Deck 13: The International Promotional Mix and Advertising Strategies

Question 1

Because kiosks are so plentiful in developing countries, they are a fairly expensive communication venue for multinational firms if they wish to cover the entire market.

Answer 1

False
Kiosks are valuable and relatively inexpensive communication venues for multinationals. A kiosk is typically required to have the poster displayed in exchange for having the rights to carry the brand.

Question 2

Product placement in movies does not produce a greater level of advertising recall than television advertising.

Answer 2

False
Product placement involves placing brands in movies with a purpose of promoting the product to viewers. Studies have found that product placement in movies can produce a greater level of advertising recall than television advertising.

Question 3

In Rwanda and Burundi international brands are frequently advertised through radio because it is the only broadcast medium available.

Answer 3

False
In Rwanda and Burundi, the primary broadcast medium available is the radio; however, international brands are rarely advertised through this medium. Instead, to reach the mass market in these two countries, billboards are used.

Question 4

In Saudi Arabia, the mailing system is not reliable.

Question 5

English requires more air time for broadcast advertising.

Question 6

Certain types of media might simply not be available in a company's target markets.

Question 7

By using the Hindi language, an international market can successfully communicate to the masses in India.

Question 8

In Germany, the main purpose of the Peugeot bicycle is recreation.

Question 9

English is the language most used in advertising worldwide.

Question 10

In the United States, shopping bags display neighborhood announcements.

Question 11

International advertising is defined as a nonpersonal communication by an identified sponsor across international borders, using broadcast, print, and/or interactive media.

Question 12

In Poland, Pizza Hut is an upscale restaurant.

Question 13

In countries like Saudi Arabia, where the mailing system is reliable, mail is the medium for distributing samples.

Question 14

Infomercials and television shopping networks are still primarily a North American phenomenon.

Question 15

The United Kingdom and Ireland believe that comparative advertising is unfair advertising and prohibit this type of advertising.

Question 16

English is used in many markets because it requires less space in print.

Question 17

Kiosks display advertisements for the international products they sell.

Question 18

Publishers accepting more advertisements than they can print is an example of the challenge of media availability.

Question 19

Cultural differences may create noise in the international communication process.

Question 20

In some countries, and advantage of media is that they cluster ads and separate them from editorial content.

Question 21

Canadian firms have a predilection for standardized communication approach.

Question 22

Coca-Cola uses the Interpublic Group to design its message for advertising worldwide, but it also encourages each country office to appoint local agencies to implement the brand message devised by Interpublic.

Question 23

Shrinking product life cycles encourage companies to use localized communication strategies.

Question 24

Swedish and Argentinean firms frequently use the Objective-and-Task method of budget setting while firms from Canada and Singapore use it less frequently.

Question 25

More than half of the top 50 advertising agencies are from the United States.

Question 26

The decision of whether or not to standardize is most often contingent on the degree of cultural similarity between the sponsor and the target market.

Question 27

The Historical method of budget setting is recommended for firms that operate in unstable economic environments.

Question 28

A company that uses a localized strategy is more likely to hire a local advertising agency.

Question 29

Standardization of communication is recommended when there is similarity between senders and receivers in the communication process.

Question 30

Hiring an international advertising agency with local offices normally precludes the use of local advertising agencies.

Question 31

The Objective-and-Task method is the most popular method used by multinational corporations in the process of deciding on the advertising budget.

Question 32

The Percentage-of-Sales method is most popular in Brazil and less popular in Germany.

Question 33

Eastern Bloc countries, China, and Indonesia are increasing their advertising spending.

Question 34

France has regulations requiring advertisers to use only French in their advertisements.

Question 35

In Europe, comparative advertising is perceived as unfair advertising; consequently, this type of advertising is prohibited.

Question 36

On average, firms worldwide allocate ninety percent of their advertising budgets to advertising to the final consumer.

Question 37

The United States spends on advertising more than half of the world total.

Question 38

In general, if a company uses a standardized strategy for its products or services, it is more likely to use local advertising agency.

Question 39

The Percent-of-Sales method is difficult to adopt for firms entering new markets.

Question 40

The Competitive-Parity method of budgeting is not recommended for firms that are entering a new market or whose brands are not known locally.

Question 41

Which of the following promotes an effective international communication process?

A)Cultural similarity
B)Audience inattention
C)Competition from other channels
D)Noise

Question 42

Which of the following media is considered to be a personal medium?

A)Print
B)Broadcast
C)Interactive
D)Trade show

Question 43

In much of the rest of the world, especially in developing countries, ____ display advertisements for the international products they sell.

A)Shopping bags
B)Kiosks
C)Outdoor umbrellas
D)All of the above

Question 44

When encoding the message, the source determines if the ____ of consumers in the international target market are different from those in the home-country target market.

A)attitudes, interests, and motivations
B)demographics and psychographics
C)income, media availability, and language
D)media availability, media reliability, and media restrictions

Question 45

Through which medium do marketers in Burundi reach the mass market?

A)Television
B)Radio
C)Newspapers
D)Billboards

Question 46

Which of the following display neighborhood announcements in the United States?

A)Shopping bags
B)Kiosks
C)Outdoor umbrellas
D)All of the above

Question 47

In the international communication model, the consumer is

A)the sender
B)the encoder
C)the receiver
D)a medium

Question 48

Why do some non-U.S. firms choose to advertise in English?

A)It is used to stress a cosmopolitan attitude.
B)English requires less space in print than many languages.
C)It endows the product with status.
D)All of the above are true.

Question 49

Why are marketers likely to use cinema advertisements in Brazil instead of using television commercials?

A)Few Brazilians own televisions.
B)The government owns all of the Brazilian television channels.
C)Television ads in Brazil tend to be ignored.
D)Low literacy rates affect television advertisements adversely.

Question 50

Which of the following is not a component of the international promotional mix?

A)Product management
B)Salesforce management
C)International sales promotion
D)International advertising

Question 51

In which country may television advertisements be aired only between programs, in clusters?

A)Canada
B)Mexico
C)Brazil
D)Australia

Question 52

Which of the following is not a source of noise in the international communication channel?

A)Cultural differences
B)Audience inattention
C)Competition from other channels
D)All of the above are sources of noise.

Question 53

Which of the following display advertisements for plays, concerts and art exhibits in the United States?

A)Shopping bags
B)Construction fences
C)Outdoor umbrellas
D)All of the above

Question 54

What language is most used in advertising around the world?

A)French
B)English
C)Chinese
D)Hindi

Question 55

Which of the following are valuable, yet inexpensive communication venues for international companies?

A)Billboards
B)Kiosks
C)Print advertising
D)All of the above

Question 56

Which language should be used if a marketer is targeting a more educated consumer in India?

A)Hindi
B)Malealam
C)Tamil
D)Telegu

Question 57

In which country is Pizza Hut considered to be an upscale restaurant?

A)United Kingdom
B)Poland
C)France
D)Germany

Question 58

Why is it not advisable to distribute samples through the mail in India?

A)In India, a direct mail package might be perceived as suspicious.
B)The Indian mail system is unreliable.
C)It is illegal to use the mail system to distribute samples in India.
D)The hot and humid conditions in India frequently damages mail samples.

Question 59

In some countries, local newspapers might not be of a high enough quality to print advertising for a global brand. Which type of media challenge does this represent?

A)Media availability
B)Media reliability
C)Media validity
D)Media restrictions

Question 60

Which of the following is not a media challenge?

A)Media availability
B)Media reliability
C)Media validity
D)Media restrictions

Question 61

Which method of budget allocation is not recommended for firms that operate in unstable economic, political, or competitive environments?

A)Objective-and-task
B)Historical
C)Competitive-parity
D)All-you-can-afford

Question 62

Which method of budget allocation is difficult to adopt for firms entering new markets?

A)Objective-and-Task
B)Percent-of-Sales
C)Competitive-parity
D)Executive-judgment

Question 63

If advertising to less educated consumers, the advertisements need to be translated into the local language. What country would present most problems because the campaign would need to be translated into multiple languages?

A)Switzerland
B)India
C)China
D)Pakistan

Question 64

Which method of budget allocation is the most popular in Brazil and Hong Kong?

A)Objective-and-task
B)Percent-of-sales
C)Historical
D)Competitive-parity

Question 65

Firms from which country are the most likely to transfer a campaign across markets (i.e., use a standardized campaign)?

A)The United States
B)Germany
C)Canada
D)Japan

Question 66

Which advertising agency has been handling the Coca-Cola account in 60 countries since 1942 and until recently?

A)Leo Burnett
B)Young and Rubicam
C)Ogilvy & Mather
D)McCann Erickson

Question 67

Which country forbids the use of English in all broadcast advertisements?

A)France
B)Spain
C)Saudi Arabia
D)Russia

Question 68

Which country limits the use of children as endorsers in advertising and prohibits the use of children's heroes as endorsers?

A)Germany
B)The United Kingdom
C)France
D)Singapore

Question 69

In determining the advertising budget, research has shown that, on average, ____ percent is allocated to trade (wholesaler, retailer, dealer) advertising for firms worldwide.

A)10
B)20
C)80
D)90

Question 70

Which type of budget allocation method should not be used for firms that are entering a new market or whose brands are not known locally?

A)Objective-and-task
B)Executive-judgment
C)Competitive-parity
D)All-you-can-afford

Question 71

According to the text, which country permits comparative advertising?

A)The United Kingdom
B)Belgium
C)The Netherlands
D)Luxembourg

Question 72

Which item is not a good reason for using a standardized message strategy?

A)Differing literacy rates across regions
B)Shrinking product life cycles
C)Common product preferences
D)Cost reductions by avoiding duplicating creative effort

Question 73

For firms with financial limitations, which budgeting method is the most likely to be used?

A)Objective-and-task
B)Percent-of-sales
C)Executive-judgment
D)All-you-can-afford

Question 74

Which country spends most on advertising?

A)United States
B)United Kingdom
C)Japan
D)The Netherlands

Question 75

Which countries are greatly increasing their advertising expenditures?

A)Russia, Hungary, China, and Indonesia
B)France, Belgium, and Morocco
C)Japan and North Korea
D)The Netherlands and South Africa

Question 76

Which of the following is not in the top five international advertising agencies according to the text?

A)Omnicom Group
B)The Interpublic Group
C)Young & Rubicam
D)Leo Burnett

Question 77

Which method of budget setting is the most popular method used by multinational corporations?

A)Objective-and-task
B)Percent-of-sales
C)Historical
D)Competitive-parity

Question 78

Which product is not allowed to be advertised on television according to the European Union Directive Concerning Television Broadcasting?

A)Liquor
B)Tobacco
C)Firearms
D)Children's toys

Question 79

Which language requires less print space and provides a cosmopolitan and status image?

A)French
B)English
C)Chinese
D)Spanish

Question 80

Which of the following is not an advantage offered by local agencies?

A)Knowledge of the local market
B)Facilitation of interaction with the local media
C)Quality of advertising
D)All of the above are advantages of local agencies.