Deck 11: International Marketing

Question 1

Marketing is defined as an organizational function that transports goods and services.

Answer 1

False

Question 2

Marketing as a process delivers value to its customers.

Answer 2

True

Question 3

When companies buy goods and services to make other items for sale to consumers, it is called final consumption.

Answer 3

False

Question 4

Goods are intangible items that need to be consumed immediately.

Question 5

Services are tangible items that can be stored for later consumption.

Question 6

The marketing environment is made up of all the forces that exert influence on a company's activities.

Question 7

In international markets, cultural factors have limited influence on consumers' choice of goods and services.

Question 8

The key marketing variables are price, promotion, distribution, and manufacturing.

Question 9

In developing a comprehensive marketing strategy, international companies have to coordinate the various activities to achieve synergy among the variables.

Question 10

In developing international marketing strategy, the marketing environment is more important than the consumers.

Question 11

A target market is defined as a specific segment(s) within a potential market that is defined through a set of variables that can be identified and reached and contains the most likely adopters of a given product or service.

Question 12

Country-of-origin is the effect of increased promotional spending by an international company to make its products more attractive to consumers.

Question 13

A product attribute is defined as the impact of its brand name.

Question 14

When international companies offer the same product using the exact same marketing program, the strategy is called standardization.

Question 15

Price is a critical variable in international marketing as it is used for attracting consumers and also for gaining competitive advantage.

Question 16

An upward shift in price may be a deliberate action by a competitor to change its image and prestige associated with its brand.

Question 17

Price changes, especially reduction in prices are not matched by competitors.

Question 18

In international marketing, it is difficult to establish direct channels.

Question 19

An integrated marketing communication program is a comprehensive plan that evaluates the strategic roles of a variety of communication initiatives in its overall program.

Question 20

International companies use a variety of communication initiatives including advertising, sales promotions, and retailing.

Question 21

International marketing functions include

A) Selecting target markets, making product choices, setting prices, and selecting distribution channels
B) Country risk analysis, environmental analysis, and competitive analysis
C) Economic analysis, political analysis, and regulatory analysis
D) Financial forecasting and setting accounting standards

Question 22

Final consumers buy goods and services for

A) Making other products
B) Generating profits
C) Their own consumption
D) Economic growth

Question 23

Services have the following characteristics

A) They are tangible and can be stored
B) They are intangible and perish
C) They are sold through direct channels
D) They are less expensive than products

Question 24

Marketing variables include

A) Loans and deposits
B) Demand and supply
C) Distribution and communication
D) Culture and social groups

Question 25

It is difficult to develop marketing synergies across countries because

A) Countries are located far apart
B) Countries are in different time zones
C) Countries are regionally integrated
D) Countries vary from one another in economic and other factors

Question 26

Consumers are segmented using the following variables

A) Demographics and purchase behavior
B) Country-of-origin and the region they come from
C) Use of cell phones versus landlines
D) None of the above

Question 27

The product life cycle stages are

A) Environmental, marketing, and market segmentation
B) Introduction, growth, and maturity
C) Small-scale, medium-scale, and large-scale
D) Light usage, medium usage, and heavy usage

Question 28

Factors that affect prices include

A) Political and climatic conditions
B) Distribution and media channels
C) Interest and insurance rates
D) Input costs and price elasticity of demand

Question 29

The following shifts in the environment affect prices

A) Actions of competitors
B) Changes in input costs
C) Changes in rate of inflation
D) All of the above

Question 30

Distribution is essential for

A) A country's economic growth
B) Political stability
C) Reaching the target market
D) The stability of the environment

Question 31

The number of intermediaries used by an international company depends on

A) The host countries political and banking systems
B) The product and consumption rate
C) The demographic breakdown of the population
D) The income distribution of the population

Question 32

Reasons for using shorter channels include

A) The products are bulky and the handling costs are high
B) The country has excellent infrastructure
C) The frequency of purchase of the product is high
D) None of the above

Question 33

Channel members perform different functions including

A) Buying media time and placing advertisements
B) Conducting environmental and market analysis
C) Developing budgets and financial statements
D) Buying, selling, and storing products

Question 34

A streamlined communication program should be able to inform potential consumers

A) Why they should use a particular brand of product
B) Show the brands advantages over competing brands
C) Build consumer loyalty
D) All of the above

Question 35

Some of the basic steps in communications strategies include

A) Identifying target audience, setting communication goals, and selecting media
B) Analyzing the environment, forecasting consumer trends, and analyzing competition
C) Understanding cultural values, social systems, and behavioral patterns of a society
D) None of the above

Question 36

Personal selling is the most effective communication medium because

A) Consumers like to converse with other people
B) It is a two-way communication system
C) It is the least expensive of all communication media
D) It takes very little time to convince consumers of the benefits of a particular brand

Question 37

An international advertising campaign is often developed by

A) The distribution system used by the company
B) The print and broadcast media of a country
C) By an independent advertising agency
D) By the company's sales department

Question 38

The advantages of the Internet as an advertising medium include

A) It is an interactive and low cost medium
B) English is the Internet language
C) The Internet is free and it has limitless space
D) Internet messages can be stored

Question 39

Customer relations management can be used for

A) Offering free tickets to concerts and sports events to the target audience
B) Segmenting markets and preempting customers' concerns
C) For sending promotional materials
D) For making cold calls

Question 40

International companies track the success of their marketing programs by

A) Asking the host government agencies
B) Contacting the political leaders of the country
C) Subscribing to syndicated services such as Ipsos and Nielsen
D) Contacting the press club

Question 41

What are the differences between final and industrial consumers?

Question 42

What are the differences between products and services?

Question 43

What are the benefits of standardization?

Question 44

Discuss international product life cycle.

Question 45

Why is it difficult to standardize process across markets?

Question 46

What is customer relations management?

Question 47

What are country-of-origin effects, and how can they be utilized to an international company's advantage?