Quiz 6 - International Marketing

When marketers are making the decision to enter an international market or not, the first step is generally to

decide on the target product/market

Which of the following is a step in the market entry decision process?

Review mode of entry (evaluate if it's the most appropriate given external factors and internal objectives).

When Coca-Cola looks at per capita income and the number of minutes that it would take for somebody to work to be able to afford a Coca-Cola product, the company is following which of the following steps of the initial screening process for market entry?

indicator selection and data selection

The _____ of a market refers to the country's distribution system, transportation network, and communication system.

physical infrastructure

Markets can be classified in five types of countries based on their respective market attractiveness. All of the following are part of the classification scheme except:

low-tech countries

Most companies start their international expansion with _____.

exporting

_____ means that the firm uses a middleman based in its home market to do the exporting.

Indirect exporting

_____ means that the firm enters into an agreement with another firm (local or foreign) where the partner will use its distribution network to sell the exporter's goods.

cooperative exporting

One of the main advantages of direct exporting over indirect exporting is that the exporter has more:

control over its international operations

One of the most popular franchise plans used in international marketing is _____ where the franchiser gives the franchise to a local entrepreneur who in turn sells local franchises within a territory.

master franchise

A major advantage of joint ventures, as compared to lesser forms of resource commitment such as licensing, is:

the return potential

There are no magic ingredients to foster the stability of joint ventures, however, all of the following are good guidelines except:

pick a partner with which control can be maintained

A study by a team of McKinsey consultants advises parent companies to create a launch team during the launch phase—beginning with the signing of a memorandum of understanding and continuing through the first 100 days of operation. The launch team should address the four key joint venture challenges. Which is not one they name?

coordinate the travel between the parties, particularly its leadership

_____ come about when multinational companies prefer to enter new markets with 100 percent ownership.

wholly owned subsidaries

One way to address hostility to foreign acquisitions in the host country is by _____ the firm's presence in the foreign market by hiring local managers, sourcing locally, and developing local brands.

localizing

Companies that enter via wholly owned subsidiaries are sometimes perceived as a threat to the culture and/or economic sovereignty of the_____.

host country

The chief reason that some firms choose acquisitions (or mergers) to enter a foreign market is that they can:

enter the market more quickly

Decisions to exit or divest a foreign market may have all the following reasons except:

new market

Risks of exiting a foreign market may lead to all the following except:

short-term opportunities

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?

adaptation

A uniform product policy capitalizes on the commonalities in customers' needs across countries. The goal is to:

minimize costs

The primary advantage to using a standardization approach to marketing a product in the international arena is:

minimization of costs (which can be passed on to customers)

Standardization of product has a _____ orientation (lower costs via mass production).

product-driven

The formation of regional market agreements such as the Single European Market encourages companies to launch:

regional products

_____ means shortening the time to bring new product projects to the market.

Time-to-market

A _____ enables a company to reduce complexity and enjoy the benefits of economies of scale while still meeting local market requirements

modular strategy

One of the pitfalls that a global marketer can run into is _____. This would occur when too much adaptation to the local market occurs and the brand becomes vulnerable to losing its unique foreigness.

overcustomization

In general, the rate of adoption of new products (in foreign markets) is driven by individual differences, personal influences, and:

product characteristics

_____ are always eager to experiment with new ideas and products.

early adopters

To what extent does the new product offer more perceived value to potential adopters than exiting alternatives, would be a question that best fits with which of the following key product characteristics acceptance categories?

relative advantage

Is the product easy to understand or use, would be a question that best fits with which of the following key product characteristics acceptance categories?

complexity

A _____ country is where a product is first introduced.

lead

_____ are people who look beyond their immediate social surroundings and are not local intheir opinions.

cosmopolitans

A prime motive for the waterfall model (in introducing new products on a global scale) isthat adaptation of the marketing strategy for the host market is:

time consuming

The chief reason for a company choosing the sprinkler method of new product introduction is to off-set:

competitive preemption

Linked to the brand name is a collection of assets and liabilities called _____.

brand equity

A key strategic issue that appears on international marketers' agendas is whether there should be a _____.

global brand

A truly _____ is one that has a consistent identity with consumers across the world.

global brand

The most obvious reason for having a global brand would be to take advantage of:

economies of scale

Brand equity for global brands varies greatly from country to country. All of the following factors contribute to the variation except:

literacy

The following four branding strategies are available to markets except:

horizontal branding

_____ is a system where a single banner brand is used worldwide, often with a sub-brandname, for almost the entire product mix of the company

umbrella (corporate) branding

Three drivers can be singled out relate to product-market characteristics. Which of the following is not one of those drivers?

The production cost structure and related economies of scale

With respect to a brand name changeover strategy, the _____ strategy ties the new global brand name to the existing local brand name. After a transition period, the old name is dropped.

fade-in/fade-out

During a naming/branding transition period, when local and global brand names are kept so that consumers and the trade have sufficient time to absorb the new brand name, the approach is called:

dual branding

With respect to a brand name changeover strategy, the _____ strategy alerts customers about the brand name change (via communications such as in-store displays).

transparent forewarning

_____ is the only marketing mix instrument that creates revenues.

price

A company's pricing policy is a highly _____ process based on inputs from various departments

cross-functional

All of the following are drivers that govern global pricing decisions except:

controls

When developing a pricing strategy for its global markets, one of the first steps that a company must go through is to decide:

what it wants to accomplish with its strategy

When making pricing decisions, _____ set(s) the floor.

costs

_____ costs change with sales volume.

variable costs

With _____, prices are arrived at after removing domestic fixed costs.

dynamic incremental pricing

In the international marketplace, _____ pricing adds international costs and a mark-up to the domestic manufacturing cost

cost-plus price

When demand is highly price sensitive, the company needs to consider how it can _____from a global perspective

reduce costs