Question 1

Product invention is an international marketing strategy that involves creating an entirely new product, or reinventing a product that is obsolete in the domestic market, to take advantage of unique foreign marketing opportunities.

Accepted Answer

Product invention as an international marketing strategy indeed involves creating a new product or significantly modifying an existing one to cater to the needs of a foreign market or to leverage unique opportunities in those markets. This approach allows companies to enter new markets with products that are tailored to local tastes, preferences, and requirements, thereby increasing their chances of success.

Question 2

The product invention strategy helps a firm take advantage of unique foreign market opportunities.

Accepted Answer

The product invention strategy involves creating new products or modifying existing products to meet the specific needs of a foreign market. This can help a firm take advantage of unique opportunities and gain a competitive advantage in that market.

Question 3

A global marketing strategy works well for products with strong, universal appeal, such as McDonald's, luxury items such as Rolex watches, and high-tech brands, such as Microsoft.

Accepted Answer

A global marketing strategy can be effective for products with a strong, universal appeal because it allows for a consistent brand message across different markets. McDonald's, Rolex, and Microsoft are examples of brands that have successfully implemented global marketing strategies, leveraging their universal appeal to achieve global recognition and success.

Question 4

The Organization of Petroleum Exporting Countries (OPEC) is a collective export organization.

Accepted Answer

OPEC is a collective organization of 13 member countries that together produce and export around 44% of the world's oil.

Question 5

A company that changes its product's package sizes, prices, and promotional messages to meet the local market's tastes is using a straight extension marketing strategy.

Accepted Answer

A company adapting its products or marketing strategies to meet local market tastes is using a localization or adaptation strategy, not a straight extension strategy. A straight extension strategy involves offering the product unchanged in foreign markets.

Question 6

Joint ventures might be a reasonable alternative to direct investment for a company that is restricted by the host nation from direct ownership of facilities within the country.

Accepted Answer

Joint ventures can allow a company to enter a foreign market by partnering with a local company, thus circumventing restrictions on direct foreign ownership by leveraging the local partner's established presence and compliance with local laws.

Question 7

Pizza Hut franchises stores in areas with Arab and Indian populations. To accommodate dietary restrictions, the traditional North American recipes are modified. Consequently, the advertising, packaging, and promotional message will change. Marketers refer to these changes as dual adaptation.

Accepted Answer

Dual adaptation involves modifying both the product and the marketing strategy to fit the needs of a local market, which includes changes in advertising, packaging, and promotional messages to accommodate cultural preferences and dietary restrictions.

Question 8

Outboard motors that are sold in Canada primarily as recreational products may be sold in a foreign country as basic transportation equipment. Such a practice would constitute product adaptation in the foreign market.

Accepted Answer

The answer of Outboard motors that are sold in Canada...

Question 9

A multi-domestic marketing strategy typically uses several different marketing strategies within a single country's borders.

Accepted Answer

A multi-domestic marketing strategy involves tailoring marketing strategies to fit the unique aspects of each market in different countries, not within a single country's borders.

Question 10

Changing both the product and promotion strategy to fit a foreign market is called global adaptation.

Accepted Answer

The answer of Changing both the product and promotion strategy...

Question 11

A successful implementation of a straight extension strategy creates universal recognition of a product for consumers from country to country.

Accepted Answer

A straight extension strategy involves offering the same product in different countries without any modification. This can create universal recognition of the product among consumers as they are familiar with it from their home market.

Question 12

Modifying the control panel of a washing machine to accommodate cultures that read right to left would be considered a form of select product invention.

Accepted Answer

Modifying the control panel of a washing machine for different cultures would be considered a form of product adaptation, not invention, as it involves altering an existing product to meet the needs of a specific market rather than creating a completely new product.

Question 13

A major drawback to a global marketing strategy is its high cost of implementation.

Accepted Answer

The answer of A major drawback to a global marketing...

Question 14

A multidomestic marketing strategy can be used by a firm in all of its domestic and foreign markets without any modifications.

Accepted Answer

A multidomestic marketing strategy requires customization and adaptation to fit the specific cultural, economic, and social characteristics of each domestic and foreign market. Therefore, it cannot be used without modifications in all markets.

Question 15

Changing promotion strategy without changing product strategy to meet the needs of a foreign market is called promotion adaptation.

Accepted Answer

Promotion adaptation involves modifying the promotional strategy or message to suit the tastes, preferences, or regulations of a foreign market, without altering the core product or product strategy.

Question 16

Today it is likely for a multinational corporation to be Japanese, German, British, or North American.

Accepted Answer

Multinational corporations can originate from various countries around the world, including Japan, Germany, the United Kingdom, and North America, reflecting the global nature of business today.

Question 17

When planning product and/or promotion strategies for other countries, marketers can choose from among three strategies called straight extension, product adaptation, and promotion adaptation.

Accepted Answer

The answer of When planning product and/or promotion strategies for...

Question 18

A multidomestic marketing approach brings the advantage of economies of scale to production and marketing activities.

Accepted Answer

A multidomestic marketing approach tailor-makes products and marketing strategies to meet the specific needs and preferences of local markets, which can lead to higher costs and less standardization. This approach sacrifices economies of scale for greater localization.

Question 19

Use of a straight extension marketing strategy usually results in economies of scale in production and marketing.

Accepted Answer

A straight extension marketing strategy, where a company uses the same product and marketing strategy in a foreign market as it does in its home market, can lead to economies of scale in production and marketing. This is because the company can produce and market its products in larger quantities without having to customize or change them for different markets, leading to lower costs per unit.

Question 20

Many marketing experts believe that most products require multidomestic marketing strategies to give them a realistic global marketing appeal.

Accepted Answer

Multidomestic marketing strategy involves adapting marketing campaigns and messages to address cultural, linguistic, and other differences that exist among different countries where products are marketed. Since globalization has resulted in a diverse marketplace, a multidomestic marketing strategy is crucial for companies to connect with customers globally while also meeting their unique needs.

Quiz 7: Serving Global Markets