Deck 1: Introduction to Global Marketing

Question 1

Starbucks entered India via an alliance with the Tata Group. This is an example of "market penetration."

Answer 1

False

Question 2

Why do some of the world's biggest, most successful companies stumble while pursuing global opportunities? Give examples in support of your answer.

Answer 2

Store locations, pricing, customer preferences, convenience, and unfamiliarity can cause successful companies to fail or not perform well in global markets. Walmart's exit from the German market was due to the fact that German shoppers could find lower prices at "hard discounters" such as Aldi and Lidl. UK-based Tesco's attempts to enter the US market with its Fresh & Easy stores failed, in part, because US consumers were unfamiliar with the private-label goods that made up much of the merchandise stock. American "cheap chic" retailer Target terminated in Canada due to missteps in store location and pricing.

Question 3

Nike dropped its well-known tag line "Just do it" in advertising women's clothing in Europe and replaced it with slogan "Here I am" since college-age women in Europe are not as competitive about sports as men are.

Answer 3

True

Question 4

McDonald's global marketing strategy is based primarily on local marketing mix elements.

Question 5

If Nestlé decides not to market biscuits (cookies) in the United States due to competitive reasons, it is considered to have a lack of strategic focus and missed opportunity.

Question 6

Starbucks dropped the word "Coffee" from its logo. This is an example of:

A) standardization.
B) adaptation.
C) diversification.
D) automation.
E) modernization.

Question 7

Starbucks is entering Italy in 2018, starting with a 25,000-square-foot flagship Reserve Roastery in Milan. This is an example of:

A) market development.
B) product development.
C) diversification.
D) market penetration.
E) service diversification.

Question 8

A fundamental difference between regular marketing and global marketing is the:

A) lack of marketing mix.
B) scope of activities.
C) lack of strategic planning.
D) focus on resources.
E) lack of communication.

Question 9

Four decades ago, the phrase global marketing did not exist.

Question 10

A critical reason why companies need to take global marketing seriously is survival.

Question 11

What is "global marketing" and how does it differ from "regular marketing"? Give examples of at least one major corporation that explains these differences.

Question 12

Companies doing business in China must take extra care to protect knockoffs.

Question 13

Starbucks offers a loyalty card and rewards program in the United States with an app that displays a bar code that can be scanned by the customer. This is an example of market development.

Question 14

The value equation is represented as Value = Price/Benefits.

Question 15

A fundamental difference between regular marketing and global marketing is the scope of activities.

Question 16

In global markets, Starbucks is a good example of simultaneously executing all of the growth strategies except:

A) market penetration.
B) market development.
C) product development.
D) market orientation.
E) diversification.

Question 17

The global market development strategy involves:

A) creating new product offerings to a new country.
B) seeking new customers in a geographical market.
C) creating new service offerings targeting a new region.
D) creating new products for a new country.
E) seeking new customers targeting a new segment.

Question 18

The essence of marketing worldwide is to surpass the competition in creating perceived value, which can be represented as:

A) Value = Price/Benefits.
B) Value = Benefits/Price.
C) Value = Benefits × Price.
D) Value = Benefits - Price.
E) Value = Benefits + Price.

Question 19

McDonald's developed a vegetarian burger in India. This is an example of:

A) market penetration.
B) market development.
C) market diversification.
D) product development.
E) product diversification

Question 20

The essence of marketing is to surpass the competition at the task of creating perceived value.

Question 21

Nike recently adopted the slogan "Here I am" for its pan-European clothing advertising targeting women. The decision to drop the famous "Just do it" tag line was based on the research indicating that:

A) the famous slogan did not have accurate translation in European languages.
B) Europeans do not like tag lines that portray American thinking.
C) college-age women in Europe are not as competitive about sports as men are.
D) the old slogan conveys superiority of men over women.
E) European women want to differentiate themselves from men.

Question 22

The former chairman of Nestlé 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

Question 23

A company that succeeds in global marketing:

A) pursues a "one size fits all" strategy by creating identical products for homogeneous markets.
B) customizes special products for each world country or region.
C) creates both standardized and localized elements.
D) nurtures an ethnocentric management orientation.
E) uses localized products only.

Question 24

The transformation of formerly local or national industries into global ones is part of a broader economic process of globalization.

Question 25

Explain, with examples, the benefits of competitive advantage and show how globalization presents companies with unprecedented opportunities.

Question 26

Marco Gobetti, who took over as Burberry's CEO in 2017, faces a number of new challenges including the declining of department store shopping in the United States.

Question 27

U.S. President Donald Trump's "America First" agenda is just one example of the way some nations are retreating into protectionism and isolation.

Question 28

Launching of Burberry Acoustic to enhance advocacy and sharing via social media and online channels is an example of which marketing mix element?

A) product
B) price
C) promotion
D) place
E) people

Question 29

An important managerial task in global marketing is learning to recognize the extent to which it is possible to extend marketing plans as well as the extent to which adaptation is desired. The way a company addresses this task is a reflection of the company's:

A) market penetration.
B) market diversification.
C) global marketing strategy.
D) product development.
E) product standardization.

Question 30

Companies that fail to formulate adequate responses to the challenges and opportunities of globalization will face all of the following consequences except:

A) getting absorbed by visionary enterprises.
B) getting absorbed by dynamic enterprises.
C) becoming locally profitable enterprises.
D) undergoing wrenching transformations.
E) simply disappearing from the business horizon.

Question 31

The success of Uniqlo's retail stores can be attributed to its decision to:

A) remain in Japan.
B) locate in high population density areas.
C) locate in low population density areas.
D) manufacture most of their products in Japan.
E) become the world's number one apparel retailer.

Question 32

Burberry's global marketing strategy of offering "affordable luxury" to customers in the United States, with a value proposition of being more expensive than Coach and less expensive than Prada represents a focus on:

A) product.
B) price.
C) promotion.
D) position.
E) place.

Question 33

Nonmonetary costs do not factor into the equation of value, which is represented by the equation Value = Benefits/Price.

Question 34

A disproportionate amount of wealth has flowed to the "have nots" and "have yachts," with much going to the "have nots."

Question 35

When a company succeeds in creating more value for customers than its competitors do, that company is said to enjoy competitive advantage.

Question 36

Tang drink powder became a $1 billion brand as regional managers in the Middle East added popular flavors like mango and pineapple.

Question 37

Coke's worldwide success is based on:

A) adaptation of the marketing mix.
B) standardization of the marketing mix.
C) selected elements of the marketing mix.
D) using local sales force and vending machines.
E) using existing local infrastructure.

Question 38

The National Football League (NFL) promotes American football in the United Kingdom by draping banners every fall over London's Regent Street to create awareness of the games.

Question 39

The way a company addresses the global marketing strategy (GMS) includes all of the following except:

A) global market participation.
B) integration of inflationary moves.
C) integration of competitive moves.
D) coordination of marketing activities.
E) concentration of marketing activities.

Question 40

The dimensions of global marketing strategy include all of the following except:

A) concentration of marketing activities.
B) development of cultural activities.
C) coordination of marketing activities.
D) integration of competitive moves.
E) integration of marketing mix.

Question 41

Why is it important for a firm to have global marketing strategy?

Question 42

Using McDonald's as an example, show how effective global marketing can be successfully achieved.

Question 43

Global economic growth has been a driving force for companies to expand globally due to all of the following reasons except:

A) rising per capita incomes in developing countries.
B) growing ranks of middle-class consumers have more money to spend.
C) rapid growth in industrialized countries has provided new opportunities.
D) economic growth has reduced resistance in response to entry into new markets.
E) policymakers are likely to look more favorably on outsiders.

Question 44

Ethnocentric orientation is sometimes associated with all of the following attitudes except:

A) national arrogance.
B) assumption of national superiority.
C) indifference to marketing opportunities.
D) selecting a standardized approach.
E) selecting an adaptation approach.

Question 45

Examples of effective global marketing by McDonald's include both standardized and localized marketing mix elements. Which of the following does not represent a localized element?

A) It serves McAloo Tikki potato burger in India.
B) It uses the advertising slogan "I'm lovin' it."
C) It operates themed dining cars on the Swiss national rail system.
D) It has home delivery service in India.
E) It has slang nicknames such as MakDo in the Philippines and McDo in France.

Question 46

McDonald's serves McRice Burger in Malaysia, McOZ Burger in Australia, Kiwi Burger in New Zealand, McHuevo Burger in Uruguay and McSamurai Burger in Thailand. These menu variations are examples of a:

A) combination of global and local marketing mix elements.
B) reflection of failure of U.S. menu items in those countries.
C) deviation from successful marketing practices.
D) replacement of standard menu names with fancy names.
E) selection of menu items that can be sold eventually in U.S. markets.

Question 47

Which of the following statements cannot be ascribed to globalization?

A) Hundreds of millions of people have been lifted from poverty.
B) Millions of people have joined the middle class.
C) Wages and living standards of people have improved.
D) A disproportionate amount of wealth has flowed from "have" and have "nots."
E) Gains from globalization have been evenly distributed.

Question 48

The worldview of a company's personnel can be described by all of the following types of orientation except:

A) ethnocentric.
B) geocentric.
C) technocentric.
D) polycentric.
E) regiocentric.

Question 49

The cell phone division of Toshiba prospered by doing business in the domestic market. When handset sales slowed, Atsutoshi Nishida, president of Toshiba noted, "We were thinking only about Japan. We really missed our chance." This statement is indicative of a(n) ________ orientation.

A) polycentric
B) ethnocentric
C) geocentric
D) technocentric
E) regiocentric

Question 50

At Procter & Gamble, one of the problems they were facing was that 80-plus country teams were all acting independently. Pampers Europe was not collaborating with Pampers North America. This example illustrates differences due to their:

A) geocentric orientation.
B) regiocentric orientation.
C) polycentric orientation.
D) ethnocentric orientation.
E) poor globalization orientation.

Question 51

The Coca-Cola Company has convincingly demonstrated that the ability to think globally and act locally can be a source of competitive advantage. Justify this statement using examples.

Question 52

McAloo Tikka potato burger offered in India is an example of standardization.

Question 53

The region that leads in the World Pharmaceutical Market is:

A) Europe.
B) North America.
C) Japan.
D) Asia.
E) Latin America.

Question 54

McDonald's Switzerland operates themed dining cars on the Swiss National Rail System. This is globalization of which marketing mix element?

A) place
B) promotion
C) price
D) process
E) product

Question 55

All of the following correctly states McDonald's approach to standardization and adaptation of the marketing mix except:

A) McDonald's standardizes some product elements and adapts others.
B) McDonald's standardizes some place elements and adapts others.
C) McDonald's standardizes some promotion elements and adapts others.
D) McDonald's standardizes some price elements and adapts others.
E) McDonald's standardizes all product elements.

Question 56

Facebook acquired Instagram for $1 billion in 2012. Which one of the following statements does not portray Instagram?

A) Social-media savvy companies were hesitant to embrace Instagram.
B) Food categories are helping drive Instagram's popularity.
C) About two-thirds of Instagram users use the app to learn about brands.
D) Using photo images and videos can show the "behind the scenes" processes.
E) Instagram has 600 million users who upload about 100 million photos each day.

Question 57

An industry is considered to be global to the extent that its industry position in one country is dependent upon the industry position in other countries.

Question 58

A company with a geocentric orientation views the world as a potential market and strives to develop integrated global strategies.

Question 59

What are the dimensions of global marketing strategy (GMS) that pertain to marketing management?

Question 60

When a global company establishes a benchmark in quality, competitors must quickly make their own improvements and come up to par. Justify the statement giving examples.

Question 61

Pfizer, Merck, Novartis, and other pharmaceutical companies have little choice but to engage in global marketing since:

A) there is little demand for their products in home countries.
B) their research centers are located overseas.
C) no single market is large enough to recover costs incurred in research.
D) there is more demand overseas for their products.
E) technology is not available in home countries.

Question 62

In the United States, some people believe that globalization has depressed the wages of American workers resulting in the loss of both blue-collar and white-collar jobs. This is an example of:

A) discrimination.
B) domination.
C) globaphobia.
D) management myopia.
E) economic crisis.

Question 63

How can food categories lead to Instagram's popularity? Explain with examples.

Question 64

Discuss the impact of management myopia and organizational culture on the globalization of a corporation?

Question 65

The geocentric orientation represents a synthesis of ethnocentrism and regiocentrism.

Question 66

Multinational companies pursuing strategies of product adaptation run the risk of failing to be successful against global competitors that have recognized opportunities to serve global customers.

Question 67

Transnational companies serve global markets and use global supply chains, which often results in a blurring of national identity. A true transnational company would be characterized as "stateless."

Question 68

A type of advantage that a company enjoys by virtue of the fact that it has experience in more than one country is referred to as:

A) driving force.
B) globaphobia.
C) leverage.
D) management myopia.
E) restraint.

Question 69

Give examples to show the differences between ethnocentric and polycentric orientation.

Question 70

Toyota and Honda are two examples of companies that exhibit key characteristics of transnationality.

Question 71

A global company possesses the unique opportunity to develop leverage.

Question 72

When a country like China is experiencing rapid economic growth, policymakers are likely to:

A) look more favorably on outsiders.
B) look less favorably on outsiders.
C) experience more resistance toward outsiders.
D) feel threatened by outsiders.
E) none of the above

Question 73

Unilever, the Anglo-Dutch consumer products company, at one time had 30 different package designs and 48 different formulations for its Rexona deodorant brand. This is an example of:

A) ethnocentric orientation.
B) polycentric orientation.
C) regiocentric orientation.
D) geocentric orientation.
E) transnational orientation.

Question 74

The term "polycentric" describes management's belief or assumption that each country in which a company does business is the same as the home country business.

Question 75

Transnational companies, such as Toyota and Honda, have characteristic features that include:

A) being in both global markets and utilizing global supply chains.
B) a mind-set of being "stateless."
C) using both localized and standardized elements in marketing programs.
D) decisions made on the basis of ongoing research.
E) all of the above.

Question 76

A type of advantage that a global company possesses by virtue of the fact that it has experience in more than one country is referred to as:

A) leverage.
B) transferability.
C) flexibility.
D) capability.
E) accountability.

Question 77

A key factor that distinguishes transnational companies from international companies is their ________ for the marketing program.

A) use of localized elements
B) use of extension elements
C) needs assessment
D) domestic research
E) mind-set

Question 78

________ refers to some type of advantage that a company enjoys by virtue of the fact that it has experience in more than one country.

A) Transferability
B) Capability
C) Accountability
D) Leverage
E) Flexibility

Question 79

Some globalization strategies do not yield the expected results as evidenced by the:

A) acquiring of majority stake in Nissan Motor by Peugeot Citroen.
B) leverage resulting from scale economies.
C) leverage resulting from manufacturing.
D) larger scale improvement of quality.
E) unravelling of the DaimlerChrysler merger.

Question 80

Leverage from scale economies is limited to manufacturing industries.