Deck 7: International Strategic Planning

Question 1

At the corporate level, within each country, decisions are made regarding which consumer segments to target.

Answer 1

False
At the business unit level, within each country, decisions are made regarding which consumer segments to target, using criteria described in this chapter.

Question 2

At the corporate level, the strategic plan allocates resources and establishes objectives for the whole enterprise, worldwide.

Answer 2

True
At the corporate level, the strategic plan allocates resources and establishes objectives for the whole enterprise, worldwide. The corporate plan has a long-term focus and involves the highest levels of management.

Question 3

Ambiguities in a legal system can create an environment that renders the company vulnerable to competitive theft, to lack of trademark protection, to bribery, and to employee theft.

Answer 3

True
Ambiguities in a legal system can create an environment that renders the company vulnerable to competitive theft, to lack of trademark protection, to bribery pressers, and to employee theft. In such an environment, where everything is perceived as allowed unless expressly forbidden, even exporting could pose difficulties.

Question 4

A product will most likely be first manufactured in a low-cost labor country and exported to the rest of the world to take advantage of low-cost labor.

Question 5

Communicating with Indian and Chinese consumers necessitates expensive translation into the local languages.

Question 6

At the product level, a marketing plan is developed for achieving objectives.

Question 7

The recent discovery of oil reserves in the Sudan has helped to stabilize the economy and make it an attractive country for foreign direct investment.

Question 8

The Wonderbra's failed introduction into the Middle East serves as an example of what not to do in terms of target marketing.

Question 9

PepsiCo International did not consider profit as the main criterion when they approached the former Soviet Union to establish a countertrade agreement.

Question 10

Individual market segments should be easy to identify and measure.

Question 11

Market segments should be similar to each other to improve marketing efficiency.

Question 12

Market segments should be homogeneous in relation to other segments to improve marketing efficiency.

Question 13

An international marketing strategy involves developing and maintaining a strategic fit between the international company's objectives, competencies, and resources and the challenges presented by its international market or markets.

Question 14

According to the text, Sri Lanka is an attractive, small country that has a strong export market.

Question 15

The potential of a market can be evaluated based on the rate of economic development, as expressed through validated, reliable market indicators such as consumer buying power.

Question 16

Stability of a segment over times used to be a primary consideration mainly for developing, low-income, countries.

Question 17

A product in the later stages of its life cycle will be sold to consumers worldwide, regardless of country development level.

Question 18

The company selling a product in a later stage of the life cycle will most likely manufacture the product in a developing country, where labor is inexpensive, to sell it all over the world.

Question 19

The Baltic Republics, Russia and Belarus are attractive markets that are being actively targeted by multinationals.

Question 20

At the corporate level, the strategic plan allocates funds to each business unit based on division goals and objectives.

Question 21

The marketing mix typically used to target the "global elite" segment focuses on selective distribution, value pricing, and status-oriented advertising messages.

Question 22

Firms that are at the forefront of technology usually first introduce their products in lead countries.

Question 23

The gay and lesbian segment is a market segment characterized by brand switching behavior.

Question 24

Most services do not lend themselves to a standardized strategy.

Question 25

Coke is marketed using a standardized, undifferentiated strategy throughout the world.

Question 26

Demographics are easy to measure and to compare across countries.

Question 27

The majority of consumers in developing countries are very concerned with brand names since they portray a Western image.

Question 28

Both K-Mart and Mercedes-Benz use a price/quality positioning.

Question 29

Bounty brand paper towels failed in Europe because consumers prefer to use cloth towels in the kitchen.

Question 30

Companies that have ample resources can, and often do, address the needs of all segments of consumers.

Question 31

When Airbus asks readers of The Financial Times whether they would be more comfortable with two or four engines when they are up in the air, they engage in product class positioning.

Question 32

Countries that were formerly communist, and countries that are under communist rule have a high literacy rate and heavily emphasize education.

Question 33

Procter & Gamble pursues a differentiated target strategy.

Question 34

In the youth-driven Euroculture, national heritage is becoming increasingly important.

Question 35

The Scandinavian counties have a rapidly aging population and present different challenges to international firms than countries with half of their population under the age of twenty, like Brazil.

Question 36

The lead/lag concept is closely linked to the political structure of a country and is particularly relevant to firms that sell products of mass consumption.

Question 37

Geographic segmentation can be performed at the macro-segmentation level.

Question 38

The purpose of macro-segmentation is to identify clusters of consumers that respond in a similar fashion to a company's marketing strategies.

Question 39

Mont Blanc pursues a concentrated targeting strategy.

Question 40

While multinationals such as Coca-Cola and Kodak actively target middle class consumers in the industrialized countries with their global brands, in China, they target their global brands primarily to the very large lower class.

Question 41

An international marketing strategy involves developing and maintaining a strategic fit between the international market and the company's

A)Objectives
B)Competencies
C)Resources
D)All of the above

Question 42

Which requirement does not apply to both country and consumer segmentation?

A)Measurability
B)Accessibility
C)Differential response
D)All of the above apply.

Question 43

At which level does the strategic plan allocate funds to each business unit level?

A)Corporate level
B)Division level
C)Product level
D)Business unit level

Question 44

The level of foreign direct investment in a country is a measure of which segmentation requirement?

A)Measurability
B)Substantiality
C)Accessibility
D)Actionability

Question 45

Which segmentation requirement is most likely to be affected by a country with a large rural population?

A)Measurability
B)Substantiality
C)Accessibility
D)Differential response

Question 46

A product in the later stages of its life cycle, such as a videocassette recorder, will be

A)Sold to consumers worldwide, regardless of country development level.
B)Compete on price.
C)Most likely manufactured in a developing country where labor is inexpensive.
D)All of the above.

Question 47

At which level of the strategic plan are decisions made regarding which consumer segments to target, within each country?

A)Corporate level
B)Division level
C)Product level
D)Business unit level

Question 48

At which level of the strategic plan is a marketing plan is developed for achieving brand or product line objectives?

A)Corporate level
B)Division level
C)Product level
D)Business unit level

Question 49

When a marketer selects the countries and segments that the company can serve most efficiently he or she is engaging in:

A)international market segmentation.
B)international market targeting.
C)market positioning.
D)psychographic segmentation.

Question 50

Which of the following is not a criterion that should be considered when evaluating a potential country for entry?

A)Ethnic conflict in a region
B)Recent nationalization activity
C)Legal ambiguity
D)All of the above should be considered.

Question 51

Which of the following is not a criteria that a firm should use to group countries to determine which country held the most opportunity for the firm?

A)Market potential
B)Political environment
C)Marketing support infrastructure
D)All of the above could be used.

Question 52

When a marketer identifies countries and segments of international consumers that are similar with regard to key traits, who would respond well to a product and related marketing mix, he or she is engaging in:

A)international market segmentation.
B)international market targeting.
C)market positioning.
D)a concentrated targeting strategy.

Question 53

Which statement regarding the countries of the former Soviet Union is not true?

A)The countries are experiencing high inflation.
B)The countries have a high illiteracy rate.
C)The countries have an excess of highly qualified labor.
D)The countries have a consuming public that is eager to experience new products.

Question 54

Decisions on which country or countries to target take place at the ____ level.

A)Corporate level
B)Division level
C)Product level
D)Business unit level

Question 55

Which segmentation requirement may be adversely affected by expensive translation required to communicate with Indian consumers?

A)Measurability
B)Substantiality
C)Stability over time
D)Accessibility

Question 56

The international strategic plan creates a link between the company resources and its

A)International goals
B)International objectives
C)International market
D)All of the above

Question 57

An international marketing strategy involves developing and maintaining a strategic fit between the international market and all those elements listed below, except

A)Objectives
B)Competencies
C)Government
D)Resources

Question 58

What is the first step in the segmentation process?

A)Micro-segmentation
B)Macro-segmentation
C)Demographic segmentation
D)Psychographic segmentation

Question 59

At which level does the strategic plan allocate resources and establish objectives for the company's worldwide operations?

A)Corporate level
B)Division level
C)Product level
D)Business unit level

Question 60

A product in the early stages of its life cycle will

A)Be most likely sold to consumers in industrialized countries.
B)Be most likely sold for a high prices.
C)Be most likely accompanied by heavy promotion.
D)All of the above.

Question 61

Regarding fast food segmentation, the international marketer knows that consumers in emerging markets are particularly attracted to:

A)speedy service
B)convenience
C)clean environment
D)all of the above

Question 62

When Airbus asks the readers of The Financial Times if they would be more comfortable with two or with four engines when they are up in the air, it is using which form of positioning?

A)product user positioning
B)competitor positioning
C)use or applications positioning
D)price/quality positioning

Question 63

Procter & Gamble's Era is positioned as a high-technology detergent that pretreats and washes fabrics that suspends dirt. This is an example of:

A)attribute/benefit positioning.
B)price/quality positioning.
C)use or applications positioning.
D)product class positioning.

Question 64

Disney sells magic, not just entertainment. Harley sells excitement not just motorcycles. These are examples of:

A)price quality positioning.
B)use or applications positioning.
C)product user positioning.
D)product class positioning.

Question 65

According to the text, a recent study classified the Scandinavian countries according to Hofstede's typology. They rate:

A)low in power/distance.
B)high in uncertainty/avoidance.
C)low in individualism.
D)high in masculinity.

Question 66

When a company identifies or creates market segments that want different benefits from a product and target them with different brands, using different marketing strategies, the company is pursuing a(n):

A)differentiated targeting strategy.
B)concentrated targeting strategy.
C)undifferentiated targeting strategy.
D)standardized targeting strategy.

Question 67

When The Body Shop caters to consumers who are environmentally concerned and who want to purchase natural products that have not been tested on animals it is pursuing a(n):

A)differentiated targeting strategy.
B)concentrated targeting strategy.
C)undifferentiated strategy.
D)None of the above.

Question 68

Which of the following statements regarding "global teenagers" is accurate?

A)They are described as astute consumers with precise desires.
B)Prada has successfully targeted them through a status-oriented advertising message.
C)They are also called the "global elite."
D)None of the above are true.

Question 69

Procter & Gamble positions Dreft as a powder laundry detergent for babies and people with sensitive skin. This is an example of:

A)attribute/benefit positioning.
B)price/quality positioning
C)use or applications positioning
D)product class positioning.

Question 70

Which category is most likely to pursue an undifferentiated targeting strategy?

A)Food
B)Clothing
C)Pharmaceuticals
D)Services

Question 71

How is the country attractiveness score in a country screening and selection process calculated?

A)An importance score is added to the performance score for each of the screening variables.
B)An importance score is multiplied by the performance score for each of the screening variables.
C)The Delphi Method is used.
D)A time series analysis is performed on leading economic indicators.

Question 72

Consumers in the U.S. purchase soft drinks such as Coke and Pepsi to quench their thirst, but in Eastern Europe, these brands are purchase primarily as a special occasion drink. What type of segmentation does this example illustrate?

A)Psychographic segmentation
B)Usage segmentation
C)Benefit segmentation
D)Demographic segmentation

Question 73

Which of the following is not included in a psychographic analysis?

A)Income
B)Lifestyle
C)Attitudes
D)Opinions

Question 74

French women are heavy users of perfume. With this knowledge a marketer may decide to take advantage of:

A)Psychographic segmentation
B)Benefit segmentation
C)Usage segmentation
D)None of the above

Question 75

____ entails placing the brand in the consumer's mind in relation to other competing products, based on product traits and benefits that are relevant to the consumer.

A)Segmenting
B)Positioning
C)Targeting
D)Actionability

Question 76

Which psychographic segmentation system has developed a tool for both the U.S. and Japanese markets?

A)PRIZM
B)VALS
C)ACE
D)MicroVision

Question 77

For large multinationals attempting to enter the Turkish market, Sabanci Holdings is in great demand and already boasts join venture and distribution partners in companies as varied as Carrefour supermarkets, Dresdner Bank, and DuPont. Which macro-segmentation consideration does this exemplify?

A)Market potential
B)Financial Environment
C)Marketing support infrastructure
D)None of the above

Question 78

What is the correct order in country screening and selection?

A)Evaluating country performance on each of the screening criteria, assigning an importance score to country screening criteria, and calculating a country attractiveness score.
B)Calculating a country attractiveness score, assigning an importance score to country screening criteria, and evaluating country performance on each of the screening criteria.
C)Assigning an importance score to country screening criteria, calculating a country attractiveness score, and evaluating country performance on each of the screening criteria.
D)Assigning an importance score to country screening criteria, evaluating country performance on each of the screening criteria, and calculating the country attractiveness score.

Question 79

The Mont Blanc pen is usually pictured along with a quality business letterhead, with a passport, and/or with an attaché case. This is an example of:

A)attribute/benefit positioning
B)price/quality positioning
C)product user positioning
D)product class positioning

Question 80

Which market segment does Coca-Cola and Kodak target in China with their global brands?

A)"Working Poor"
B)"The Little Rich"
C)"The salaried class"
D)"Yuppies"