Deck 1: Introduction to Global Marketing

Question 1

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

Answer 1

False

Question 2

Gap is a global brand, but recently the company has struggled to connect with customers in the United States.

Answer 2

True

Question 3

An organization that engages in global marketing focuses its resources and competencies on global market opportunities and threats.

Answer 3

True

Question 4

Harley-Davidson's motorcycles competitive advantage is based in part on its "Made in the USA" positioning.

Question 5

The perceived value equation can be represented as Value = Price/Benefits.

Question 6

Examining the size of individual product markets, measured in terms of annual sales, provides another perspective on global marketing's importance.

Question 7

With rapid global market expansion, McDonald's identity as the quintessential American fast-food restaurant is becoming blurred.

Question 8

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

Question 9

Global localization means that a successful global marketer must have the ability to think locally and act globally.

Question 10

Value, competitive advantage, and the focus required to achieve them are universal in their relevance and should guide global marketing efforts in any part of the world.

Question 11

The Coca-Cola Company supports its Coke, Fanta, and PowerAde brands with marketing mix elements that are both global and local.

Question 12

The discipline of marketing is universal, and such marketing practices do not vary from country to country.

Question 13

Nations referred to as MINTs, which hold great potential marketing opportunities, are Mexico, India, Nigeria, and Turkey.

Question 14

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

Question 15

McDonald's home delivery of burgers in India is an example of unusual standardized global marketing practice.

Question 16

Wal-Mart is the largest corporation, based on revenues, according to the Fortune 500 Global ranking for 2011.

Question 17

The way a company addresses recognition of the extent to which programs can be expanded worldwide and adaptations required to do so is a reflection of its global marketing strategy.

Question 18

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

Question 19

Starbucks is entering India via an alliance with the Tata Group.The next phase will likely involve opening Starbucks outlets in Tata's upscale Taj Hotels in India.These are examples of Market Penetration.

Question 20

Starbucks is building on its loyalty card and rewards program in the United States with a smartphone app that enables customers to pay for purchases electronically.This is an example of Market Penetration.

Question 21

The pressure for globalization is intense when new products require major investments and long periods of development time.

Question 22

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

Question 23

An ethnocentric management orientation is preferable to a geocentric orientation.

Question 24

Unilever's Rexona deodorant brand had 30 different package designs and 48 different formulations.This is an example of ethnocentrism.

Question 25

Nontariff barriers (NTBs)are monetary restrictions on cross-border trade.

Question 26

The term globaphobia is sometimes used to describe an attitude of hostility toward trade agreements, global brands or company policies that appear to result in hardship for some individuals or countries while benefiting others.

Question 27

The economic growth has reduced resistance that might otherwise have developed in response to the entry of foreign firms into domestic economies.

Question 28

Today, ethnocentrism is one of the major internal weaknesses that must be overcome if a company is to transform itself into an effective global competitor.

Question 29

The form and substance of a company's response to global market opportunities depend greatly on management's assumptions or beliefs about the nature of the world.

Question 30

A European company that focuses its attention on Europe can be considered to have regiocentric orientation.

Question 31

Geocentric orientation represents true global marketing since it views the entire world as a potential market and develops global strategy.

Question 32

Ethnocentric companies that conduct business outside the home country adhere to the notion that the products that succeed in the home country are superior.

Question 33

A U.S.company that focuses on the countries included in the North American Free Trade Agreement (NAFTA)has a regiocentric orientation.

Question 34

A company that is nearsighted and ethnocentric will not expand geographically.

Question 35

The dynamic interplay of several driving and restraining forces shapes the importance of global marketing.

Question 36

When a company establishes a site on the Internet, it automatically becomes global.

Question 37

When management moves to integrate and coordinate activities on a regional basis, the decision reflects an ethnocentric orientation.

Question 38

Companies that cannot formulate or successfully implement a coherent global strategy may lose their independence.

Question 39

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

Question 40

In the context of global marketing, leverage means some type of advantage that a company enjoys by virtue of the fact that it has experience in its home country.

Question 41

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 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 Philippines and McDo in France.

Question 42

Statements that illustrate the success of global marketing include all of the following except:

A)the Coca-Cola company supports its Coke brand by utilizing global and local marketing mix.
B)Apple is synonymous with cutting-edge innovation and high-tech design.
C)Italy's Benetton utilizes marketing as a knee-jerk reaction to world marketing needs.
D)the backbone of Caterpillar's global success is its network of dealers.
E)Germany's reputation for engineering and manufacturing provides a competitive advantage.

Question 43

Renault and its rivals are racing to offer middle-class consumers a new value proposition by selling cars for the equivalent of $10,000 or less.On the heels of Renault's success with Dacia Logan comes the $2,500 Nano from India's Tata Motors.This illustrates that:

A)consumers are looking for low price irrespective of quality.
B)Renault is overcharging for their cars compared to their competitors.
C)higher product development costs are a driving force behind globalization.
D)market success depends on reaching a threshold of acceptable quality for consumers.
E)cars are not very popular in emerging markets like India.

Question 44

Starbucks is building on its loyalty card and rewards program in the United States with a smartphone app that enables customers to pay for purchases electronically.The app displays a bar code that the barista can scan.This is an example of:

A)Market Penetration.
B)Market Development.
C)Market Diversification.
D)Product Development.
E)Global Marketing.

Question 45

Starbucks is entering India via an alliance with the Tata Group.Phase one calls for sourcing coffee beans in India and marketing them at Starbucks stores throughout the world.This is an example of:

A)Market Penetration.
B)Market Development.
C)Market Diversification.
D)Product Development.
E)Regular Marketing.

Question 46

When you call United Airlines for a reservation on a toll free number and get a response from an operator in Mumbai, this is an example of:

A)anti-globalization.
B)global marketplace.
C)multilingual expression.
D)discrimination.
E)E-ticketing.

Question 47

McDonald's serves McAloo Tikki Burger in India, McRice Burger in Malaysia, McOZ Burger in Australia, Kiwi Burger in New Zealand, and 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)a reflection of failure of US menu items in those countries.
C)a deviation from successful marketing practices.
D)a replacement of standard menu names with fancy names.
E)a selection of menu items that can be sold eventually in U.S.markets.

Question 48

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 on specific food and beverages
D)myopia
E)policy of dealing only with Swiss businesses

Question 49

Two decades ago, professor Ted Levitt wrote a classic Harvard Business Review article titled "The Globalization of Markets." Which of the following statements about the author and the article is accurate?

A)Levitt urged companies to adopt products on a country-by-country basis.
B)There was universal agreement about his thesis that the world is becoming homogeneous.
C)Levitt urged companies to develop standardized products that could be marketed worldwide with little adaptation.
D)Levitt warned of the coming backlash against globalization.
E)Levitt did not recommend developing standardized products.

Question 50

According to Michael Porter, a global industry is one in which ________ can be achieved by integrating and leveraging operations on a worldwide scale.

A)marketing mix
B)competitive advantage
C)cross border infiltration
D)ration analysis
E)production capability

Question 51

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 x Price
D)Value = Benefits - Price
E)Value = Benefits + Price

Question 52

A fundamental difference between regular marketing and global marketing is:

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

Question 53

Slumdog Millionaire, a movie which received several awards and an Oscar in 2009, was filmed on a location in and around:

A)London.
B)San Francisco.
C)Cancun.
D)Mumbai.
E)Moscow.

Question 54

The decision to enter one or more particular markets outside the home country depends on all of the mentioned factors except:

A)company's resources.
B)company's age.
C)company's managerial mind-set.
D)nature of opportunities.
E)threats.

Question 55

Measured by national income, the United States represents the world's largest single market for goods and services.Roughly what percentage of world income is found outside the U.S.?

A)25%
B)50%
C)75%
D)95%
E)35%

Question 56

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 57

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 58

Coca-Cola achieved success in the Japanese market primarily by:

A)standardization of marketing mix elements.
B)global localization.
C)vending machine operations.
D)selecting market mix options.
E)homogenization.

Question 59

A company that engages 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 products.
D)nurtures an ethnocentric management orientation.
E)uses localized products only.

Question 60

As of 2010, Gap operated 2,500 stores in the United States and more than 500 stores internationally.The company sources most of its clothing from apparel factories in Honduras, the Philippines, India, and other low-wage countries.If Gap would like to open more stores in Japan, primary consideration should include:

A)industry conditions.
B)sources of competitive advantage.
C)the condition of the apparel market worldwide.
D)demand in Japan for U.S.style garments.
E)all of the above

Question 61

The cell phone divisions of Toshiba, Sharp, and other Japanese companies prospered by focusing on the domestic market.When handset sales in Japan slowed a few years ago, the Japanese companies realized that Nokia, Motorola, and Samsung already dominated key world markets.Atsutoshi Nishida, president of Toshiba, noted, "We were thinking only about Japan.We really missed our chance." This example illustrates:

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

Question 62

Even though Germany is the largest single-country market in Europe, what percent of the world market potential for German companies is outside Germany?

A)40%
B)55%
C)74%
D)94%
E)85%

Question 63

Nestlé, Unilever, GlaxoSmithKline, and Royal Philips Electronics can be considered transnational companies on the basis of:

A)sales outside the home country to total sales.
B)assets outside the home country to total assets.
C)employees outside the home country to total employees.
D)headquartered in a relatively small home-country market.
E)all of the above

Question 64

Based on 2011 rankings of Fortune Global 500 companies, the world's most valuable car company is:

A)GM.
B)Daimler AG.
C)Toyota.
D)Ford.
E)Chrysler.

Question 65

Despite the impact of the driving forces, several restraining forces may slow a company's efforts to engage in global marketing.These restraining forces may include all of the following except:

A)management myopia.
B)national controls.
C)opposition to globalization.
D)newcomers from emerging markets.
E)organizational culture.

Question 66

A number of multilateral trade agreements have accelerated the pace of global integration which include:

A)NAFTA.
B)GATT.
C)WTO.
D)EU.
E)all of the above

Question 67

H.F.Iskander, general manager of Chevron's Kuwait office, stated "Chevron is pumping oil in different locations all over the world … there isn't a rock we haven't drilled through.We centralize all that knowledge at our headquarters, analyze it, sort it out, and that enables us to solve any oil-drilling problem anywhere." From the global marketing point of view this is an example of a global company:

A)that is hungry to exploit natural resources.
B)that is trying to be first to explore oil.
C)that it is trying to solve world problems.
D)that gains leverage through experience transfers.
E)that does not have easy access to information.

Question 68

A person who assumes that his or her home country is superior to the rest of the world is said to have:

A)ethnocentric orientation.
B)polycentric orientation.
C)regiocentric orientation.
D)geocentric orientation.
E)no correct answer

Question 69

In the United States, some people believe that globalization has depressed the wages of American workers and resulted 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 70

Based on the size of the market in US dollars, the second highest consumer products are:

A)luxury goods.
B)cell phones.
C)cigarettes.
D)bottled water.
E)recorded music.

Question 71

According to the Fortune global 500 companies for 2011, the largest corporation based on revenue is:

A)Exxon Mobil.
B)Toyota Motors.
C)Wal-Mart stores.
D)General Electric.
E)Citigroup.

Question 72

Japan's giant Matsushita Electric Company achieved scale economies by exporting VCRs, televisions, and other consumer electronics products throughout the world from world-scale factories in Japan.This is an example of the fact that:

A)scale economies were a cornerstone of Japanese success in the 1970s and 1980s.
B)leverage from scale economies is not limited to manufacturing.
C)a global company can achieve the same economies on a global scale.
D)the larger scale of the global company also creates opportunities to improve corporate staff competence and quality.
E)all of the above

Question 73

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 74

McDonald's restaurants are found in more than 118 countries.To ensure high levels of consistency and quality, the company's far-flung restaurant system incorporates many standardized elements (e.g.restaurant design, burgers/fries/soft drinks as basic menu offerings).However, McDonald's also prides itself on sourcing many of its food inputs (e.g.potatoes and dairy products)in individual host countries.McDonald's strives to be locally responsive it creates new menu items specifically designed with local eating customs and preferences in mind.Typically, McDonald's forms joint ventures with local partners, a tactic that ensures that a local "face" is associated with the company.Finally, McDonald's has been in many country markets long enough that a new generation of consumers has grown up with McDonald's and are not aware of the company's U.S.origins.On the basis of this summary, what is the highest stage of corporate development that McDonald's arguably has achieved?

A)international
B)multinational
C)global
D)transnational
E)myopic

Question 75

In a recent book, Daniel Yergin and Joseph Stanislaw wrote "It is the greatest sale in the history of the world.Governments are getting out of businesses by disposing of what amounts to trillions of dollars of assets.Everything is going from steel plants and phone companies ….to hotels, restaurants, and nightclubs." This is an indication of:

A)the fact that governments can make more money by selling assets.
B)privatization is becoming a driving force for global marketing.
C)these businesses are considered as closed markets.
D)foreign companies are competing with governments.
E)there is less demand for these type of companies.

Question 76

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)no correct answer

Question 77

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 78

Based on the total annual units sold in the worldwide market, the leading product category is:

A)flat-panel TV sets.
B)cigarettes.
C)cell phone handsets.
D)cars and light trucks.
E)HDTV sets.

Question 79

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

A)being in both global markets and utilizing global supply chains.
B)characterized by 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 80

Based on the size of the market in U.S.dollars, the leading consumer products are:

A)cell phones.
B)bottled water.
C)cigarettes.
D)video games.
E)recorded music.