Question 1

Due to differences in the cultural or competitive environment, a company may choose the _______________________ strategy if it wishes to keep its product economies
Scale intact but customize its communications.

Accepted Answer

The strategy described in the sentence is product extension--communications adaptation, which involves keeping the product the same but adapting the communication strategy to fit the local market. This strategy allows the company to maintain its economies of scale while still appealing to the local market through culturally appropriate messaging.

Question 2

Ikea, the Swedish furniture chain, insists that all its stores carry the basic product line with little room for adaptation to local tastes. If research of the U.S. market
Showed that Americans preferred larger beds than their Swedish counterparts, which
Of the following strategies would be advisable to Ikea?

Accepted Answer

Since the U.S. market prefers larger beds, adapting the product line to include larger bed options would better cater to the local preferences and increase sales. Standardization would not address the preference difference, new product development may not be necessary if a simple adaptation can be made, withdrawing from the market would be extreme and unnecessary, and lowering prices would not necessarily address the preference difference.

Question 3

In the area of global product policy, companies can pursue three strategies to penetrate foreign markets. The strategies include:

Accepted Answer

The correct strategies for penetrating foreign markets are extension, adaptation, and invention. Extension involves offering the same product in the foreign market as in the domestic market. Adaptation involves modifying the product to meet the specific needs or preferences of the foreign market. Invention involves creating a new product specific to the foreign market. Therefore, choice A is the correct answer.

Question 4

Even though other combination alternatives can be devised, companies generally can pursue three global product strategies to penetrate foreign markets. These strategies
Are to extend the home-grown product/communication strategies, adapt their strategy
To the local marketplace, and:

Accepted Answer

Companies can invent new products specifically tailored for foreign customers to better meet local needs and preferences, which is a common global product strategy.

Question 5

As a strategy, ____________________ will work when the company targets a "global" segment with similar needs.

Accepted Answer

Product and communication extension--dual extension is effective when targeting a global segment with similar needs because it involves using the same product and marketing strategy across different markets without modifications.

Question 6

In the Australian market, rather than manufacturing disposable diapers, Procter & Gamble decided to import them since the size of the market did not warrant local manufacturing according to P&G. Unfortunately, by using packaging designed for the Asian region with non-English labeling, P&G alienated its customers in Australia. This is an example of improper:

Accepted Answer

Procter & Gamble's decision to import diapers rather than manufacturing them locally is a product policy decision. However, the company's failure to adapt the packaging to the Australian market and customer preferences is an example of improper product policy decision-making.

Question 7

Many companies add brands to their portfolio via acquisitions of local companies. When the local brand is retained but incorporated into the existing communications
Strategy, the strategy can be described as being one of:

Accepted Answer

The answer of Many companies add brands to their portfolio...

Question 8

If a company is an early entrant in the global arena and possesses little in the way of resources, they will probably chose _____________________ as a
Method of entry.

Accepted Answer

Product and communication extension is a low-resource method of entry that involves selling the same product in the same way in multiple countries.

Question 9

Because of differences in preferences in flavors and government regulations regarding the marketing of diet products, Slim-Fast normally uses which of the
Following strategies?

Accepted Answer

Product and communications adaptation--dual adaptation is the correct answer because Slim-Fast uses different flavors to meet the preferences of different consumers and adapts its marketing communications to comply with government regulations regarding the marketing of diet products.

Question 10

The biggest advantage of a product and communication extension--dual extension policy is:

Accepted Answer

The biggest advantage of a dual extension policy is that it offers substantial savings because of economies of scale. By extending both the product and communication, the company can save on marketing and advertising costs while also increasing its customer base. This can result in increased profitability and competitiveness in the market.

Question 11

__________________ means offering a uniform product on a regional or worldwide basis (only minor alterations are made to meet local standards).

Accepted Answer

Standardization means offering a uniform product on a regional or worldwide basis (only minor alterations are made to meet local standards), which matches the given definition.

Question 12

If a company were to follow a strategy of product and communications adaptation (dual adaptation) in a foreign market, an example of a product category that
Would fit this strategy would be __________________.

Accepted Answer

The answer of If a company were to follow a...

Question 13

Which of the following is NOT one of the strategic options available to the marketing planner, considering various product policies that could be devised for the
International marketplace?

Accepted Answer

"Communication extension--mono extension" is not a recognized strategic option in international marketing. The other options are established strategies involving different combinations of product and communication adaptations.

Question 14

If a company were to follow a strategy of product extension-communications adaptation in a foreign market, an example of a product category that would
Fit this strategy would be __________________.

Accepted Answer

The answer of If a company were to follow a...

Question 15

If a company were to follow a strategy of product adaptation-communications extension in a foreign market, an example of a product category that would
Fit this strategy would be __________________.

Accepted Answer

The answer of If a company were to follow a...

Question 16

Genuinely global marketers try to figure out how to create products with a global scope rather than just for a single country. The mindset is to zero in on global
Opportunities. The strategy that best describes this approach is called:

Accepted Answer

The strategy that best describes the approach of creating products with a global scope is product invention, which involves developing entirely new products that can be sold in multiple markets. The other options (product and communication extension--dual extension, product extension--communications adaptation, product adaptation--communications extension, and product and communications adaptation--dual adaptation) all involve some level of adapting or extending an existing product or communication strategy, which may not be effective in truly capturing global opportunities.

Question 17

When the Wrigley chewing gum company markets its basic products abroad, it keeps its well-known brands but customizes promotional approaches in individual
Countries. Which of the following strategies best describes the strategy that
Wrigley is following?

Accepted Answer

Wrigley is keeping its well-known brands (product extension) but customizing its promotional approaches in individual countries (communication adaptation), which is the strategy of product extension--communications adaptation.

Question 18

Differences in both the cultural and physical environment across countries call for a _________________________ strategy.

Accepted Answer

Differences in both the cultural and physical environment across countries require adapting both the product and communication strategies to meet the needs and preferences of the local market. Therefore, the most appropriate choice would be product and communications adaptation, also known as dual adaptation. This approach involves modifying both the product and the communication strategy to fit the local market's cultural and physical environment.

Question 19

If a company were to follow a strategy of product and communication extension (dual extension) in a foreign market, an example of a product category that would
Fit this strategy would be _________________________.

Accepted Answer

Personal care items, such as shampoo, soap, and toothpaste, are commonly products that follow a dual extension strategy in foreign markets. This involves extending the same product and brand name from the company's domestic market to the foreign market, as well as using the same advertising and promotional strategies. This can help to create a consistent brand image and increase recognition and loyalty among consumers.

Question 20

Black & Decker is a good example of a company that adopts the _______________ approach to global expansion. The company aims to bring out new products that
Cater to common needs and opportunities around the world.

Accepted Answer

The answer of Black & Decker is a good example...

Quiz 10: Global Product Policy Decisions I: Developing New Products for Global Markets

Due to differences in the cultural or competitive environment, a company may choose the _______________________ strategy if it wishes to keep its product economies Scale intact but customize its communications.

In the area of global product policy, companies can pursue three strategies to penetrate foreign markets. The strategies include:

Even though other combination alternatives can be devised, companies generally can pursue three global product strategies to penetrate foreign markets. These strategies Are to extend the home-grown product/communication strategies, adapt their strategy To the local marketplace, and:

As a strategy, ____________________ will work when the company targets a "global" segment with similar needs.

Many companies add brands to their portfolio via acquisitions of local companies. When the local brand is retained but incorporated into the existing communications Strategy, the strategy can be described as being one of:

If a company is an early entrant in the global arena and possesses little in the way of resources, they will probably chose _____________________ as a Method of entry.

Because of differences in preferences in flavors and government regulations regarding the marketing of diet products, Slim-Fast normally uses which of the Following strategies?

The biggest advantage of a product and communication extension--dual extension policy is:

__________________ means offering a uniform product on a regional or worldwide basis (only minor alterations are made to meet local standards) .

If a company were to follow a strategy of product and communications adaptation (dual adaptation) in a foreign market, an example of a product category that Would fit this strategy would be __________________.

Which of the following is NOT one of the strategic options available to the marketing planner, considering various product policies that could be devised for the International marketplace?

If a company were to follow a strategy of product extension-communications adaptation in a foreign market, an example of a product category that would Fit this strategy would be __________________.

If a company were to follow a strategy of product adaptation-communications extension in a foreign market, an example of a product category that would Fit this strategy would be __________________.

Genuinely global marketers try to figure out how to create products with a global scope rather than just for a single country. The mindset is to zero in on global Opportunities. The strategy that best describes this approach is called:

When the Wrigley chewing gum company markets its basic products abroad, it keeps its well-known brands but customizes promotional approaches in individual Countries. Which of the following strategies best describes the strategy that Wrigley is following?

Differences in both the cultural and physical environment across countries call for a _________________________ strategy.

If a company were to follow a strategy of product and communication extension (dual extension) in a foreign market, an example of a product category that would Fit this strategy would be _________________________.

Black & Decker is a good example of a company that adopts the _______________ approach to global expansion. The company aims to bring out new products that Cater to common needs and opportunities around the world.