Question 1

As a general rule, __________ seems to work best when the consumer target market for the product is alike across countries and cultures-that is, consumers share the same desires, needs, and use for the product.

Accepted Answer

Product extension works best when the consumer target market for the product is alike across countries and cultures, as it involves offering the same product in the same way in multiple markets. This is particularly suitable for standardized products with a global appeal, where adaptation to local preferences may not be necessary.

Question 2

Global companies have five strategies for matching products and their promotion efforts to global markets. The strategy of selling virtually the same product in other countries is referred to as

Accepted Answer

The strategy of selling virtually the same product in other countries is known as product extension. This strategy involves minimal adaptations to the product to suit local preferences and market conditions.

Question 3

Both Honda and Toyota have plants in the United States that use American labor. This illustrates Honda's and Toyota's use of

Accepted Answer

Both Honda and Toyota have invested directly in setting up plants in the United States that use American labor. This is known as direct investment, where a foreign company establishes a physical presence in another country by setting up operations such as manufacturing plants, sales offices, or service centers.

Question 4

Black & Decker launched the Snake Light flexible flashlight. Created to address a global need for portable lighting, the product became a best seller in North America, Europe, Latin America, and Australia. This is an example of which type of global marketing product and promotion strategy?

Accepted Answer

The Snake Light is a new product that was created to address a global need for portable lighting, indicating that it is a product invention. Additionally, the fact that it became a best seller in multiple regions suggests that it was promoted using a global marketing strategy.

Question 5

Global companies have five strategies for matching products and their promotion efforts to global markets. A same product-adapt promotion emphasis refers to which type of strategy?

Accepted Answer

A same product-adapt promotion emphasis refers to a communication adaptation strategy, where the product remains the same but the promotional efforts are adapted to suit different markets.

Question 6

Global companies have five strategies for matching products and their promotion efforts to global markets. An adapt product-same promotion emphasis refers to which type of strategy?

Accepted Answer

The adapt product-same promotion emphasis strategy refers to adapting the product to local market preferences while maintaining the same promotion strategy across different markets. This falls under the product adaptation strategy where companies modify their products to better suit the local market while keeping the promotion the same.

Question 7

Global companies have five strategies for matching products and their promotion efforts to global markets. Designing a product to serve the unmet needs of a foreign nation is which type of global marketing product and promotion strategy?

Accepted Answer

Product invention involves creating a new product to meet the specific needs and preferences of a foreign market, which aligns with designing a product to serve unmet needs in a foreign nation.

Question 8

One disadvantage of direct investment when entering a new global market is

Accepted Answer

Direct investment involves significant financial commitments, such as setting up new manufacturing facilities or acquiring existing companies, which can pose a financial risk if the new market does not generate the expected returns. This can be a disadvantage compared to other options such as licensing or exporting, which have lower initial financial outlays.

Question 9

Frito-Lay produces and markets potato chips in Russia that have seafood flavor. This is an example of which type of global marketing product/promotion strategy?

Accepted Answer

Product adaptation involves modifying a product to better suit local preferences or cultural differences in the target market. In this case, Frito-Lay has adapted its potato chips by creating a seafood flavor that may be more appealing to Russian consumers, who have a stronger tradition of eating seafood than other cultures.

Question 10

Global companies have five strategies for matching products and their promotion efforts to global markets. A same product-same promotion emphasis refers to which type of strategy?

Accepted Answer

Same product-same promotion strategy involves offering the same product with the same promotional strategy in different markets. This strategy is also known as a product extension strategy. It is suitable for products that have universal appeal and can be marketed similarly across markets.

Question 11

Yum! Brands, the parent company of KFC, has pursued an aggressive growth strategy in China. There are now more than 3,700 restaurants in 650 Chinese cities, and KFC has a 40 percent market share of the entire fast-food industry there. Yum! Brands China owns and directly manages about 90 percent of its Chinese stores, so it appears that the company prefers __________ in this market.

Accepted Answer

Yum! Brands China owns and directly manages 90 percent of its Chinese stores, indicating that the company's preferred mode of entry in this market is through direct investment.

Question 12

Coca-Cola, Gillette razors, and Nike apparel and shoes are being sold in the same form in many countries. This is an example of which type of global marketing product and promotion strategy?

Accepted Answer

Product extension strategy involves offering the same product in multiple markets without any modification. This is evident in the case of Coca-Cola, Gillette razors, and Nike apparel and shoes, which are sold in the same form in many countries, without any changes or adaptations to suit the local market needs.

Question 13

Nescafé coffee is marketed using different coffee blends and promotional campaigns to match consumer preferences in different countries. For example, Nescafé generally emphasizes the taste, aroma, and warmth of shared moments in its advertising around the world. However, in Thailand, Nescafé is advertised as a way to relax from the pressures of daily life. This is an example of which type of global marketing product and promotion strategy?

Accepted Answer

The answer of Nescafé coffee is marketed using different coffee...

Question 14

Global companies have five strategies for matching products and their promotion efforts to global markets. Changing a product in some way to make it more appropriate for a country's climate or preferences is an example of which type of global marketing product and promotion strategy?

Accepted Answer

Product adaptation involves modifying a product to better suit local preferences or conditions, such as the climate of a particular country. This allows the company to better appeal to the customers in that region, improving sales and competitiveness. Product extension involves offering the same product in different countries with little or no modification, while product customization involves making minor modifications to a product to better appeal to a particular market segment. Product invention involves creating an entirely new product to meet the needs of a specific market, while product integration involves offering a range of complementary products or services in a bundled package.

Question 15

GlaxoSmithKline PLC of Great Britain makes Breathe-Right nasal strips. It sells the same product in many countries because customers all over the world will use them in the same way. This is an example of which type of global marketing product and promotion strategy?

Accepted Answer

This is an example of product extension strategy, where the same product is marketed in different countries without any major modifications or adaptations. GlaxoSmithKline is selling Breathe-Right nasal strips in many countries because customers around the world use them in the same way.

Question 16

KFC in Japan altered the sweetness of its coleslaw to appeal to Japanese tastes. This is an example of which type of global marketing product and promotion strategy?

Accepted Answer

KFC's alteration of the sweetness of its coleslaw to appeal to Japanese tastes is an example of product adaptation, where a company modifies its product to better suit the culture or taste preferences of a foreign market.

Question 17

Global companies have five strategies for matching products and their promotion efforts to global markets. A create new product emphasis refers to which type of strategy?

Accepted Answer

A create new product emphasis refers to a product invention strategy, which involves creating a completely new product to meet the unique needs and preferences of a specific global market. This is different from product extension and product adaptation strategies, which modify existing products to better fit local market conditions. Dual adaptation strategy involves both product and communication adaptation, whereas communication adaptation strategy focuses on adapting promotional efforts to local cultural norms and media.

Question 18

Even though Exxon adapts its gasoline blends for different countries based on climate, the promotion message is unchanged. The wording of that slogan is

Accepted Answer

"Put a Tiger in Your Tank" has been Exxon's promotion message for decades, and it is recognizable worldwide. While the gasoline blends may vary, the consistent use of this slogan creates brand familiarity and loyalty.

Question 19

Consider the distribution channels through which a product manufactured in one country must travel to reach its destination in another country. Distribution begins with the organization's headquarters as the starting point, which is represented as the

Accepted Answer

The answer of Consider the distribution channels through which a...

Question 20

Global companies have five strategies for matching products and their promotion efforts to global markets. An adapt product-adapt promotion emphasis refers to which type of strategy?

Accepted Answer

A dual adaptation strategy involves both adapting the product and the promotion efforts to meet the needs of a specific global market. This strategy recognizes that both the product and messaging may need to be adjusted to effectively reach and appeal to diverse target audiences.

Quiz 7: Understanding and Reaching Global Consumers and Markets