Deck 20: International Advertising and Promotion

Question 1

Advertising in China was once banned but now is encouraged as part of China's:

A)economic development efforts
B)global supremacy aspirations
C)Internet strategy
D)shift from democracy to communism
E)all of the above See also Global Perspective 20-1.

Answer 1

A

Question 2

Which of the following factors is limiting growth opportunities in the U.S.market for many companies?

A)slow population growth
B)saturated markets for many products and services
C)intense competition from domestic companies
D)intense competition from foreign companies
E)all of the above

Answer 2

E

Question 3

The U.S.has been experiencing a continuing balance of trade _____ that _____ the importance of international marketing efforts by U.S.companies.

A)surplus;increases
B)surplus;decreases
C)deficit;increases
D)deficit;decreases

Answer 3

C

Question 4

Which of the following is NOT a part of the economic environment of a foreign country?

A)stage of economic development
B)economic infrastructure
C)currency stability
D)exchange rates
E)age distribution of the population

Question 5

Many U.S.firms need to market their products and services internationally to:

A)extend a product's life cycle
B)take advantage of favorable market conditions and growth opportunities in foreign countries
C)counter adverse demographic or economic conditions in domestic markets
D)seek growth when demand in domestic markets has stagnated
E)do all of the above

Question 6

A balance of trade deficit exists when the:

A)value of imports exceeds that of exports
B)value of exports exceeds that of imports
C)supply of imports exceeds the demand for them
D)the value added by the exporting nation exceeds that added by the importing nation
E)the value of exports and imports are about equal

Question 7

When global marketers of consumer goods first consider expansion into a developing country,they often start by:

A)weighing the cost political access as compared to the internal operative imperative
B)assessing the roadblocks associated with global distribution
C)assessing the potential for democracy to flourish in a country where less-than-democratic marketing traditions exist
D)examining the daily lives of these consumers including their needs and aspirations
E)examining the complexity of cultural determinism as compared to the need for aspirational significance See opening vignette.

Question 8

Which of the following is NOT an example of a major external environmental factor that must be considered when analyzing the international marketing environment?

A)economic factors
B)cultural factors
C)demographic factors
D)pricing factors
E)political/legal factors

Question 9

A U.S.executive in Namibia in Africa experienced trouble negotiating a franchise deal with local investors because the electricity was constantly shutting off.One of the investors was unable to attend the meeting because there is so little public transportation in the country.These problems indicate a problem with Namibia's:

A)demographic environment
B)economic infrastructure
C)balance of payments
D)cultural system
E)advertising system

Question 10

Which country in South America has the largest consumer market?

A)India
B)Brazil
C)Argentina
D)Mexico
E)Colombia

Question 11

Traditionally,Chinese companies have competed based on price but many are trying to move away from this strategy by:

A)expanding global distribution systems internally
B)product placement in Olympic advertising
C)joint ventures with leading manufacturers from Vietnam
D)expanding their promotional mix to include diverse artistic promotional messages
E)developing higher-end products with more brand equity See also Global Perspective 20-1.

Question 12

Many tobacco companies and breweries in the U.S.are focusing their efforts on international markets to sustain growth because:

A)sales in the U.S.are declining
B)consumers outside the U.S.are not as litigious
C)regulatory pressure in the U.S.is having a negative impact on their sales and making it increasingly difficult to market their brands
D)of strong market opportunities available in foreign countries
E)of all of the above reasons

Question 13

Factors such as size of the population,age distribution,education,and income levels are part of a country's _____ characteristics.

A)economic
B)demographic
C)cultural
D)political/legal
E)lifestyle

Question 14

When the CEO of International Partners,Ltd.was in Katmandu,the capital of Nepal,he found that 90 percent of his telephone calls didn't connect to the party he was calling.This represents a problem with Nepal's:

A)demographic environment
B)economic infrastructure
C)balance of payments
D)cultural system
E)advertising system

Question 15

Which of the following companies spends the most annually on worldwide advertising?

A)Fiat
B)Nestle SA
C)Toyota
D)Procter & Gamble
E)Sony

Question 16

The difference between the monetary value of a nation's exports and imports is its:

A)added value
B)international trade
C)balance of trade
D)balance of payments
E)value of exports

Question 17

According to an international marketing scholar,the most visible as well as the most culture bound part of a firm's marketing functions is its:

A)pricing
B)promotion
C)product development
D)distribution
E)inventory management

Question 18

Which of the following companies annually spends the most on advertising outside the U.S.?

A)Procter & Gamble
B)Nestle SA
C)Unilever
D)General Motors
E)Toyota

Question 19

The communications,transportation,financial and distribution networks of a country are part of it's:

A)political/legal environment
B)culture
C)economic infrastructure
D)demographic environment
E)international interface

Question 20

Why are international markets so important to many U.S.companies?

A)The domestic market for their products is saturated.
B)The industries or markets in which they compete face unfavorable environmental trends.
C)There is less competition and more growth potential in foreign markets.
D)Many companies are facing intense competition from imports in domestic markets and must aggressively pursue international markets.
E)All of the above are reasons why international markets are so important to many U.S.companies.

Question 21

Government regulations and controls in a country can affect which aspect of a company's advertising program in a foreign country?

A)the content of the ads
B)the media the advertisers can use
C)the use of foreign languages in ads
D)the production location of an ad
E)all of the above

Question 22

The only South American country where Coca-Cola is not the market leader is Peru where local tastes prefer Inca Kola.Inca Kola is golden yellow in color and tastes like banana-flavored bubble gum.Which environmental factor is most responsible for the fact Coca-Cola does not sell well in Peru?

A)economic
B)demographic
C)political
D)cultural
E)infrastructure

Question 23

_____ factors of the international environment probably create more problems for advertisers than any others since they directly impact the ability to communicate effectively with consumers in foreign countries.

A)Demographic
B)Economic
C)Cultural
D)Political
E)Marketing mix

Question 24

Variables such as language,customs,tastes,values and life styles are part of a country's:

A)cultural environment
B)infrastructure
C)demographic environment
D)regulatory environment
E)political legal environment

Question 25

A delivery service must understand that as a result of _____ differences,Europeans are not as time-sensitive as Americans,and Asians are even less time sensitive than Europeans.

A)economic
B)demographic
C)political
D)cultural
E)infrastructure

Question 26

Diet Coke is known as Coca-Cola Light in Germany,France and many other countries because these countries have legal restrictions prohibiting the use of the word diet.This is an example of how _____ factors affect global marketing.

A)economic
B)demographic
C)political/legal
D)cultural
E)infrastructure

Question 27

_____ are beliefs and goals shared by members of a society regarding ideal end states of life and modes of conduct.

A)Cultural values
B)Ethical attitudes
C)Learned perceptions
D)Ethical perceptions
E)Cognitive responses

Question 28

An American sporting goods manufacturer wanting to sell on the Belgian home shopping channel would find that different laws govern the people who live in the Flemish communities,the German communities and the French communities that exist in the nation.For instance,in the French-speaking community of Waloons in Belgium the home shopping channel is legal.It is an illegal operation,however,in Flanders,the area of the country where Flemish is spoken.This is an example of how _____ factors affect global marketing.

A)economic
B)demographic
C)political/legal
D)cultural
E)infrastructure

Question 29

To reach out to the youth market in the Middle East Coca-Cola and Pepsi corporations have:

A)pressured area governments into creating a single set of laws on advertising in the Middle East and established strict policies are their enforcement
B)called for each Middle Eastern country to determine its own policies on advertising regulation
C)used a variety of IMC tools including sponsorships and branded entertainment.
D)emphasized their association with America and American foreign policies
E)targeted parents because of their strong influence on teenagers consumption preferences

Question 30

Since the European Union banned the use of food dyes in seafood,the salmon market has suffered.People mistakenly believe that salmon is naturally pink.Unfortunately,salmon is an unappetizing gray color.This is an example of how _____ factors can inadvertently hurt small businesses.

A)economic
B)demographic
C)political/legal
D)cultural
E)infrastructure

Question 31

Direct marketing experts believe loyalty programs are poised for tremendous growth in South America.These experts believe as a result of the importance of personal relationships as well as a strong sense of family that is pervasive on the continent,marketing programs that emphasize relationships will perform better than others.This strong sense of family and the importance of relationships would both be classified as:

A)cultural values
B)ethical attitudes
C)learned perceptions
D)ethical perceptions
E)cognitive responses

Question 32

_____ is a marketing approach that assumes the needs satisfied by a product or service and the way it is used are the same everywhere in the world,and therefore utilizes a common marketing approach in all countries.

A)Global marketing
B)Universal marketing
C)Localized marketing
D)Nationalized marketing
E)Countertrading

Question 33

Advertisers can handle potential problems that may arrive from diversity in language and cultural differences in signs and symbols in various countries by:

A)using a local ad agency
B)consulting local employees
C)hiring companies that specialize in translating advertising slogans and copy into local languages
D)consulting local employees
E)doing any or all of the above

Question 34

Most Asian women are shy about their bodies.Eight-two percent of all Korean women sleep with underpants and a bra under their nighties.This would be important _____ information to a company like Victoria's Secret as it expands into Korean markets.

A)demographic
B)economic
C)cultural
D)political
E)infrastructure

Question 35

,Dutch and German because all three languages are commonly spoken in Belgium.This language difficulty represents a _____ problem for a U.S.company trying to sell its products on the Belgian home shopping channel.

A)demographic
B)economic
C)cultural
D)political
E)infrastructure

Question 36

Polaroid Corporation encountered great problems when it attempted to market instant cameras in France.The French consumer saw little need for having a picture developed instantly.This indicates Polaroid did not understand the French _____ environment.

A)demographic
B)economic
C)cultural
D)political/legal
E)media

Question 37

:

A)cultural value
B)ethical attitude
C)learned perception
D)ethical perception
E)cognitive response

Question 38

A U.S.exporter of baby furniture would be interested in how many people are in the Full Nest I stage of the family life cycle in a country that is was planning on exporting its products to.This type of information is part of a nation's _____ environment.

A)economic
B)demographic
C)cultural
D)political/legal
E)lifestyle

Question 39

In France,cosmetics are used heavily by men as well as women and advertising directed to the male market is common.Consumers in the U.S.are heavier users of personal hygiene products such as deodorants and mouthwashes.These are examples of _____ differences that affect consumption patterns.

A)demographic
B)economic
C)cultural
D)regulatory
E)generic

Question 40

Some governments require local production of any commercials shown on television in their countries to:

A)create jobs for local production companies
B)prevent large foreign ad agencies from dominating the advertising business in their country
C)protect their cultural values
D)support the nationalistic viewpoint of the government
E)do all of the above

Question 41

Products such as Swiss watches,German automobiles and French wine can be promoted using global advertising campaigns because they:

A)are all high tech products
B)appeal to market segments with universal tastes and interests
C)come from countries that have strong reputations for making these products
D)can be advertised using totally visual appeals
E)offer all of the above advantages

Question 42

The concept of ______ deals with all elements of a firm's marketing mix while the concept of _____ deals specifically with the communication aspect of marketing.

A)global marketing: global advertising
B)global advertising: standardization
C)global advertising: global marketing
D)standardization: global marketing
E)adaptation: standardization

Question 43

Which of the following is NOT an advantage associated with the use of global marketing and advertising?

A)economies of scale in production and distribution
B)lower marketing and advertising administrative costs
C)lower advertising production costs
D)the need to adapt the marketing and advertising program to cultural differences
E)the ability to develop and maintain a consistent international brand or company image

Question 44

Which of the following would be the best example of a product that would probably appeal to a global market segment?

A)Scotch whiskey
B)Swiss chocolates
C)ear rings and necklaces made from Colombian emeralds
D)CD players
E)all of the above

Question 45

:

A)localized advertising approach
B)application of the "think global,act regionally" approach to international advertising
C)totally global or standardized approach
D)totally customized approach
E)ethnocentric approach to advertising

Question 46

Which of the following would make the use of a standardized,global advertising approach difficult?

A)cultural differences
B)differences in economic development of countries
C)differences in media availabilities
D)differences in consumer needs and usage patterns
E)all of the above

Question 47

A study of college students' knowledge of the country-of-origin of products showed:

A)heightened sensitivity among today's college student to the quality associated with country-of-origin,especially associated with electronic products
B)lack of concern where products are made
C)most American college students prefer products from Russia and Mexico
D)the vast majority of college students are not aware of the country of origin of most brands
E)all of the above

Question 48

Products from countries with national reputations for quality and/or a distinctive image that can be used as the basis for global advertising capitalize on the:

A)ability to cross sell
B)country-of-origin effect
C)customary and accepted perception
D)self-regulation of global images rule
E)Central Hudson test

Question 49

The dominant strategy used by most international advertisers today is to:

A)centralize all of the marketing mix elements except promotion
B)use localized advertising
C)"think locally and act globally"
D)"think globally and act regionally"
E)use standardized advertising

Question 50

Opponents of the standardized global advertising approach argue that very few products lend themselves to global advertising because of differences in:

A)culture
B)markets
C)levels of economic development
D)media availabilities
E)all of the above

Question 51

Which of the following products/services would be LEAST suitable for global advertising appeals?

A)jewelry
B)cigarettes
C)IBM personal computers
D)airline service
E)Duncan-Hines cake mixes

Question 52

Beck's beer has developed a global advertising campaign that focuses on the brand's German heritage and notes it is the best selling beer in Germany.Beck's global campaign is taking advantage of the fact:

A)beer preferences are the same in every country
B)people do not develop a brand loyalty for beer
C)Germany has an international reputation for great brewers of beer
D)beer can be promoted using visual appeals
E)people like to experiment with different beer tastes

Question 53

Coffee seems like a fairly simple and unambiguous term.But,in Great Britain,the word suggests a large mug filled with equal quantities of lukewarm water,instant coffee granules,milk,and sugar.Many other terms that seem the same aren't,and help to explain why marketers have so much trouble with:

A)cultural infrastructures
B)cultural changes
C)global advertising
D)affective and cognitive responses
E)operating within the restrictions set by the Maastricht Treaty

Question 54

_____ is an advertising format where ads follow the same basic approach but themes,copy,and visual elements may be adjusted

A)Global advertising
B)Local advertising
C)Pattern advertising
D)Format advertising
E)Ad standardization

Question 55

Which of the following types of products/service would be well suited to the use of a global advertising appeal?

A)brands that are promoted with image campaigns that play to universal appeals such as sex or wealth
B)products that play to universal motives and can be advertised using image or emotional appeals
C)high-tech products being introduced for the first time
D)products that appeal to market segments in each country with similar tastes,interests,needs,and values
E)all of the above

Question 56

Which of the following is an advantage associated with the use of global marketing and advertising?

A)economies of scale in production and distribution
B)lower marketing and advertising administrative costs
C)simplification of coordination and control of marketing and promotional programs
D)the ability to develop and maintain a consistent international brand or company image
E)all of the above

Question 57

_____ was the marketing scholar who popularized the concept of global marketing.

A)Phillip Kotler
B)John Naisbitt
C)Theodore Levitt
D)Peter Drucker
E)Robert Holloway

Question 58

British Airways believes it is very difficult to differentiate itself from other major airlines on the basis of schedules,routes and price.However,the airline thinks it can be differentiated on the basis of service and has decided to focus much of its effort on image advertising using the theme "The World's Favorite Airline".Which of the following is correct regarding this type of advertising campaign?

A)This campaign will definitely require a localized approach with different ads for each country.
B)This campaign could easily be adapted to a global campaign since the focus is on service and image,which are easily understood by airline passengers in all countries.
C)This campaign will require a localized strategy since perceptions of service will definitely be different among airline passengers in every country.
D)British Airlines should forget the service campaign and focus on price since international flights are chosen on a price basis.
E)None of the above statements about the ad campaign for British Airways is true because no generalizations can be made from the information given.

Question 59

Weight Watchers,having achieved a 50 percent market share in the United States,was ready to move into international markets.The company found it had to introduce new diets and weight-loss measures on a country-by-country basis even though it maintained its basic ad campaign.Weight Watchers used:

A)localized advertising
B)consistency advertising
C)a standardized formatting strategy
D)pattern advertising
E)none of the above

Question 60

:

A)localized advertising approach
B)application of the "think global,act regionally" approach to international advertising
C)totally global or standardized approach
D)totally customized approach
E)ethnocentric approach to advertising

Question 61

Allise Industries manufactures and exports copper wiring to markets all over the world.It has adopted an advertising organizational structure in which its managers in each country or region have the authority to make decisions for their market.Allise Industries has a _____ structure.

A)centralized organizational
B)decentralized organizational
C)matrix
D)localized
E)globalized

Question 62

The _____ is an annual report that provides demographic and economic data on more than 200 countries.

A)Predicast Report
B)NCH Promotional Services Report
C)World Population Report
D)United Nations Statistical Yearbook
E)International Marketing Handbook

Question 63

When Campbell's introduced its condensed soup in Great Britain it made no changes to the product as we know it in the U.S.The British,however,thought the soup was expensive and in very small cans-they were unaware of the need to add water.When this campaign was developed,Campbell's undoubtedly did not use:

A)a centralized approach to its advertising
B)local agency for each national market
C)a public relations agency
D)creative boutiques
E)a hierarchical approach to its advertising

Question 64

Which of the following statements about making creative decisions for international advertising is true?

A)The creative approach used in a company's primary market usually will transfer well to foreign markets.
B)Creative strategies may have to be different for each market depending on factors such as consumers' usage patterns,cultural backgrounds and lifestyles.
C)Emotional appeals such as humor work well in virtually any country.
D)Sexual appeals work very well in nearly every country.
E)All of the above statements about making creative decisions for international advertising are true.

Question 65

Why are global marketers consolidating their advertising into one agency?

A)to increase efficiency
B)to gain greater leverage over their agencies
C)to develop a consistent global image
D)because agencies now have the ability to communicate globally
E)for all of the above reasons

Question 66

Which of the following is a criterion that will influence a company's selection of an agency to handle its international advertising?

A)the way the company is organized for international advertising
B)the size of the company's international business
C)the level of control desired by the company
D)the agency's creative capabilities
E)all of the above

Question 67

In planning advertising for the 2008 Olympics,international travel agencies discovered they needed to use different ad campaigns to appeal to travelers from different countries.Americans wanted a trip that allowed them to have an extended stay.Japanese travelers went to attend specific events and wanted to return home as soon as the events were over.Global travel agencies gave the managers of their foreign offices the authority to develop country-appropriate advertising.This is an example of how a _____ advertising organizational structure works.

A)centralized
B)decentralized
C)pattern
D)globalized
E)matrix

Question 68

The U.S.federal government agency that works closely with U.S.companies to help them sell their products and services to foreign markets is the:

A)Federal Trade Commission
B)Overseas Business Commission
C)U.S.Department of Commerce
D)United Nations
E)National Chamber of Commerce

Question 69

Which of the following is NOT an advantage associated with a centralized organizational structure?

A)ease of adapting to local markets
B)less duplication of services and costs
C)fewer burdens on local management
D)possibility of presenting a unified brand image worldwide
E)elimination of the need to defend local decisions to the home office

Question 70

:

A)U.S.-based international agency
B)U.S.-based agency with regional offices that could serve each country
C)local agency for each national market
D)in-house agency
E)specialty agency

Question 71

Many advertising agencies are moving their offices from Hong Kong to ___________ to be closer to the world's largest consumer market,China.

A)Beijing
B)Hanoi
C)Lhasa
D)Shanghai
E)Tokyo

Question 72

The organizational approach to international advertising used by Levi Strauss & Co.which consists of a vice president of global marketing who oversees the company's marketing program in 60 countries but still provides autonomy to local and regional marketing directors is an example of a:

A)centralized approach
B)totally global approach
C)decentralized approach
D)combination of the centralized and decentralized approaches
E)matrix network

Question 73

Which of the following types of marketing information would be most difficult to find in foreign markets,especially in developing countries?

A)demographic characteristics
B)information on economic conditions
C)information on cultural norms and values
D)information on consumers' product usage,brand attitudes and media preferences and usage
E)information on population size and characteristics

Question 74

The primary reason many companies do not conduct advertising research in international markets is due to:

A)the language differences
B)high costs
C)efficiencies of scale
D)the fear of losing a competitive advantage
E)the lack of local advertising agencies

Question 75

Local managers operating in an international company with a decentralized organizational structure will be responsible for:

A)the selection of ad agencies
B)approval of creative ad themes and executions
C)conducting advertising research
D)the development of advertising budgets
E)doing all of the above

Question 76

During a World Cup soccer match,both McDonald's and Coca-Cola made the mistake of reprinting the Saudi Arabia flag,which includes sacred words from the Koran,on disposable packaging used in promotions.The uproar over this misuse of a cultural symbol forced a recall of the offending items._____ could have prevented this recall.

A)Advertising research
B)Dyadic communication
C)Creative decision-making
D)A global approach to advertising
E)A centralized approach to advertising

Question 77

Why are global marketers consolidating their advertising into one agency?

A)as a way of implementing the philosophies of Theodore Levitt
B)due to terrorists' activities in other parts of the world
C)because the importance of cultural barriers has declined significantly
D)because agencies now have the ability to communicate globally
E)for all of the above reasons

Question 78

Which of the following is NOT identified by the text as a criterion that will influence a company's selection of an agency to handle its international advertising?

A)size of company's international business
B)type of product being advertised
C)whether the company is centralized or decentralized
D)public relations services offered by the agency
E)quality of agency work

Question 79

Many American companies prefer to use a U.S.based international agency because:

A)U.S.agencies are the most creative
B)U.S.agencies understand world markets better than foreign agencies do
C)U.S.agencies give the advertiser better control of the advertising process and facilitate the coordination of international advertising
D)U.S.based agencies generally understand local markets better than agencies located in these countries
E)the U.S.culture is the most used as a basis for understanding other cultures

Question 80

Automated Logic Systems manufactures high-tech building automation systems and sells them to Latin American and Asian buyers.The company has decided to use _____ and make all major strategy and budgeting decisions at the home office.

A)a centralized organization structure
B)a decentralized organizational structure
C)a combination structure
D)a localized structure
E)combination marketing