting events.
E) tobacco companies can sponsor China’s national soccer tournament.
Tobacco companies in Central Europe face the prospect of tougher marketing and
advertisement regulations due to:
A) the growing concern about health hazards associated with smoking.
B) a dislike of global brands crowding out local brands.
C) a desire to return to communist-era policies.
D) a desire to comply with EU entry requirements.
E) the pressure from neighboring countries.
A person who assumes that his or her home country is superior to the rest of the world
is said to have:
A) ethnocentric orientation.
B) polycentric orientation.
C) regiocentric orientation.
D) geocentric orientation.
E) none of the above
The former chairman of Nestl recently told an interviewer: “We are food and beverages.
We are not running bicycle shops. Even in food, we are not in all fields. There are
certain areas we do not touch. Also, we have no soft drinks because I have said we
either buy Coca-Cola or we leave it alone.” What strategic marketing principle does the
chairman’s comment emphasize most specifically?
A) customer value
B) competitive advantage
C) focus
D) myopia
E) policy of dealing only with Swiss businesses
In China, Dell had to find a meaningful interpretation of “direct sales.” A literal
translation results in zhi xiao which is the Chinese term for “illegal pyramid marketing
schemes.” To counteract the negative connotation, Dell’s sales representatives began
using the phrase zhi xiao ding gou, which translates as:
A) direct orders.
B) direct marketing.
C) pyramid orders.
D) pyramid scheme.
E) direct shipping.
A decade ago, a number of countries in Central Europe, Latin America, and Asia were
expected to experience rapid economic growth. Today much attention is focused on
opportunities in Brazil, Russia, India, and China. Give reasons for this shift using an
example of a manufacturer.
Manufacturers of Splenda, a low-calorie sugar substitute, wanted to arrange a focus
group to find out its use in different markets. Open-ended questions were used in order
to secure the unconscious attitudes and biases held by the subjects. This type of
technique is known as:
A) scaling technique.
B) qualitative technique.
C) projective technique.
D) reactivity technique.
E) MDS technique.
Comparing the traditional formulation of Maslow’s hierarchy with the results of current
research on the consumer needs and motivation in Asia, which of the following is
correct?
A) The lowest two levels of the hierarchy are the same in the traditional and Asian
versions.
B) The lowest three levels of the hierarchy are the same in the traditional and Asian
versions.
C) The lowest four levels of the hierarchy are the same in the traditional and Asian
versions.
D) The five levels in the traditional formulation apply equally in the West and in Asia.
E) The highest levels of the hierarchy are the same in the traditional and Asian versions.
In Hong Kong and Singapore, Western catalogers are finding it easy to market because
of all of the following reasons except:
A) efficient postal services.
B) highly educated populations.
C) wide use of credit cards.
D) few mail-order companies.
E) high per capita income.
Intel’s focus on designing complex, expensive microprocessors for PCs enabled
competitors to develop cheaper chip sets for non-PC electronics devices. In the strategic
intent model of competitive advantage, this is an example of:
A) building layers of advantage.
B) loose bricks.
C) changing the rules of engagement.
D) collaborating.
E) none of the above
The marketing mix is integral to the value equation which is represented by:
A) Value = Price/Benefits.
B) Value = Benefits/Price.
C) Value = Benefits Price.
D) Value = Benefits – Price.
E) Value = Benefits + Price.
Even in the face of such tough and growing competition, Adidas still enjoys high brand
loyalty among older Europeans. The company recruits young people and pays them to
wear Adidas shoes in public. This is an example of:
A) local advertising.
B) pattern advertising.
C) global advertising.
D) advocacy advertising.
E) image advertising.
Toyota learned many things from its partnership with GM, however American managers
involved in the venture complained that:
A) Toyota learned many things about the U.S. supply system.
B) Toyota learned about the U.S. transport system.
C) Toyota learned about managing American workers.
D) Toyota did not apply manufacturing expertise at GM plant.
E) Toyota applied its expertise at its Camry plant.
Upper-middle-income countries, also known as industrializing or developing countries
are those with GNI per capita ranging from:
A) $996 to $ 4,125.
B) $4,126 to $12,475.
C) $12,475 or higher.
D) less than $995.
E) none of the above
Alfred Zeien, former chairman of Gillette, once noted that his company’s Parker Pen
unit does not have to develop a special model for Malaysia and Singapore because
shoppers worldwide seek the same things when buying a gift that will serve the
recipient as a status symbol. This insight relates to which level of Maslow’s hierarchy of
needs?
A) physiological
B) safety
C) social
D) esteem
E) self-actualization
The U.S. Justice Department objected to a recent patent license agreement between S.C.
Johnson & Sons and Bayer AG. The antitrust unit at the Justice department objected to:
A) the duration of the license.
B) the amount of royalties Johnson agreed to pay.
C) Bayer’s attempts to circumvent FDA policies.
D) the exclusive nature of the license agreement.
E) the hostile arrangement between Bayer and Johnson.
Several factors can create intense rivalry among firms. These factors include all of the
following factors except:
A) firms focus on market share at the expense of others.
B) firms feel pressure due to fixed costs and produce at full capacity.
C) lack of differentiation in products and services.
D) upward pressure on prices and profitability.
E) absence of switching costs for customers.
The first step in formulating and conducting research is to:
A) define the problem.
B) collect information.
C) select unit of analysis.
D) examine data availability.
E) design research.
In the terminology of the strategic intent framework for competitive advantage, a firm
that establishes advantages in a number of different areas has:
A) attribute diversity.
B) marketing breadth.
C) comparative advantage.
D) layers of advantage.
E) a “double diamond.”
India’s vehicle market can be segmented into:
A) First time car buyers
B) Generation Y drivers
C) different age group drivers
D) women drivers
E) scooter and motorcycle drivers
Organizations, in order to be globally successful, must be viewed as portfolio of:
A) activities.
B) businesses.
C) competencies.
D) products.
E) policies.
Streaming media represents a huge market opportunity for all of the following except:
A) video game industry.
B) online gaming.
C) game publishers.
D) Internet portals.
E) telematics.
A company with headquarters in the United States and operational units in the
Netherlands, France, Italy, and Spain would be well advised to consider establishing
a(n):
A) matrix structure.
B) international division structure.
C) geographic structure.
D) worldwide product division structure.
E) regional management center.
Spoexa, a food-marketing company was hired by the French Ministry of Agriculture to
organize cocktail parties in 19 countries in order to:
A) promote French wines.
B) promote French cheese.
C) show that French cuisine is laid back.
D) show that French wines are superior.
E) show how to use French cuisine.
When the subheads and body copy of an advertisement are localized, not simply
translated, it is an example of:
A) local advertising.
B) global advertising.
C) pattern advertising.
D) advocacy advertising.
E) stereotype advertising.
Rugman and D’Cruz have developed an alternative framework to Porter’s five forces
model. The framework, based on business networks, is called:
A) the differentiation model.
B) strategic intent.
C) the flagship model.
D) the hypercompetition model.
E) the Rugman & D’Cruz model.
________ is the term that refers to the merging of different industries such as
computers, photography, and motion pictures.
A) Value networks
B) Convergence
C) Disruptive technology
D) Telematics
E) Agnostic marketing
To speed adoption of a new product, a marketing team should:
A) ensure that features and benefits can be communicated or demonstrated.
B) design the maximum amount of complexity into the product.
C) discourage limited use on a “trial” basis.
D) attempt to make a clean break with existing customer values.
E) rely heavily on word-of-mouth marketing.