Deck 19: International Advertising and Promotion

Question 1

Sales promotion activities are required to deal with local governments, media, and trade associations.
Public relations activities are needed to deal with local governments, media, trade associations, and the general public, any of which may feel threatened by the presence of a foreign multinational.

Answer 1

False

Question 2

Brands or messages that can be adapted for a visual appeal are best suited for worldwide ad campaigns.
Brands or messages that can be adapted for a visual appeal are best suited for worldwide appeals. These avoid the problems of trying to translate words into dozens of languages.

Answer 2

True

Question 3

Companies are consolidating their global advertising in an effort to increase cost efficiencies and gain greater leverage over their agencies.
Companies are consolidating their global advertising in an effort to increase cost efficiencies and gain greater leverage over their agencies.

Answer 3

True

Question 4

Consumer-oriented promotional tools such as sampling and high-value coupons are effective for introducing new products into the market.
To introduce a product to a country, consumer-oriented promotional tools such as sampling, high-value coupons, and cross-promotions with established products and brands are often effective.

Question 5

A decentralized approach to organizing for international advertising should be adopted when a company can use standardized advertising.
Complete centralization is likely when market and media conditions are similar from one country to another, when a company has only one or a few international agencies handling all of its advertising, when a company can use standardized advertising, or when it desires a consistent image worldwide.

Question 6

Demographic data can provide insight into the living standards and lifestyles in a particular country to help companies plan ad campaigns.
Demographic data can provide insight into the living standards and lifestyles in a particular country to help companies plan ad campaigns.

Question 7

Product standardization results in higher production costs.
Product standardization results in lower design and production costs as well as greater marketing efficiency, which translates into lower prices for consumers.

Question 8

Public relations activity in international markets is growing due to the proliferation of media.
Sales promotion activity in international markets is growing due in part to the transfer of promotion concepts and techniques from country to country and in part to the proliferation of media.

Question 9

International markets are important to small and midsize companies as well as large multinational corporations.
International markets are important to small and midsize companies as well as the large multinational corporations.

Question 10

Creative strategy development for international advertising is different in process and procedure from that for domestic advertising.
Creative strategy development for international advertising is basically similar in process and procedure to that for domestic advertising.

Question 11

The growth of sales promotion in international markets can be attributed to the liberalization of trade.
The growth of sales promotion stems from the liberalization of trade, the rise of global brands, the spread of cable and satellite TV, and the deregulation and/or privatization of media.

Question 12

International publications offer advertisers a way to reach large audiences on a regional or worldwide basis.
International publications offer advertisers a way to reach large audiences on a regional or worldwide basis. Readers of these publications are usually upscale, high-income individuals who are desirable target markets for many products and services.

Question 13

The primary focus of international media has traditionally been television and radio.
The primary focus of international media has traditionally been magazines and newspapers.

Question 14

Which of the following factors is responsible for driving U.S. companies to focus on international markets?

A)Rapid population growth
B)Saturation in domestic markets for many products and services
C)Low competition from domestic companies
D)Low competition from foreign companies
E)Favorable marketing environment within the country

Question 15

Products that are steeped in the cultural heritage of a country are best suited to worldwide appeals.
High-tech products and new products coming to the world for the first time are best suited to worldwide appeals and not those steeped in the cultural heritage of a country.

Question 16

One of the main advantages of global marketing and advertising is economies of scale in production and distribution.
One of the main advantages of global marketing and advertising is economies of scale in production and distribution.

Question 17

Product standardization is becoming increasingly important as a result of longer product life cycles.
Product standardization and global marketing enable companies to roll out products faster into world markets, which is becoming increasingly important as product life cycles become shorter and competition increases.

Question 18

A centralized approach to organizing for international advertising is not suitable when market and media conditions are similar from one country to another.
Complete centralization is likely when market and media conditions are similar from one country to another.

Question 19

Direct broadcast by satellite employs low-cost satellite dishes.
A major development affecting broadcasting in Europe, Asia, and Latin America is direct broadcast by satellite (DBS) to homes and communities equipped with small, low-cost receiving dishes.

Question 20

It is extremely easy to develop an effective universal approach to marketing and advertising a single product across the world.
Differences in culture, market, and economic development; consumer needs and usage patterns; media availabilities; and legal restrictions make it extremely difficult to develop an effective universal approach to marketing and advertising.

Question 21

Since imports take a larger share of the domestic market for many products, it has become increasingly important for U.S. companies to:

A)take collective measures to be sustainable in the domestic market.
B)allocate additional funds for publicity.
C)adopt an international marketing orientation.
D)invest heavily in import-oriented businesses.
E)seek government aid to restrict further imports.

Question 22

The communications, transportation, financial, and distribution networks of a country are part of its:

A)political/legal environment.
B)cultural environment.
C)economic infrastructure.
D)demographic environment.
E)international interfacE.Developed countries have the economic infrastructure in terms of the communications, transportation, financial, and distribution networks needed to conduct business in these markets effectively.

Question 23

Which of the following factors demands different creative and media strategies as well as changes in other elements of the advertising and promotional program for foreign markets?

A)Unlimited media options in various countries
B)Language variations from country to country
C)Similar buying behaviors of consumers around the world
D)Increase in the overall world literacy rate
E)Women's empowerment throughout the world

Question 24

If not for globalization, most European companies would have been unable to compete with larger U.S. and Japanese companies because of:

A)their inability to operate global corporations.
B)their inability to achieve economies of scale due to the small size of most European nations.
C)the lack of education about international markets, resulting in limited exposure.
D)the cultural differences prevailing amongst European nations, which make it difficult to achieve promotional program sustainability.
E)the political and legal differences among European nations.

Question 25

Domestic markets offer limited opportunities for expansion because of:

A)rapid population growth.
B)unsaturated market conditions.
C)intense competition from other companies.
D)saturated markets in host countries.
E)unfavorable marketing environments in foreign markets.

Question 26

A country's _____ indicate its present and future potential for consuming, since products and services can be sold only to countries where there is enough income to buy them.

A)psychographic data
B)economic conditions
C)legal systems
D)cultural systems
E)government policies

Question 27

Krypton, a developing nation, has a reputation for being unsuitable for conducting business due to its poor communication and transportation systems. Its distribution networks are also underdeveloped. In this scenario, Krypton has a poor:

A)demographic environment.
B)economic infrastructure.
C)balance of payments.
D)cultural system.
E)advertising system.

Question 28

A balance of trade deficit exists when:

A)the monetary value of imports exceeds that of exports.
B)economies of scale are not achievable.
C)supply of imports exceeds the demand for them.
D)the monetary value added by an exporting nation exceeds that added by an importing nation.
E)the monetary values of exports and imports are equal.

Question 29

Which of the following is a cultural factor affecting international marketing?

A)Standards of living
B)Lifestyles
C)Distribution of wealth
D)Nationalism
E)Education levels

Question 30

Which of the following is a reason for Brazil's economic growth?

A)Emergence of the lower middle class
B)Limited political influence in business
C)Strict import restrictions
D)Reduction in population densities
E)Greater population diversity

Question 31

For companies wishing to enter a new market, a country's economic conditions indicate its _____, since products and services can be sold only to countries where there is enough income to buy them.

A)population size and density
B)consumer attitudes towards multinational companies
C)cultural norms and values
D)present and future potential for consuming
E)population's occupation distribution

Question 32

Which of the following elements are important constituents of a marketing program for firms competing in the global marketplace?

A)Servicescape and visual merchandising
B)Publicity and public relations
C)Advertising and promotion
D)Direct marketing and personal selling
E)Direct selling and personal selling

Question 33

Which of the following factors is part of the economic environment of a foreign country that companies must consider while engaging in international marketing?

A)Moral standards
B)Values and ethics
C)Currency stability
D)Laws and regulations
E)Employment rate

Question 34

_____ is an example of a cultural factor that affects international marketing.

A)Nationalism
B)Occupation
C)Income level
D)Language
E)Employment rate

Question 35

Developed countries have the _____ infrastructure in terms of the communications, transportation, and distribution networks needed to conduct business effectively in these markets.

A)demographic
B)economic
C)cultural
D)political
E)legal

Question 36

_____ is the most visible as well as the most culture bound of a firm's marketing functions.

A)Pricing
B)Promotion
C)Product development
D)Distribution
E)Inventory management

Question 37

Which of the following is part of the demographic environment of a country?

A)Age distribution
B)Distribution of wealth
C)Lifestyles
D)Norms and customs
E)Exchange rates

Question 38

Which of the following is an example of a major macro-external environmental factor that a company must consider when analyzing the international marketing environment?

A)Economic factors
B)Product factors
C)Promotional factors
D)Pricing factors
E)Advertising factors

Question 39

When the monetary value of a nation's imports exceeds the monetary value of its exports, it is known as:

A)added value.
B)international trade.
C)balance-of-trade deficit.
D)balance-of-payments surplus.
E)value of exports.

Question 40

Which of the following is a component of the political/legal environment of a country?

A)Attitudes toward multinational companies
B)Ethics and moral standards
C)Stage of economic development
D)Norms, customs, and taboos
E)Employment rate and occupation distribution

Question 41

A company gathering demographic data relating to a foreign market can use it to ascertain:

A)cultural values.
B)norms and beliefs.
C)market potential.
D)economic prowess.
E)legal stipulations.

Question 42

_____ refers to the tendency of individuals to view their own group or society as the center of the universe.

A)Monocentrism
B)Nepotism
C)Polycentrism
D)Ethnocentrism
E)Xenocentrism

Question 43

Venus Inc., a manufacturer of canned meat, tried to market its canned beef products in India. Since cows are considered sacred in many parts of the country, beef consumption is limited. Since the company failed to consider this factor, its marketing strategy was a failure. This indicates that Venus Inc. did not understand the _____ environment in India.

A)demographic
B)economic
C)cultural
D)political
E)legal

Question 44

Acacia Corp., a manufacturer of consumer electronics, encountered problems when it attempted to market instant cameras in Spain. Acacia found that Spanish consumers preferred having their film developed in the traditional format. Moreover, the company had failed to conduct a market research study about consumer customs, tastes, and attitudes in Spain. In this scenario, Acacia failed to study Spain's _____ environment.

A)demographic
B)economic
C)cultural
D)political
E)legal

Question 45

U.S. brands have become popular in many European and Asian countries. Marketers attribute the rising popularity of these U.S.-made products to:

A)the worldwide distribution of American music, films, and TV shows.
B)the superior quality of their products.
C)the low prices of the products.
D)the centralized organizational approach adopted by most U.S.companies.
E)the increasingly ethnocentric attitudes of consumers around the world.

Question 46

Swivel Inc., a manufacturer of consumer goods, markets its shampoo brand, Valerie, in several developing countries by making it available in single-use sachets. These sachets are sold through local shops in small towns and villages. In this scenario, Swivel is attempting to:

A)eliminate existing distribution networks.
B)adapt its products for these markets.
C)create diseconomies of scale.
D)create market segmentation.
E)diversify its product offerings.

Question 47

Values that are centered on _____ stress on loyalty and interpersonal relationships.

A)ethnocentrism
B)Confucianism
C)the country-of-origin effect
D)the halo effect
E)xenocentrism

Question 48

Cultural variables marketers must consider include language, customs, tastes, and:

A)governmental regulations.
B)laws.
C)gender.
D)age.
E)values.

Question 49

_____ are beliefs and goals shared by members of a society regarding ideal end states of life and modes of conduct.

A)Heuristics
B)Work-life balance principles
C)Corporate ethics
D)Cultural values
E)Demographic ideals

Question 50

Drum Inc., a manufacturer of musical instruments, is considering expanding into a foreign market. The company is collecting data relating to age, income distribution, and gender variations in the potential host country. In this scenario, Drum is collecting _____ information.

A)economic
B)demographic
C)cultural
D)political
E)legal

Question 51

Factors such as income levels and distribution, age and occupation distribution of the population, household size, education, and employment rates are part of a country's _____ characteristics.

A)economic
B)demographic
C)cultural
D)political/legal
E)lifestyle

Question 52

International advertisers can best deal with problems arising from language diversity and differences in signs and symbols with the help of:

A)expat employees.
B)research manuals.
C)local expertise.
D)government authority.
E)language training.

Question 53

_____ data can provide insight into the living standards and lifestyles in a particular country to help companies plan ad campaigns.

A)Economic
B)Political
C)Demographic
D)Legal
E)Social

Question 54

Carter Corp., a global retail chain, launches an ad campaign, featuring supermodel Gemma Rush, in several Middle Eastern countries. The television commercials featuring Gemma are not well-received in most Middle Eastern countries due to their explicit visuals. Which of the following environmental factors has the company failed to consider in this scenario?

A)Economic
B)Demographic
C)Political
D)Cultural
E)Legal

Question 55

Which of the following statements is true of cultural values?

A)In today's globalized market, cultural differences are negligible, thus enabling international advertisers to market their brands easily.
B)Values and beliefs of a society can affect its receptivity to foreign products and services.
C)Cultural values are personal values and are only applicable on an individual level.
D)A highly ethnocentric culture will be extremely receptive to foreign products and services.
E)Cultural values have no effect on the market or consumer behavior.

Question 56

Tastes, traditions, and customs are an important part of _____ considerations.

A)economic
B)demographic
C)political
D)cultural
E)legal

Question 57

Saturn Inc., an American international fast-food chain, is setting up businesses across South-East Asia. However, the company is facing problems associated with language diversity and differences in signs and symbols in these countries. In order to solve these problems effectively, Saturn Inc. should:

A)hire American managers.
B)employ home country managers.
C)hire local expertise.
D)hire expatriate managers.
E)employ a centralized HR system.

Question 58

_____ variables that marketers must consider include language, customs, tastes, attitudes, lifestyles, values, and ethical/moral standards.

A)Demographic
B)Economic
C)Political
D)Cultural
E)Legal

Question 59

In the U.S., promotions for Cavort Sports products emphasize individualism and independence. In Japan, however, the company had to change its message to one that focused on team values and cooperation due to the differing _____ in the two countries.

A)demographics
B)religious beliefs
C)cultural values
D)ethics
E)lifestyles

Question 60

Which of the following is true of ethnocentrism?

A)It refers to the receptive and heterogeneous attitude prevalent in a host country.
B)It refers to people's tendency to view their own group as the center of the universe.
C)It is synonymous with the concept of xenocentrism.
D)It is typically considered a negligible aspect of international marketing.
E)It is synonymous with cultural relativism.

Question 61

Complete _____ of international advertising is likely when market and media conditions are similar from one country to another, when a company has only one or a few international agencies handling all of its advertising, when it can use standardized advertising, or when it desires a consistent image worldwide.

A)localization
B)globalization
C)decentralization
D)centralization
E)regionalization

Question 62

Since the European Union banned the use of food dyes in seafood, the market for salmon products has declined. People mistakenly believe that farm-bred salmon is naturally pink. However, salmon is an unappetizing gray color in its natural form. This is an example of how _____ factors can inadvertently hurt small businesses.

A)economic
B)demographic
C)political/legal
D)geographic
E)infrastructure

Question 63

Companies prefer to _____ the international advertising and promotion function so that all decisions about agency selection, research, creative strategy and campaign development, media strategy, and budgeting are made at the firm's home office.

A)centralize
B)decentralize
C)localize
D)globalize
E)regionalize

Question 64

Which of the following is a problem associated with global marketing and advertising?

A)Difficulties in coordination and control of marketing and promotional programs
B)Differences in consumer needs and usage patterns
C)Difficulty in obtaining economies of scale in production and distribution
D)Higher advertising production costs
E)Greater inconsistency in international branding and/or corporate imaging

Question 65

The _____ approach recognizes similar desires, goals, needs, and uses for products and services but tailors advertising to the local cultures and conditions in each market.

A)"concentrated marketing"
B)"think globally, act locally"
C)localized
D)domestic
E)decentralized marketing

Question 66

Products from countries with national reputations for quality and/or a distinctive image that can be used as the basis for global advertising capitalize on the:

A)cross-selling perception.
B)country-of-origin effect.
C)halo effect.
D)placebo effect.
E)Central Hudson test effect.

Question 67

Which of the following is a component of a country's political/legal environment?

A)Cultural norms
B)Population density
C)National sovereignty considerations
D)Values, religious beliefs, and traditions
E)Language and dialects

Question 68

In order to circumvent the liquor advertising ban in India, CT Inc., the manufacturer of Bright Beer, introduced bottled water under the same brand. The company ran a series of ads promoting its bottled water carrying the "Bright Beer" brand name and hoped to build awareness. In this scenario, CT Inc. utilized _____.

A)buzz marketing
B)subliminal perception
C)aerial advertising
D)surrogate advertising
E)switch marketing

Question 69

_____ refers to consumers' general perceptions of the quality of products made in a given geo-political region.

A)Cross-selling
B)Country-of-origin effect
C)Halo effect
D)Global imaging
E)Central Hudson test

Question 70

_____ is a format where ads in a campaign follow the same basic approach but their themes, copy, and visual elements may be adjusted.

A)Buzz advertising
B)Local advertising
C)Pattern advertising
D)Formatted advertising
E)Ad standardization

Question 71

Product standardization results in:

A)higher production costs.
B)lower design costs.
C)lower marketing efficiency.
D)increased competition.
E)higher lead times.

Question 72

Which of the following is true of Japan as an international market?

A)The Japanese place great emphasis on the individual.
B)Japan is a typical example of a xenocentric society.
C)The Japanese dislike ads that confront or disparage the competition.
D)Unlike American societies, Japanese societies do not lay emphasis on social interdependence.
E)Japan is considered one of the easiest countries in which to market consumer products.

Question 73

_____ is a marketing approach that assumes that the needs satisfied by a product or service and the ways it is used are the same everywhere in the world, and therefore utilizes a common approach in all countries.

A)Global marketing
B)Complementary marketing
C)Localized marketing
D)Nationalized marketing
E)Countertrading

Question 74

Which of the following is best suited to worldwide appeals?

A)Products that are steeped in the cultural heritage of a country
B)High-tech products with a strong local touch
C)Products that appeal to a market segment with widely differing tastes, interests, needs, and values
D)Brands or messages that require translation into different languages
E)Products with a nationalistic flavor if the country has a reputation in the field

Question 75

Which of the following is true of the "think globally, act regionally" approach to international advertising?

A)It is synonymous with the "one company, one advertising campaign" approach.
B)It develops a global brand by using a localized approach.
C)It enables the head office to retain control of aspects such as slogans, themes, and copies.
D)It offers limited autonomy to regional offices.
E)It is essentially a form of xenocentric advertising.

Question 76

Products such as Swiss watches, Japanese automobiles, and French wine are automatically assumed to be superior to similar products from other countries because:

A)of the halo effect.
B)they are perceived as high-quality products owing to their high prices.
C)of the country-of-origin effect.
D)they lend themselves to visual and image advertising.
E)they appeal to a market segment with universally similar tastes, interests, needs, and values.

Question 77

Fitness Fervor Inc. is a company that offers products and services that aid in weight loss and maintenance. It has achieved a 50 percent market share in the United States and intends to move into international markets. The company has identified that it has to introduce dietary products and weight-loss measures on a country-by-country basis while maintaining its existing ad campaign and strategy. In this scenario, Fitness Fervor is using:

A)a localized advertising strategy.
B)consistency advertising.
C)a standardized formatting strategy.
D)pattern advertising.
E)undifferentiated marketing.

Question 78

Which of the following is a political/legal factor that can affect various aspects of a company's international advertising program?

A)Education and employment rates of the population
B)A country's financial and distribution networks
C)The use of advertising material prepared outside a country
D)The connotations of signs and symbols used in the company's messages
E)Tastes, traditions, and customs of the population

Question 79

Global ad campaigns are appropriate:

A)for brands that play to domestic needs, values, and emotions.
B)for brands that can be adapted for a visual appeal.
C)for translating advertising messages into dozens of languages.
D)for products that appeal to market segments with differing tastes.
E)for products without a nationalistic flavor.

Question 80

_____ is a strategy of advertising in which certain banned products are indirectly advertised by labeling a non-banned product with a familiar logo so as to develop brand image and easy recall.

A)Aerial advertising
B)Transit advertising
C)Surrogate advertising
D)Cross-selling
E)Ethnocentric advertising