Question 1

Advertising media must be adapted internationally. Which of the following is NOT true about the need for communication adaptation?

Accepted Answer

The statement "The same advertisement can be presented in all countries in Europe" is not true. Advertising often needs to be adapted to fit different cultural and linguistic contexts, even within Europe.

Question 2

Why is a company unlikely to set a uniform price all around the world?

Accepted Answer

The answer of Why is a company unlikely to set...

Question 3

Refer to the scenario below to answer the following question(s).
Selman & Saks, a maker of men's and women's razors and electric hair trimmers, had little reason to become involved in the global arena. But after acquiring Wellman Enterprises, whose largest division engages in a licensing agreement with a German firm to produce women's hosiery, managers at Selman & Saks wondered whether a company-wide global focus would be more profitable after all.
Managers at Selman & Saks studied Wellman's licensing agreement in great detail. Even after seeing the benefits Wellman achieved with the licensing agreement, managers decided that Selman & Saks would target the French market merely via exporting.
With the assistance of a domestic export department, Selman & Saks razors and hair trimmers entered France. For six months, sales were mediocre. But after that, sales suffered. Opinions varied among numerous managers as to the cause of the failure. "Who knows the local market better than people who live there?" was a comment heard throughout Selman & Saks. "Maybe we needed an alliance with a French firm, or a licensing agreement, before racing to get there."
-To overcome price escalation when selling to less-affluent consumers in developing countries, companies offer their same products at lower prices.

Accepted Answer

The scenario does not discuss selling to less-affluent consumers in developing countries or adjusting prices for those markets; it focuses on Selman & Saks' entry into the French market through exporting and considers the potential benefits of a licensing agreement or alliance with a local firm.

Question 4

Explain why a global company would need to make adjustments to a highly standardized promotion campaign for different markets.

Accepted Answer

The answer of Explain why a global company would need...

Question 5

What types of products would be successful with standardized global marketing?

Accepted Answer

The answer of What types of products would be successful...

Question 6

Refer to the scenario below to answer the following question(s).
Selman & Saks, a maker of men's and women's razors and electric hair trimmers, had little reason to become involved in the global arena. But after acquiring Wellman Enterprises, whose largest division engages in a licensing agreement with a German firm to produce women's hosiery, managers at Selman & Saks wondered whether a company-wide global focus would be more profitable after all.
Managers at Selman & Saks studied Wellman's licensing agreement in great detail. Even after seeing the benefits Wellman achieved with the licensing agreement, managers decided that Selman & Saks would target the French market merely via exporting.
With the assistance of a domestic export department, Selman & Saks razors and hair trimmers entered France. For six months, sales were mediocre. But after that, sales suffered. Opinions varied among numerous managers as to the cause of the failure. "Who knows the local market better than people who live there?" was a comment heard throughout Selman & Saks. "Maybe we needed an alliance with a French firm, or a licensing agreement, before racing to get there."
-The whole-channel view recognizes that to compete internationally a company must effectively design and manage a standardized global marketing plan.

Accepted Answer

The scenario does not provide any information about the whole-channel view.

Question 7

Refer to the scenario below to answer the following question(s).
Selman & Saks, a maker of men's and women's razors and electric hair trimmers, had little reason to become involved in the global arena. But after acquiring Wellman Enterprises, whose largest division engages in a licensing agreement with a German firm to produce women's hosiery, managers at Selman & Saks wondered whether a company-wide global focus would be more profitable after all.
Managers at Selman & Saks studied Wellman's licensing agreement in great detail. Even after seeing the benefits Wellman achieved with the licensing agreement, managers decided that Selman & Saks would target the French market merely via exporting.
With the assistance of a domestic export department, Selman & Saks razors and hair trimmers entered France. For six months, sales were mediocre. But after that, sales suffered. Opinions varied among numerous managers as to the cause of the failure. "Who knows the local market better than people who live there?" was a comment heard throughout Selman & Saks. "Maybe we needed an alliance with a French firm, or a licensing agreement, before racing to get there."
-If Audi develops a new low-priced model for entry-level consumers in Europe, it would be an example of straight product extension.

Accepted Answer

The statement discusses Audi developing a new low-priced model, which implies a new product rather than a product extension. Additionally, there is no mention of Audi entering the global market, which is necessary for a product extension.

Question 8

Refer to the scenario below to answer the following question(s).
Selman & Saks, a maker of men's and women's razors and electric hair trimmers, had little reason to become involved in the global arena. But after acquiring Wellman Enterprises, whose largest division engages in a licensing agreement with a German firm to produce women's hosiery, managers at Selman & Saks wondered whether a company-wide global focus would be more profitable after all.
Managers at Selman & Saks studied Wellman's licensing agreement in great detail. Even after seeing the benefits Wellman achieved with the licensing agreement, managers decided that Selman & Saks would target the French market merely via exporting.
With the assistance of a domestic export department, Selman & Saks razors and hair trimmers entered France. For six months, sales were mediocre. But after that, sales suffered. Opinions varied among numerous managers as to the cause of the failure. "Who knows the local market better than people who live there?" was a comment heard throughout Selman & Saks. "Maybe we needed an alliance with a French firm, or a licensing agreement, before racing to get there."
-Oreos are less sweet or less bitter in certain countries. This is an example of straight product extension.

Accepted Answer

The statement about Oreos is not related to the scenario and is irrelevant to the question regarding straight product extension.

Question 9

Refer to the scenario below to answer the following question(s).
Selman & Saks, a maker of men's and women's razors and electric hair trimmers, had little reason to become involved in the global arena. But after acquiring Wellman Enterprises, whose largest division engages in a licensing agreement with a German firm to produce women's hosiery, managers at Selman & Saks wondered whether a company-wide global focus would be more profitable after all.
Managers at Selman & Saks studied Wellman's licensing agreement in great detail. Even after seeing the benefits Wellman achieved with the licensing agreement, managers decided that Selman & Saks would target the French market merely via exporting.
With the assistance of a domestic export department, Selman & Saks razors and hair trimmers entered France. For six months, sales were mediocre. But after that, sales suffered. Opinions varied among numerous managers as to the cause of the failure. "Who knows the local market better than people who live there?" was a comment heard throughout Selman & Saks. "Maybe we needed an alliance with a French firm, or a licensing agreement, before racing to get there."
-Selman & Saks offered the same razors and trimmers in France as in the United States. Selman & Saks is an example of a ________.

Accepted Answer

The answer of Refer to the scenario below to answer...

Question 10

Refer to the scenario below to answer the following question(s).
Selman & Saks, a maker of men's and women's razors and electric hair trimmers, had little reason to become involved in the global arena. But after acquiring Wellman Enterprises, whose largest division engages in a licensing agreement with a German firm to produce women's hosiery, managers at Selman & Saks wondered whether a company-wide global focus would be more profitable after all.
Managers at Selman & Saks studied Wellman's licensing agreement in great detail. Even after seeing the benefits Wellman achieved with the licensing agreement, managers decided that Selman & Saks would target the French market merely via exporting.
With the assistance of a domestic export department, Selman & Saks razors and hair trimmers entered France. For six months, sales were mediocre. But after that, sales suffered. Opinions varied among numerous managers as to the cause of the failure. "Who knows the local market better than people who live there?" was a comment heard throughout Selman & Saks. "Maybe we needed an alliance with a French firm, or a licensing agreement, before racing to get there."
-If Selman & Saks allowed a French company to produce and market razors and trimmers carrying the company's brand in exchange for a royalty, Selman & Saks would be using the market entry strategy of ________.

Accepted Answer

The market entry strategy of allowing a French company to produce and market razors and trimmers carrying the company's brand in exchange for a royalty is known as licensing.

Question 11

Designing international channels that take into account the entire global supply chain and marketing channel, thus forging an effective global value delivery network, recognizes a company must have a ________.

Accepted Answer

Designing an international channel that takes into account the entire global supply chain and marketing channel requires a whole-channel view, which means considering all the different elements of the channel, from suppliers to customers. This approach ensures that the company creates an effective global value delivery network. The other choices, such as direct-distribution channel, large-scale channel, transportation network, or retail channel, are more specific types of channels or components of a channel and do not necessarily encompass the entire global supply chain and marketing channel.

Question 12

Refer to the scenario below to answer the following question(s).
Selman & Saks, a maker of men's and women's razors and electric hair trimmers, had little reason to become involved in the global arena. But after acquiring Wellman Enterprises, whose largest division engages in a licensing agreement with a German firm to produce women's hosiery, managers at Selman & Saks wondered whether a company-wide global focus would be more profitable after all.
Managers at Selman & Saks studied Wellman's licensing agreement in great detail. Even after seeing the benefits Wellman achieved with the licensing agreement, managers decided that Selman & Saks would target the French market merely via exporting.
With the assistance of a domestic export department, Selman & Saks razors and hair trimmers entered France. For six months, sales were mediocre. But after that, sales suffered. Opinions varied among numerous managers as to the cause of the failure. "Who knows the local market better than people who live there?" was a comment heard throughout Selman & Saks. "Maybe we needed an alliance with a French firm, or a licensing agreement, before racing to get there."
-The Internet is making global price differences more obvious, forcing companies toward more standardized international pricing.

Accepted Answer

The statement in the scenario suggests that the Internet is making global price differences more obvious and pushing companies towards more standardized international pricing.

Question 13

Identify and describe the three product strategies a company entering a foreign market can use.

Accepted Answer

The answer of Identify and describe the three product strategies...

Question 14

________ are the first link between the seller and the final buyer. They move company products from points of production to the borders of countries within which they are sold.

Accepted Answer

The answer of ________ are the first link between the...

Question 15

Refer to the scenario below to answer the following question(s).
Selman & Saks, a maker of men's and women's razors and electric hair trimmers, had little reason to become involved in the global arena. But after acquiring Wellman Enterprises, whose largest division engages in a licensing agreement with a German firm to produce women's hosiery, managers at Selman & Saks wondered whether a company-wide global focus would be more profitable after all.
Managers at Selman & Saks studied Wellman's licensing agreement in great detail. Even after seeing the benefits Wellman achieved with the licensing agreement, managers decided that Selman & Saks would target the French market merely via exporting.
With the assistance of a domestic export department, Selman & Saks razors and hair trimmers entered France. For six months, sales were mediocre. But after that, sales suffered. Opinions varied among numerous managers as to the cause of the failure. "Who knows the local market better than people who live there?" was a comment heard throughout Selman & Saks. "Maybe we needed an alliance with a French firm, or a licensing agreement, before racing to get there."
-A cell phone maker customized its cell phones for the Asian market by raising the ring volume so that phones could be heard on crowded streets. This is an example of product invention.

Accepted Answer

The answer of Refer to the scenario below to answer...

Question 16

A company can manage its international marketing in all of the following ways EXCEPT ________.

Accepted Answer

Advertising internationally is a tactic used within broader strategies for managing international marketing, not a way to manage international marketing on its own. The other options (A, B, C, E) are organizational or operational strategies a company can employ to handle its international marketing efforts.

Question 17

Assume that a Gucci handbag sells for $60 in Italy and $240 in the United States because Gucci must add the cost of transportation, tariffs, importer margin, wholesaler margin, and retailer margin to its factory price. This information indicates that Gucci faces a ________ problem.

Accepted Answer

The price of the handbag increases as it moves through the distribution channel from the factory in Italy to the retailer in the United States. This is known as price escalation. The increase in price is due to the various costs associated with transportation, tariffs, importers, wholesalers, and retailers.

Question 18

Compare and contrast the advantages and disadvantages of standardized global marketing and adapted global marketing.

Accepted Answer

The answer of Compare and contrast the advantages and disadvantages...

Question 19

In Chinese, the KFC slogan "finger-lickin' good" came out as "eat your fingers off." And Motorola's Hello-moto ringtone sounded like "Hello, Fatty" in India. Which of the following strategies can be used to avoid such mistakes?

Accepted Answer

Communication adaptation involves adjusting communication messages to fit the cultural nuances and language of the target market, which can help avoid mistakes in translation or misinterpretation. Standardized global marketing (B) and straight product extension (C) do not address communication adaptation. Product adaptation (D) focuses on adjusting the product to fit the local market, not the communication messaging. Communication extension (E) refers to using the same communication messages in different markets, which can lead to mistakes in translation or misinterpretation.

Question 20

Refer to the scenario below to answer the following question(s).
Selman & Saks, a maker of men's and women's razors and electric hair trimmers, had little reason to become involved in the global arena. But after acquiring Wellman Enterprises, whose largest division engages in a licensing agreement with a German firm to produce women's hosiery, managers at Selman & Saks wondered whether a company-wide global focus would be more profitable after all.
Managers at Selman & Saks studied Wellman's licensing agreement in great detail. Even after seeing the benefits Wellman achieved with the licensing agreement, managers decided that Selman & Saks would target the French market merely via exporting.
With the assistance of a domestic export department, Selman & Saks razors and hair trimmers entered France. For six months, sales were mediocre. But after that, sales suffered. Opinions varied among numerous managers as to the cause of the failure. "Who knows the local market better than people who live there?" was a comment heard throughout Selman & Saks. "Maybe we needed an alliance with a French firm, or a licensing agreement, before racing to get there."
-Dove body soaps are sold successfully in essentially the same form around the globe. This is an example of straight product extension.

Accepted Answer

Dove body soaps are an example of straight product extension, where a company uses the same product in the same form in multiple markets without making any changes to the product.

Quiz 19: The Global Marketplace