MKT 363 - Exam 2

Demographic segmentation is based on measurable characteristics of populations that includes all of the following examples except:

Disney hopes to capitalize on the huge number of young people and their incomes as a means to extend its brand

Global Marketing authority, Theodore Levitt, has noted that many ethnic and regional foods - sushi, for example - are enjoying popularity in many countries of the world. This observation is known as the:

Pluralization of consumption

The process of global market segmentation begins with the choice of one or more variables to use as a basis for grouping customers. All of the following are variables that are commonly used except:

polycentrics

Porsche AG uses the label "Top Guns" to describe one segment of its customers, namely those who care about power and control and who expect to be noticed. Such a profile would be based on which type of segmentation?

Psychographic

"Usage rates" and "user status" are important criteria for which segmentation variable?

Behavioral

Campbell Soup is making significant inroads into Japan's $500 million soup market as time-pressed homemakers place a premium on convenience. This type of consumer segmentation by Campbell Soup is referred to as:

Benefit Segmentation

Marketers know that Russians consume a great deal of vodka. This type of market segmentation can be classified as:

Behavioral

Global Market Segmentation is based on the premise that companies should attempt to identify consumers in different countries who share similar needs and desires

True

Sometimes it is preferrable to market to a particular age group rather than a mind-set: in such an instance, psychographic studies can help marketers arrive at a deeper understanding of consumer behavior than is possible with traditional segmentation variables

False

Which of the following criteria should marketers use when assessing opportunity in global target markets?

all of the above

Positioning refers to the act of:

differentiating a brand in customer's mind.

Benetton uses the slogan "United Colors of Benetton" to position itself as a brand concerned with the unity of humankind. This type of strategy is referred to as GCCP (global consumer culture positioning).

True

For years, ads for Volvo automobiles stressed safety features and protection in the event of a crash. Thus, Volvo automobiles developed a reputation based on which positioning strategy?

Attribute/Benefit

When a marketer understands that a product satisfies a buyer's rational criteria while also evoking an emotional response, the marketer should:

Commission psychographic segmentation studies to augment demographic data

Generally speaking, which of the following statements is true concerning product attributes?

Both tangible and intangible product attributes are important

As outlined by branding expert Kevin Lane Keller, the benefits of strong brand equity include all of the following except:

More vulnerability to marketing actions

__________ represents the cumulative added value of a company's investment in the marketing of a brand over time.

Brand Equity

Which of the following statements is not an example of local products or brands?

BMW uses "the ultimate driving machine" slogan in India

Around the world, various brands of personal computers are sold with Pentium processors. This fact is often used as a selling tactic that proclaims "Intel Inside." Which branding concept does such advertising reflect?

Co-Branding

Comparing the traditional formulation of Maslow's hierarchy with the results of current research on the consumer needs and which of the following is correct?

The lowest two levels of the hierarchy are the same in the traditional and Asain versions

Generally speaking, which of the following product categories represents the best potential for extension into international market adaptation?

Industrial products

Ben & Jerry's ice cream package design was changed in the United Kingdom since British consumers perceived the colors differently than U.S. consumers. This is an example of:

Product extensions-communications adaptation

Perceptions and attitudes about a product's origins can be positive or negative. On the positive side, "German" is synonymous with style.

False

Generally speaking, international trade results in:

Lower prices for goods

The price of a six-pack of Heineken varies in price by as much as 50 percent depending on where it is sold due to all of the factors except:

Promotion

If the manufacturer of a sophisticated new consumer electronics product determines that many target consumers qualify as "innovators" and "early adopters" with relatively inelastic demand curves, the company should use the _________ pricing strategy

skimming

When Sony introduced the first consumer VCRs In the 1970s, the retail price exceeded $1,000. Within a few years, the price dropped well below $500. This is an example of:

Skimming strategy

Mexican customers generally carry small coins. To keep prices of shampoo and detergent below 11 or 12 pesos, Proctor & Gamble is using which method of pricing?

Target Costing

If a company's home currency strengthens, it is:

an unfavorable turn of events for the typical exporter

A first-time exporter is likely to use skimming pricing, so that the product may be sold at a profit for a certain length of time

False

The American Marketing Association defines a channel of distribution as "an organized network of agencies and institutions that, in combination, perform all the activities required to link _______ with users to accomplish the marketing task."

Producers

The availability of the product processed, prepared, in proper condition, and/or ready to use is referred to as:

Form Utility

Which of the following most accurately describes the relative length of consumer and industrial distribution channels?

Consumer channels tend to be longer (consist of more intermediaries) than industrial channels

Sales representatives in which Japanese Industry cultivate close long-term relations with customers by selling door-to-door?

Automobiles

Order processing, warehousing, and inventory management are all functions pertaining to:

Physical distribution and logistics

Advertising, public relations, and other forms of communication are critical tools in the marketing program and reflect the __________ (P) of the marketing mix

Promotion

Because advertising is often designed to add __________ value to a product or brand, it plays a more important communications role in marketing consumer products than it does for marketing industrial products

Pyschological

_______ is the technique global marketers use to describe ads with common design elements into which localized elements are inserted for individual country markets

"Pattern advertising"

The choice between demonstration, slice of life, straight sell, and other advertising forms is a matter of the:

Creative execution

A recent global campaign for IKEA, the Swedish home furnishings retailer, positioned houses as homes as a place for love, memories, and laughter. This is a classic example of:

Emotional Appeal

In advertsing, a(n) ________ is an agent who chooses graphics, pictures, type styles, and other visual elements and has general responsibility for the overall look of an advertisement.

Art director

The words that are the spoken or written communication elements in advertisements are known as:

Copy

Which promotional mix element is most closely associated with activities designed to foster goodwill and understanding with various constituents both inside and outside the company?

Public Relations

In Japan, intimate scenes between men and women are in bad taste, and in Saudi Arabia such ads are outlawed.

True

Which of the following most accurately describes the state of global public relations (PR) today?

Expenditures on PR are increasing

A company adopting a(n) ________ approach to worldwide PR activities gives the host-country practitioner maximum leeway to incorporate local customs and practices into the PR effort.

Polycentric

A company that is _________ in its approach to public relations (PR) will extend home-country activities in to host countries

Ethnocentric

A company in which an ethnocentric orientation prevails is likely to utilize primarily ___________ in its sales force

Expatriates

Which type of salesperson is best suited to selling technologically sophisticated products in developed countries?

Expatriates

When a company must decide on the competition of its foreign sales force, which alternative is generally the most expensive?

Expatriates