Question 1

All citizens of a given country can be marketed to uniformly.

Accepted Answer

Marketing strategies often need to be tailored to different segments of a population due to variations in culture, language, interests, and economic status among citizens.

Question 2

In some cases, middle-class consumers from emerging markets will buy more expensive branded goods, if the brands resonate with the interests of the local crowd.

Accepted Answer

Branded goods often carry a perception of higher quality and status, which can appeal to middle-class consumers in emerging markets, especially if the brands align with local tastes, interests, and cultural values.

Question 3

One advantage of straight product extension is that the products may be less costly due to lower manufacturing and labour costs in the United States.

Accepted Answer

Straight product extension involves selling the same product in foreign markets without any modification. The cost advantage mentioned does not inherently come from straight product extension but from factors like manufacturing efficiency, labor costs, and economies of scale that are independent of the product extension strategy.

Question 4

Multiple brands may resonate more with specific markets, especially if a company merges with or acquires a local brand that is well respected in that region.

Accepted Answer

When a company merges with or acquires a local brand that is already respected in a specific region, it can leverage the existing brand loyalty and reputation to better resonate with and penetrate that market. This strategy can be more effective than trying to introduce a new or foreign brand to the local audience.

Question 5

The advantage of straight product extension strategy is that the company doesn't need to invest in new research, development, or manufacturing.

Accepted Answer

Straight product extension involves selling the same product in foreign markets without any modification, which eliminates the need for additional investment in research, development, or manufacturing specific to those markets.

Question 6

The existence of gray-market activity across a country's border has a positive impact on the producer and their channel partners (e.g., distributors and retailers)in the higher-priced country.

Accepted Answer

Gray-market activity typically involves the unauthorized distribution of a product through channels that are unintended by the original manufacturer. This can undermine the manufacturer's pricing strategy, erode brand equity, and create competition for authorized distributors and retailers in the higher-priced country, often leading to negative impacts on their sales and profits.

Question 7

In the case of the indirect channel of distribution, there are no intermediaries between the consumer and the producer.

Accepted Answer

In an indirect channel of distribution, there are intermediaries involved in the process of getting the product from the producer to the consumer, such as wholesalers, distributors, and retailers.

Question 8

Gray markets are illegal and the operators in the market are punishable by law.

Accepted Answer

Gray markets involve the trade of legal goods through unauthorized, unofficial, and unintended distribution channels. While they may bypass manufacturers' authorized channels, they are not illegal, but they can be controversial and may violate specific trademark or copyright laws depending on the jurisdiction and the specifics of the situation.

Question 9

The downsides of safety stock include the increased costs of carrying that inventory such as the investment in the products, taxes and insurance, and storage space.

Accepted Answer

Safety stock requires additional investment in inventory, which increases carrying costs including taxes, insurance, and storage expenses.

Question 10

Counterfeit markets are illegal because they purposely deceive the buyer.

Accepted Answer

Counterfeit markets are illegal because they involve the production and sale of goods that are made to imitate genuine products, deceiving buyers into believing they are purchasing authentic items, which infringes on intellectual property rights.

Question 11

In the case of offshoring, the vendor takes control of the operations and runs the operations as they see fit.

Accepted Answer

In offshoring, while the operations are moved to another country, the client company often retains control over standards, processes, and outcomes, guiding how the vendor executes the operations.

Question 12

Counterfeit markets hurt companies that have invested in building intellectual assets such as unique product designs, technological developments, costly media content, and carefully crafted brands.

Accepted Answer

Counterfeit markets create products that mimic genuine items without authorization, leading to financial losses for original creators and diluting their brand's value by flooding the market with lower-quality goods.

Question 13

Understanding the market's culture and social trends is irrelevant when it comes to doing business in the emerging economies of the world.

Accepted Answer

Understanding the market's culture and social trends is crucial for doing business in emerging economies, as it helps companies tailor their products, marketing strategies, and business models to meet the specific needs and preferences of local consumers.

Question 14

The purpose of segmentation is to give the company a concrete vision of its customers, so that it can better understand how to market to that customer.

Accepted Answer

Segmentation allows a company to divide its market into distinct groups of customers with similar needs, behaviors, or characteristics, enabling more targeted and effective marketing strategies.

Question 15

One of the biggest challenges in selling to emerging markets involves making the product affordable.

Accepted Answer

Emerging markets often have lower average incomes compared to developed markets, making affordability a key factor in product adoption and sales success.

Question 16

The world does become flatter to the extent a brand is recognized, accepted, and trusted across borders.

Accepted Answer

Global brand recognition, acceptance, and trust can diminish cultural and economic differences, making the world seem "flatter" by facilitating a more unified global market and consumer base.

Question 17

The disadvantage of straight product extension is that a company's products may not be well suited to local needs.

Accepted Answer

Straight product extension involves selling the same product in foreign markets without any modification, which may not meet the specific needs or preferences of local consumers, leading to potential disadvantages for the company.

Question 18

A multibrand strategy is not advisable when a country has a strong, positive association with a particular brand.

Accepted Answer

A multibrand strategy can still be advisable even if a country has a strong, positive association with a particular brand, as it allows a company to target different market segments, cater to diverse consumer needs, and mitigate risks by not relying on a single brand.

Question 19

In the case of outsourcing, the company pays the outsource vendor for the end result how the vendor achieves the end result is up to the vendor.

Accepted Answer

In outsourcing, the focus is on the delivery of specified outcomes or results, and the methods or processes used to achieve these results are typically at the discretion of the vendor, as long as the end goals are met according to the agreed terms.

Question 20

Intermediaries in the channel of distribution can include distributors, wholesalers, agents, brokers, retailers, international freight forwarders, and trading companies.

Accepted Answer

Intermediaries in the channel of distribution, also known as middlemen, facilitate the movement of goods from producers to consumers and can include various entities such as distributors, wholesalers, agents, brokers, retailers, international freight forwarders, and trading companies, each playing a specific role in the distribution process.

Quiz 14: Competing Effectively Through Global Marketing, Distribution, and Supply-Chain Management