978-1337407588 Chapter 5 Solution Manual Part 2

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Chapter 5: Developing a Global Vision

Case Assignment: TOMS

In 2006 while traveling in Argentina, TOMS founder Blake Mycoskie saw how much harder life

In 2011, TOMS expanded and launched TOMS Eyewear. They have helped restore sight

“We were no longer just a shoe company, serving the mission of providing shoes to

TOMS Roasting Co. began in 2014. With every purchase of coffee from TOMS Roasting

Co., they work with Giving Partners to provide 140 liters of safe water to a person in need. That

In 2015, TOMS Bag Collection was created with the mission to help women safely

Always continuing in their philanthropic efforts, TOMS Eyewear participated in World

The TOMS website was updated to include facts about eyesight around the world. “285

Chapter 5: Developing a Global Vision

“80% of what we learn is through sight. Children who receive corrective lenses have

“One for One.” That’s the TOMS way. “Together we can make a difference.”

Sources: B. Mycoskie, “World Sight Day,” The Huffington Post, October 10, 2013, accessed

October 21, 2016,

TRUE/FALSE

1. TOMS was founded with a global vision already in mind.

PTS: 1 OBJ: LO: 5-1 TOP: AACSB: Reflective Thinking

KEY: CB&E Model: Strategy MSC: BLOOMS: Level I Knowledge

2. When a customer purchases from TOMS Roasting Co., their purchase finances one person’s

supply of clean drinking water for one week. But ultimately, each purchase will affect the GDP

of the country that receives the water in a small way.

PTS: 1 OBJ: LO: 5-1 TOP: AACSB: Reflective Thinking

KEY: CB&E Model: Strategy MSC: BLOOMS: Level I Knowledge

3. The mission of TOMS shoes is to outsource shoes to children in need.

Chapter 5: Developing a Global Vision

PTS: 1 OBJ: LO: 5-1 TOP: AACSB: Reflective Thinking

KEY: CB&E Model: Strategy MSC: BLOOMS: Level I Knowledge

4. TOMS Eyewear is trying to help improve the vast differences in access to safe water (a vital

natural resource) between nations.

PTS: 1 OBJ: LO: 5-3 TOP: AACSB: Reflective Thinking

KEY: CB&E Model: Strategy MSC: BLOOMS: Level I Knowledge

5. TOMS is a multinational corporation.

PTS: 1 OBJ: LO: 5-2 TOP: AACSB: Reflective Thinking

KEY: CB&E Model: Strategy MSC: BLOOMS: Level I Knowledge

MULTIPLE CHOICE

1. Which of the following is NOT part of the external environment faced by global marketers?

a. the global economy

b. political structure

c. culture

d. competition

PTS: 1 OBJ: LO: 5-3 TOP: AACSB: Reflective Thinking

KEY: CB&E Model: Strategy MSC: BLOOMS: Level I Knowledge

2. __________ is the riskiest way to enter into the global marketplace.

a. Direct investment

b. Exporting

c. Licensing

d. Joint venture

PTS: 1 OBJ: LO: 5-4 TOP: AACSB: Reflective Thinking

KEY: CB&E Model: Strategy MSC: BLOOMS: Level I Knowledge

3. If TOMS decided to enter the tea business and they purchased part of a foreign tea company to

join with them to found TOMS Teas, this would be an example of __________.

a. direct foreign investment

b. contract manufacturing

c. a joint venture

d. licensing

Chapter 5: Developing a Global Vision

PTS: 1 OBJ: LO: 5-4 TOP: AACSB: Reflective Thinking

KEY: CB&E Model: Strategy MSC: BLOOMS: Level I Knowledge

4. If TOMS advertised their shoes differently in European markets than it did in American, this

would be an example of __________ adaptation.

a. product

b. promotion

c. distribution

d. price

PTS: 1 OBJ: LO: 5-5 TOP: AACSB: Reflective Thinking

KEY: CB&E Model: Strategy MSC: BLOOMS: Level I Knowledge

5. As TOMS utilizes social media in global marketing, they must always be aware of the

__________ in countries in which they operate.

a. climate

b. countertrade

c. culture

d. currency

PTS: 1 OBJ: LO: 5-6 TOP: AACSB: Reflective Thinking

KEY: CB&E Model: Strategy MSC: BLOOMS: Level I Knowledge

Great Ideas for Teaching Chapter 5

James S. Cleveland, Sage College of Albany

Discussion Board Topics to Encourage Participation

Discussion board questions, which are provided to students to encourage them to engage in

thinking and writing about the content of the Principles of Marketing course, usually take the

form of a provocative statement to which students are asked to respond. An example of this

would be “All PR is good PR.”

Discussion topics such as this one are abstract and often require that the instructor provide an

initial reply to show students what is expected of them in their own replies. For students with

Chapter 5: Developing a Global Vision

limited work experience, this approach may be quite appropriate. For adult students with

extensive experience as employees and consumers, however, the abstract nature of such topics

can be frustrating.

I have developed, therefore, a series of discussion board questions to use with experienced adult

students. These questions are designed to encourage them to use their experiences as employees

and consumers as doorways to better understand the course material. The questions are also

designed to make these students’ responses more interesting to themselves and to the other

students in the class who will read and comment on them.

Each question has three parts.

1. First, there is a sentence or two from the students’ textbooks introducing the topic. By

using the text author’s own words, students are enabled to locate relevant material in the

text more easily, the text content is reinforced, and confusion resulting from use of variant

terms or expressions is minimized.

2. Second, there is a reference to text pages the student should review before proceeding.

Since the goal of the exercise is for students to apply the course content to their own

experiences, reviewing the content first is important.

3. Third, there is a request for the student to think about or remember some specific situation

in their experience to which they can apply the text material, and a question or questions

for them to address in their reply.

Here are additional discussion board questions that are similar and have been developed for

Chapter 5 of MKTG11. Each is written to fit the same text cited above but could easily be

rewritten and revised to fit another text.

Series A

1. No longer just an option, global marketing—marketing that targets markets throughout the

world—has become an imperative for business.

2. Review the information on the rewards of global marketing in section 5-1 of your text.

3. Then describe how your employer (current or past) participates in the global marketplace

by buying foreign-made goods and services or selling its goods and services abroad.

Series B

1. A company that is heavily engaged in international trade, beyond exporting and importing,

is called a multinational corporation.

2. Review the information about multinational corporations in section 5-2 of your text.

3. Describe the products you buy that are manufactured by multinational corporations. How

many of them are not made in this country? (Check labels or packaging to see where they

were made.) Do you think this is a good situation? Why, or why not?

Chapter 5: Developing a Global Vision

John L. Beisel, Pittsburg State University

Forcing International Communication

Students from other countries who are studying in the United States bring with them a rich

cultural heritage and perspective that most American students seldom bother to learn about. In

I decided to force communication between the two groups at every opportunity in my classes. In

In a recent class, I appointed 11 teams of 4 students each. Each team was assigned a different

country. Those 11 countries that were most represented by students in our university were the 11

countries assigned. They were India, Indonesia, Japan, Malaysia, Nigeria, Pakistan, Paraguay,

The final report for each team included, among other things, a country analysis with a brief

Also, customs regulations had to be cited regarding documentation, packing, labeling, marking,

Each team also created a brand name and a package design. A pricing policy was decided on, as

Chapter 5: Developing a Global Vision

The students were quite positive about the project as a learning experience, especially regarding

David J. Brennan, Webster University – St. Louis, Missouri

It’s Not Funny Money!

In teaching International Marketing, it is important for American students to develop a

knowledge of foreign currencies. For marketing students, this need not be a detailed financial

knowledge but simply an awareness of a few key international currencies and their names,

symbols, and relative values.

Given a list of several relatively familiar countries, students are asked to name the currency of

that country and to indicate the symbol used to designate that currency. Some typical countries,

currencies, and symbols (with the United States as an example) could include (answers in

brackets):

Country Currency Symbol

Example: USA Dollar/cent $ US

Australia [Dollar/Cent] [$AUS]

Belgium

(or other

[Euro] [€]

These, as well as other countries and their respective currencies, can be found in the foreign

Chapter 5: Developing a Global Vision

exchange listings in the Financial Section of the Wall Street Journal. This listing provides the

country, its major currency and foreign exchange values for the previous two business days in

Several aspects of foreign currencies, as they may apply to marketing students, can be raised

during class discussion. These could include the features given below.

Some currencies have similar names (e.g., the dollar in the United States, Canada, and

It is important for marketing students to be aware of the relative values of the currencies of

key major trading partners (Canada, Germany, Great Britain, China, and Japan). It

illustrates how one can use those foreign currencies with values less than, approximately

equal to, and greater than the U.S. dollar. For example, in fall 2012:

The Canadian ($CD) dollar is close to the value of the U.S. dollar ($US): 1 $CD =

0.97 $US or 1 $US = 1.03 $CD

Changes in foreign currency values in terms of the U.S. dollar can impact international

business. A good example of that is of the Japanese yen (¥). In 1987, 1 $US was worth

This exercise can educate American marketing students who are typically used to operating only

in the U.S. dollar. Although the U.S. dollar is still a key global currency, other currencies (such

as the euro) are important to understand. It can illustrate to our students that foreign currencies

are not “funny money” and need to be taken seriously in international marketing.

Jacqueline J. Kacen, University of Michigan—Dearborn

Cross-Cultural Marketing: Taking the Brand Local?

What must international and cross-cultural marketers think about when introducing products into

Chapter 5: Developing a Global Vision

foreign markets? Instead of focusing on familiar U.S. products being introduced into a new

The product I use for this exercise is Vegemite, a Kraft product manufactured and sold in

As an introduction to the exercise, I provide students with a one-page summary of the product—

its history, ingredients, uses, target market, and position—in its home market. Alternatively,

I also bring the product to class so students can see it in its “original” form. By using a food

The background information on the product and the taste experience provide students with

enough information to create their own marketing strategy for the product. Individually, in

groups, or as a class, students are instructed to develop a marketing plan for Vegemite’s

Andrew Banasiewicz, Louisiana State University

Globalizing the Thinking of Business Students

During the last decade, we have seen a strong emphasis being placed on providing business

students with a more global orientation. To accommodate this, we need to make the students

Chapter 5: Developing a Global Vision

On the first day of class, I ask students to write on an index card their name, major,

classification, and then two groups of countries. The students are instructed to, for Group 1,

create a list of foreign countries, which they perceive as being the most culturally similar to their

Having collected all that information, I then group the lists of the most culturally similar

countries and the most culturally dissimilar countries. Then I divide students into groups and

assign a specific country or region to each group. The groups are usually composed of about four

The groups are given most of the semester to work on the project, which is culminated by formal

presentations. Following the presentations, the students are asked to once again rate the