Deck 9: Global and Multi-Market Strategies

Question 1

International sophisticates, semi-sophisticates and provincial consumers are cross-border similarities based on income

Answer 1

False

Question 2

Where international competition among rival firms is intense, companies are likely to enter new markets one at a time, slowly and deliberately

Answer 2

False

Question 3

Internationalizing the core strategy consists of integrating marketing and branding strategies across country markets

Answer 3

False

Question 4

The formulation of global and multi-country marketing strategies consists of developing a core strategy, internationalizing the strategy, and then globalizing the strategy by developing consistent themes across markets

Question 5

Recognizing core businesses is not a prerequisite to either internationalization or globalization

Question 6

Similarities in political structures, shared histories and economic development levels have encouraged firms to regard Western Europe in single market terms

Question 7

Core businesses tend to be those that contribute to corporate profits, take advantage of available corporate resources, and have international market potential

Question 8

Age, occupation, income and gender are major psychographic variables in segmenting international markets

Question 9

International sophisticates, semi-sophisticates and provincial consumers are cross-border similarities based on psychographic/lifestyle criteria

Question 10

Auto styling, performance, reliability and economy are demographic criteria used to segment global car markets

Question 11

The globalization movement has resulted in many firms thinking in terms of customer and market differences as they formulate marketplace strategies

Question 12

Globalizing the international strategy entails firms continuing to operate their marketing strategies on a market-by-market basis

Question 13

The extension of Lego, Nintendo and other toys internationally is an example of age-related customer similarities across markets

Question 14

The cross-border marketing of furniture, consumer durables and prepared foods is based on psychographic/lifestyle similarities among consumers

Question 15

When international competition is intense, firms are likely to launch new products quickly and over multiple markets simultaneously

Question 16

Similarities among countries promote trade and the exchanges of technologies

Question 17

Manufacturers of prepared foods, sport equipment producers and global utility providers are likely to use benefit segmentation to segment international markets

Question 18

The globalization movement has resulted in many firms thinking in terms of customer and market similarities as they formulate marketplace strategies

Question 19

Global approaches to branding complicate marketing tasks and increase promotional costs

Question 20

Language similarities among countries do not promote trade or technology exchanges

Question 21

A disadvantage of global branding is that a problem with a major brand can create difficulties with other company products bearing the same brand name

Question 22

GE Capital Services and Hewlett Packard Jet printers are good examples of corporate brands

Question 23

Once established, global brand reputations tend to be durable

Question 24

Firms rarely buy or sell brands

Question 25

Global product launches give competitors time to formulate effective counter-strategies

Question 26

Global brands can be easily created and easily forgotten

Question 27

An advantage of global branding is that it takes full account of cultural differences among markets

Question 28

Global brand portfolios are collections of brands that give firms advantages in gaining distribution, advertising and promotional scale economies, and in launching products in related areas

Question 29

The best global brands in today's world marketplace have been established for decades

Question 30

Silver bullet brands are usually the star brands in a company's portfolio

Question 31

Global brands can be easily established through mass media advertising

Question 32

GE Capital Services and Hewlett Packard Jet printers are good examples of range brands

Question 33

Creating brand personalities involves associating human-type characteristics such as excitement, competence and sophistication with brands

Question 34

'Intel inside' and Nutrasweet are good examples of flagship 'silver bullet' brands

Question 35

Global brands often involve building trust and customer relationships

Question 36

Global brand portfolios can be built through new product development

Question 37

Almost any brand can become a global brand

Question 38

Corporate (organizational) brands use company reputations as centerpieces for global strategies

Question 39

Western European brands have been built solely on mass media advertising

Question 40

Global approaches to branding simplify marketing tasks and reduce promotional costs

Question 41

Geographically-based competitive strategies focus on specific regions or markets

Question 42

Though today's marketplace is global, there are few real global rivalries among industry competitors

Question 43

Global brands can be built through associations with countries of origin such as German engineering, Scotch whisky, or French champagne

Question 44

Encirclement strategies occur when firms use superior resources to produce greater product varieties to surround market rivals

Question 45

In today's global marketplace, firms have no option but to compete against all of their international rivals

Question 46

Coca-Cola and Pepsi's confrontational style of competition is known as a flanking strategy

Question 47

Offensive competitive strategies include frontal assaults, flanking strategies, encirclement, bypass and guerilla strategies

Question 48

Being first into emerging markets allows firms to build customer loyalties and pick the best suppliers and distributors

Question 49

Competitive advantages are often founded on technical excellence, customer loyalty or superior capabilities, and can usually be easily imitated

Question 50

There are no real advantages in getting into emerging markets early

Question 51

Any adaptations made to global brands ruin the global branding strategy

Question 52

When pursuing global brands, firms are careful in making only those product changes that do not affect global images

Question 53

Mega brands can be built by leveraging brand names over entirely new businesses and product lines

Question 54

Advertising strategy standardization has been hindered through the development of many regional and national versions of international media

Question 55

Many multi-country advertising campaigns develop a standard advertising message (platform) and allow creative executions (how the message is presented) to vary from market to market

Question 56

Global retailers have facilitated the international distribution of brands

Question 57

Regional strategies target specific areas such as provinces within national markets

Question 58

Mega brands can be built by extending brands upwards into premium segments or downwards into economy segments of existing brands

Question 59

In today's global marketplace, firms can choose to compete or cooperate against international rivals

Question 60

Personal selling and sales force management strategies are easier to standardize when promotions are mass media-oriented, distribution channels are long, and product mixes are standardized

Question 61

Global alliances tend to be equity-based relationships rather than contractually-based

Question 62

Regional competitive strategies target groups of countries and/or specific rivals in those countries for strategic purposes

Question 63

Emerging market firms can counter international competition through extender strategies that take their local market expertise into markets that are similar to the home market

Question 64

One response to global competitors entering the home market is to seek protection through tariffs

Question 65

In emerging market situations, dodger strategies aim to use local knowledge and contacts to keep attackers at bay

Question 66

When entering global alliances, both firms should give as much information as possible to their partners to ensure that both benefit from the arrangement

Question 67

Transfer pricing strategies can give international firms advantages in choosing which markets they make profits or pay taxes

Question 68

Global alliances can be used to develop new products, technologies, or to share production or distribution in the worldwide marketplace

Question 69

One way to hedge against currency risks associated with transactions is to use forward currency contracts where they are available

Question 70

An effective way to neutralize a global competitor is to collaborate with them

Question 71

Dumping occurs when foreign-based firms deliberately under-price goods entering a market to undermine domestic companies and destroy competition

Question 72

Transaction risks occur when foreign asset valuations are affected by movements in currency values

Question 73

Transfer pricing deals with the ways that international firms price products and components moving among their subsidiaries

Question 74

Almost all countries have stiff penalties against transfer price violators

Question 75

Global alliances are usually permanent relationships with marketplace rivals

Question 76

Incompatibility is a major reason why most global alliances fail

Question 77

Global alliances tend to be easily formed but more risky and more resource-intensive than equity-based relationships

Question 78

Global rivals rarely attack each other in their home markets because they are too well established

Question 79

Companies can defend regional or national markets by identifying their competitive advantages and fortifying them against foreign intruders

Question 80

When entering global alliances, firms should be patient in selecting partners and know what they want out of the relationship