Deck 12: Global Marketing

Question 1

Ironically,customer complaints can sometimes result in improved customer service.

Answer 1

True

Question 2

The prices a company charges its overseas subsidiaries are known as transfer prices.

Answer 2

True

Question 3

A study analyzing why households have stopped purchasing a company's product would be an example of marketing research.

Answer 3

True

Question 4

The step in the new product development process in which projections of potential revenues and profits for a potential new product are made is referred to as concept testing.

Question 5

The total number of units of a product that could possibly be sold by all companies doing business in a specific international market is referred to as sales potential.

Question 6

The increased demand for hair and skin care products with Argan oil illustrates how new product ideas can come from unexpected sources.

Question 7

Of the following,which is NOT an option for companies to consider when marketing their products overseas?

A) Selling the same domestic product overseas
B) Modifying products for different countries and regions
C) Developing new products for foreign markets
D) Aligning with international companies and selling their products
E) Incorporating all product differences into one design and developing a global product

Question 8

A channel of distribution that purchases products from a company doing business in a foreign market and then resells them to other buyers is called a(n)_____.

A) freight back-warder
B) freight forwarder
C) agent
D) public channel
E) distributor

Question 9

Nestle had success with its Maggi noodles in South Asia; subsequently they were introduced in Australia.Nestle is using a(n)_____ strategy.

A) vertical
B) horizontal
C) backward
D) forward
E) reverse

Question 10

Agents for companies shipping products overseas who are chiefly involved with physical distribution activities and documentation are called freight forwarders.

Question 11

_____ is frequently used as an overall measure of a nation's income; it represents the total purchasing power of a nation.

A) GDP
B) NLRB
C) PPP
D) PEP
E) CAB

Question 12

A company's international pricing mix involves consideration of four major objectives: performance objectives,prevention objectives,maintenance objectives,and survival objectives.

Question 13

International marketing managers have four main methods of promoting products and services in international markets: advertising,personal selling,sales promotion,and distribution.

Question 14

As the case of Blockbuster indicates,products that have reached the decline stage in domestic markets are unsustainable in emerging markets as well.

Question 15

A diner complains to his server,Alyson,that his meal is not to his liking.Without consulting with her manager,Alyson immediately tells the customer that he will not need to pay for the meal,and offers to bring him a different entree at no charge.Alyson is an empowered employee.

Question 16

There are two major markets within each foreign market that purchase products and services: consumer markets and industrial markets.

Question 17

Product counterfeiting occurs when a company in a foreign country copies an American product as sells it as the "real thing" without the U.S.marketer receiving any compensation.

Question 18

Goldman Sachs estimates that the world's middle class is shrinking worldwide.

Question 19

An adaptation approach to foreign markets means that the marketing strategies a company uses in its international operations will be different than those used domestically.

Question 20

International shipments using different modes of transportation is called _____.

A) freightlining
B) overnight shipping
C) hybridization
D) right-timing
E) intermodal transporter

Question 21

_____ refers to unauthorized importers reselling a manufacturer's product in the manufacturer's domestic market at a price less than what the manufacturer charges in that domestic market.

A) Counterfeiting
B) Arm's length pricing
C) Transfer pricing
D) Dumping
E) Gray marketing

Question 22

Executives at Mary Kay Cosmetics' European operations are conducting a study analyzing why households have stopped purchasing certain products.These executives are engaging in _____.

A) business analysis
B) a concept test
C) marketing research
D) a marketing intelligence system
E) a global product system

Question 23

Prices usually need to be reduced in the _____ stage of the product life cycle due to increased competition.

A) maturity
B) growth
C) decline
D) introduction
E) commercialization

Question 24

Shipping products to overseas markets in trailer-sized containers is called _____.

A) pipelining
B) freight forwarding
C) containerization
D) chunking
E) virtual distribution

Question 25

An advantage of the _____strategy include is that it does not require an up-front investment.

A) indirect
B) direct
C) agent
D) public
E) distributor

Question 26

The step in the new-product development process in which the new product idea is presented to a small sample of the international market to gauge its reaction is called _____.

A) a global product
B) concept testing
C) business analysis
D) product development
E) vertical publication

Question 27

A(n)_____ strategy refers to the use of channels of distribution to market products and services to international markets.

A) indirect
B) direct
C) agent
D) public
E) distributor

Question 28

Agents for companies shipping products overseas who are chiefly involved with physical distribution activities and documentation are called _____.

A) freight back-warders
B) freight forwarders
C) agents
D) public channels
E) physical distributors

Question 29

_____ collects information at one specific time in order to help marketers make better decisions about their overseas markets.

A) Business analysis
B) A concept test
C) Marketing research
D) A marketing intelligence system
E) A global product system

Question 30

Contests and sweepstakes,coupons,end-aisle displays in stores,sponsorships,and trade shows are all examples of _____.

A) personal selling
B) advertising
C) sales promotion
D) publicity
E) distribution

Question 31

_____ pricing objectives are used to keep competitors out of a foreign market.

A) Performance
B) Prevention
C) Maintenance
D) Survival
E) Growth

Question 32

Of the following,which is NOT an advantage of locating R&D facilities in foreign countries?

A) The MNC can use the intelligence of foreign scientists and engineers.
B) New products developed overseas are more likely to be attuned to the company's overseas markets.
C) Often,the technology developed overseas can be transferred back to the home country.
D) It costs more to build R&D facilities overseas.
E) Products originally developed for emerging markets can be successfully sold in developed markets.

Question 33

KFC sells a number of core items around the world,but offers other items tailored to specific markets.KFC is following a(n)_____ strategy.

A) standardization
B) adaptation
C) glocalization
D) marketing research
E) hybrid

Question 34

_____ potential refers to the total number of units of a product that could possibly be sold by all companies doing business in a specific international market.

A) Market
B) Sales
C) Vertical
D) Horizontal
E) Environmental

Question 35

Storage and transportation operations that are used in moving products to a foreign market are called _____.

A) a freight back-warder
B) a freight forwarder
C) an agent
D) a public channel
E) physical distribution

Question 36

_____ refers to performance of various aspects of customer service that meets customer expectations.

A) Integrity
B) Reliability
C) Authenticity
D) Trustworthiness
E) Dependability

Question 37

_____ refers to a price in a foreign market that undercuts the prices of companies competing there.

A) Performance price
B) Product elimination
C) Containerization
D) Dumping
E) Gray marketing

Question 38

There are three major markets within each foreign market that can purchase products and services and needs to be analyzed: consumer markets,the industrial market,and _____ markets.

A) sales
B) environmental
C) government
D) gray
E) reverse

Question 39

What is the last step in the new-product development process?

A) A global product
B) Concept testing
C) Business analysis
D) Market testing
E) Commercialization

Question 40

The _____ market includes companies that purchase products and services such as equipment and machinery,supplies,lubricants,consulting services,cleaning services,advertising,and so on.

A) industrial
B) environmental
C) government
D) gray
E) consumer

Question 41

______ refers to aspect of customer service that allows employees to take care of customer problems immediately without having to consult superiors.

Question 42

Scenario - Bridgemont Industries
Bridgemont Industries has operated on a global basis for over fifty years.It is one of the world's top rated producers of batteries and is renowned for having excellent products and outstanding customer service.In fact,the company is to receive a global award for its products and customer service expertise in the coming year.
Bridgemont is very proud of its employees and acknowledges that without their experience the company would not be rated at the top.The top management has a special reward planned for each customer service representative that will be presented at the global award ceremony in June.Bridgemont feels it is only fair to share a portion of its profits with the ones who helped generate it.
Distribution of its products has never been a problem for Bridgemont Industries.Which one of the following is a distribution method that is least likely to be used by Bridgemont?

A) Use of an indirect strategy of distribution
B) Use distribution channels already in place in the foreign marketplace
C) Use an agent
D) Enlist the services of a foreign distributor
E) Use local government distribution systems

Question 43

_____ is the total number of units of a product that could possibly be sold by all companies doing business in a specific international market.

Question 44

Shipping products to overseas markets in various-sized trailers is called _____.

Question 45

Which is the most focused of advertising media?

A) television
B) radio
C) newspapers
D) magazines
E) direct mail
Enter the appropriate word(s)to complete the statement.

Question 46

_______ refers to stories about a company,its products or services,and its executives that appear in media.

Question 47

International shipments using different modes of transportation refers to _____.

Question 48

_______ is a formal,written procedure to determine which of a company's products should be dropped.

Question 49

Scenario - Atlantic Camera & Film Company
The Atlantic Camera & Film Company has been in operation since the early 1970s.Since its inception in Detroit,Michigan,this company has risen to hold the 35^th spot in the industry.Its reputation for excellent service and exemplary products has gained this company international recognition.Atlantic currently sells over two hundred product per week to customers from foreign nations.
Atlantic's organizational leaders recently decided to begin more intense promotion of the company's products within the international marketplace.They realize this is a golden opportunity to move the company upward in ranking within the industry.While the company will maintain production within the boundaries of the United States,it plans to establish four distribution centers located around the world for its products.The plans include building a distribution site in South America,Europe,Asia,and the Middle East.
Operations in foreign markets are new to the Atlantic Camera & Film Company.While they have made sales within these markets before,the company has never had distribution points located within foreign borders.Which one of the following is least likely to be of high concern to the company as it begins this new endeavor?

A) Conducting an international demographic survey
B) Analyzing the international marketplace
C) Deciding what types of markets to sell its product to
D) Studying the income levels of the individuals within the company's market area
E) Discussing the endeavor with the World Trade Organization

Question 50

_______ refers to a price in a foreign market that undercuts the prices of companies competing there.

Question 51

Scenario - Atlantic Camera & Film Company
The Atlantic Camera & Film Company has been in operation since the early 1970s.Since its inception in Detroit,Michigan,this company has risen to hold the 35^th spot in the industry.Its reputation for excellent service and exemplary products has gained this company international recognition.Atlantic currently sells over two hundred product per week to customers from foreign nations.
Atlantic's organizational leaders recently decided to begin more intense promotion of the company's products within the international marketplace.They realize this is a golden opportunity to move the company upward in ranking within the industry.While the company will maintain production within the boundaries of the United States,it plans to establish four distribution centers located around the world for its products.The plans include building a distribution site in South America,Europe,Asia,and the Middle East.
Atlantic is striving to be as successful as possible within the foreign marketplace.All of the following are options for the company to use in making product sales except which one?

A) Sell the same domestic products in the foreign market
B) Wait for the market to adapt to the products offered
C) The product can be modified for different countries
D) New products can be specially designed for foreign markets
E) A new globally suited product can be designed

Question 52

The percentage of purchases in a category a buyer gives to one vendor is called ______.

Question 53

A compromise strategy between standardization and adaptation is called ______.

Question 54

Scenario - Atlantic Camera & Film Company
The Atlantic Camera & Film Company has been in operation since the early 1970s.Since its inception in Detroit,Michigan,this company has risen to hold the 35^th spot in the industry.Its reputation for excellent service and exemplary products has gained this company international recognition.Atlantic currently sells over two hundred product per week to customers from foreign nations.
Atlantic's organizational leaders recently decided to begin more intense promotion of the company's products within the international marketplace.They realize this is a golden opportunity to move the company upward in ranking within the industry.While the company will maintain production within the boundaries of the United States,it plans to establish four distribution centers located around the world for its products.The plans include building a distribution site in South America,Europe,Asia,and the Middle East.
The Atlantic Camera & Film Company realizes it has many challenges to face while undertaking its international plan for growth.Which one of the following would be least likely to require the company to adapt to differences in the foreign market arena?

A) Most foreign countries use the metric system of measurement
B) Items are often used differently or for different purposes by foreigners than by U.S.citizens
C) The U.S.maintains an English system of measurement
D) A standardization strategy to be used by the company
E) Electrical voltages and systems differ in foreign nations

Question 55

_____ are magazines that target specific industries.

Question 56

Of the following,which is NOT one of the major methods that can be used to promote products and services in international markets?

A) Personal selling
B) Advertising
C) Sales promotion
D) Publicity
E) Distribution

Question 57

_____ refers to the percentage of purchases in a category a buyer gives to one vendor.

A) Performance price
B) Share of wallet
C) Market share
D) Arm's length price
E) Transfer price

Question 58

_____ pricing objectives for international products and services include bottom-line goals such as net profit,return on investment,market share,and penetration.

A) Performance
B) Prevention
C) Maintenance
D) Survival
E) Growth

Question 59

In the _____ stage of the product life cycle,sales gradually increase,as do profits,which often are losses in the early part of this stage.

A) maturity
B) growth
C) decline
D) introduction
E) commercialization

Question 60

Scenario - Bridgemont Industries
Bridgemont Industries has operated on a global basis for over fifty years.It is one of the world's top rated producers of batteries and is renowned for having excellent products and outstanding customer service.In fact,the company is to receive a global award for its products and customer service expertise in the coming year.
Bridgemont is very proud of its employees and acknowledges that without their experience the company would not be rated at the top.The top management has a special reward planned for each customer service representative that will be presented at the global award ceremony in June.Bridgemont feels it is only fair to share a portion of its profits with the ones who helped generate it.
When Bridgemont is selling its products in foreign markets,it must decide how to price them.Which of the following is least likely to be a factor for consideration when it comes to pricing of products being sold in foreign markets?

A) Associated costs
B) Attractiveness of competitive products
C) How high the demand is for the product
D) Competitive product prices
E) Price of product in the U.S.

Question 61

Scenario - Bridgemont Industries
Bridgemont Industries has operated on a global basis for over fifty years.It is one of the world's top rated producers of batteries and is renowned for having excellent products and outstanding customer service.In fact,the company is to receive a global award for its products and customer service expertise in the coming year.
Bridgemont is very proud of its employees and acknowledges that without their experience the company would not be rated at the top.The top management has a special reward planned for each customer service representative that will be presented at the global award ceremony in June.Bridgemont feels it is only fair to share a portion of its profits with the ones who helped generate it.
Bridgemont takes great pride in the expertise of its customer service staff.Which one of the following is least likely to be an attribute demonstrated by this company's customer service department?

A) Arranging for on-time deliveries
B) Avoid call-back when problems arise
C) Warranty explanation
D) Honest and reliable installation and service
E) Accurate shipments

Question 62

Scenario - Bridgemont Industries
Bridgemont Industries has operated on a global basis for over fifty years.It is one of the world's top rated producers of batteries and is renowned for having excellent products and outstanding customer service.In fact,the company is to receive a global award for its products and customer service expertise in the coming year.
Bridgemont is very proud of its employees and acknowledges that without their experience the company would not be rated at the top.The top management has a special reward planned for each customer service representative that will be presented at the global award ceremony in June.Bridgemont feels it is only fair to share a portion of its profits with the ones who helped generate it.
Bridgemont is well versed in conducting operations in the foreign marketplace.All of the following except which one represent methods the company could use to market its products in the foreign market arena?

A) Advertising
B) Trade shows
C) Create negative company publicity
D) Hold contests or sweepstakes
E) Use face-to-face contact with buyers