Deck 10: Product and brand management in international markets

Question 1

Apple has been the most valuable global brand since 2011.

Answer 1

False

Question 2

In truly global companies, the R&D location is determined by the existence of specific skills.

Answer 2

True

Question 3

Many new commercially important products are initially thought of and even prototyped by users rather than manufacturers.

Answer 3

True

Question 4

During the latter stages of the product development process, the emphasis is on the efficient development and design of a global product with a minimum of configuration differences and on the developing of supporting systems capabilities in each of the participating units.

Question 5

The main goal of the product development process is to develop a standard product or product line.

Question 6

A global presence is justified by the increasing similarity consumers display in consumption habits and preferences.

Question 7

The managing unit of a typical global product development program has prime responsibility for accomplishing worldwide technical development and design of a new product.

Question 8

With the increased diffusion of the internet, chat rooms about products and features will become an important source of information about product development and adjustment.

Question 9

The application of the product portfolio approach has only two limitations.

Question 10

The final stages of the product development process will involve testing the product in terms of both its performance and its projected market acceptance.

Question 11

Original product designs can be adapted easily and inexpensively later on through the use of computer-aided design (CAD).

Question 12

A firm that leaves product development to independent units will incur greater difficulties in transferring its experience and technology.

Question 13

An advantage of the product portfolio approach is a global view of the competitive structure, especially when longer-term considerations are included.

Question 14

During the early stages of the product development process, the global emphasis is on identifying and evaluating the requirements of both the managing unit and the affected units and incorporating them into the plan.

Question 15

The Japanese have the lowest degree of internationalisation in their R&D efforts compared with their European and North American counterparts.

Question 16

On the average, brand was responsible for almost 80 per cent of total purchase decisions, and the majority of studies revealed a brand-loyal segment of individuals for whom the brand was the major influencing factor.

Question 17

R&D centres are only seen as desirable investments by host governments of developing nations.

Question 18

In the last few years, the global/local controversy has been most evident in branded consumer products.

Question 19

'Lame duck' dilemma means having old models available in some markets when customers know of the existence of the new product.

Question 20

Global brands carry a weak quality signal, as suggested by their involvement in negative publicity in the majority of the countries

Question 21

Which of the following is not one of the managing unit's responsibilities in a global marketing organisation's product development process?

A)Single-point worldwide technical development and design
B)Other activities to plan, develop, manufacture, introduce and support the product
C)Integration and coordination of all global program activities
D)Localisation of the product to incorporate the product goals

Question 22

Which of the following statements about global product launch is correct?

A)The global product launch is overrated.
B)It means introducing the products at absolutely all countries at once.
C)A simultaneous worldwide introduction solves the 'lame duck'.
D)None of the above.

Question 23

Which of the following is often a challenge when using teams or approaches that require cooperation between R&D centres?

A)National rivalries
B)Communication barriers
C)Language and cultural barriers
D)Lack of infrastructure

Question 24

What function does the international team fulfil in the product development process?

A)Implementing package shipping requirements
B)Providing support to subsidiaries and international input into the planning efforts
C)Establishing aisles of communication between participants
D)Financing on a global scale

Question 25

According to the textbook, which of the following is false?

A)Brazil is a test market used by Procter & Gamble.
B)Thailand is a test market for Unilever.
C)Australia is a test market for Harvey Milk.
D)Singapore is a test market for Coca Cola.

Question 26

Product development phases include:

A)proving, scalar movement and continuation.
B)idea generation, conversion and market analysis.
C)screening, scale-up and commercialisation.
D)idea generation, conversion and continuation.

Question 27

Which of the following is not a reason why investments for R&D abroad are made?

A)Newness of product, customer characteristics and geographical proclivity
B)To aid technology transfer from parent to subsidiary
C)To develop new and improved products expressly for foreign markets
D)To generate new technology of a long-term exploratory nature

Question 28

Global marketers have choices in terms of branding within the global, regional and local dimensions.Which of the following is not available to them?

A)Co-branding with the smallest competitors
B)Corporate name
C)Family brands for a wide range of products or product variations
D)Co-branding.

Question 29

Which of the following is not a procedure used to test products for multi-national release?

A)Reliability tests
B)Pilot plant
C)Analogies testing
D)Mini-launches

Question 30

Which of the following is false?

A)In truly global companies the R&D location is determined by the existence of specific skills.
B)In companies that still employ multidomestic strategies, product development efforts amount to product modifications (e.g.making sure that a product satisfies local regulations).
C)Some governments, such as Singapore, have offered financial rewards to multinational corporations to start or expand R&D efforts.
D)None of the above.

Question 31

What are the three basic criteria upon which a new product competing for limited development funds is screened?

A)Procurement, production and profit
B)Affirmative action, political sensitivity and cultural significance
C)Market, technical and financial
D)Channel height, weight and width

Question 32

Many products are developed and prototyped by ____________, which are companies, organisations or individuals who are ahead of trends or have needs that go beyond what is available at present.

A)lead users
B)innovators
C)massive buyers
D)selected users

Question 33

Which of the following is not usually a member of a product development team?

A)A member of the marketing team
B)A financial officer
C)A natural resources expert
D)An engineer

Question 34

What does CAD stands for?

A)Computer-aided design
B)Competitor's advantage design
C)Computer-associated development
D)None of the above

Question 35

Which of the following statements is false?

A)3M may have 1000 new product ideas competing for scarce development funds annually.
B)In countries with no significant breakfast habit, cereal marketers present their products as snacks.
C)Procter & Gamble created the perception that dandruff - which is traditionally a non-issue for the Chinese - is useless.
D)All of these choices

Question 36

When a company wishes to improve technology transfer from the parent firm to the subsidiary, it would:

A)invest in R&D abroad.
B)move radically rather than longitudinally.
C)enhance information systems.
D)invest in monument markers.

Question 37

Lead users are:

A)companies, organisations or individuals who are ahead of trends.
B)clients who buy the greatest volume of products.
C)those who have leads that are not available at present.
D)companies, organisations or individuals who are ahead of trends; and those who have leads that are not available at present.

Question 38

A product portfolio based on _______ allows the analysis of business entities, product lines or individual products.

A)number of brands
B)growth rates and market share positions
C)number of brands and their respective market positions
D)number of brands and growth rates

Question 39

Which of the following is not a brand's benefit to the customer?

A)Simplifying everyday choices
B)Reducing the risk of complicated buying decisions
C)Extending the user's self-image
D)Offering a sense of community

Question 40

When engaging in product development, a firm that leaves product development to individual units will most likely:

A)develop products with specifications compatible on a worldwide scale.
B)incur greater difficulties in transferring its experience and technology.
C)promote internal branding so company staffers know about the product.
D)exercise control over banking mechanisms to insure product quality.

Question 41

Which of the following activities is not part of a typical global business management?

A)Identification of unique requirements to be incorporated in the product goals and specifications as well as in the managing unit's technical effort
B)Single-point worldwide technical development and design of a new product that conforms to the global design stand and global manufacturing and procurement standards, as well as transmittal of the completed design to each affected unit
C)All other activities necessary to plan, develop, manufacture, introduce and support the product in the managing unit, as well as direction and support to affected units to ensure that concurrent introductions are achieved
D)Integration and coordination of all global program activities

Question 42

The emergence of strong intermediaries has led to the significant increase in __________ goods

A)lower quality
B)global
C)private brand
D)better quality

Question 43

Which of the following is a disadvantage of the product portfolio approach?

A)A global view of the competitive structure
B)That international competitive behaviour follows different rules from the domestic market
C)A guide for the formulation of marketing objectives for specific markets
D)A convenient visual communication goal

Question 44

Another key issue affecting product planning will be _______________ concerns.Major public attention will be paid to the natural environment, ______________ pollution and ___________

A)environmental; environmental; global warming
B)public; environmental; global warming
C)environmental; environmental; cultural change
D)government; environmental; global warming

Question 45

Which of the following is not a reason for international product failure?

A)Customer filtration
B)Lack of product distinctiveness
C)Unexpected technical problems
D)Mismatches between functions

Question 46

When assessing the product portfolio, the manager should consider the following interlinkages:

A)Economic and regulatory
B)Regulatory and geographic
C)Geographic and product market
D)Product market and economic

Question 47

Which of the followings statement is not true about branding?

A)They make everyday decisions harder, provide emotional benefits and offer a sense of community.
B)Strong brands are able to charge a price premium of 19 per cent
C)Brands are important because they shape customer decisions and, ultimately, create economic value.
D)All the alternatives are true.

Question 48

Which of the following is not a characteristic of a global brand?

A)Global brands carry a weak quality signal suggested by their success across markets.
B)Global brands compete mostly on cognition.
C)Global brands are not involved in solving social problems that are linked to what they are marketing and how they conduct their business.
D)All of these choices are characteristics of global brands.

Question 49

Which of the followings statements does not represent an advantage of the product portfolio approach?

A)A global view of the competitive structure
B)A guide for formulating a global marketing strategy based on the suggested allocation of scarce resources between product lines
C)A convenient visual communication goal, achieved by integrating a substantial amount of information in an appealingly simple format, including assessment of interlinkages between units and products
D)All of these choices

Question 50

Why are international product development teams gaining popularity among multinational marketers?

Question 51

Which of the following entities has led to the significant increase in private brand goods?

A)Weak local competitors
B)Strong intermediaries
C)Franchised companies
D)Credit cards

Question 52

Explain the benefits associated with the global product launch.

Question 53

Which of the following is the term for what shapes customer decisions and, ultimately, creates economic value for a product?

A)Imaging
B)Product line marketing
C)Branding
D)Segmenting

Question 54

What is the reason many international marketers become strategically involved in private brand manufacturing and marketing?

A)Grand-scale economic development
B)Being involved since this form of marketing cannot be eliminated
C)Because most companies already have private labels
D)Positioning pressure

Question 55

Laboratory test marketing is:

A)the same as micro-test marketing, for all intents and purposes.
B)pre-product ascertainment.
C)the least realistic method in terms of assessing consumer behaviour over time.
D)the use of a continuous panel of consumers encountering new products in normal retail outlets.

Question 56

______________ markets are the least realistic in terms of consumer behaviour over time, but this method allows the participants to be exposed to television advertisements, and their reactions can be measured in a controlled environment._____________ involves a continuous panel of consumers serviced by a retail grocery store operated by the research agency._____________are based on a continuously reporting panel of consumers.

A)Laboratory test; Microtest marketing; Forced distribution tests
B)Laboratory test; Forced distribution tests; Microtest marketing
C)Microtest marketing; Laboratory test; Forced distribution tests
D)Laboratory test; Real test; Forced distribution tests

Question 57

What are the major advantages of the product portfolio approach?