Deck 12: Managing Customers

Question 1

What are the key elements of Haier's marketing strategy in the U.S.?

Answer 1

Haier's strategy focused on two niche markets when entering the U.S.: compact refrigerators and electric wine cellars. If it offered full-sized refrigerators, it would need to compete with established American brands. The compact refrigerator industry was a low-margin section neglected by most competitors. Haier tapped into the demand of college students and small households who could not afford or accommodate larger sized refrigerators. The company also offered other niche consumer appliances, wine cellars and small-size washing machines, which were seldom offered during that period. The company then opened a production facility in North Carolina and began manufacturing large-size refrigerators for the U.S. market. Haier also decided to focus on high quality as opposed to low price in the U.S. market. It believed American consumers would care more about product quality than low price and intended to maintain the same brand image of quality that it held in international markets. Finally, the company focused on customer satisfaction. It researched and analyzed local consumption habits and consumer opinions. The data results were then used to create specific products tailored to consumers' wants and needs.

Question 2

What is unique about Haier's marketing strategy compared to its competitors?

Answer 2

Haier adopted a localization strategy to overcome U.S. consumers' perception that its products were low quality. It set up a design center in Los Angeles to create customized products for the U.S. market and opened a marketing center in New York to enhance consumer awareness about the Haier brand and products. To promote this, Haier worked with various magazines: Good Housekeeping, People, and Electronics Appliance Report then published its own magazine. Additionally, the company used various advertising strategies to generate brand awareness, such as outdoor advertising, airport carts, and sponsorships. Haier sponsored the Beijing Olympics and signed a global strategic cooperation agreement with the NBA.

Question 3

In your opinion, how should Haier increase its market share in the U.S.?

Answer 3

Answers will vary.

Question 4

What were the initial mistakes Kellogg made in introducing cereals to India?

Question 5

How was Kellogg able to correct these mistakes? What were the main lessons that Kellogg learned from these mistakes?

Question 6

Discuss what kinds of new products Kellogg may potentially introduce to India.

Question 7

What are the key factors that you consider when you purchase a car? How much does the level of price influence your purchasing decision?

Question 8

What do you think are the pros and cons of lowering prices for luxury carmakers?

Question 9

Do you agree that consumers would prefer an entry-level model of a premium brand to a higher-end model of a value brand if the price was about the same?

Question 10

What factors should be considered when choosing distribution channels in a foreign market?

Question 11

Did Hyundai have the right distribution strategy? Were there any alternatives?

Question 12

What are the benefits and costs of social media marketing?

Question 13

How can a company effectively use social media marketing in a foreign market?

Question 14

Do you follow any international brands in social media? How does it affect your purchase behavior?

Question 15

What are the benefits and costs of standardization versus adaptation in international marketing?

Question 16

What factors drive companies to customize their products to adapt to foreign markets?

Question 17

What is differential pricing (or price discrimination)? Under what circumstances can companies use this pricing strategy in international markets?

Question 18

How can MNCs structure their overseas distribution channels?

Question 19

How do MNCs adapt their advertising to local circumstances?

Question 20

What are the strategies MNCs use to manage the marketing mix?

Question 21

Which of the following is not a component of the marketing mix?

A) The product that should be brought to the market
B) Setting a price for an unrelated good or service
C) Distributing the product to final customers
D) Promoting the product to potential buyers

Question 22

Which of the following is an advantage of standardization?

A) Reduces marketing costs
B) Results in diseconomies of scale in production
C) Reflects the trend toward a fragmented global market
D) Facilitates decentralized control of marketing

Question 23

Which of the following is a disadvantage of standardization?

A) Considers differences in buyer behavior patterns
B) Encourages local marketing initiatives
C) Ignores local legal differences
D) Considers different conditions of product use

Question 24

Which of the following is an advantage of adaptation?

A) Ignores local legal differences
B) Reflects different conditions of product use
C) Disregards differences in individual markets
D) Ignores local market initiatives

Question 25

Which of the following is a disadvantage of adaptation?

A) Reduces marketing costs
B) Optional customized R&D
C) Promotes centralized control of marketing
D) Leads to inconsistent brand images

Question 26

Laws, regulations, and technical standards consist of

A) Laws and regulations regarding product safety and quality
B) Standards set by local government, industries, and customers
C) Product modification to conform to local rules of target market
D) All the above

Question 27

Which situation best describes how cultural differences affect the marketing mix?

A) Adidas introducing a shoe decorated in a Western design with ancient Chinese cloud patterns representing "luck"
B) Nike creating durable clothing from biodegradable materials
C) Samsung creating a leaf-patterned phone case for environmentally conscious consumers
D) KFC dumping unpopular recipes into an underdeveloped target market

Question 28

What economic factors must MNCs consider in marketing and sales?

A) Consumer demand
B) Purchasing power
C) Market size
D) All of the above

Question 29

Which of the following statements is false regarding price elasticity of demand?

A) High elasticity results in increased pricing, leading to large loss of demand
B) High elasticity leads to low product pricing, resulting in decreased market share
C) Low elasticity leads to low product pricing, resulting in low demand
D) Higher-income countries tend to have higher price elasticity than low-income countries

Question 30

Which situation does not describe standard pricing practices?

A) Aramco sells its products to all customers at prices determined by supply and demand in the world oil market
B) Tesla positions itself as a premium brand and charges similar prices in developing and developed countries
C) GE sells jet engines at a standard price in U.S. dollars in the global market
D) BMW charges higher prices for luxury SUVs in China than it charges for SUVs in the U.S.

Question 31

Price discrimination is characterized by

A) Allowing crossmarket arbitrage
B) Selling a product or service to different customers at different prices
C) Utilizing the same levels of price elasticity of demand
D) Market conditions remaining similar across countries

Question 32

A standardized distribution strategy is

A) Able to control distribution channels and channel members
B) Romanson's "one distributor in one country" strategy
C) Avon's door-to-door direct selling approach
D) All of the above

Question 33

Which of the following is not a difference identified in localized distribution?

A) Retail concentration
B) Accessibility
C) Channel width
D) Environment

Question 34

A promotion strategy consists of

A) Making modifications to meet local market demand
B) Creating brand disinterest
C) Communicating solely with current customers
D) Sale prevention

Question 35

A standardized promotion strategy is

A) Using dissimilar advertisements in different markets
B) Using a variety of methods to attract local consumers
C) Using modified advertisements in only domestic markets
D) Using the same advertisements in all international markets

Question 36

Which scenario describes a standardized promotion strategy

A) Toyota supporting "Lexus" vehicles in English in China
B) Coca Cola's polar bear, known universally
C) British Airways using a "Landing" advertisement for each country it operates in

Question 37

What is an advantage of adopting a standardized advertising strategy?

A) Keeps a uniform and consistent brand image in different markets
B) Does not affect costs
C) Causes confusion across channels
D) None of the above

Question 38

Which statement is true regarding the country of origin effect?

A) Positive effect results in MNCs keeping original marketing concept and minimizing customization
B) Negative effect results in MNCs keeping original marketing concept and minimizing customization
C) Positive effect results in MNCs customizing advertising to enhance reputation, tone down national origin, or remind consumers of another country
D) Production site of a product does not influence customers' product evaluation and buying decision

Question 39

Which is not an aspect of promotion?

A) Personal selling
B) Social media
C) Public relations
D) Distribution

Question 40

Which of the following is not a component involved in managing the marketing mix?

A) Strategy that uses the same product and promotion campaign in both domestic and foreign markets
B) Standardized product unable to meet local market demand
C) Same advertising theme in foreign and domestic markets; requires adaptation to local circumstances
D) Promotion adapted to local circumstances used when operating conditions and product functions greatly vary across countries

Question 41

Identify and explain the components of the marketing mix

Question 42

Compare localized vs. standardized distribution. Provide an example of each strategy.

Question 43

Explain the difference between a localized and standardized promotion strategy. Provide an example of each.

Question 44

Identify and explain the other aspects that comprise promotion

Question 45

Expound on the strategies necessary to manage the market mix.

Question 46

Compare international standardization and adaptation marketing strategies. Describe the advantages and disadvantages of adopting each strategy.

Question 47

Identify and assess the issues needed to create a product strategy

Question 48

Identify and describe the elements that create a pricing strategy