Question 1

Maybelline formulated cosmetics that were designed to complement the complexions of women in various skin types around the world.Which of the marketing mix strategies did Maybelline use?
A) countertrading
B) product invention
C) global market standardization
D) product licensing
E) product adaptation

Accepted Answer

Maybelline used product adaptation strategy by formulating cosmetics that were designed to complement the complexions of women in various skin types around the world. This strategy involves modifying the product to meet the specific needs and preferences of the target market.

Question 2

Once a firm has decided on which method to use to enter a global market and evaluated the various external variables,it is ready to create a marketing mix.The first step in creating the global marketing mix is to:
A) create a new product
B) select the method of promotion
C) collect and analyze market research information
D) set pricing policies
E) decide whether product modification is necessary

Accepted Answer

Before creating a marketing mix, it is essential first to collect and analyze market research information. This helps to ensure that the marketing mix is tailored to the needs and preferences of the target market. Without adequate market research, the marketing mix could be ineffective or even counterproductive.

Question 3

U.S.wine producers only export about 14 percent of their total annual production of wine.They would like to sell more to overseas markets,but do not want to tailor their wines to consumers' palates.For example,Californian wines are typically heartier and richer than Europeans like to drink.U.S.wine producers need to adopt a _____ strategy if they hope to be reach more of the global market.
A) product substitution
B) market differentiation
C) message adaptation
D) product invention
E) product adaptation

Accepted Answer

U.S. wine producers need to adopt a product adaptation strategy, which involves modifying their product to better suit the preferences and needs of overseas markets. They do not want to tailor their wines to consumers' palates, but product adaptation can still be done while maintaining the core characteristics of their wines. By adjusting the flavor, color, or even packaging, U.S. wine producers can make their product more appealing to a wider range of consumers without sacrificing their unique identity.

Question 4

Caterpillar,Inc.is the world's largest manufacturer of earth-moving and construction equipment.Kirovsky is a large Russian manufacturer of the same type of products.The two companies entered into a _____ and created NEVAMASH,a new company.
A) import/export partnership
B) countertrade
C) disintermediation agreement
D) joint venture
E) franchise

Accepted Answer

The scenario describes Caterpillar and Kirovsky forming a new company (NEVAMASH) together, which indicates a joint venture agreement.

Question 5

Procter & Gamble's Vidal Sassoon shampoo smells the same worldwide,but the amount of scent used varies from country to country.This is an example of which type of marketing mix strategy?
A) countertrading
B) product invention
C) global market standardization
D) product licensing
E) product adaptation

Accepted Answer

This is an example of product adaptation, as the product (Vidal Sassoon shampoo) is being adapted to suit different cultural preferences for scent strength in different countries.

Question 6

Which country is considered to have the most complicated distribution system?
A) India
B) Germany
C) Canada
D) United States
E) Japan

Accepted Answer

In Japan,imported goods wind their way through layers of agents,wholesalers,and retailers.

Question 7

Monroe plans to market its shock absorbers in several different global markets.It plans to rely on extensive advertising.Before implementing this plan,its advertising manager should know:
A) the least standardized of all advertising media globally is the newspaper
B) some cultures view a product as having less value if it has to be advertised
C) language barriers and translation are rarely a problem
D) the hard-sell tactics used in the United States work well around the world
E) advertising time on television is available for sale in all developed countries

Accepted Answer

It is important for the advertising manager to know that some cultures may view a product as having less value if it is heavily advertised. This can help the manager adjust the advertising strategy accordingly and avoid potential negative perceptions in certain markets. The other options are incorrect because: A) This statement is not true as newspaper advertising is relatively standardized globally. C) Language barriers and translation can be a major problem in global advertising. D) Hard-sell tactics may not be effective or appropriate in all markets. E) Advertising time on television may not be available for sale in all countries, particularly in less developed markets.

Question 8

When Ikea,the Swedish home furnishings retailer,first entered the Japanese market,it failed.It was more successful in its second try because it was aware of the need to adapt its furnishings to fit the smaller Japanese homes.It success on its second foray into Japan was based on its ability to give the Japanese consumer what he or she needed without abandoning its product strategy.Ikea had to adopt a _____ strategy.
A) product substitution
B) market differentiation
C) message adaptation
D) product invention
E) product adaptation

Accepted Answer

The best strategy for Ikea in this scenario was product adaptation, as the company had to modify its product offerings to fit the needs and preferences of the Japanese market without completely abandoning its overall product strategy. Product substitution, message adaptation, and product invention do not accurately reflect the changes that Ikea had to make to succeed in Japan, and market differentiation alone may not have been enough to overcome the specific challenges presented by the Japanese market.

Question 9

A deodorant manufacturer wants to expand its marketing in Southeast Asia,but it has found research that shows fewer than 10 percent of people in those countries use deodorant daily.Assuming this information is true,the deodorant manufacturer would be LEAST likely to use which of the following marketing mix strategies?
A) countertrading
B) product invention
C) global market standardization
D) product licensing
E) product adaptation

Accepted Answer

Global market standardization involves creating a standardized marketing mix across different countries, which may not be effective in this case as the low usage of deodorant in Southeast Asia suggests that the current marketing mix may not be suitable for that region. The other strategies (countertrading, product invention, product licensing, and product adaptation) could potentially be used to address this challenge.

Question 10

Sony,Panasonic,and other Japanese manufacturers that build products to customer order instead of churning out products in anticipation of demand have decided to hire U.S.companies to produce electronics for them.The Japanese companies will handle the marketing of the products.Japanese electronics companies are using:
A) contract manufacturing
B) direct investment
C) franchising
D) direct exporting
E) countertrading

Accepted Answer

Contract manufacturing is the practice of hiring a company to manufacture a product on behalf of another company. In this case, the Japanese electronics companies are hiring U.S. companies to produce their electronics, while still handling the marketing themselves. This fits the description of contract manufacturing.

Question 11

To enter the Thailand market,Toyota developed the Sohana model.This vehicle is specifically designed to withstand the driving habits and weather conditions in Thailand.It was designed to meet the vehicular needs of the average Thai driver.Which of the marketing mix strategies did Toyota use?
A) countertrading
B) product invention
C) global market standardization
D) product licensing
E) product adaptation

Accepted Answer

Toyota used product invention by creating a new model, the Sohana, specifically designed for the Thai market to meet local needs and conditions.

Question 12

According to the text,which of the following is an example of a product strategy that would be appropriate for a global marketing company to implement?
A) product adaptation
B) product divestment
C) product penetration
D) market substitution
E) product licensing

Accepted Answer

A global marketing company should implement a product adaptation strategy, which involves modifying a product to meet the specific needs and preferences of a particular market. This allows the company to tailor its offerings to local tastes and maximize sales in each market. Product divestment, market substitution, and product licensing may not be appropriate for a global marketing company, while product penetration may work in some cases but does not necessarily address local preferences and needs.

Question 13

Nigeria has about 2,200 miles of railroad,but years of neglect of both the rolling stock and the right-of-way have seriously reduced the capacity to use the system.In part as the result of the failure of the railroad system,much of its 120,000 miles of roads are also barely usable.From this information,you know that:
A) its physical infrastructure is inadequate
B) its technological development is faster than other developing nations due to need
C) its government's structure is shaped by political policies such as quotas and exchange controls
D) the types of retail outlets found in Nigeria vary widely
E) foreign companies entering the Nigerian market find distribution to be the easiest element of the marketing mix to implement

Accepted Answer

The information describes how Nigeria's railroad and road system suffer from neglect and reduced capacity, showing that its physical infrastructure is inadequate. The other options are not supported by the given information.

Question 14

Unilever advertises its Impulse Body Spray worldwide by using the same "boy meets girl" ad campaign no matter where it wants to market its product.This is an example of a(n)_____ strategy.
A) product and message extension
B) market substitution
C) product adaptation
D) one product,one message
E) one product,multiple messages

Accepted Answer

Unilever is using the same advertisement ("one message") for the same product ("one product") across different markets worldwide.

Question 15

In the context of global marketing,when a company either creates a new product for a market or dramatically changes an existing product,the company is using a _____ strategy
A) product invention
B) product extension
C) market substitution
D) product licensing
E) market adaptation

Accepted Answer

Product invention refers to the creation of new products for a specific market. This strategy involves significant research and development to create a unique product that meets the needs and preferences of consumers in a specific market. Therefore, if a company creates a new product for a market or dramatically changes an existing product, they are using a product invention strategy.

Question 16

Marlin manufactures 22 caliber rimfire rifles.It is designing advertisements and planning the promotional mix for marketing in eastern Europe,South Africa,India,and Brazil.The advertising manager should expect all of the following to cause problems EXCEPT:
A) media availability
B) government regulations
C) exchange control
D) cultural differences
E) translation problems

Accepted Answer

Exchange control is typically related to financial transactions and currency exchange, which is less likely to directly impact the creation and dissemination of advertisements compared to the other factors listed.

Question 17

To enter the Hungarian market,Ernst & Young,an international accounting company,purchased an existing accounting firm.Ernst & Young entered the Hungarian market through the use of:
A) contract marketing
B) direct investment
C) franchising
D) direct exporting
E) countertrading

Accepted Answer

Ernst & Young used direct investment by purchasing an existing accounting firm to enter the Hungarian market.

Question 18

AFLAC has had to ditch the AFLAC duck in its Japanese commercials because the Japanese consumer does not like to be yelled at.Since Japan is the source of about 70 percent of the insurance company's business,it had no trouble adopting a _____ strategy.
A) product substitution
B) market differentiation
C) message adaptation
D) product invention
E) product adaptation

Accepted Answer

The strategy adopted by AFLAC is message adaptation, which involves modifying the message of the advertisement to suit the cultural preferences of the target market. In this case, the company had to ditch the AFLAC duck character, which was popular in the US, because it did not resonate well with Japanese consumers. By adapting its message to the Japanese market, AFLAC was able to maintain its market share and continue to grow its business in Japan.

Question 19

Pillsbury has developed different products for its various global markets.Which of the following statements offers a likely reason for its use of product invention?
A) U.S.manufacturers cannot protect product designs with patents in other nations.
B) Global pricing policies are the same as those used at home.
C) Consumers in different countries use products differently.
D) No countries have similar cultural backgrounds.
E) Various cultures respond to advertising messages differently.

Accepted Answer

Consumers in different countries use products differently. Pillsbury has developed different products for its various global markets because consumers in different countries tend to use products differently. For example, different countries have different eating habits, traditions and dietary restrictions, which necessitates the customization of products to fit the local markets.

Question 20

Some companies find it possible to create find a successful global marketing mix strategy through an altered communication strategy.Which of the following is an example of such a strategy?
A) Because clothing is worn much longer between washings in some countries outside the United States,a clothing manufacturer had to create a more durable fabric for its line of work clothes.
B) A bicycle manufacturer learned the same model of bicycle,which is promoted for leisure riding in the United States,is excellent for basic transportation in other countries.
C) Goodyear developed specialized tires for Peruvian roads and weather conditions.
D) Rubbermaid created different size dish drainers to meet the needs of consumers in different countries.
E) Procter & Gamble developed telecommunication ties with Japanese companies.

Accepted Answer

The example of a bicycle manufacturer realizing that the same model marketed for leisure riding in the United States can also be used for basic transportation in other countries shows an altered communication strategy that led to a successful global marketing mix strategy. The company did not need to change the product itself, but instead, adapted its communication strategy to promote the bicycle as a mode of transportation rather than just for leisure purposes.

Quiz 4: Developing a Global Vision27

Maybelline formulated cosmetics that were designed to complement the complexions of women in various skin types around the world.Which of the marketing mix strategies did Maybelline use?

Once a firm has decided on which method to use to enter a global market and evaluated the various external variables,it is ready to create a marketing mix.The first step in creating the global marketing mix is to:

Caterpillar,Inc.is the world's largest manufacturer of earth-moving and construction equipment.Kirovsky is a large Russian manufacturer of the same type of products.The two companies entered into a _____ and created NEVAMASH,a new company.

Procter & Gamble's Vidal Sassoon shampoo smells the same worldwide,but the amount of scent used varies from country to country.This is an example of which type of marketing mix strategy?

Which country is considered to have the most complicated distribution system?

Monroe plans to market its shock absorbers in several different global markets.It plans to rely on extensive advertising.Before implementing this plan,its advertising manager should know:

To enter the Thailand market,Toyota developed the Sohana model.This vehicle is specifically designed to withstand the driving habits and weather conditions in Thailand.It was designed to meet the vehicular needs of the average Thai driver.Which of the marketing mix strategies did Toyota use?

According to the text,which of the following is an example of a product strategy that would be appropriate for a global marketing company to implement?

Unilever advertises its Impulse Body Spray worldwide by using the same "boy meets girl" ad campaign no matter where it wants to market its product.This is an example of a(n) _____ strategy.

In the context of global marketing,when a company either creates a new product for a market or dramatically changes an existing product,the company is using a _____ strategy

Marlin manufactures 22 caliber rimfire rifles.It is designing advertisements and planning the promotional mix for marketing in eastern Europe,South Africa,India,and Brazil.The advertising manager should expect all of the following to cause problems EXCEPT:

To enter the Hungarian market,Ernst & Young,an international accounting company,purchased an existing accounting firm.Ernst & Young entered the Hungarian market through the use of:

AFLAC has had to ditch the AFLAC duck in its Japanese commercials because the Japanese consumer does not like to be yelled at.Since Japan is the source of about 70 percent of the insurance company's business,it had no trouble adopting a _____ strategy.

Pillsbury has developed different products for its various global markets.Which of the following statements offers a likely reason for its use of product invention?

Some companies find it possible to create find a successful global marketing mix strategy through an altered communication strategy.Which of the following is an example of such a strategy?