MKTG 4280 Ch. 12 McGraw-Hill Connect

In which decade was the market segmentation argument framed as "global integration versus local responsiveness"?

1990s

Identify benefits of global marketing. (Check all that apply.)

- Sharing knowledge across markets

- Sharing experience across markets

- Reducing the cost of producing a product

Which statement is true of planning for global markets?

It is a structured way of thinking about anticipated and unanticipated events.

General planning for a company over a long period of time is called _____.

corporate planning

_____ planning deals with capital, products, research, and the short-term and long-term goals of the company. The highest levels of management are involved with this type of planning.

Strategic

Identify the market segmentation dispute in the 1970s.

Adaptation versus standardization

_____ planning relates to the allocation of resources used to implement strategic planning goals in particular markets.

Tactical

Which statement is true about establishing global operations?

It leads to the creation of innovative methods to attract customers.

Planning for global markets involves _____.

preparing for unknown and uncontrollable circumstances that may affect the company

Solinol Inc. is one of the largest oil refineries in Europe. Three years ago, it entered the Central African Republic and started production on several oil fields. The access to these oil fields made Solinol one of the largest oil companies in the world. Soon after that, the political situation in the Central African Republic deteriorated. Many of its assets are now under siege by rebel groups. The result has been losses of over $5 billion to Solinoil. In this scenario, the market opportunities for Solinol in the Central African Republic clashed with the _____.

firm's business objectives

True or false: Corporate planning plans for the immediate future.

False. Corporate planning is fundamentally long-term, and it incorporates generalized goals for the enterprise as a whole.

One advantage of clustering operations in specific regions is that clustering _____.

minimizes problems caused by varying time zones

True or false: Strategic planning takes place only at the lowest level of management.

False. Strategic planning is conducted at the highest levels of management and deals with products, capital, research, and the long- and short-term goals of the company.

Match the phase of planning for global marketing (in the left column) with its description (in the right column).

Instructions

Phase 1 --> Exploratory assessment of potential country markets

Phase 2 --> Branding products keeping cultural specificities in mind

Phase 3--> Choosing an approach into a country market

Phase 4--> Evaluating a firm's operation in a country market

True or false: Tactical planning is done at the national level and deals with products, research, and long-term goals of the company.

False. Tactical plans are made at the local level and address marketing and advertising questions.

In the first phase of planning for international marketing, companies _____.

Collect information to evaluate the potential of a country market

In many global companies, a wider portfolio of markets served _____.

decreases revenue instability

Emerging markets may _____.

have rudimentary frameworks for doing business

Identify a measure that companies take when corporate objectives do not match foreign market opportunities.

Developing a new company objective to match the opportunity

The third phase of planning for global marketing involves _____.

choosing a mode of entry into the target country

Research suggests that multinational firms like to focus on specific regions because _____.

a regional focus minimizes problems caused by cultural distance

Rank the four phases of planning for global marketing, starting from the first phase and ending with the last phase.

Instructions

1. Preliminary Analysis and Screening

2. Defining market segments and adapting the market mix accordingly

3. Developing the marketing plan

4. Implementation and control

P&L, a French luxury goods company, launched a new line of leather accessories in four countries. The company devised an aggressive marketing strategy to promote this line of products. After 6 months, the CEO of P&L calls a meeting to evaluate the success of the marketing campaigns in each country. In the context of global marketing, this meeting would fall under the _____ of the planning process.

fourth phase

In global marketing, the results of the first phase of planning help marketers _____.

recognize potential issues in a new country market

Rachel owns a small business that deals in custom wear and accessories. She wants to expand her business worldwide and is launching an online portal under her label. To open an effective online business, she will have to ensure that _____.

she has easy access to delivery services that operate internationally

What must global businesses understand about doing business in emerging markets?

Consumers in emerging countries have a variety of yearly incomes.

Licensing is an appropriate choice when _____.

a company wants to enter a country that places strict limits on imports

The ______ phase of planning for global markets begins with a situation analysis and ends with the selection of specific action plans for a new country market.

third

A drawback of licensing is that licensees

require supervision.

In global marketing, the major objective of the fourth phase of the planning process is to _____.

organize and direct implementation

In the process of franchising, franchisers _____.

offer management assistance to franchisees

Deal City, an online shopping portal based in China, supplies cost-effective household products to customers in North America. Identify the type of alternate market-entry strategy that best describes this scenario.

International Internet marketing

A major element that influence the success of a franchise is

past international experience of the franchiser.

Identify a market-entry strategy that will help a multinational company gain entry into a country market that is not receptive to companies with foreign owners.

Licensing

A business relationship in which two or more companies share risks in achieving common objectives and cooperate out of mutual need is known as a ______.

strategic international alliance

True or false: The problem of locating and overseeing licensees can contribute to the failure of licensing agreements.

true. The problem of finding and supervising licensees can contribute to the failure of licensing agreements.

Identify an accurate statement about strategic international alliances (SIAs).

SIAs decrease marketing expenses.

Place the stages of building a strategic alliance in order, starting with the first stage at the top.

Instructions

1. Dating

2. Imagining

3. Initiating

4. Interfacing

5. Committing

6. Fine-tuning

Match the partners in the franchising process (in the left column) with their description (in the right column).

Instructions

Franchiser--> Offers homogenized company products

Franchisee--> Offers information about host country market

Two companies decide to pool their resources and create a company to exploit opportunities in a developing market. Their agreement is a good example of a _____.

joint venture

Identify an accurate statement about franchising.

Franchisers have some direction over the activities of the franchisees.

A partnership between legally incorporated entities that join forces to create a separate, legal entity, where each partner holds an equity position, is known as a(n) ________ ____________

Joint Venture

A strategic international alliance (SIA) is a(n)

business relationship between two or more companies.

Identify an accurate statement about a joint venture.

It helps an outsider firm comprehend cultural differences and niceties.

A strategic international alliance aids international marketing by _____.

making a company more profitable

Consortia reduce hazards associated with big investments because _____.

they generally involve a greater amount of participants

Match the stage of building a strategic alliance (in the left column) with its description (in the right column).

Instructions

Dating--> Senior managers leveraging personal networks

Imaging: Creating shared visions

Initiating--> Building trust through face-to-face interactions

Interfacing--> Combining social and business time

Committing--> Managing conflicts inherent in making hard choices

Fine-tuning --> Relying on mature and established relationships

Wavetel, a hardware company based in Europe, acquires Telior, its competitor in a neighboring country. Identify the market-entry strategy that best describes Wavetel's move.

Direct foreign investment

A partnership of two or more companies with the goal of creating a separate legal entity is known as a ______.

joint venture

As a result of direct foreign investment, local companies that are acquired by large multinationals _____.

can export goods to new consumers

Joint ventures are

partnerships between legally incorporated entities and not between individuals.

Identify the statement that relates to the "timing" factor of direct foreign investments.

Early foreign investment in a market has benefits, but it is more uncertain.

A joint venture between two multinational corporations helps an international marketer _____.

access a partner's local supply and delivery methods

Match the company structure (in the left column) with its description (in the right column).

Instructions

Global product division--> Handles product sales throughout the world

Geographical division--> Handles products within a particular region

Identify the scenario that describes a consortium.

Five technology corporations and ten consulting corporations come together to form a telecommunications company in Africa for the first time.

Tactical choices for international marketing should be made at the ______ of an organization.

lowest level

Investing in a foreign company is a means of foreign market development and entry known as . ______ _______ _________

Direct Foreign Investment

Unlike decentralized organizations, centralized organizations _____.

direct planning

Market entry through direct foreign investment helps multinational corporations in _____.

lowering the costs of shipping

True or false: Research demonstrates that when choices are centralized, subsidiaries have no impact on business choices.

False. Studies show that even though product decisions may be highly centralized, subsidiaries may have a substantial amount of local influence in pricing, advertising, and distribution decisions.

Identify the factors that influence the performance and structure of direct investment.

- investment timing

- knowledge of local firms

- complicated contracts

Identify the three typical company structures. (Check all that apply.)

- Global product divisions

- Geographical divisions

- Matrix organizations

When making decisions for international marketing, managers should

ensure that policies define the decisions to be made at each managerial level.

Match the type of company (in the left column) with its description (in the right column).

Instructions

Centralized companies--> Company information and data are located in one place.

Decentralized companies--> Executives have a localized view of the company, not an all-encompassing one.

Product choices tend to _____ when products are culturally delicate or complex.

be decentralized