Deck 1: Introduction to Global Marketing

Question 1

From a global marketing perspective,the history of the Beatles' records is an interesting case study in both product adaptation and product extension.

Answer 1

True

Question 2

If Nestlé decides not to market biscuits (cookies)in the United States due to competitive reasons,it is considered as a lack of strategic focus and missed opportunity.

Answer 2

False

Question 3

The market development strategy involves seeking new customers by introducing existing products or services to a new market segment.

Answer 3

True

Question 4

A U.S.company that focuses on the countries included in the North American Free Trade Agreement (NAFTA)has a regiocentric orientation.

Question 5

A company with a geocentric orientation views the world as a potential market and strives to develop integrated global strategies.

Question 6

Tang drink powder became a $1 billion brand as regional managers in the Middle East added mango and pineapple flavors.

Question 7

Starbucks is building on its loyalty card and rewards program in the United States with a smartphone app that enables customers to pay for purchases electronically.This is an example of Market Penetration.

Question 8

Ethnocentric companies that conduct business outside the home country adhere to the notion that the products that succeed in the home country will succeed anywhere.

Question 9

In an effort to "Americanize" the sound of the Beatles' recordings,a studio effect known as reverb was added to some tracks.

Question 10

Walmart's recent exit from the German market was due,in part,to the fact that German shoppers could find lower prices at stores known as "hard discounters."

Question 11

The perceived value equation can be represented as Value = Price / Benefits.

Question 12

Starbucks opened an experimental store in Amsterdam that serves as a testing ground for new design concepts such as locally sourced and recycled building materials.

Question 13

McDonald's global marketing strategy is based primarily on local marketing mix elements.

Question 14

The Yugo automobile achieved a modest level of U.S.sales in the 1980s despite a "don't buy" rating from a consumer magazine.

Question 15

Companies can increase prices if costs are low because of process efficiencies in manufacturing.

Question 16

Unilever's Rexona deodorant brand had 30 different package designs and 48 different formulations.This is an example of ethnocentrism.

Question 17

A European company that focuses its attention on Europe can be considered to have geocentric orientation.

Question 18

The term "polycentric" describes management's belief or assumption that each country in which a company does business is the same as the home country business.

Question 19

About 75 percent of the Coca-Cola Company's operating income and two-thirds of its operating revenue are generated outside North America.

Question 20

Nike dropped their well-known tag line "Just do it" in advertising women's clothing in Europe and replaced it by the slogan "Here I am" since college-age women in Europe are not as competitive about sports as men are.

Question 21

A global company can leverage its experience in any market in the world.

Question 22

Starbucks is building on its loyalty card and rewards program in the United States with a smartphone app that enables customers to pay for purchases electronically.The app displays a bar code that the barista can scan.This is an example of:

A)Market Penetration.
B)Market Development.
C)Market Diversification.
D)Product Development.
E)Global Marketing.

Question 23

Economic growth has reduced resistance that might otherwise have developed in response to the entry of foreign firms into domestic economies.

Question 24

Anheuser-Busch,the brewer of Budweiser beer,lost its independence after years of focusing primarily on the U.S.market.

Question 25

One way to assess a company's "degree of transnationality" is to compute the ratio between the sales outside the home country to total sales.

Question 26

When you call United Airlines for a reservation on a toll-free number and get a response from an operator in Mumbai,this is an example of:

A)anti-globalization.
B)global marketplace.
C)multilingual expression.
D)discrimination.
E)E-ticketing.

Question 27

The marketing mix is integral to the value equation which is represented by:

A)Value = Price / Benefits.
B)Value = Benefits / Price.
C)Value = Benefits × Price.
D)Value = Benefits - Price.
E)Value = Benefits + Price.

Question 28

Evidence of the company's ongoing commitment to innovation can be seen in continuous new product introduction.

Question 29

Starbucks has launched several new ventures in global markets,including music CDs and movie production.This is an example of:

A)Market Penetration.
B)Market Development.
C)Market Diversification.
D)Product Development.
E)Global Marketing.

Question 30

Nontariff barriers (NTBs)are monetary restrictions on cross-border trade.

Question 31

Slumdog Millionaire,a movie which received several awards and an Oscar in 2009,was filmed on a location in and around:

A)London.
B)San Francisco.
C)Cancun.
D)Mumbai.
E)Moscow.

Question 32

Most global markets do not exist in nature.

Question 33

Starbucks is entering India via an alliance with the Tata Group.Phase 1 calls for sourcing coffee beans in India and marketing them at Starbucks stores throughout the world.This is an example of:

A)Market Penetration.
B)Market Development.
C)Market Diversification.
D)Product Development.
E)Regular Marketing.

Question 34

A fundamental difference between regular marketing and global marketing is:

A)the lack of marketing mix.
B)the scope of activities.
C)the lack of strategic planning.
D)the focus on resources.
E)the lack of communication.

Question 35

A true transnational company would be characterized as "stateless."

Question 36

The term globaphobia is used to describe an attitude of hostility towards trade agreements and global brands.

Question 37

In global markets,Starbucks is a good example of simultaneously executing all of the growth strategies except:

A)Market penetration.
B)Market development.
C)Product development.
D)Market orientation.
E)Diversification.

Question 38

Renault and its rivals are racing to offer middle-class consumers a new value proposition by selling cars for the equivalent of $10,000 or less.On the heels of Renault's success with Dacia Logan came the $2,500 Nano from India's Tata Motors.This illustrates that:

A)consumers are looking for low price irrespective of quality.
B)Renault is overcharging for their cars compared to their competitors.
C)higher product development costs are a driving force behind globalization.
D)market success depends on reaching a threshold of acceptable quality for consumers.
E)cars are not very popular in emerging markets like India.

Question 39

The essence of marketing worldwide is to surpass the competition in creating perceived value,which can be represented as:

A)Value = Price / Benefits.
B)Value = Benefits / Price.
C)Value = Benefits × Price.
D)Value = Benefits - Price.
E)Value = Benefits + Price.

Question 40

In the context of global marketing,leverage means some type of advantage that a company enjoys by virtue of the fact that it has experience in its home country.

Question 41

Two decades ago,professor Ted Levitt wrote a classic Harvard Business Review article titled "The Globalization of Markets." Which of the following statements about the author and the article is accurate?

A)Levitt urged companies to adopt products on a country-by-country basis.
B)There was universal agreement about his thesis that the world is becoming homogeneous.
C)Levitt urged companies to develop standardized products that could be marketed worldwide with little adaptation.
D)Levitt warned of the coming backlash against globalization.
E)Levitt did not recommend developing standardized products.

Question 42

Measured by national income,the United States represents the world's largest single market for goods and services.Roughly what percentage of world income is found outside the United States?

A)25%
B)50%
C)75%
D)95%
E)35%

Question 43

Uniqlo,a division of Japan's Fast Retail,operates about 850 stores in Japan and currently has six stores in the United States.Their plans call for a total of 200 U.S.stores by 2020.The fulfillment of their plan will depend on:

A)industry conditions.
B)sources of competitive advantage.
C)the condition of the apparel market worldwide.
D)the demand in Japan for U.S.style garments.
E)all of the above

Question 44

In an effort to "Americanize" the sound of the Beatles' recordings,a studio effect known as reverb was added to some tracks.This is an example of:

A)product adaptation.
B)market penetration.
C)diversification.
D)product development.
E)marketing mix.

Question 45

All of the following correctly states McDonald's approach to standardization and adaptation of the marketing mix except:

A)McDonald's standardizes some product elements and adapts others.
B)McDonald's standardizes some place elements and adapts others.
C)McDonald's standardizes some promotion elements and adapts others.
D)McDonald's standardizes some price elements and adapts others.
E)McDonald's standardizes all product elements.

Question 46

McDonald's serves McAloo Tikki Burger in India,McRice Burger in Malaysia,McOZ Burger in Australia,Kiwi Burger in New Zealand,and McHuevo Burger in Uruguay and McSamurai Burger in Thailand.These menu variations are examples of:

A)a combination of global and local marketing mix elements.
B)a reflection of failure of U.S.menu items in those countries.
C)a deviation from successful marketing practices.
D)a replacement of standard menu names with fancy names.
E)a selection of menu items that can be sold eventually in U.S.markets.

Question 47

The former chairman of Nestlé recently told an interviewer: "We are food and beverages.We are not running bicycle shops.Even in food we are not in all fields.There are certain areas we do not touch.Also,we have no soft drinks because I have said we either buy Coca-Cola or we leave it alone." What strategic marketing principle does the chairman's comment emphasize most specifically?

A)customer value
B)competitive advantage
C)focus
D)myopia
E)policy of dealing only with Swiss businesses

Question 48

Walmart's exit from the German market was due,in part,to the fact that German shoppers could find lower prices at stores known as:

A)All-in-one stores.
B)Dollar stores.
C)Discount sores.
D)Hard discounters.
E)Fresh & Easy stores.

Question 49

The decision to enter one or more particular markets outside the home country depends on all of the mentioned factors except:

A)company's resources.
B)company's age.
C)company's managerial mind-set.
D)nature of opportunities.
E)threats.

Question 50

According to Michael Porter,a global industry is one in which ________ can be achieved by integrating and leveraging operations on a worldwide scale.

A)marketing mix
B)competitive advantage
C)cross border infiltration
D)ration analysis
E)production capability

Question 51

According to the Fortune global 500 companies for 2012,the largest corporation based on revenue is:

A)Exxon Corporation.
B)Toyota Motors.
C)Royal Dutch Shell.
D)General Electric.
E)Walmart stores.

Question 52

An important managerial task in global marketing is learning to recognize the extent to which it is possible to extend marketing plans as well as the extent to which adaptation is desired.The way a company addresses this task is a reflection of the company's:

A)market penetration.
B)market diversification.
C)global marketing strategy.
D)product development.
E)product standardization.

Question 53

A company that succeeds in global marketing:

A)pursues a "one size fits all" strategy by creating identical products for homogeneous markets.
B)customizes special products for each world country or region.
C)creates both standardized and localized products.
D)nurtures an ethnocentric management orientation.
E)uses localized products only.

Question 54

Statements that illustrate the success of global marketing include all of the following except:

A)the Coca-Cola Company supports its Coke brand by utilizing global and local marketing mix.
B)Apple is synonymous with cutting-edge innovation and high-tech design.
C)Italy's Benetton utilizes marketing as a knee-jerk reaction to world marketing needs.
D)the backbone of Caterpillar's global success is its network of dealers.
E)Germany's reputation for engineering and manufacturing provides a competitive advantage.

Question 55

Coca-Cola achieved success in the Japanese market primarily by:

A)standardization of marketing mix elements.
B)global localization.
C)vending machine operations.
D)selecting market mix options.
E)homogenization.

Question 56

Even though Germany is the largest single-country market in Europe,what percent of the world market potential for German companies is outside Germany?

A)40%
B)55%
C)74%
D)94%
E)85%

Question 57

Examples of effective global marketing by McDonald's include both standardized and localized marketing mix elements.Which of the following does not represent a localized element?

A)It serves McAloo tikki potato burger in India.
B)It uses the advertising slogan "I'm lovin' it."
C)It operates themed dining cars on the Swiss national rail system.
D)It has home delivery service in India.
E)It has slang nicknames such as MakDo in Philippines and McDo in France.

Question 58

From the global marketing perspective,the customization of the Beatles' records is a good example of:

A)product adaptation.
B)market penetration.
C)diversification.
D)product development.
E)marketing mix.

Question 59

Nike recently adopted the slogan "Here I am" for its pan-European clothing advertising targeting women.The decision to drop the famous "Just do it" tag line was based on the research indicating that:

A)the famous slogan did not have accurate translation in European languages.
B)Europeans do not like tag lines that portray American thinking.
C)college-age women in Europe are not as competitive about sports as men are.
D)the old slogan conveys superiority of men over women.
E)European women want to differentiate themselves from men.

Question 60

One of the dimensions of global marketing strategy which pertains to marketing management is:

A)concentration of market penetration.
B)coordination of market diversification.
C)integration of competitive moves.
D)coordination of product development.
E)product standardization.

Question 61

A person who assumes that his or her home country is superior to the rest of the world is said to have:

A)ethnocentric orientation.
B)polycentric orientation.
C)regiocentric orientation.
D)geocentric orientation.
E)None of the above

Question 62

Transnational companies,such as Toyota and Honda,have characteristic features that include:

A)being in both global markets and utilizing global supply chains.
B)characterized by a mind-set of being "stateless."
C)using both localized and standardized elements in marketing programs.
D)decisions made on the basis of ongoing research.
E)all of the above

Question 63

Based on 2012 rankings of Fortune Global 500 companies,the world's most valuable car company is:

A)GM.
B)Daimler AG.
C)Toyota.
D)Ford.
E)Chrysler.

Question 64

The cell phone divisions of Toshiba,Sharp,and other Japanese companies prospered by focusing on the domestic market.When handset sales in Japan slowed a few years ago,the Japanese companies realized that Nokia,Motorola,and Samsung already dominated key world markets.Atsutoshi Nishida,president of Toshiba,noted,"We were thinking only about Japan.We really missed our chance." This example illustrates:

A)geocentric orientation.
B)regiocentric orientation.
C)polycentric orientation.
D)ethnocentric orientation.
E)poor globalization orientation.

Question 65

Nissan's earlier vehicles were difficult to start in many parts of the United States during the cold winter months.In northern Japan,it was customary for many car owners to put blankets over the hoods of their cars during winter months.Nissan's assumption was that Americans would do the same thing.This is an example of:

A)ethnocentric orientation.
B)polycentric orientation.
C)regiocentric orientation.
D)geocentric orientation.
E)geopolitic orientation.

Question 66

When a country like China is experiencing rapid economic growth,policymakers are likely to:

A)look more favorably on outsiders.
B)look less favorably on outsiders.
C)experience more resistance toward outsiders.
D)feel threatened by outsiders.
E)None of the above

Question 67

H.F.Iskander,general manager of Chevron's Kuwait office,stated "Chevron is pumping oil in different locations all over the world ...there isn't a rock we haven't drilled through.We centralize all that knowledge at our headquarters,analyze it,sort it out,and that enables us to solve any oil-drilling problem anywhere." From the global marketing point of view this is an example of a global company:

A)that is hungry to exploit natural resources.
B)that is trying to be first to explore oil.
C)that it is trying to solve world problems.
D)that gains leverage through experience transfers.
E)that does not have easy access to information.

Question 68

Japan's giant Matsushita Electric Company achieved scale economies by exporting VCRs,televisions,and other consumer electronics products throughout the world from world-scale factories in Japan.This is an example of the fact that:

A)scale economies were a cornerstone of Japanese success in the 1970s and 1980s.
B)leverage from scale economies is not limited to manufacturing.
C)a global company can achieve the same economies on a global scale.
D)the larger scale of the global company also creates opportunities to improve corporate staff competence and quality.
E)all of the above

Question 69

Based on the total annual units sold in the worldwide market,the leading product category is:

A)flat-panel TV sets.
B)cigarettes.
C)cell phone handsets.
D)cars and light trucks.
E)HDTV sets.

Question 70

Pfizer,Merck,Novartis,and other pharmaceutical companies have little choice but to engage in global marketing since:

A)there is little demand for their products in home countries.
B)their research centers are located overseas.
C)no single market is large enough to recover costs incurred in research.
D)there is more demand overseas for their products.
E)technology is not available in home countries.

Question 71

In their book,Daniel Yergin and Joseph Stanislaw wrote "It is the greatest sale in the history of the world.Governments are getting out of businesses by disposing of what amounts to trillions of dollars of assets.Everything is going-from steel plants and phone companies ...to hotels,restaurants,and nightclubs." This is an indication of:

A)the fact that governments can make more money by selling assets.
B)privatization is becoming a driving force for global marketing.
C)these businesses are considered as closed markets.
D)foreign companies are competing with governments.
E)there is less demand for these type of companies.

Question 72

Anheuser-Busch,the brewer of Budweiser beer,lost its independence after years of focusing primarily on the domestic U.S.market.This is most likely a result of:

A)management myopia.
B)national controls.
C)opposition to globalization.
D)newcomers from emerging markets.
E)organizational culture.

Question 73

Nestlé,Unilever,GlaxoSmithKline,and Royal Philips Electronics can be considered transnational companies on the basis of:

A)sales outside the home country to total sales.
B)assets outside the home country to total assets.
C)employees outside the home country to total employees.
D)headquartered in a relatively small home-country market.
E)all of the above

Question 74

In the United States,some people believe that globalization has depressed the wages of American workers and resulted in the loss of both blue-collar and white-collar jobs.This is an example of:

A)discrimination.
B)domination.
C)globaphobia.
D)management myopia.
E)economic crisis.

Question 75

Unilever,the Anglo-Dutch consumer products company,at one time had 30 different package designs and 48 different formulations for its Rexona deodorant brand.This is an example of:

A)ethnocentric orientation.
B)polycentric orientation.
C)regiocentric orientation.
D)geocentric orientation.
E)transnational orientation.

Question 76

A number of multilateral trade agreements have accelerated the pace of global integration which include:

A)NAFTA.
B)GATT.
C)WTO.
D)EU.
E)all of the above

Question 77

McDonald's restaurants are found in more than 118 countries.To ensure high levels of consistency and quality,the company's far-flung restaurant system incorporates many standardized elements (e.g.restaurant design,burgers / fries / soft drinks as basic menu offerings).However,McDonald's also prides itself on sourcing many of its food inputs (e.g.potatoes and dairy products)in individual host countries.McDonald's strives to be locally responsive-it creates new menu items specifically designed with local eating customs and preferences in mind.Typically,McDonald's forms joint ventures with local partners,a tactic that ensures that a local "face" is associated with the company.Finally,McDonald's has been in many country markets long enough that a new generation of consumers has grown up with McDonald's and are not aware of the company's U.S.origins.On the basis of this summary,what is the highest stage of corporate development that McDonald's arguably has achieved?

A)international
B)multinational
C)global
D)transnational
E)myopic

Question 78

Based on the size of the market in U.S.dollars,the leading consumer products are:

A)cell phones.
B)bottled water.
C)cigarettes.
D)video games.
E)recorded music.

Question 79

Based on the size of the market in U.S.dollars,the second highest consumer products are:

A)luxury goods.
B)cell phones.
C)cigarettes.
D)bottled water.
E)recorded music.

Question 80

A type of advantage that a global company possesses by virtue of the fact that it has experience in more than one country is referred to as:

A)Leverage.
B)Transferability.
C)Flexibility.
D)Capability.
E)Enability.