Question 1

Global segmentation, targeting, and positioning (STP) are more complicated than local STP, in part because

Accepted Answer

Consumers in different countries may have different cultural, social, and economic backgrounds, leading to different attitudes, values, and beliefs. Therefore, global marketers need to develop different segmentation approaches to account for this diversity. Moreover, consumers may have different roles in different countries, such as being more or less price-sensitive, or more or less concerned about status or convenience. To effectively target these consumers, global marketers need to adapt their products, promotions, and distribution channels to better meet the specific needs and wants of each market segment. Finally, positioning is also more complex in global markets, as companies need to consider the competition, consumer perceptions, and cultural differences that may affect their brand image and appeal.

Question 2

NCD company wants to expand into the Mexican market. It has the financial resources, wants to control business operations, and has had considerable success marketing to Hispanics in the United States. NCD will likely use __________ to expand into the Mexican market.

Accepted Answer

Direct investment would allow NCD to have full control over its business operations in Mexico, which is in line with its desire to control operations. It also has the financial resources to do so. Franchising would involve sharing control with franchisees, while exporting and strategic alliances do not provide the level of control desired by NCD. A joint venture could be an option, however, it may be difficult to find a suitable partner, and NCD may not have the same level of control as a direct investment.

Question 3

Global segmenting, targeting, and positioning are more complicated than domestic segmenting and positioning because of cultural nuances, significant subcultures within countries, and

Accepted Answer

Cultural nuances, significant subcultures within countries, and differences in the way consumers see themselves and in the way they see products and services make global segmenting, targeting, and positioning more complicated than domestic segmenting and positioning. Currency differences, anti-discrimination regulations, franchising issues, and taxes imposed by foreign countries may also add complications, but they are not as significant as the cultural and subcultural factors.

Question 4

During the early stages of globalization, in the 1950s and 1960s, _______________ were uniquely positioned in the global marketplace because they had the skills necessary to develop, promote, and market brand name consumer products.

Accepted Answer

During the 1950s and 1960s, large U.S. firms such as Coca-Cola, IBM, and Ford were pioneers in globalizing their brands and products. They had the resources and experience necessary to develop and market consumer products on a global scale. Japanese electronics companies, low-cost Chinese manufacturers, European service companies, and Mideast oil producers did not have the same level of expertise or market position in the early stages of globalization.

Question 5

Cultural nuances, subcultures, and consumers' different views of their roles in different countries can make __________ complicated.

Accepted Answer

Segmentation, targeting, and positioning can be complicated by cultural nuances, subcultures, and consumers' different views of their roles in different countries. These factors must be taken into account when developing marketing strategies that effectively reach and resonate with target audiences in different cultures. Purchasing power parity, trading bloc coordination, exchange control planning, and reducing trade surpluses are related to international trade and finance, but are not directly related to the complexities of marketing and consumer behavior in different cultures.

Question 6

The most important consideration when a firm chooses a global product strategy should be

Accepted Answer

The needs of the target market should be the most important consideration when a firm chooses a global product strategy. The product strategy should be tailored to meet the specific needs and preferences of the target market, which may differ across different regions and countries. Other factors, such as opportunities for countertrade or compliance with international trade regulations, are important but should be secondary to meeting the needs of the target market.

Question 7

Domestic firms developing a global entry strategy might consider franchising; however, the disadvantages need to be considered. Which of these is NOT a disadvantage of franchising?

Accepted Answer

Franchising may have its own set of disadvantages, but being the riskiest way to enter a foreign market is not one of them.

Question 8

Celia's firm has developed a breakfast cereal targeted toward children. Rather than compete in the mature U.S. market, she has decided instead to introduce the product in Europe, where she feels it will be innovative. Her advertising agency urged caution because

Accepted Answer

Advertising regulations differ in other countries, including advertising to children, and it is important to be aware of these regulations before launching a campaign. It is possible that the advertising strategies used in the U.S. may not be appropriate or legal in Europe.

Question 9

Of the five strategies for entering new markets, direct investment creates the

Accepted Answer

Direct investment involves the highest investment cost and the greatest potential risk, as the company is fully investing in and owning its operations in the new market. The other options are not directly related to the strategy of direct investment.

Question 10

When firms pool their resources to enter a new market, they create a(n)

Accepted Answer

Joint venture refers to the situation where two or more firms pool their resources to enter a new market. A joint venture is a separate legal entity, and the partners share profits, risks, and control over the venture.

Question 11

China, like many other countries, usually requires entering firms to create _________ when expanding into their markets, limiting outsiders' control of businesses.

Accepted Answer

China usually requires entering firms to create joint ventures when expanding into their markets, limiting outsiders' control of businesses.

Question 12

Many of the best-known American retailers, like Starbucks and McDonalds, have expanded globally using

Accepted Answer

The answer of Many of the best-known American retailers, like...

Question 13

Gerald is assessing global entry strategies for his gourmet sandwich business. He does not want to take a lot of risk and he is willing to limit his control of international stores. Gerald will likely use a(n) __________ strategy.

Accepted Answer

Franchising allows Gerald to expand internationally with limited risk and control. The franchisee takes on the majority of the risk and responsibilities of operating the international stores while still adhering to Gerald's brand and business model. This strategy also allows for quick and efficient expansion as the franchisee typically has existing knowledge and resources in the local market.

Question 14

Global marketers typically find distribution in developing countries is more complex because

Accepted Answer

The answer of Global marketers typically find distribution in developing...

Question 15

Tariffs, quotas, and currency exchange policies affect global

Accepted Answer

Tariffs, quotas, and currency exchange policies affect pricing strategies because they can increase the cost of importing goods, making them more expensive for consumers. This can result in companies having to adjust their pricing strategies to remain competitive in the global marketplace.

Question 16

Graham had developed an extremely successful advertising and promotion campaign for a client in the United States. The client wanted to roll out the same campaign to markets worldwide, but Graham cautioned against doing this, most likely because

Accepted Answer

Differences in languages, customs, and culture can have a significant impact on how effective the campaign will be in different markets. It is essential to tailor advertising campaigns to fit the culture and language of the target market to ensure it is meaningful and effective.

Question 17

In the 1970s and 1980s, __________ dominated the global marketplace because they could exploit their skills in production, materials management, and new product development.

Accepted Answer

During the 1970s and 1980s, Japanese firms, such as Toyota and Sony, emerged as dominant players in the global marketplace due to their ability to excel in production, materials management, and new product development. This period was also known as the "Japanese economic miracle." While large U.S. firms were still important players, they faced increasing competition from Japanese companies. Low-cost Chinese manufacturers did not become dominant until the 1990s and beyond, and European service companies and Mideast oil producers were not major players in the global marketplace during this time period.

Question 18

Global pricing strategies should be consistent with

Accepted Answer

Global pricing strategies should be consistent with positioning strategies, which take into account factors such as target market segments, product differentiation, and competition. Offshore distribution facilities, cost of materials, domestic pricing, and trade surplus guidelines may also be factors to consider, but they may not necessarily determine the overall pricing strategy.

Question 19

Global marketers are under constant pressure to shorten distribution channels to

Accepted Answer

Shortening distribution channels can help global marketers reduce costs by eliminating middlemen and reducing transportation expenses. This can lead to a more cost-efficient supply chain and ultimately lower prices to customers.

Question 20

Brands can be extremely valuable domestically, but challenging internationally. Companies can help to overcome language difficulties in using brands by

Accepted Answer

The answer of Brands can be extremely valuable domestically, but...

Quiz 8: Global Marketing