Question 1

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

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Question 2

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.
A) dumping
B) tariff
C) licensing
D) product adaptation
E) price escalation

Accepted Answer

The price difference between Italy and the United States indicates that Gucci is facing a price escalation problem. This means that as the product moves through the distribution channel, additional costs are added, leading to a higher end price for consumers.

Question 3

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

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Question 4

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

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Question 5

Dove body soaps are sold successfully in essentially the same form around the globe. This is an example of straight product extension.

Accepted Answer

Straight product extension means selling the same product with the same characteristics in different countries without making any changes. In the case of Dove body soap, it is sold successfully in the same form globally, which is a straight product extension.

Question 6

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

Accepted Answer

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Question 7

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

Straight product extension involves introducing the same product in a new market without making any changes to it. However, developing a new low-priced model for entry-level consumers in Europe would require changes to the existing product, making it a product adaptation.

Question 8

Oreos are less sweet or less bitter in certain countries. This is an example of straight product extension.

Accepted Answer

The answer of Oreos are less sweet or less bitter...

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."
-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 ________.
A) exporting
B) franchising
C) licensing
D) contract manufacturing
E) joint ownership

Accepted Answer

If Selman & Saks allowed a French company to produce and market razors and trimmers carrying the company's brand in exchange for a royalty, it would be using the market entry strategy of licensing. This involves allowing a foreign company to use its intellectual property (such as a trademark or patent) in exchange for a fee (royalty).

Question 10

To overcome price escalation when selling to less-affluent consumers in developing countries, companies offer their same products at lower prices.

Accepted Answer

The answer of To overcome price escalation when selling to...

Question 11

The Internet is making global price differences more obvious, forcing companies toward more standardized international pricing.

Accepted Answer

With the ease of accessing information online, consumers are able to compare prices across different regions and countries, making price differences more apparent. This puts pressure on companies to adopt more standardized pricing to avoid consumer backlash and maintain competitiveness.

Question 12

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 ________.
A) whole-channel view
B) direct-distribution channel
C) large-scale channel
D) transportation network
E) retail channel

Accepted Answer

Designing international channels requires a whole-channel view, which considers the entire global supply chain and marketing channel. The other options are not broad enough to adequately address the complexities of international channel design.

Question 13

A company can manage its international marketing in all of the following ways EXCEPT ________.
A) becoming a global organization
B) organizing an export department
C) creating an international division
D) advertising internationally
E) shipping its goods internationally

Accepted Answer

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Question 14

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

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Question 15

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?
A) communication adaptation
B) standardized global marketing
C) straight product extension
D) product adaptation
E) communication extension

Accepted Answer

Communication adaptation involves modifying communication messages to suit local market conditions, including language, cultural factors, and legal restrictions. This strategy can help avoid mistakes in slogans or messaging that may be inappropriate or misunderstood in different markets. Standardized global marketing, straight product extension, or communication extension do not address the need for adapting communication messages to local market conditions, which can result in cultural faux pas or other communication failures. Product adaptation may address issues with product design or features, but not necessarily communication messages.

Question 16

The whole-channel view recognizes that to compete internationally a company must effectively design and manage a standardized global marketing plan.

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Question 17

Advertising media must be adapted internationally. Which of the following is NOT true about the need for communication adaptation?
A) Advertising time is limited in Europe.
B) Mobile phone ads are widely accepted in Europe and Asia.
C) Advertisers must buy advertising time far in advance.
D) The same advertisement can be presented in all countries in Europe.
E) Magazines are important in Italy, but not in Austria.

Accepted Answer

While some aspects of advertising may be similar across different regions, it is not always possible to present the same advertisement in all countries. Cultural differences and language barriers may require adaptations to be made. Therefore, choice D is not true.

Question 18

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

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Question 19

Selman & Saks offered the same razors and trimmers in France as in the United States. Selman & Saks is an example of a ________.
A) product adaptation
B) communication adaptation
C) product invention
D) straight product extension
E) standardized global marketing plan

Accepted Answer

The answer of Selman & Saks offered the same razors...

Question 20

________ 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.
A) Channels between nations
B) Channels within nations
C) Retail channels
D) Large-scale channels
E) Value chain channels

Accepted Answer

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

Quiz 19: The Global Marketplace

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.

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.

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

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

Dove body soaps are sold successfully in essentially the same form around the globe. This is an example of straight product extension.

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

If Audi develops a new low-priced model for entry-level consumers in Europe, it would be an example of straight product extension.

Oreos are less sweet or less bitter in certain countries. This is an example of straight product extension.

To overcome price escalation when selling to less-affluent consumers in developing countries, companies offer their same products at lower prices.

The Internet is making global price differences more obvious, forcing companies toward more standardized international pricing.

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 ________.

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

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

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?

The whole-channel view recognizes that to compete internationally a company must effectively design and manage a standardized global marketing plan.

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

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

Selman & Saks offered the same razors and trimmers in France as in the United States. Selman & Saks is an example of a ________.

________ 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.