Question 1

Providing low-cost,simplified versions of familiar products can be impossible to market in some regions,especially in Africa.Which of the following is a probable reason for nonexistent markets?

Accepted Answer

In many developing nations,channels of distribution and the physical infrastructure are inadequate.In Africa,the continent's GDP is growing rapidly,and African businesses want to expand.Unfortunately,they face high tariffs,weak infrastructure,and severely impoverished populations.

Question 2

By removing certain chemicals from Tide because it irritated the skin when used by rural villagers who wash clothes by hand,Procter & Gamble did not go along with the trend toward __________.

Accepted Answer

Standardized consumer products have emerged on a huge scale,as opposed to segmented foreign markets with different products.

Question 3

Marketers are often surprised that the poor reject products that have been made cheaper for their benefit.What explains the failure of P&G and other firms,such as L'Oréal when both used a strategy of "diluting"?

Accepted Answer

The firm must not assume that low-income customers will accept lower quality.

Question 4

For multinationals,the primary growth demographic in emerging markets is the very poor.

Accepted Answer

Virtually every demographic is researched by multinationals for the purpose of expanding their markets.

Question 5

Single- and small-use packaging,such as Unilever deodorant sticks that sell for pennies,are cost-effective for multinationals because __________.

Accepted Answer

There are many very poor countries where the GNI per capita is under $1,000 and is a measure of a country's citizens' ability to buy various goods.

Question 6

When confronted with a consumer population that can only spend $2 a day-and only a fraction of that is disposable-a marketer is looking at a factor in the __________.

Accepted Answer

A second major factor in the external environment facing the global marketer is the level of economic development in the countries where it operates.

Question 7

Panasonic designs its products for the global poor by simplifying preexisting Japanese market designs.For Panasonic,standardization is way to realize profits in these otherwise unprofitable markets.

Accepted Answer

The head of Panasonic's overseas consumer products states that "If [a local product] starts with a Japanese product or Japanese design,this [strategy of simplification] is impossible.

Question 8

Product demonstrations,rather than promotions such as coupons,are preferred as market tools in the more isolated,rural regions of emerging countries.

Accepted Answer

In more isolated and rural regions of emerging countries, product demonstrations are preferred as market tools because they provide a hands-on experience and allow consumers to see the actual benefits of the product. Coupons may not be as effective because there may be limited access to stores or the internet to redeem them.

Question 9

Simplifying design and lowering other costs is still a viable way to penetrate the lowest level of the economic pyramid in emerging markets.

Accepted Answer

Simplifying design and lowering costs can make products more affordable and accessible to people at the bottom of the economic pyramid in emerging markets. It is a strategy that has been used successfully by many companies to reach this market segment.

Question 10

Procter & Gamble's policy,described as __________ by its CEO,puts patience before a quick return on investment.

Accepted Answer

McDonald looks on the strategy as one of "purpose-inspired growth"-one designed to generate profitable business for P&G and improve its customers' daily lives with quality products.

Quiz 10: Case Study P&G Unilever Panasonic: The $2-a-Day Initiative