Global Marketing Study Guide

To ferret out translation errors in marketing research questionnaires, marketers use three

different techniques, including which of the following?

Back translation, parallel translation, decentering

What is the crucial question facing international marketers today?

What are the most efficient ways to segment markets?

A Spanish company is creating a marketing plan for entering the Croatian market. In the plan, the company includes a projected budget and sales and profit expectations. Which phase of the international planning process is this company working on?

Phase 3: Marketing Plan

What is one of the top two criteria for global market consumers when making purchase Decisions?

Cost or quality

If a company wished to alter a product's platform so that the product could be manufactured in a variety of forms to meet local differences in five different foreign markets, the component of the Product Component Model that is most likely to be under consideration is _________________.

Core

When a company alters the price of its product to compete with local companies in the international market, it is focusing on the________ component of the product, according to the Product Component Model.

Packaging

***What are the major components in the marketing communications mix for most companies?

Advertising and personal selling

In the context of international advertising, it has been observed that advertising expenditures are generally which of the following?

Cyclical

What is considered the most critical difference between domestic marketing and international

Marketing?

"marketing activities take place in more than one country" "SO the answer isn't the marketing concepts itself, it is with the environment within which marketing plans must be implemented" "unfamiliar problems, strategies to cope with uncertainty"

For international markets, marketers must be especially cognizant of

political/legal forces

With respect to the environment in which a business operates, factors such as competition,

political and legal forces, and economic climate would all be classified as

uncontrollable elements in a domestic environment

Which is a controllable element in both domestic and international marketing environments?

The four P's and research

The Japanese have strong loyalty toward their companies partly because of the influence of

The Confucian philosophy

is the region most affected by aging and thus by a steadily decreasing worker-to-

retiree ratio.

EUROPE

What action is important for marketers to take in order to be effective in a foreign market?

Learn differences with other cultures

Lionel is excited about his new home in Osaka. He has been given the opportunity to learn about a new culture, form new friendships, and capitalize on opportunities that were not available in his previous workplace based in Salt Lake City. In this scenario, Lionel is going

through ________________ as he adjusts to living in Osaka.

acculturation

Unlike investors in the United States, many investors in Germany are reluctant to take the risk of investing in a stock market. Which cultural dimension does this reflect?

Uncertainty avoidance index

______ refers to a strategy that involves marketing products similar to ones already on the market, thereby minimizing resistance

Cultural congruence

Business customs in which an outsider must not participate are called ________

Exclusives

What method accounts for the majority of resolutions in international commercial transaction disputes?

Conciliation

Marketing is an economy's arbitrator between productive capacity and _______

Consumer demand

The level of market development roughly parallels the stages of economic __________

Growth

Similarity of cultures can make or break an economic union. Although there is great cultural diversity in the European Union, key members share________ and are commonly aware of being European.

A long-established Christian heritage

What city has an advantage of bordering Hong Kong, using it as a trade platform to expand the global market?

Shenzhen

Which arrangement is best undertaken when a firm wants to keep its seasonal distribution channels functioning throughout the year?

Complementary exporting (or piggyback)

When developing an international advertisement campaign, what is the first step of the Process?

Market research

The single most important activity of international business negotiations is _____

Listening

According to anthropologist Edward T. Hall, culture is _____

Communication

When marketers first introduced the personal digital assistant (PDA) to American consumers, they acted as ________ because the cultural impact of the product became widespread.

Agents of change

The adjective that best defines the market behavior of any country is

Dynamic

The introduction of a Westernized diet has caused many Japanese to become overweight. To counter this trend, the Japanese are buying low-calorie, low-fat foods to help shed excess weight and are flocking to health clubs. This scenario best exemplifies ________ change. 

Unplanned

Numerous studies indicate a direct link between the ______ rate of a country and its 

capability for rapid economic growth. 

Literacy

What are the three categories of business customs?

Imperatives, electives, and exclusives

Jenna does not drink alcohol and when she meets clients for dinner she knows that while the client might enjoy a glass of wine with the meal, she is not required to. What type of business custom does this illustrate?

Electives

**Most European countries are comparable to the United States in terms of the number of females in managerial positions. The country that is drastically different is _____, where only 23 percent of females hold managerial positions. 

Japan

__________ is an intense feeling of state pride and unity, an awakening of a country's people to

Nationalism

The government in Chile recently informed Mario's company that his retail grocery chain in Chile would have to be gradually turned over to the people of Chile by the year 2050 as it is a

foreign company in Chile. Additionally, starting the following year, 50 percent of the board of directors of the Chilean operation of the company must be Chileans. What political risk

action is Mario's company facing in Chile?

Domestication

Stopping or refusing to trade with another nation for political reasons is called _______.

Embargo/Sanction

Xiu is attempting to forecast political instability. By doing this, she wants to help her company's management identify and evaluate political events and their potential influence on current and future international business decisions. She is engaged in which of the following?

Political Risk Assessment

Ralph Richards's company has been attempting to solve a problem with a contract default by the Dutch government. He has tried conciliation, but the two parties did not find any common ground on which they could begin a fruitful negotiation for settlement. What is

likely to be the course of action that both the parties will try next?

Arbitration

What commonly counterfeited product has the potential for doing the greatest harm to the consuming public?

Pharmaceuticals

What is the first step of the marketing research process?

Define the research problem and establish research objectives.

In the context of sources of data, commercial sources, trade associations, management

groups, and state and local governments are examples of________ data.

Secondary

Saoirse leads the international marketing department of Springtone, a smartphone

manufacturer. Springtone wants to expand its presence in Colombia. As part of the marketing research effort, Saoirse has decided to use data on competitors provided by independent market research agencies located in Colombia. Concerning the assimilation of secondary data, Saoirse is most likely to face which of the following problems?

Reliability (of secondary data)

In many rural areas, there are no street maps, some streets are not identified, and some houses are not numbered. Which of the following aspects of market research is this situation most likely to directly affect?

Sampling

Diego systematically monitors chat rooms, blogs, and personal websites to assess consumers' opinions about the new line of granolas that his company has launched. Diego is engaged in which of the following?

Netnography

According to the text, today the real power of the Internet for international marketing research is the __________

Ability to access volumes of secondary data

In Japanese corporate culture, which action is most likely to constitute a typical significant impediment to averting and responding to a crisis?

The reluctance of subordinates to report bad news to superiors

Most newly industrialized countries (NICs) have moved away from restrictive trade practices and instituted significant free market reforms. As a result, these countries have ______.

Attracted significant foreign direct investment and experienced rapid economic growth

More household money goes for________ in emerging markets than in developed markets.

Food

As Selena examines markets that might match her company's investment requirements, she is particularly interested in the fact that the European Community has an extensive transportation network. This network seems to draw all the member nations closer together physically. What critical factor for ensuring an effective economic union is Selena most likely examining when reviewing transportation networks?

Geographic proximity

What is a reason for East Asia's economic success?

East Asia is homed to China, the world's largest exporter in the world. Since the embrace of their dual economic system that embraces both socialism and certain parts of capitalism the country saw rapid economic growth.

Hong Kong________ since its turnover to the People's Republic of China.

became a Special Administrative Region (SAR) of China

What was Japan's greatest hindrance to the development of software innovations appropriate for world markets?

The Japanese language was the greatest hinderance to the development of software innovations due to their three-alphabet system and its character/meaning based language does not mix well with digital software.

What is most likely to cause the biggest problems for television and radio advertisers in China?

The Chinese government mandates TV and radio advertisers to be spoken in standard Mandarin, however there are over 56 local dialects that advertisers prefer to use to sell products. This creates a mix of dialects that ruin the unity and potential reuse of that ad in other parts of China.

Motorola's huge investments in________ have yielded perhaps the biggest mobile phone manufacturing operations in the world.

Tianjin Economic and Technology Development Zone

Dell Corporation is a good example of mass customization because it _______

built its business model on maintaining no inventory and assembling each computer to order

Marketing manager Emilio wants to sell his company's products in specific markets

overseas. To reach potential customers, Emilio should focus his planning on the________ Level.

Tactical plans

A company decided to expand its presence in northern Europe. Toward that end, it selected the countries where it would market its products. It also selected a mode of entry. It is now in the process of implementing specific plans. The company is currently in which phase of the

international planning?

Phase 4: Implementation and Control

A company is in the process of deciding the mode of entry it will use in Japan and China. The company is in which phase of the international planning process?

Phase 3: Marketing Plan

Product________ is the term used to describe the changes mandated by local product and service standards.

Homologation

A Belgian chocolate manufacturer received many complaints from customers about the quality of its products when it began selling them in a Colombia. The intense heat and humidity in the country damaged the product. To address this, the firm repackaged its chocolate bars with an extra plastic wrapper to protect it. Which factor in the local market dictated the company's product adaptation in this scenario?

Climate

As part of the "green movement," the European Commission has passed legislation to control all kinds of packaging waste throughout the European Union. Two critical issues that affect

product development are the control of the packaging component of solid waste and ___________________.

Consumer demand for environmentally friendly products

A Canadian computer company underperformed when it first entered the Japanese market.

Some customers found the wrapping on the instruction manual damaged and, as a result, returned the computer unused. This would probably be an insignificant problem in Canada, but it was certainly a cause of concern in quality-conscious Japan. To fix this problem, the company should concentrate on which component of the Product Component Model?

Packaging

A Brazilian food company had to change the labeling on its products to meet the

specifications regarding vegetarian and nonvegetarian foods set by the government in the Taiwan market. It also had to mention the ingredients in Taiwanese to provide clarity to local

customers. The component of the product that is affected is the________ component.

Packaging Component

***What is a reason for marketing industrial goods abroad that does NOT necessarily apply to consumer goods?

-Volatility

-Industrial and economic development

-Level of technology

Derived demand can be defined as demand that is _______________.

Demand dependent on another source.

Why do German and Japanese firms generally do better than U.S. firms when it comes to managing volatility?

They value employees and stability more highly.

Russia and Eastern European countries fit in which stage of Rostow's five-stage model of economic growth?

Stage 3 (takeoff ). Manufacturing of both semi-durable and nondurable consumer goods has begun. Goods demanded relate to equipment and supplies to support manufacturing. Russia and Eastern European countries fit this category.

An important dimension of quality is how well the product ___________

Meets the needs of the buyer

The________ measures customers' satisfaction and perceptions of quality of a representative sample of America's goods and service

American Customer Satisfaction Index (ACSI)

Printers may seem inexpensive until the cost of operation (i.e., ink cartridges) are included. This situation reflects which of the following?

After-sale services: what you have to buy after is more expensive than the initial product

The________ process includes the physical handling and distribution of goods, the passage of ownership (title), and the buying and selling negotiations between producers and intermediaries and between intermediaries and customers.

Distribution

What is often the approach of choice in markets with insufficient or underdeveloped distribution systems?

Direct marketing

6 C's of Channel Strategy

Cost, capital, control, coverage, character, continuity

One reason channels of distribution often pose longevity problems is that most intermediaries __________

Have little loyalty to their vendors

Most toy manufacturers would agree that toys cannot be marketed profitably in countries without commercial television advertising directed toward children. In this scenario, commercial television advertising exemplifies the availability of appropriate

Media

Sales promotions are short-term efforts directed to the consumer or retailer to achieve specific objectives such as

Increased sales, product trial, consumer awareness

The interpretation by the receiver of the symbolism transmitted from an information source.

Decoding

****Using the Internet as a communication medium when only a small percentage of an intended market has access to it is an example of an error related to _____

Coverage/media infrastructure

Compensation arrangements for advertising agencies throughout the world are based on

the______ of 15 percent commissions.

U.S. System

What is the final link in a company's marketing and sales efforts?

The sales representative

A multinational company with its headquarters in the United States wants to sell consulting services in France. For the most effective selling, the sales force for this company would probably consist mostly of which of the following?

Local Nationals

What is a disadvantage associated with a sales force consisting of expatriate salespeople?

High cost, cultural and legal barriers, and the limited number of high-caliber personnel willing to live abroad for extended periods

Fahad, a U.S. citizen, works as the sales manager for a digital communications company. His company headquarters is in the United States, where he and his family live. However, he manages operations in Taiwan, making frequent and lengthy visits to conduct business meetings with his colleagues there. Fahad would most likely be considered to be which of the

following?

Virtual Expatriate

In relationship-oriented cultures such as France, Mexico, and Japan, sales representatives __________.

Tend to be on the bottom rung of the social ladder._

When hiring new personnel for international marketing, what is considered to be the best

way to assess the traits necessary for success?

Interviews and role-playing exercises as well as referrals

In general, price decisions are viewed in two ways: pricing as a static element in a business decision, and pricing _____________.

As an active instrument of accomplishing marketing objectives.

Timepiece Group Inc., an importing organization in Los Angeles, buys alarm clocks from a company in Austria for $10 a unit. Unknown to the Austrian company, Timepiece Group sells this product in the United States for $16 a unit. As a result, the Austrian company loses revenue because it also sells its alarm clocks in the United States but for the higher price of

$20. This example demonstrates which of the following?

Parallel Import

A company uses________ when the objective is to reach a segment of the market  that is relatively price-insensitive and thus willing to pay a premium price for the value received.  

Skimming

In most cases, the reason products cost relatively little in one country and cost more in another is the

Tarriffs/cost of exporting

What is the most probable reason a manufacturer would choose to conduct its manufacturing operations in a third country?

Lower production cost, labor costs, and lower cost on materials 

The _______ system is an important selling technique to alleviate high prices and capital shortages for capital equipment.

Leasing

Sales on open accounts are not recommended in which of the following situations?

-Practice of trade is to use some other method

-Special merchandise is ordered

-When shipping is hazardous

-When the country of the importer imposes difficult exchange restrictions

-Political unrest

Which image is a cultural stereotype that is most likely attributed to American negotiators by foreign business negotiators?

American negotiators are straight to the point and don't beat around the bush.

When it comes to international negotiation

-Negotiation styles differ

-Aggressiveness gap

-Age and (educational) experience

On a tour to Australia in 1992, George Bush Sr. flashed the victory sign at the Australian public, with the palm facing inwards, which was considered a rude gesture. This is an example of cultural differences causing problems at the level of

Nonverbal communication

What is the most likely reason for side conversations among foreign negotiators in their native languages?

Translation problems

98) In the negotiations studied, which group used silent periods more than the Japanese?

Russians

*****Which trait is important for marketing executives involved in international negotiations and technical experts who accompany them?

Optimism? Patience?