Deck 17: Global Marketing

Question 1

Uranus Inc. is an American luxury car manufacturer that mainly caters to wealthy customers across the world. Given this information, it can be said that the company has used the process of _____ to select its consumer base.

A) arbitrage
B) vertical integration
C) market segmentation
D) privatization

Answer 1

C

Question 2

Matrix Inc., an American luxury watch company, is planning to start its operations in Yenkin, a country in South America. Matrix has determined that customers in Yenkin will respond favorably to the same marketing mix as customers in its domestic market. In this case, Matrix _____.

A) can standardize to take advantage of the cost reductions gained through economies of scale
B) should tailor its products and promotions to meet the needs of the customers in Yenkin
C) can avoid the complications of being perceived as an outsider in Yenkin by customizing its products
D) should use a cost-plus pricing strategy

Answer 2

A

Question 3

Mirage Inc., a multinational smartphone manufacturer based in Taverna, is planning to commence operations in three different countries. Mirage has a standard marketing approach for all its phones and does not customize its marketing strategies based on the needs and buying patterns of consumers. One of the managers at Mirage believes that standardizing the firm's marketing approach is not the right choice when targeting a global audience. Which of the following statements supports the manager's beliefs?

A) A standardized marketing approach is ineffective when customers in different markets desire similar features and when consumers and businesses have converging product expectations.
B) Some standardized firms fail when attempting international expansion because they encounter new and different national preferences, living standards, political structures, and legal procedures.
C) Standardizing products and processes can increase production and advertising costs per unit and decrease control over the product.
D) Most standardized firms have low profits as they fail to maintain a consistent identity of their products.

Answer 3

B

Question 4

Jade Inc., a cosmetics company, caters to women between the ages of 20 and 50. Given this information, it can be said that Jade has used the process of _____ to select its consumer base.

A) vertical integration
B) arbitrage
C) privatization
D) market segmentation

Question 5

Saturn Inc., a Canadian consumer goods company, has developed a toothpaste for people with sensitive teeth. It has set the toothpaste at a competitive price. In addition to investing in television and Internet advertisements to promote the product, the company has distributed the toothpaste to all leading retail stores across Canada. This scenario illustrates Saturn's _____.

A) marketing mix
B) brand image
C) organizational structure
D) corporate governance

Question 6

_____ is the process by which companies cluster customers into homogeneous groups-be they demographic, geographic, or even psychographic.

A) Market segmentation
B) Outsourcing
C) Insourcing
D) Product positioning

Question 7

Gemini Inc., an American computer manufacturer, uses the same combination of marketing strategies in its foreign and domestic markets. This scenario illustrates that Gemini uses a _____.

A) horizontal integration strategy
B) vertical integration strategy
C) standardized marketing mix
D) differentiated marketing mix

Question 8

Carina Inc. is a multinational clothing company that targets middle-class customers around the world. Given this information, it can be said that Carina is engaged in _____.

A) vertical integration
B) business process outsourcing
C) global market segmentation
D) international franchising

Question 9

Octagon Inc., a multinational clothing company, groups customers across national markets based on criteria such as level of economic development, cultural characteristics, buying patterns, and regulatory environment. Given this information, it can be said that Octagon is engaged in _____.

A) vertical integration
B) global market segmentation
C) business process outsourcing
D) international franchising

Question 10

Taupe Inc., an Australian smartphone manufacturer, plans to follow a differentiated marketing approach to become a global company. It can be said that by localizing, Taupe will be able to:

A) better meet customer needs.
B) reduce advertising costs per unit.
C) improve control over its products.
D) increase global branding.

Question 11

Savor Inc. is a fast-food restaurant chain that operates in 28 countries around the world. It has standardized its restaurants, its advertising, and its prices while differentiating its products in these countries. Given this information, it can be said that Savor uses a(n) _____.

A) dumping strategy
B) glocalization strategy
C) skimming strategy
D) arbitrage strategy

Question 12

Cooper Foods, a food manufacturer, decides to sell its ready-to-eat meals to consumers in the country of Pinetown. The company designs a product positioning strategy to promote its ready-to-eat meals among working professionals who are often unable to prepare meals on working days due to their hectic schedules. Within a few months, Cooper Foods successfully establishes itself in the Pinetown market. Given this information, it can be said that Cooper Foods engaged in _____.

A) global market segmentation
B) business process outsourcing
C) vertical integration
D) insourcing

Question 13

Mars Inc., an American fast-food restaurant chain, is planning to open its restaurants in Mexico. Mexican consumers are different from American consumers in their customs and cultures. The government regulations in Mexico are also different from the regulations in the United States. In this case, to be successful in Mexico, Mars should consider:

A) using a rigid cost-plus pricing strategy.
B) using a differentiated marketing mix.
C) adopting global branding.
D) standardizing its products and processes.

Question 14

Tangent Inc., a food manufacturing company, intends to become a global company catering to consumers worldwide. To facilitate this expansion, Tangent plans to differentiate its marketing approach. Given this information, it can be said that the company:

A) should consider adopting global branding for effectiveness of its marketing strategy.
B) intends to focus on reducing advertising costs per unit to improve product control.
C) should consider maintaining a consistent identity of its products.
D) plans to tailor its products and promotions for each country and each segment.

Question 15

Rochelle Inc., an American cosmetics company, is planning for international expansion. It specifically wants to target women between the ages of 20 and 40. In addition to specifying its target consumer base, the company is also planning to offer customized products based on consumer needs. This scenario illustrates Rochelle Inc.'s _____.

A) corporate governance
B) organizational structure
C) supply chain system
D) global marketing strategy

Question 16

Mauve Inc., a beverages company, has adopted the marketing approach of global branding. It can be said that:

A) Mauve's marketing and operations costs are likely to increase.
B) Mauve's customers in different markets are likely to desire similar product features.
C) Mauve is likely to enhance its ability to meet government requirements in countries with existing markets.
D) Mauve is likely to diverge its product expectations from that of its customers.

Question 17

Relish Inc., an international fast-food restaurant chain, customizes its menu based on customer preferences in each country it is located in. This scenario illustrates Relish's _____.

A) corporate governance
B) global marketing strategy
C) supply chain system
D) organizational structure

Question 18

Olive Inc., an American health care company, has developed a health drink for pregnant women. A 14-oz. jar of the health drink is priced at $9.99. Olive has distributed samples of the health drink to pharmaceutical stores and maternity hospitals across the United States. This scenario illustrates Olive's _____.

A) organizational structure
B) marketing mix
C) corporate governance
D) brand image

Question 19

Oceana Inc. is a Canadian food manufacturing company that recently commenced its international operations. Using a blend of standardized and differentiated marketing strategies, Oceana has been able to achieve economies of scale. It has standardized its products and created a brand that is recognizable across continents while retaining the flexibility to customize products and marketing efforts to the end user based on market preferences. This blended approach is known as _____.

A) franchising
B) licensing
C) privatization
D) glocalization

Question 20

A _____ is the collection of decisions regarding the four P's of marketing: product, place, price, and promotion.

A) marketing matrix
B) marketing campaign
C) marketing mix
D) marketing channel

Question 21

According to the American Marketing Association, a _____ is the name, term, design, symbol, or any other feature that identifies one seller's goods or service as distinct from those of other sellers.

A) brand
B) memo
C) copyright
D) mission

Question 22

Chynna Hotels, a fast-food restaurant chain, has restaurants in 25 countries worldwide. It customizes its menu and creates experiences that appeal to regional tastes. Chynna Hotels has been able to build a level of brand loyalty across borders that would not have been possible with a standard, homogenous menu. At the same time, the restaurant chain has been able to maintain a level of standardization and built an international image that transcends cultural barriers. Given this information, it can be said that Chynna Hotels has adopted a(n) _____.

A) arbitrage strategy
B) dumping strategy
C) glocalization strategy
D) skimming strategy

Question 23

Neptune Inc., a beverage company, makes use of unconventional, innovative, and low-cost marketing techniques to generate social buzz and maximum exposure. Given this information, it can be said that Neptune uses _____ to build awareness.

A) cloud marketing
B) evangelism marketing
C) word-of-mouth marketing
D) guerilla marketing

Question 24

Olive Inc., an apparel company, has recently started its operations in the United States. It extensively uses viral marketing for advertising and marketing. The use of viral marketing can help Olive:

A) build brand awareness.
B) lower operation costs.
C) customize its products.
D) meet customer needs.

Question 25

A(n) _____ strategy gets customers excited about a product.

A) inbound marketing
B) pull marketing
C) push marketing
D) outbound marketing

Question 26

Magic Kingdom, a theme park in Memphis, has pictures of its rollercoasters on several public transportation vehicles in the city. This form of advertising has increased the popularity of Magic Kingdom and has led to a 25 percent increase in the number of visitors in the theme park. Given this information, it can be said that Magic Kingdom used _____.

A) ambush marketing
B) evangelism marketing
C) guerilla marketing
D) cloud marketing

Question 27

Zest is a brand of energy drinks produced by Enigma Inc., a beverage company. Enigma operates worldwide, and Zest is one of its largest global brands. Given this information, it can be said that:

A) Enigma uses the same mix of marketing strategies in its foreign and domestic markets.
B) Enigma is able to standardize its efforts to reach customers around the world.
C) Enigma has customized Zest to appeal to customer needs in different markets.
D) Enigma is able to improve its production and advertising costs per unit.

Question 28

_____ is the set of associations in a customer's mind regarding a brand.

A) Brand positioning
B) Brand extension
C) Brand image
D) Brand equity

Question 29

The advertising department at Fischer Tech plans to implement a push approach to build brand awareness. By implementing this approach, the department is likely to:

A) charge different prices to its subsidiaries for the goods sold in global markets.
B) engage in gray market activity.
C) make their advertising so entertaining that customers will view it for fun and share it with friends.
D) use price-oriented promotions and give initial discounts on its products.

Question 30

Danielle has been using a perfume called Aroma manufactured by Iris Inc. since its launch. She also recommends it to her friends. This scenario illustrates Danielle's _____.

A) customer profile
B) brand loyalty
C) credit rating
D) value proposition

Question 31

_____ is a commitment to a brand in the face of competition.

A) Brand identity
B) Brand extension
C) Brand loyalty
D) Brand image

Question 32

Beryl Inc. is a beverage company that has operations in 39 countries worldwide. It has adopted a glocalization strategy. Given this information, it can be said that:

A) Beryl can make adjustments according to regional consumer needs.
B) Beryl uses the same mix of marketing strategies in its foreign and domestic markets.
C) Beryl's global image is unlikely to transcend cultural barriers.
D) Beryl is unlikely to maintain any standardization levels.

Question 33

_____ consists of marketing efforts designed to actively send a product through the channel of distribution, starting with the producer, moving through the distribution partners, and finally reaching the consumer.

A) Inbound marketing
B) Pull marketing
C) Push marketing
D) Outbound marketing

Question 34

Sapphire Works is a French luxury watchmaker. Its watches are perceived as high-end watches and are considered highly elegant and sophisticated. Sapphire's customers have deep positive feelings toward the label. Given this information, it can be said that Sapphire has a _____.

A) strong brand image
B) competitive advantage
C) high operating income
D) large market share

Question 35

Gibson Inc., an American apparel company, uses a rewards program for its customers who make frequent purchases. This marketing strategy can help the company:

A) standardize its products.
B) reduce its production costs.
C) instill brand loyalty.
D) increase global branding.

Question 36

Troy Inc., a consumer goods company, recently launched Clean Bud-a new range of liquid and powder detergents for clothes. Given this information, it can be said that Clean Bud is Troy Inc.'s _____.

A) memo
B) brand
C) patent
D) bill

Question 37

_____ is the additional market share and profits products earn because of the brand's strength compared with that of competing products.

A) Brand identity
B) Brand extension
C) Brand image
D) Brand equity

Question 38

Rhombus Inc., a consumer electronics company, has a loyal customer base. Recent market surveys have shown that its products are perceived to be superior in quality to their competing products. This has boosted the sale and popularity of its products. In turn, Rhombus has gained additional market share and profits. Given this information, it can be said that Rhombus has been able to:

A) standardize its products.
B) centralize its operations.
C) build brand equity.
D) create product differentiation.

Question 39

If a smartphone manufacturing company uses a pull approach to build brand awareness, it is likely to:

A) charge different prices to its subsidiaries for the goods sold in global markets.
B) engage in gray market activity.
C) cultivate customer desires and expectations so the customer will demand more product.
D) use price-oriented promotions and give initial discounts on its products.

Question 40

Donavon Inc., a beverage company, designs social media posts to advertise its products. These posts are shared by people on different social media platforms, thus helping Donavon receive maximum exposure. Given this information, it can be said that Donavon uses _____.

A) ambush marketing
B) viral marketing
C) evangelism marketing
D) relationship marketing

Question 41

Do you think a product's price can have a powerful emotional effect on the perception of quality? Give reasons to support your answer.

Question 42

In the context of pricing strategies, unlike rigid cost-plus pricing, flexible cost-plus pricing:

A) adjusts the price depending on the customer and order size.
B) relies on a fixed price for all export markets.
C) is often favored by less-experienced exporters.
D) typically fails to account for buyer demand, income levels, and competition.

Question 43

Lavender Inc., a Canadian apparel company, recently opened its stores across major cities of Miledina, a country in South America. Lavender set its products at very low prices to get customers in Miledina to try its products. This pricing strategy enabled Lavender to gain a considerable market share in Miledina. Given this information, it can be said that Lavender followed a _____.

A) skimming pricing strategy
B) penetration pricing strategy
C) odd pricing strategy
D) cost-plus pricing strategy

Question 44

In your opinion, is a blend of standardization and differentiation the most successful marketing strategy for global corporations? Give reasons to support your answer.

Question 45

_____ is a specific type of arbitration whereby companies or individuals buy a product in a cheaper market and sell it in a more expensive market.

A) Countertrade
B) Gray market activity
C) Dumping
D) Transfer pricing

Question 46

Which of the following is a downside of a global brand?

A) Creating a global brand strategy that is applicable worldwide is extremely complex.
B) A global brand makes it difficult for a firm to negotiate with its global partners.
C) A global brand leads to a decline in a firm's popularity as a global company.
D) Creating a global brand strategy often leads to increased production and advertising costs per unit.

Question 47

It has been argued that standardization of a firm's marketing approach isn't always the right choice. Evaluate this argument.

Question 48

Do you think gray market activity affects global pricing? Give reasons to support your answer.

Question 49

_____ is a pricing strategy where a company sets a high price for a product and sells to the segment that is willing to pay a premium.

A) Dumping
B) Skimming
C) Outsourcing
D) Insourcing

Question 50

Do you think global market segmentation enables companies to better position product offerings in the minds of consumers? Give reasons to support your answer.

Question 51

_____ is the practice of selling a product for a price less than the cost of production to capture market share and force competitors out of the market.

A) Insourcing
B) Skimming
C) Outsourcing
D) Dumping

Question 52

_____ is the process of taking goods from production to consumption.

A) Outsourcing
B) Standardization
C) Pricing
D) Distribution

Question 53

_____ is defined as the price a division charges another division of the same firm for supplies or labor.

A) Premium pricing
B) Odd pricing
C) Transfer pricing
D) Absorption pricing

Question 54

Terrance, a local businessman, purchases luxury watches from a cheaper market and sells them at much higher prices in a more expensive market. Given this information, it can be said that Terrance is involved in _____.

A) countertrade
B) gray market activity
C) dumping
D) transfer pricing

Question 55

Prendez Inc., a car manufacturing company, sells high-end cars worldwide. It sets a high price for its luxury cars and sells to the segment that is willing to pay a premium. Given this information, it can be said that Prendez follows a _____.

A) skimming pricing strategy
B) penetration pricing strategy
C) odd pricing strategy
D) cost-plus pricing strategy

Question 56

Mica Inc., an American computer manufacturing company, has priced its computers at a lower price than its competitors in Tasmedia, a country in Southeast Asia. Mica intends to raise the prices of its computers once the competition is gone. Given this information, it can be said that Mica is practicing a form of predatory pricing called _____.

A) insourcing
B) privatization
C) dumping
D) outsourcing

Question 57

Do you think government intervention affects global pricing? Give reasons to support your answer.

Question 58

In the context of pricing strategies, unlike flexible cost-plus pricing, rigid cost-plus pricing:

A) adjusts the price depending on the customer, order size, and other competitive influences.
B) leads customers to expect low prices that firms have difficulty raising in the future.
C) is used by global companies that face intense competition.
D) typically fails to account for buyer demand, income levels, and competition.

Question 59

Amaze Inc., an American toy manufacturer, has decided to start its operations in South Korea. Amaze is planning to enter the South Korean market through global online markets, catalogues, or other direct channels. Given this information, it can be said that:

A) Amaze will be able to collect payments from customers before shipping their products.
B) Amaze will be able to sell its products in South Korea with minimal investment.
C) Amaze will have more control over the South Korean market.
D) Amaze will not have to be dependent on international shipping companies to deliver its products.

Question 60

Beige Inc., an Indian beverage company, chiefly operates in its domestic market. It has decided to price its drinks at a fixed margin over the cost required to manufacture them. Given this information, it can be said that Beige is following a _____.

A) contribution margin-based pricing strategy
B) skimming pricing strategy
C) penetration pricing strategy
D) cost-plus pricing strategy

Question 61

It has been argued that establishing independent distribution channels in a new market offers a global company the most control but also the most risk. Evaluate this argument.