Question 1

Refer to the scenario below to answer the following question(s).
Selman & Saks, a maker of men's and women's razors and electric hair trimmers, had little reason to become involved in the global arena. But after acquiring Wellman Enterprises, whose largest division engages in a licensing agreement with a German firm to produce women's hosiery, managers at Selman & Saks wondered whether a company-wide global focus would be more profitable after all.
Managers at Selman & Saks studied Wellman's licensing agreement in great detail. Even after seeing the benefits Wellman achieved with the licensing agreement, managers decided that Selman & Saks would target the French market merely via exporting.
With the assistance of a domestic export department, Selman & Saks razors and hair trimmers entered France. For six months, sales were mediocre. But after that, sales suffered. Opinions varied among numerous managers as to the cause of the failure. "Who knows the local market better than people who live there?" was a comment heard throughout Selman & Saks. "Maybe we needed an alliance with a French firm, or a licensing agreement, before racing to get there."
-Selman & Saks offered the same razors and trimmers in France as in the United States. Selman & Saks is an example of a ________.

Accepted Answer

The answer of Refer to the scenario below to answer...

Question 2

To overcome price escalation when selling to less-affluent consumers in developing countries, companies offer their same products at lower prices.

Accepted Answer

Companies often modify their products or adjust their business models to reduce costs and offer more affordable versions, rather than simply lowering prices of the same products.

Question 3

Refer to the scenario below to answer the following question(s).
Selman & Saks, a maker of men's and women's razors and electric hair trimmers, had little reason to become involved in the global arena. But after acquiring Wellman Enterprises, whose largest division engages in a licensing agreement with a German firm to produce women's hosiery, managers at Selman & Saks wondered whether a company-wide global focus would be more profitable after all.
Managers at Selman & Saks studied Wellman's licensing agreement in great detail. Even after seeing the benefits Wellman achieved with the licensing agreement, managers decided that Selman & Saks would target the French market merely via exporting.
With the assistance of a domestic export department, Selman & Saks razors and hair trimmers entered France. For six months, sales were mediocre. But after that, sales suffered. Opinions varied among numerous managers as to the cause of the failure. "Who knows the local market better than people who live there?" was a comment heard throughout Selman & Saks. "Maybe we needed an alliance with a French firm, or a licensing agreement, before racing to get there."
-If Selman & Saks allowed a French company to produce and market razors and trimmers carrying the company's brand in exchange for a royalty, Selman & Saks would be using the market entry strategy of ________.

Accepted Answer

The scenario describes a licensing agreement where Wellman Enterprises engaged in a licensing agreement with a German firm to produce women's hosiery. Selman & Saks managers studied this agreement and decided to target the French market through exporting but later realized that they needed an alliance with a French firm or licensing agreement. If Selman & Saks allowed a French company to produce and market razors and trimmers carrying the company's brand in exchange for a royalty, it would be using the market entry strategy of licensing. Therefore, the best choice is C.

Question 4

Explain why a global company would need to make adjustments to a highly standardized promotion campaign for different markets.

Accepted Answer

The answer of Explain why a global company would need...

Question 5

In Chinese, the KFC slogan "finger-lickin' good" came out as "eat your fingers off." And Motorola's Hello-moto ringtone sounded like "Hello, Fatty" in India. Which of the following strategies can be used to avoid such mistakes?

Accepted Answer

Communication adaptation allows for customization of language and message to the target audience to avoid mistranslations or unintended meanings. This can help avoid embarrassing mistakes and create a more effective marketing campaign.

Question 6

Identify and describe the three product strategies a company entering a foreign market can use.

Accepted Answer

The answer of Identify and describe the three product strategies...

Question 7

Advertising media must be adapted internationally. Which of the following is NOT true about the need for communication adaptation?

Accepted Answer

The statement "The same advertisement can be presented in all countries in Europe" is not true as there are cultural and language differences among European countries that require adaptation of advertising messages.

Question 8

A cell phone maker customized its cell phones for the Asian market by raising the ring volume so that phones could be heard on crowded streets. This is an example of product invention.

Accepted Answer

This is an example of product adaptation, not invention, as it involves modifying an existing product to meet the needs of a specific market rather than creating a completely new product.

Question 9

Assume that a Gucci handbag sells for $60 in Italy and $240 in the United States because Gucci must add the cost of transportation, tariffs, importer margin, wholesaler margin, and retailer margin to its factory price. This information indicates that Gucci faces a ________ problem.

Accepted Answer

The price difference between Italy and the United States suggests that Gucci faces a price escalation problem. This is because the cost of transporting the product, tariffs, and profit margins needed to sell the bag in the United States is significantly higher than in Italy, leading to a higher retail price in the US.

Question 10

Compare and contrast the advantages and disadvantages of standardized global marketing and adapted global marketing.

Accepted Answer

The answer of Compare and contrast the advantages and disadvantages...

Question 11

________ are the first link between the seller and the final buyer. They move company products from points of production to the borders of countries within which they are sold.

Accepted Answer

Channels between nations are responsible for moving products from the production point to the borders of the countries where they will be sold, acting as the first link between the seller and the final buyer.

Question 12

What types of products would be successful with standardized global marketing?

Accepted Answer

The answer of What types of products would be successful...

Question 13

A company can manage its international marketing in all of the following ways EXCEPT ________.

Accepted Answer

The answer of A company can manage its international marketing...

Question 14

The Internet is making global price differences more obvious, forcing companies toward more standardized international pricing.

Accepted Answer

With the ease of online shopping and the ability to compare prices from different regions, companies are increasingly being pressured to have more consistent international pricing. This is because customers may opt to purchase from a different region if the price difference is too large, leading to lost sales for the company.

Question 15

If Audi develops a new low-priced model for entry-level consumers in Europe, it would be an example of straight product extension.

Accepted Answer

Straight product extension refers to introducing an existing product into a new market without any changes. Developing a new low-priced model for a specific market would involve some changes and adaptations, making it a product adaptation or modification, not a straight extension.

Question 16

Dove body soaps are sold successfully in essentially the same form around the globe. This is an example of straight product extension.

Accepted Answer

Straight product extension refers to selling the same product in the same form and with the same marketing approach in different markets around the world. In this case, Dove body soaps are sold successfully in the same form globally, indicating that straight product extension is being applied.

Question 17

Designing international channels that take into account the entire global supply chain and marketing channel, thus forging an effective global value delivery network, recognizes a company must have a ________.

Accepted Answer

A whole-channel view is necessary for designing international channels that consider the entire global supply chain and marketing channel. This approach involves integrating all the entities involved in the value delivery network, including suppliers, manufacturers, distributors, retailers, and customers. By taking a whole-channel view, companies can optimize their operations, reduce costs, increase efficiency, and enhance customer value. The other options (B, C, D, and E) may be components or aspects of a global value delivery network, but they do not encompass all the necessary elements.

Question 18

The whole-channel view recognizes that to compete internationally a company must effectively design and manage a standardized global marketing plan.

Accepted Answer

The whole-channel view emphasizes the need for a company to adapt its marketing strategies to different international markets, rather than relying solely on a standardized global marketing plan.

Question 19

Oreos are less sweet or less bitter in certain countries. This is an example of straight product extension.

Accepted Answer

Straight product extension refers to selling the same product in other markets without any changes. If Oreos are adjusted in sweetness or bitterness for different countries, it indicates product adaptation, not straight product extension.

Question 20

Why is a company unlikely to set a uniform price all around the world?

Accepted Answer

The answer of Why is a company unlikely to set...

Quiz 19: The Global Marketplace