Question 1

U.S.wine producers only export about 14 percent of their total annual production of wine.They would like to sell more to overseas markets,but do not want to tailor their wines to consumers' palates.For example,Californian wines are typically heartier and richer than Europeans like to drink.
-Maybelline formulated cosmetics that were designed to complement the complexions of women with various skin types around the world.Which of the marketing mix strategies did Maybelline use?
A)countertrading
B)product adaptation
C)global market standardization
D)product licensing

Accepted Answer

A basic product (cosmetics)was changed.

Question 2

As a global marketing strategy,which of the following requires active ownership (either a controlling interest or large minority interest)of a foreign company or overseas manufacturing or marketing facilities?
A)market grouping
B)import brokering
C)export subsidizing
D)direct investment

Accepted Answer

Direct investment refers to owning a foreign company or overseas manufacturing/marketing facilities, which requires active ownership. Market grouping involves cooperation within a group of countries, import brokering involves acting as a middleman for importing goods, and export subsidizing involves providing financial incentives for exporting goods, but none of these require active ownership of foreign assets.

Question 3

When IKEA,the Swedish home furnishings retailer,first entered the Japanese market,it failed.It was more successful in its second try because it was aware of the need to adapt its furnishings to fit the smaller Japanese homes.
-Which environment had the greatest influence on IKEA's first failure in Japan?
A)demographic
B)economic
C)cultural
D)political

Accepted Answer

Smaller homes are part of the tradition and culture of Japan.

Question 4

Big Brother,Survivor,and Wipeout are just some of the popular television shows that have been exported to foreign markets.The formats and rules are adhered to very closely,but the television shows will vary tone,lighting,greetings,and pace just enough to captivate local audiences.What is this an example of?
A)product adaptation
B)product divestment
C)product penetration
D)market substitution

Accepted Answer

The customers in different cultures expect their television shows to have a different look than those in the originating country.

Question 5

U.S.wine producers only export about 14 percent of their total annual production of wine.They would like to sell more to overseas markets,but do not want to tailor their wines to consumers' palates.For example,Californian wines are typically heartier and richer than Europeans like to drink.
-Refer to U.S.Wine.Which type of strategy do U.S.wine producers need to adopt if they hope to reach more of the global market?
A)product substitution
B)market differentiation
C)message adaptation
D)product adaptation

Accepted Answer

Product adaptation is the slight alteration of the basic product (in this case,making the wine more palatable to European tastes. )

Question 6

The Czech Republic began producing pilsner beer in 1846 and is proud of its brewing heritage.To further its global marketing strategy,Nomura Securities,a Japanese investment company,purchased the two largest breweries in the nation.What is this an example of?
A)a joint venture
B)direct investment
C)licensing
D)contract manufacturing

Accepted Answer

Active ownership (either a controlling interest or large minority interest)of a foreign company or overseas manufacturing or marketing facilities is an example of direct investment.

Question 7

An Italian clothing manufacturer is considering the use of contract manufacturing.It has found a contract manufacturer in Indonesia that appears to be able to handle the job.If the manufacturer does use the Indonesian manufacturer,it will do which of the following?
A)not need a marketing division in Indonesia because the Indonesian manufacturer will handle all marketing
B)determine the best location for a manufacturing facility in Indonesia
C)need to set up a marketing division in Indonesia
D)plan the pricing and promotional mix for the contract manufacturer to use

Accepted Answer

Marketing is usually handled by the domestic firm.The contract manufacturer is involved in production only.

Question 8

A deodorant manufacturer wants to expand its marketing in Southeast Asia,but it has found research that shows fewer than 10 percent of people in those countries use deodorant daily.Assuming this information is true,the deodorant manufacturer would NOT be likely to use which of the following marketing mix strategies?
A)countertrading
B)product invention
C)global market standardization
D)product adaptation

Accepted Answer

The manufacturer would be least likely to use a one-product,one-message strategy because it would first need to create a market for deodorant by explaining why it is useful.That is not the message it needs to deliver in countries where people regularly use deodorants.Product licensing and countertrading are not types of marketing mix strategies.

Question 9

Pillsbury has developed different products for its various global markets.Which of the following statements offers a likely reason for its use of product invention?
A)Manufacturers cannot protect product designs with patents in other nations.
B)Globalization allows for rapid delivery of new products.
C)Consumers in different countries use products differently.
D)Various cultures respond to advertising messages differently.

Accepted Answer

The customers in different cultures have different needs and wants.

Question 10

Leuwin & Thomason is a British manufacturer of washing machines.It wants to make its products more readily available in the United States and Canada.The company feels it is important to retain strict quality control over its production processes and wants its global expansion to yield a high return.Which method should Leuwin & Thomason choose to enter the global marketplace?
A)a joint venture
B)direct investment
C)licensing
D)exporting

Accepted Answer

For the highest control and highest return,Leuwin & Thomason will have to build a plant in North America.

Question 11

U.S.wine producers only export about 14 percent of their total annual production of wine.They would like to sell more to overseas markets,but do not want to tailor their wines to consumers' palates.For example,Californian wines are typically heartier and richer than Europeans like to drink.
-Refer to U.S.Wine.U.S.wine makers are not having much success in selling their wines in Europe due to differences in which environment?
A)demographic
B)economic
C)cultural
D)political

Accepted Answer

Culture influences product preferences.

Question 12

Which method of entering the global marketplace is most risky?
A)licensing
B)direct investment
C)contract manufacturing
D)joint ventures

Accepted Answer

Direct investment involves a significant amount of capital and resources to establish wholly-owned subsidiaries in foreign countries, which entails high risks due to unfamiliar cultural, legal, economic, and political conditions. This method also requires a long-term commitment to the foreign market and exposes the parent company to potential losses if the investment turns out to be unsuccessful. Compared to licensing, contract manufacturing, and joint ventures, direct investment involves the highest level of risk.

Question 13

Head and Shoulders shampoo advertises its dandruff control shampoo worldwide using the same "boy meets girl" ad campaign,no matter where it wants to market its product.Which strategy is this an example of?
A)product and message extension
B)market substitution
C)product adaptation
D)one product,one message

Accepted Answer

Essentially both the product and message have stayed the same from market to market.

Question 14

To enter the Hungarian market,Ernst & Young,an international accounting company,purchased an existing accounting firm.How did Ernst & Young enter the Hungarian market?
A)through contract marketing
B)through direct investment
C)through franchising
D)through direct exporting

Accepted Answer

Active ownership (either a controlling interest or large minority interest)of a foreign company or overseas manufacturing or marketing facilities is an example of direct investment.

Question 15

Sony,Panasonic,and other Japanese manufacturers that build products to customer order instead of churning out products in anticipation of demand have decided to hire Canadian companies to produce electronics for them.The Japanese companies will handle the marketing of the products.What are the Japanese electronics companies using?
A)contract manufacturing
B)direct investment
C)franchising
D)direct exporting

Accepted Answer

Contract manufacturing takes place when a foreign company produces goods to specification set by a domestic company,with the domestic firm's brand name affixed to the goods.In this case the "domestic" companies are in Japan selling in a foreign market for them-Canada.

Question 16

According to the text,which of the following is an example of a product strategy that would be appropriate for a global marketing company to implement?
A)product adaptation
B)product divestment
C)product penetration
D)market substitution

Accepted Answer

Product adaptation involves modifying an existing product to better suit the needs of a specific market or region. This is a common strategy for global marketing companies as it allows them to tailor their products to different cultural, legal, and economic environments. Product divestment involves selling off or discontinuing a product line, while product penetration focuses on increasing market share in an existing market. Market substitution involves replacing one product with another that serves a similar function.

Question 17

What takes place when a foreign company produces goods to specification set by a domestic company,with the domestic firm's brand name affixed to the goods?
A)importing
B)joint venturing
C)direct investing
D)contract manufacturing

Accepted Answer

This is an example of contract manufacturing, where a foreign company produces goods according to the specifications set by a domestic company and attaches the domestic company's brand name to the goods.

Question 18

Once a firm has decided on which method to use to enter a global market and evaluated the various external variables,it is ready to create a marketing mix.What is the first step in creating the global marketing mix?
A)Create a new product.
B)Select the method of promotion.
C)Collect and analyze market research information.
D)Decide whether product modification is necessary.

Accepted Answer

Market research is the first step,and the resulting knowledge of customer needs and wants will guide product,price,promotion,and distribution decisions.

Question 19

In the context of global marketing,when a company either creates a new product for a market or dramatically changes an existing product,which type of strategy is the company using?
A)product invention
B)product extension
C)market substitution
D)market adaptation

Accepted Answer

Product invention is the type of strategy where a company creates a new product for a market or innovatively changes an existing product to address the needs of a new market. This type of strategy requires significant investment and research and involves higher-risk but potentially higher-reward outcomes. Product extension (B) refers to a strategy where a company extends an existing product to a different market or customer segment. Market substitution (C) is not a recognized strategy, and market adaptation (D) refers to adjusting the marketing mix of an existing product to meet the needs of a new market, rather than inventing a new product.

Question 20

When IKEA,the Swedish home furnishings retailer,first entered the Japanese market,it failed.It was more successful in its second try because it was aware of the need to adapt its furnishings to fit the smaller Japanese homes.
-Refer to IKEA.IKEA's success on its second foray into Japan was based on its ability to give the Japanese consumer what he or she needed without abandoning its product strategy.IKEA had to adopt which of the following as a strategy?
A)product substitution
B)market differentiation
C)product adaptation
D)product invention

Accepted Answer

Product adaptation is the slight alteration of the basic product (in this case,making it smaller. )

Quiz 20: Developing a Global Vision

As a global marketing strategy,which of the following requires active ownership (either a controlling interest or large minority interest) of a foreign company or overseas manufacturing or marketing facilities?

The Czech Republic began producing pilsner beer in 1846 and is proud of its brewing heritage.To further its global marketing strategy,Nomura Securities,a Japanese investment company,purchased the two largest breweries in the nation.What is this an example of?

An Italian clothing manufacturer is considering the use of contract manufacturing.It has found a contract manufacturer in Indonesia that appears to be able to handle the job.If the manufacturer does use the Indonesian manufacturer,it will do which of the following?

Pillsbury has developed different products for its various global markets.Which of the following statements offers a likely reason for its use of product invention?

Which method of entering the global marketplace is most risky?

Head and Shoulders shampoo advertises its dandruff control shampoo worldwide using the same "boy meets girl" ad campaign,no matter where it wants to market its product.Which strategy is this an example of?

To enter the Hungarian market,Ernst & Young,an international accounting company,purchased an existing accounting firm.How did Ernst & Young enter the Hungarian market?

According to the text,which of the following is an example of a product strategy that would be appropriate for a global marketing company to implement?

What takes place when a foreign company produces goods to specification set by a domestic company,with the domestic firm's brand name affixed to the goods?

Once a firm has decided on which method to use to enter a global market and evaluated the various external variables,it is ready to create a marketing mix.What is the first step in creating the global marketing mix?

In the context of global marketing,when a company either creates a new product for a market or dramatically changes an existing product,which type of strategy is the company using?