Deck 17: International Advertising and Promotion

Question 1

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

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

Answer 1

C

Question 2

Brands or messages that have a primarily verbal appeal are best suited for worldwide ad campaigns.

Answer 2

True

Question 3

Swiss-based Nestlé and Netherlands-based Unilever are two of the world's largest consumer-product companies as a result of:

A)the favourable climatic conditions prevailing in the countries.
B)the large population existing in these countries.
C)the intense competition they face from domestic companies.
D)their ability to market their brands to consumers around the world.
E)their concentration on domestic markets and minimal expansion to international markets.

Answer 3

D

Question 4

A centralized approach to organizing for advertising is not suitable when market and media conditions are similar from one country to another.

Question 5

Centralization of international advertising may also be best when a company operates through foreign distributors or licensees who do not become involved in the marketing and promotional process.

Question 6

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

A)high population growth,which leads to an unfavorable market environment.
B)the unsaturated domestic market,which leaves little possibility for expansion.
C)declining domestic consumption as a result of restrictions on their marketing and advertising efforts.
D)the saturated markets in foreign countries.
E)the high competition prevalent in foreign markets.

Question 7

A decentralized approach to organizing for advertising should be adopted when the company can use standardized advertising.

Question 8

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 9

International markets are important to small and mid-size companies as well as large multinational corporations.

Question 10

It is extremely easy to develop an effective universal approach to marketing and advertising a single product across the world.

Question 11

Product standardization is becoming increasingly important as a result of longer product life cycles.

Question 12

One of the main advantages of global marketing and advertising is economies of scale in production and distribution.

Question 13

Many companies prefer a centralized organizational structure to keep control of the marketing effort and corporate and/or brand image.

Question 14

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 15

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

A)Huge population growth
B)Saturated markets for many products and services
C)Low competition from domestic companies
D)Low competition from foreign companies
E)Large markets for foreign products

Question 16

Products that are steeped in the cultural heritage of a country are best suited to worldwide appeals.

Question 17

The part of a firm's marketing functions that is the most visible to consumers as well as the most culture-bound is its:

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

Question 18

Product standardization results in higher production costs.

Question 19

Had globalization not occurred,most European companies would not have been able to compete against larger U.S.and Japanese companies because of:

A)the lack of funds among Europeans.
B)the inability to achieve economies of scale owing to the small size of most of the European nations.
C)the lack of education about international markets.
D)the cultural differences prevailing amongst nations.
E)the political and legal differences amongst the nations.

Question 20

Demographic data can provide insight into the living standards and lifestyles in a particular country to help companies plan ad campaigns.

Question 21

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 22

Which of the following is an example of a major external environmental factor that a company must consider when analyzing the international marketing environment?

A)economic factors
B)product factors
C)promotional factors
D)pricing factors
E)advertising factors

Question 23

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 24

_____ is an example of a cultural factor affecting international marketing.

A)Laws
B)Currency stability
C)Income levels
D)Language
E)Government regulations

Question 25

Which of the following is a cultural factor affecting international marketing?

A)Currency stability
B)Lifestyles
C)Distribution of wealth
D)Nationalism
E)Government policies

Question 26

In the past few years,international toy manufacturers have been targeting the South American market as a result of the growth in the youngest segment of the population.Which of the following factors has influenced this decision?

A)Psychographic factors
B)Geographic factors
C)Demographic factors
D)Cultural factors
E)Legal factors

Question 27

_____ variables marketers must consider include language,customs,tastes,attitudes,lifestyles,values,and ethical/moral standards.

A)Demographic
B)Economic
C)Political
D)Cultural
E)Legal

Question 28

Most Asian women are shy about their bodies.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 29

Which of the following forms a part of the demographic environment of a country?

A)Age distribution
B)Distribution of wealth
C)Lifestyles
D)Norms and customs
E)Exchange rates

Question 30

_____ 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 31

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

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

Question 32

The communications,transportation,financial and distribution networks of a country are part of its:

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

Question 33

China and India in particular are two countries that are transforming the global economy.One of the main reasons for this is:

A)high population growth rate.
B)lack of savings habit among the nations.
C)less demand and needs.
D)lower economic growth rates.
E)lack of demand for luxury items.

Question 34

For companies wishing to enter a new market,a country's economic conditions indicate its ____,since products and services can be sold only to countries where there is enough income to buy them.

A)size of population
B)attitudes towards multinationals
C)cultural norms and values
D)present and future potential for consuming
E)occupation distribution

Question 35

A U.S.exporter of baby furniture is planning to export its products to another country.The company wants to know how many people are in the Full Nest I stage of the family life cycle in that country.This type of information is part of a nation's _____ environment.

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

Question 36

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 37

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 38

Which of the following is a part of the economic environment of a foreign country?

A)Language
B)Values and ethics
C)Currency stability
D)Size of population
E)Education levels

Question 39

The 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 40

To market on the Belgian home shopping channel,advertisers have to prepare programs in Flemish (a version of Dutch),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)infrastructure
D)political
E)cultural

Question 41

Which of the following statements about cultural values is true?

A)In today's globalized market,cultural differences are negligible.
B)The values and beliefs of a society can affect its members' receptivity toward foreign products and services.
C)Cultural values are personal values and are only applicable on an individual level.
D)A highly ethnocentric culture will be extremely receptive to foreign products.
E)Cultural values have no effect on the market or consumer behavior.

Question 42

Chinese values are centered around ____,which stresses loyalty and interpersonal relationships.

A)ethnocentrism
B)Confucianism
C)the country-of-origin effect
D)the halo effect
E)xenocentrism

Question 43

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 44

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)The campaign will definitely fail as 'service' is intangible.

Question 45

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

A)pressured area governments into creating a single set of laws on advertising in the Middle East and established strict policies for 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 46

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 47

For which of the following will worldwide appeals NOT be appropriate?

A)Brands or messages that have great visual appeal
B)Image campaigns that play to universal needs,values,and emotions.
C)High-tech products and new products
D)Products that evoke the country-of-origin effect
E)Products that are steeped in cultural traditions and significance

Question 48

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 49

Production standardization leads to:

A)high production costs.
B)lower prices of products.
C)lower marketing efficiency.
D)increased competition.
E)higher lead times.

Question 50

_____ is a strategy of advertising in which certain banned products are indirectly advertised by labeling a non-banned product with a familiar logo so as to develop brand image and easy recall.

A)Aerial advertising
B)Transit advertising
C)Surrogate advertising
D)Cross-selling
E)Ethnocentrism

Question 51

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)geographic
E)infrastructure

Question 52

The UB Group named its airline business Kingfisher,after its popular beer brand of the same name.This is one of the most successful examples of ____.The extension of the Kingfisher brand to the airline gave a great push to the original category,beer,which cannot be advertised in many parts of the world.

A)ethnocentrism
B)subliminal perception
C)aerial advertising
D)surrogate advertising
E)puffery

Question 53

_____ refers to the tendency of individuals to view their own group or society as the center of the universe.

A)Central perception
B)Halo effect
C)Origin-of-country effect
D)Ethnocentrism
E)Xenocentrism

Question 54

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 Walloon 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 55

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 56

_____ 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 57

A beverage company entered a new market in which it saw great potential.However,though its products matched those of local competitors in quality and price,sales were sluggish.The company realized that consumers believed that the local brands were better just because they were local.It had failed to account for the _____ of the consumers during the planning process.

A)demographics
B)ethnocentrism
C)pluralism
D)cultural relativism
E)xenocentrism

Question 58

U.S.brands have become popular in many other European countries as well as in Asia.Marketers attribute the rising popularity of many U.S.-made products to:

A)the increased familiarity of foreign nationals with American culture,values,and lifestyles.
B)their superior quality.
C)the low prices of the products.
D)the centralized organizational approach adopted by most U.S companies.
E)the increasingly ethnocentric attitude of the consumers around the world.

Question 59

_____ is a marketing approach that assumes that 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 approach in all countries.

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

Question 60

In the U.S. ,promotions for Agile Sports products emphasize individualism and independence.In Japan,however,the company had to change its message to one that focused on team values and cooperation,due to the differing _____ in the two countries.

A)demographics
B)religious beliefs
C)cultural values
D)ethics
E)lifestyles

Question 61

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 62

Gillette had a worldwide advertising campaign for its Sensor razors using the ad campaign theme "Gillette-the best a man can get." Some of the ads featured sports stars from the host country rather than using only one sports star in all of the ads.This is an example of a(n):

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 63

_____ refers to consumers' general perceptions of quality for products made in a given country.

A)Cross-selling
B)Country-of- origin effect
C)Halo effect
D)Global imaging
E)Central Hudson test

Question 64

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 _____ organizational structure.

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

Question 65

Why are global marketers consolidating their advertising into one agency?

A)To implement 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)In order to distribute costs among the different participating countries.

Question 66

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)undifferentiated marketing.

Question 67

When beginning an international marketing campaign,many American companies prefer to use an international ad agency based in the U.S.with foreign offices in other countries.This is because:

A)U.S.agencies are the most creative.
B)U.S.agencies understand world markets better than foreign agencies do.
C)agencies based in the U.S.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 68

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

Question 69

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 70

Products such as Swiss watches,German automobiles and French wines are automatically assumed to be superior to similar products from other countries because:

A)they are all high-tech products.
B)they appeal to market segments with universal tastes and interests.
C)they come from countries that have strong reputations for making these products.
D)they can be advertised using totally visual appeals.
E)they appeal to a market segment with universally similar tastes,interests,needs,and values.

Question 71

Complete _____ of international advertising is likely when market and media conditions are similar from one country to another,when the company has only one or a few international agencies handling all of its advertising,when the company can use standardized advertising,or when it desires a consistent image worldwide.

A)localization
B)globalization
C)decentralization
D)centralization
E)regionalization

Question 72

Marketers who think it is important to have advertising done by an agency that has a very good understanding of each international market in which it sells its products are likely to use a(n):

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 73

_____ 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)Formatted advertising
E)Ad standardization

Question 74

In case of a _____ approach to international advertising and promotion function,all decisions about agency selection,research,creative strategy and campaign development,media strategy,and budgeting are made at the firm's home office.

A)centralized
B)decentralized
C)localized
D)combination
E)regional

Question 75

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 76

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 77

In which of the following cases would centralization of the advertising function be a disadvantage?

A)When the advertiser wants to maintain a consistent brand image across markets.
B)When the advertiser wants to keep control of its brand message and image.
C)When the product is a high-technology product with universal appeal.
D)When the market conditions in the various markets differ widely.
E)When the company wants to save costs.

Question 78

For its international advertising,Levi Strauss & Co.uses an organizational approach in which 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.This 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 79

The _____ approach recognizes similar desires,goals,needs,and uses for products and services,but tailors advertising to the local cultures and conditions in each market.

A)concentrated marketing
B)think globally,act locally
C)localized
D)domestic
E)globalized marketing

Question 80

Three basic options for organizing international marketing are: centralization at the home office or headquarters,decentralization of decision-making to local foreign markets,and:

A)centralization at local foreign markets.
B)centralization at regional markets.
C)decentralization of headquarters.
D)a combination of centralization and decentralization.
E)decentralization of regional offices.