Deck 12: International Marketing and RD

Question 1

An exclusive distribution channel is a channel for high-end products.

Answer 1

False

Question 2

With regard to marketing communications, a pull strategy emphasises mass media advertising to communicate the message.

Answer 2

False

Question 3

With regard to marketing communications, a push strategy emphasises personal selling to potential customers.

Answer 3

True

Question 4

Price is said to inelastic when a small change in price produces a large change in demand.

Question 5

DVD players manufactured for sale in the US will play DVDs recorded on equipment manufactured for sale in Australia, New Zealand and Europe (and vice versa).

Question 6

The financial services industry is often thought of as one in which global standardisation of the marketing mix is the norm.

Question 7

A pricing strategy that uses profit gained in one market to support aggressive pricing in another market to drive competitors out of that market is referred to as:

A) predatory pricing.
B) strategic pricing.
C) control pricing.
D) market-based pricing.

Question 8

The pricing strategy known as _______________ pricing became an issue when US companies Kimberly-Clark Corporation and Procter & Gamble were in competition against each other for market dominance.

A) strategic
B) multipoint
C) dominance
D) market-based

Question 9

As a firm builds its accumulated production volume over time, unit costs fall. Price then comes into the picture because aggressive pricing, along with aggressive advertising and promotion, can build accumulated sales volume rapidly. This pricing approach is known as __________ pricing.

A) aggressive
B) progressive
C) experience curve
D) market-based

Question 10

To build a competency in new product development, an international business must do two things: disperse R&D activities to those countries where new products are being pioneered, and:

A) build core competencies in product development.
B) customise products for new markets.
C) conduct market analysis for new products.
D) integrate R&D with marketing and manufacturing.

Question 11

Achieving tight integration among R&D, marketing and manufacturing requires the use of:

A) integration teams.
B) cross-functional teams.
C) new product teams.
D) operational teams.

Question 12

In countries such as Australia the retail system is very concentrated, but in others it is fragmented. _________, which has a much greater population density and a large number of urban centres that grew up before the car, has a more fragmented retail system.

A) Japan
B) The United States
C) Canada
D) New Zealand

Question 13

Factors that determine the relative attractiveness of push and pull communication strategies include product type relative to consumer sophistication, media availability and:

A) cultural barriers.
B) government regulations.
C) brand identity.
D) channel length.

Question 14

A company's main decision with regard to its international communications strategy is between a push strategy and a pull strategy. A pull strategy emphasises:

A) mass media advertising to communicate the message.
B) personal selling to potential customers.
C) intermediaries in the selling process.
D) wholesale selling.

Question 15

Two conditions are necessary for profitable price discrimination. The first is different price elasticities of demand in different countries, and the second is that:

A) demand must outstrip supply.
B) one market needs to be more affluent.
C) the firm must be able to keep its markets separate.
D) the markets must be culturally similar.

Question 16

Following World War Two, the country that devoted a greater proportion of its gross domestic product to R&D than any other country was:

A) The United Kingdom.
B) Russia.
C) Germany.
D) The United States.

Question 17

The argument for centralising R&D activity in one country is much weaker than it was two decades ago because:

A) leading-edge research is now carried out in many locations around the world.
B) the falling costs of new technologies eliminates the costs associated with duplication.
C) firms have operations in different locations.
D) labour costs are cheaper in different locations.

Question 18

Which one of the following criteria does not affect the rate of new-product development in a country?

A) Underlying strong demand
B) Affluent consumers
C) Intense competition
D) Highly educated population

Question 19

McDonald's is often thought of as the quintessential example of a firm that sells the same basic standardised product worldwide. In reality it varies important aspects of its marketing mix as well as its distribution strategy. An example of this is:

A) the colour of its restaurants.
B) the location of its restaurants.
C) the technology in its restaurants.
D) the age of staff in its restaurants.

Question 20

Evidence suggests that only __________ per cent of major R&D projects give rise to commercially successful products.

A) less than 10
B) 30-40
C) 50-60
D) 10-20

Question 21

International market research is one of the most critical methods of understanding the global marketplace. Market researchers continually assess customers' needs, wants, purchasing behaviour and:

A) competitor products.
B) competitor behaviour.
C) customer satisfaction.
D) customer ideas.

Question 22

Lazybones, an innovative Australian sleepwear and bed-linen company, uses the internet to market and sell both nationally and internationally, thereby _____________ the ____________ length.

A) shortening; channel
B) strengthening; distribution
C) targeting; distribution.
D) reducing; supply

Question 23

The Biotech Company, well known for its low-calorie sweetener, recently added a new low-calorie chocolate-substitute product that appeals to the same health-conscious consumers as its sweetener. This is an example of:

A) diversification.
B) tactical marketing.
C) market development.
D) product development.

Question 24

After pioneering its Apple retail store concept in the US, Apple is now opening retail stores in several countries in order to provide a point-of-sale education service and support for its popular products. This strategy is called channel:

A) concentration.
B) quality.
C) exclusivity.
D) development.

Question 25

Both predatory pricing and experience curve pricing may violate:

A) consumer laws.
B) international competition laws.
C) discrimination laws.
D) antidumping laws.

Question 26

Procter & Gamble was able to overcome a tradition of exclusivity and break in to the difficult Japanese market for which two reasons?

A) Japanese products are not viewed by national customers as sufficient, resulting in the demand for more Western products, and cultural changes have been brought on by globalisation.
B) The internet has made traditional distribution channels redundant, and relaxed trade laws have opened up channels for international organisations.
C) Japanese consumers are tech-savvy and demand rapid innovation, enabling new products to enter distribution channels, and demand is outstripping supply in the local market.
D) After a long period of lacklustre economic performance, retailers are more willing to violate old norms of exclusivity, and P&G has been in Japan long enough with a broad portfolio of products to give it leverage with distributors.

Question 27

Nokia launched a global advertising campaign with the aim of reducing advertising costs and capturing some economies of scale. While the same lines are used globally, actors and settings from the region where the ad runs are being used. This is referred to as:

A) cultural differences.
B) product variety.
C) individual tastes.
D) flexibility of service.

Question 28

In some countries, such as Australia, the retail system is very concentrated, but in others it is fragmented. A fragmented retail system is one in which there are:

A) many retailers, none of which has a major share of the market.
B) few retailers that supply most of the market.
C) target returns-on-investment pricing.
D) cash rebates.

Question 29

In some countries, such as China, the retail system is very fragmented, but in others it is concentrated. In a concentrated retail system:

A) publicity is free, while advertising costs are high.
B) the practitioner controls advertising but not publicity.
C) publicity targets multiple publics, while advertising targets only consumers.
D) few retailers supply most of the market.

Question 30

Public relations typically does not have responsibility for which one of the following?

A) Monitoring awareness inside and outside the organisation
B) Counselling management on policy
C) Improving product design and packaging
D) Analysing the impact of policies on the public

Question 31

The argument for standardised advertising is threefold. Firstly, it has significant economic advantages; secondly, creative talent is scarce, so one large effort will produce better results than lots of smaller efforts; and thirdly:

A) many brand names are global.
B) standardised ideas are shared via the internet.
C) pricing benefits can be realised.
D) many forms of media are global.

Question 32

There are two main arguments against globally standardised advertising: cultural differences between nations, and:

A) multipoint pricing in two or more national markets.
B) regulations blocking standardised advertising.
C) access to media.
D) experience curve pricing.

Question 33

The elasticity of demand for a product in a given country is determined by a number of factors, of which competitive conditions and _______________ are the two most important.

A) income level
B) demand
C) barriers to entry
D) supply

Question 34

Until recently the US was considered the lead market in new technologies. This is no longer the case because:

A) new technologies are linked to firms, not countries.
B) Russia is the new market leader.
C) Japan is now the lead market.
D) centres of expertise are now located in different countries around the world.

Question 35

Ideas for new products are stimulated by the interactions of scientific research, demand conditions and:

A) global warming.
B) consumer needs.
C) competitive conditions.
D) technological innovations.

Question 36

Which one of the following reasons is not a source of high failure rates in R&D projects?

A) Inability to manufacture a new product cost-effectively
B) Failure to adequately commercialise promising technology
C) Intolerance of project managers
D) Development of a technology for which demand is limited

Question 37

A product can be viewed as a bundle of ___________. These need to be varied from country to country to satisfy different consumer _______________________.

A) ideas; values and beliefs
B) systems; cultures and rituals
C) services; needs and wants
D) attributes; tastes and preferences