Question 1

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

Accepted Answer

Developing countries often have fragmented distribution channels, which means global marketers need to work with a variety of intermediaries to get their products into the hands of consumers. Additionally, there may be limited infrastructure and logistical challenges that make distribution more complex.

Question 2

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 greatly affect the effectiveness of advertising and promotion campaigns in different markets. What works in one country may not work in another, which is why localization is important in global marketing.

Question 3

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 vary by country and it is important to ensure compliance with local laws and cultural norms, especially when it comes to advertising to children. This is a potential risk that should be carefully considered, and therefore caution is recommended.

Question 4

Which of the following are the two components of a global marketing strategy?

Accepted Answer

The two components of a global marketing strategy are choosing which target markets to pursue and developing a marketing mix to obtain a competitive advantage. Understanding foreign currency fluctuations, supply chains, distribution networks, adapting to foreign regulations, and developing culturally appropriate advertising messages are all important aspects of implementing a global marketing strategy, but they are not the two main components. Target market selection and marketing mix development are fundamental to establishing a successful global marketing strategy.

Question 5

India,like some other countries,may require entering firms to create _________ when expanding into their markets,limiting outsiders' control of businesses.

Accepted Answer

Joint ventures involve establishing a partnership or alliance with a local firm in the host country. This allows for shared control and decision making, where the local partner will have a greater say in the business operations. India and other countries may require this as a way to protect their domestic industries and limit the influence of foreign companies. Franchises and strategic alliances do not necessarily involve shared control, while export promotions and direct investments are not related to entering into partnerships with local firms.

Question 6

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

Accepted Answer

Cultural nuances, subcultures, and differing consumer views of their roles in different countries can make market segmentation, targeting, and positioning complicated. These factors must be taken into consideration when tailoring marketing strategies to different groups of consumers.

Question 7

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

Accepted Answer

Developing brand names that have no preexisting meaning in any known language can help overcome language difficulties and avoid potential negative connotations or misunderstandings in different cultures. This approach allows for a consistent and recognizable brand identity across different markets while also respecting linguistic and cultural differences.

Question 8

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. Each market may have unique cultural, economic, and social factors that affect the demand for the product, and these must be taken into account in order to successfully sell the product. Failure to meet the needs of the target market can result in the failure of the product and the strategy as a whole.

Question 9

Tariffs,quotas,and currency exchange policies affect global

Accepted Answer

Tariffs, quotas, and currency exchange policies can all impact the cost and availability of goods in different markets, which means it can affect a company's pricing strategy. These policies can increase the cost of importing or exporting goods, which may cause a company to adjust their prices to remain competitive.

Question 10

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

Accepted Answer

Direct investment involves a high level of investment and commitment to a new market, as the company must establish and operate its own facilities in the foreign country. This creates the greatest potential risk, as the company is fully exposed to the market and regulatory risks of the foreign country.

Question 11

Global pricing strategies should strive to be consistent with

Accepted Answer

Global pricing strategies need to align with the positioning strategies, which involve factors such as brand image, target audience, and competitors in different markets. Consistency in pricing is crucial to building a brand identity and maintaining customer loyalty across different regions. Offshore distribution facilities, cost of materials, domestic pricing, and trade surplus guidelines are also important aspects but may not directly affect the pricing strategy without considering the positioning and branding factors.

Question 12

When a firm pools its resources with that of a local firm to enter a new market,they create a(n)

Accepted Answer

A joint venture occurs when two or more firms pool their resources to create a separate, jointly-owned entity to pursue a specific purpose, often to enter a new market.

Question 13

Which of the following statements regarding global segmentation,targeting,and positioning is true?

Accepted Answer

Companies operating globally must continually adjust their products and marketing strategies to meet the changing needs of diverse markets. This requires a deep understanding of local cultures, customs, and preferences to effectively segment, target, and position their offerings. Global STP activities are much more complex than those in the domestic market due to the many differences that exist across markets. Firms must also consider logistics, regulatory issues, and competitive landscape in their global STP strategy. Furthermore, firms must be mindful that altering their marketing mix to serve local markets does not compromise their brand integrity or global identity.

Question 14

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

Option D is not a disadvantage of franchising. While franchising does come with risks and limitations, it is not necessarily the riskiest way to enter a foreign market. Other options, such as wholly-owned subsidiaries, joint ventures, or licensing agreements, also carry risks.

Question 15

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 most likely use a(n)__________ strategy.

Accepted Answer

Franchising allows Gerald to expand his business globally while limiting his risk and control. The franchisee will be responsible for the day-to-day operations of the international stores, while Gerald retains control over the brand and product standards. This is a low-risk entry strategy as the franchisee is responsible for the initial investment and ongoing expenses of the international stores.

Question 16

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

Accepted Answer

Consumers may have different values, beliefs, and behaviors in different countries, which can impact how they view their role as a consumer. Therefore, marketers must carefully consider these cultural differences when developing global segmentation, targeting, and positioning strategies. The other options are not accurate; there are many franchising opportunities in global markets, global consumer markets are not homogeneous, governments do not have rules against targeting consumers, and positioning can be successful in foreign countries with proper research and adaptation.

Question 17

Global marketers are under constant pressure to shorten distribution channels in order to

Accepted Answer

Shortening distribution channels helps to reduce costs in various ways, such as reducing transportation and storage costs, decreasing handling fees, and minimizing intermediation expenses. This can help global marketers improve their profit margins and stay competitive in the market.

Question 18

Many of the best-known American retailers,like Starbucks and McDonalds,have contractual agreements with another firm or individuals,allowing its businesses to operate overseas.These companies expanded globally using

Accepted Answer

Franchising is a form of licensing in which a business owner (the franchisor) grants permission to another individual or company (the franchisee) to use its brand name, products, and business model in exchange for a fee or a portion of the revenue. Starbucks and McDonald's are examples of businesses that have expanded globally through franchising. They have licensed their trademarks, products, and know-how to local entrepreneurs who operate their own franchises in different countries. Franchising provides a way for companies to expand quickly and efficiently without bearing the full cost and risk of setting up and running foreign operations themselves.

Question 19

As noted in your text,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 and significant subcultures within countries make it more difficult to accurately segment, target, and position products and services globally. Consumers in different countries may see themselves and products/services differently due to cultural and social norms, which can impact marketing effectiveness. Currency differences, antidiscrimination regulations, franchising issues, and taxes may also add complexities to global marketing, but they are not directly related to the challenges of cultural nuance and subcultures.

Question 20

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 allows NCD Company to have full control over business operations in the Mexican market. It also aligns with their financial resources and previous success marketing to Hispanics in the United States.

Quiz 8: Global Marketing