Quiz 14: Competing Effectively Through Global Marketing, Distribution, and Supply-Chain Management

In the case of the indirect channel of distribution, there are no intermediaries between the consumer and the producer.

Intermediaries in the channel of distribution can include distributors, wholesalers, agents, brokers, retailers, international freight forwarders, and trading companies.

In the case of outsourcing, the firm retains control of the operations and directly hires the employees.

In the case of offshoring, the vendor takes control of the operations and runs the operations as they see fit.

One of the biggest challenges in selling to emerging markets involves making the product affordable.

The purpose of segmentation is to give the company a concrete vision of its customers, so that it can better understand how to market to that customer.

Understanding the market's culture and social trends is irrelevant when it comes to doing business in the emerging economies of the world.

The existence of gray-market activity across a country's border has a positive impact on the producer and their channel partners (e.g., distributors and retailers) in the higher-priced country.

In the case of outsourcing, the company pays the outsource vendor for the end result; how the vendor achieves the end result is up to the vendor.

Gray markets are illegal and the operators in the market are punishable by law.

The downsides of safety stock include the increased costs of carrying that inventory such as the investment in the products, taxes and insurance, and storage space.

Counterfeit markets hurt companies that have invested in building intellectual assets such as unique product designs, technological developments, costly media content, and carefully crafted brands.

All citizens of a given country can be marketed to uniformly.

The world does become flatter to the extent a brand is recognized, accepted, and trusted across borders.

Counterfeit markets are illegal because they purposely deceive the buyer.

A multibrand strategy is not advisable when a country has a strong, positive association with a particular brand.

Multiple brands may resonate more with specific markets, especially if a company merges with or acquires a local brand that is well respected in that region.

The disadvantage of straight product extension is that a company's products may not be well suited to local needs.

One advantage of straight product extension is that the products may be less costly due to lower manufacturing and labour costs in the United States.

The advantage of straight product extension strategy is that the company doesn't need to invest in new research, development, or manufacturing.

Reverse innovation means designing a product for the home country and taking that innovation to a developing country.

The first step in inventing a product for a new country market is to understand the key product characteristics needed to succeed in that market.

Companies invest a lot in building their brand recognition and reputation because a brand name signals trust.

The main disadvantages of global sourcing are low quality and higher cost.

In the case of sole-sourcing, if the company gives the supplier a lot of business, the company may have more influence over the supplier for preferential treatment.

In marketing, which of the following statements holds true for a product? A) It refers to the shortest channel of distribution, consisting of just the producer and the end consumer. B) It refers to any physical good or intangible service that is offered for sale. C) It refers to the amount of money that the consumer pays for any physical good or intangible service. D) It refers to the activities that inform and encourage consumers to buy any physical good or intangible service including advertising (whether print, radio, television, online, billboard, poster, or mobile), coupons, rebates, and personal sales. E) It refers to the location at which the company offers any physical good or intangible service for sale.

In marketing, which of the following statements holds true for place? A) It refers to the shortest channel of distribution, consisting of just the producer and the end consumer. B) It refers to any physical good or intangible service that is offered for sale. C) It refers to the amount of money that the consumer pays for any physical good or intangible service. D) It refers to the activities that inform and encourage consumers to buy any physical good or intangible service including advertising (whether print, radio, television, online, billboard, poster, or mobile), coupons, rebates, and personal sales. E) It refers to the location at which the company offers any physical good or intangible service for sale.

Nestlé India has a distribution channel that consists of the central warehouse near New Delhi. The goods are handed over to carry forward agents. The agents ensure that the goods reach the distributors assigned to each territory. Then the goods are passed over to the wholesalers in each of the territories. The goods then go to the retailers and finally reach the end customers. The above constitutes an example of: A) indirect channel of distribution. B) direct channel of distribution. C) channel value proposition. D) franchising. E) licensing.

In marketing, which of the following statements holds true for promotion? A) It refers to the shortest channel of distribution, consisting of just the producer and the end consumer. B) It refers to any physical good or intangible service that is offered for sale. C) It refers to the amount of money that the consumer pays for any physical good or intangible service. D) It refers to the activities that inform and encourage consumers to buy any physical good or intangible service including advertising (whether print, radio, television, online, billboard, poster, or mobile), coupons, rebates, and personal sales. E) It refers to the location at which the company offers any physical good or intangible service for sale.

A cosmetic company manufactures and markets beauty and related products. It markets its products only via the internet. This is an example of (a): A) indirect channel of distribution. B) direct channel of distribution. C) channel value proposition. D) franchising. E) licensing.

In marketing, which of the following statements holds true for price? A) It refers to the shortest channel of distribution, consisting of just the producer and the end consumer. B) It refers to any physical good or intangible service that is offered for sale. C) It refers to the amount of money that the consumer pays for any physical good or intangible service. D) It refers to the activities that inform and encourage consumers to buy any physical good or intangible service, including advertising (whether print, radio, television, online, billboard, poster, or mobile), coupons, rebates, and personal sales. E) It refers to the location at which the company offers any physical good or intangible service for sale.

In marketing, market segmentation refers to the: A) process of dividing a larger market into smaller markets that share a common characteristic, such as age, gender, income level, or lifestyle. B) combination of the four Ps of marketing that can be customized for different countries. C) commerce areas where because of price differences across countries, consumers are able to cross international borders to legally purchase products at lower prices than in their home country. D) commerce areas where vendors purposely deceive buyers by altering products and then selling them as branded products at a bargain cost. E) set of expectations, memories, stories and relationships that-taken together-account for a consumer's decision to choose one product or service over another.

The Los Altos firm-which performs global market research on everything from routers to software for clients including Cisco, HP, and Microsoft-has only 14 full-time employees. But it farms out research from Silicon Valley to India's Evalueserve and to some 5,000 other independent experts in China, the Czech Republic, and South Africa. The above serves as an example of: A) open-sourcing. B) in sourcing. C) farmshoring. D) home-sourcing. E) outsourcing.

In marketing, gray market refers to the: A) process of dividing a larger market into smaller markets that share a common characteristic, such as age, gender, income level, or lifestyle. B) trade of goods and services that are illegal in themselves and/or distributed through illegal channels. C) commerce areas where, because of price differences across countries, consumers are able to cross international borders to legally purchase products at lower prices than in their home country. D) commerce areas where vendors purposely deceive buyers by altering products and then sell them as branded products at a bargain cost. E) secretive, unregulated (though often technically legal) trading in commodity futures.

A single supplier from Pennsylvania supplies ash tree wood to a company that manufactures baseball bats. This is an example of: A) open-sourcing. B) multisourcing. C) sole-sourcing. D) homesourcing. E) outsourcing.

In marketing, which of the following holds true for counterfeit markets? A) It refers to the process of dividing a larger market into smaller markets that share a common characteristic, such as age, gender, income level, or lifestyle. B) It refers to the trade of goods and services that are illegal in themselves and/or distributed through illegal channels. C) It refers to the commerce areas where, because of price differences across countries, consumers are able to cross international borders to legally purchase products at lower prices than in their home country. D) It refers to the commerce areas where vendors purposely deceive buyers by altering products and then sell them as branded products at a bargain cost. E) It refers to the secretive, unregulated (though often technically legal) trading in commodity futures.

ICadbury Schweppes launched a 90-second television and cinema advertisement, which formed the centrepiece of the £6.2 million campaign for Cadbury Dairy Milk-brand chocolate. The campaign comprised of appearances on billboards, print newspapers and magazines, television and cinema spots, event sponsorships, and an internet presence. Which of the four Ps of marketing includes these activities? A) Price B) Promotion C) Place D) Product E) Positioning

In marketing, which of the following statements holds true for the direct channel of distribution? A) It refers to the shortest channel of distribution, consisting of just the producer and the end consumer. B) It refers to a channel of distribution that starts with the supplier and ends with the distributor. C) It refers to a channel of distribution which contains one or more intermediaries between the consumer and the producer. D) It refers to a channel of distribution where the customer is the first and not the last link in the distribution chain. E) It refers to the entire channel of activities that inform and encourage consumers to buy any physical good or intangible service including advertising (whether print, radio, television, online, billboard, poster, or mobile), coupons, rebates, and personal sales.

A consumer durable company produces and markets refrigerators locally. It faces competition from cheap imports. To compete with the cheap imports, it starts procuring the component parts of the refrigerator from a country with low manufacturing costs. The above is an example of: A) open-sourcing. B) in sourcing. C) global sourcing. D) home sourcing. E) farm shoring.

Nike products are manufactured in factories in countries such as China, Vietnam, Indonesia, and Mexico. Wholesalers, retailers, agents, and brokers are intermediaries who help in bringing the products to the consumer. These intermediaries bring the products from the factories to the consumers. They serve as an example of: A) product branding. B) market positioning. C) market segmentation. D) channel of distribution. E) social marketing.

Which of the following statements holds true for a global brand? A) It refers to the brand name of a product that has worldwide recognition. B) It refers to the marketing strategy in which a firm marketing a product with a well-developed image uses the same brand name in a different product category. C) It refers to products that make the world less flat because of lack of recognition across countries. D) It refers to the product that is distributed nationally under a brand name owned by the producer or distributor. E) It refers to the changing the identity of a product, relative to the identity of competing products, in the collective minds of the target market.

In a centralized-marketing organizational structure: A) the power to make decisions is shared by the home-country headquarters and the local regional headquarters. B) the local regional headquarters has the power to make marketing decisions affecting its region. C) the host government in which the local regional headquarters is situated has the power to make marketing decisions. D) the home-country headquarters retains decision-making power for marketing in all countries. E) the power of decision making is delegated to an independent third party to avoid conflict between the local and the country headquarters.

In 1996, British Airways opened a processing centre in Mumbai, India, to handle some of its operations work. Customer relations (handling complaint letters rather than phone calls) and passenger revenue accounting (an airline finance function) were the first two major business tasks moved to India. Since then, the ROI from this relocation included savings of nearly $23 million per year per 1,000 jobs it relocates to India, reduced delays in answering complaint letters (from more than two weeks to less than three days), shorter training periods, and higher work quality. The above serves as an example of: A) open-sourcing. B) offshoring. C) in sourcing. D) home sourcing. E) onshoring.

Taking the company's current products and selling them in other countries without changing the product is referred to as: A) product adaptation. B) product invention. C) product rebranding. D) straight product extension. E) product mix.

Amway, a global company, manufactures and distributes over 450 different consumer products. Amway introduced a new range of products called Satinique. Once Amway developed the product, they undertook market research to determine their target consumers group. They identified a segment consisting of professional women who always want to look their best and who want professional, salon quality products and who rely on recommendations from friends when making haircare purchase decisions. They then developed a marketing strategy and implemented a successful marketing plan. This process of identifying a particular target group to market one's products is called: A) product branding. B) market positioning. C) market segmentation. D) channel of distribution. E) social marketing.

Which of the following holds true for product invention? A) It refers to the company strategy of modifying an existing product in a way that makes it better fit local needs. B) It refers to the total composite of products offered by a particular organization. C) It refers to the strategy of taking the company's current products and selling them in other countries without making changes to the product. D) It refers to the creation of a new name, term, symbol, design, or a combination of them for an established brand with the intention of developing a differentiated position in the mind of stakeholders and competitors. E) It refers to the strategy of creating an entirely new product for a given local market.

An organization that manufactures readymade cotton shirts sources the raw material from all over the world. It does this as a precaution against the failure of one or more companies to deliver the raw materials. The above serves as an example of: A) open-sourcing. B) multisourcing. C) sole-sourcing. D) home sourcing. E) outsourcing.

Which of the following holds true for product adaptation? A) It refers to the company strategy of modifying an existing product in a way that makes it better fit local needs. B) It refers to the total composite of products offered by a particular organization. C) It refers to the strategy of taking the company's current products and selling them in other countries without making changes to the product. D) It refers to the creation of a new name, term, symbol, design, or a combination of them for an established brand with the intention of developing a differentiated position in the mind of stakeholders and competitors. E) It refers to the strategy of creating an entirely new product for a given local market.

_____ refers to a situation in which consumers use the place where a product was made as a barometer for evaluating the product's quality. A) Hierarchy of effects B) Cohort effect C) Temporal effect D) Country-of-origin effect E) Product-extension effect

A large number of Indian families own two-wheelers because four-wheelers are beyond their purchasing power. This inspired Tata Motors to begin R&D to develop an affordable car, Tata Nano. The company went back to the drawing board to rethink how best to design an affordable car for India. The selling price of this no-frills auto was brought down by dispensing with most nonessential features, reducing the amount of steel used in its construction, and relying on low-cost Indian labour. Nano is primarily aimed at the Indian domestic market where it provides an opportunity for new car ownership for people who would otherwise never own one. The above serves as an example of: A) product adaptation. B) product rebranding. C) product invention. D) brand extension. E) straight product extension.

Total Quality Management (TQM) refers to a set of management practices which focuses on: A) monitoring and controlling a process to ensure that it operates at its full potential. B) increasing quality and reducing errors in production or service delivery. C) management principles that focus on modifying the quality of the product to suit local affordability. D) improving a business' return on investment by reducing in-process inventory and associated carrying costs. E) creating new products for developing countries using totally new and innovative processes.

The concept of _____ refers to designing a product for a developing country and bringing that product back to the home country. A) reverse factoring B) reverse brain drain C) reverse proxy D) reverse engineering E) reverse innovation

_____ refers to buying the raw materials or components that go into a company's products from around the world, not just from the headquarters' country. A) Open-sourcing B) In sourcing C) Global sourcing D) Home sourcing E) Onshoring

A US-based soft drink manufacturer introduces a drink in the Indian market that is already available in the US market. The manufacturer does not make any changes with regard to the size of the bottle, the fizz in the drink or the taste of the drink. The consumers in India get the same product that is available in the American market. The above serves as an example of: A) product adaptation. B) product rebranding. C) product invention. D) brand extension. E) straight product extension.

_____ refers to buying raw materials, components, or services from one supplier exclusively, rather than buying from two or more suppliers. A) Open-sourcing B) Multisourcing C) Sole-sourcing D) Home-sourcing E) Outsourcing

_____ refers to a situation which means that there is no more stock of the company's product. A) Stock of record B) Stock-check C) Safety stock D) Stock call E) Stock-out

_____ refers to the inventory that the company holds to help ensure that it won't run out of products if there is a delay or crisis in a distant manufacturing region. A) Stock of record B) Stock split C) Safety stock D) Stock call E) Stock-out

An automobile giant headquartered in the United States sells high-end bikes across the world. It wants to enter an emerging market. Customers in the market cannot afford the types of accessories used in the bikes. Thus the regional branch of the organization makes an autonomous decision to remove the accessories and to offer a toned-down version of the bikes to compete in the emerging market. This decision is accepted by the headquarters on the principle that the man on the ground is the best judge of local conditions. The above serves as an example of a(n): A) decentralized organizational structure. B) reverse engineering. C) centralized organizational structure. D) reverse innovation. E) open sourcing.

Which of the following statements holds true for production planning and control? A) It refers to the process of forecasting, pricing, and customer segmentation. B) It refers to the process of purchasing, supplier selection, and supplier-base rationalization. C) It refers to the process of managing raw materials and finished goods. D) It refers to the process of aggregate planning, workforce scheduling, and factory operations. E) It refers to the process of establishing the facility location and formulating a distribution strategy.

_____ refers to buying raw materials, components, or services from two or more suppliers, rather than buying from one supplier exclusively. A) Open-sourcing B) Multisourcing C) Sole-sourcing D) Home sourcing E) Outsourcing

_____ refers to setting up operations in a low-cost country for the purpose of hiring local workers at lower labor rates. A) Open-sourcing B) Offshoring C) In sourcing D) Home sourcing E) Onshoring

An Australian brand develops low-cost, low-fat dried noodles for rural India and Pakistan. The same product finds a market in Australia and New Zealand as a healthy and budget-friendly alternative for campers. The above serves as an example of: A) reverse factoring. B) reverse brain drain. C) reverse proxy. D) reverse engineering. E) reverse innovation.

_____ refers to a situation where the company delegates an entire process (such as accounts payable) that was previously performed in-house, to an external vendor. A) Open-sourcing B) Multisourcing C) Sole-sourcing D) Home sourcing E) Outsourcing

An organization headquartered in the United States owns a chain of restaurants all across the world. People in different countries have varied culinary preferences. The restaurant needs to change its menu and recipes to suit local tastes and preferences. The decision to make these changes (or not) is taken only by the U.S. headquarters, and not by the regional branches of the organization. The above serves as an example of a(n): A) decentralized organizational structure. B) reverse engineering. C) centralized organizational structure. D) reverse innovation. E) open-sourcing.

Which of the following statements holds true for demand management? A) It refers to the process of forecasting, pricing, and customer segmentation. B) It refers to the process of purchasing, supplier selection, and supplier-base rationalization. C) It refers to the process of managing raw materials and finished goods. D) It refers to the process of aggregate planning, workforce scheduling, and factory operations. E) It refers to the process of establishing the facility location and formulating a distribution strategy.

An organization decides to gift high-end watches to its senior employees for completing 25 years in the organization. They are asked to choose between a high-end watch made in Switzerland and a similar high-end watch made in China. Most people choose the Swiss watch. They do not know if these particular Swiss watches are indeed better than the Chinese ones but there is a general perception that no one makes watches better than the Swiss. The above serves as an example of: A) hierarchy of effects. B) cohort effect. C) temporal effect. D) country-of-origin effect. E) product-extension effect.

Which of the following statements holds true for inventory management? A) It refers to the process of forecasting, pricing, and customer segmentation. B) It refers to the process of purchasing, supplier selection, and supplier-base rationalization. C) It refers to the process of managing raw materials and finished goods. D) It refers to the process of aggregate planning, workforce scheduling, and factory operations. E) It refers to the process of establishing the facility location and formulating a distribution strategy.

What are the different types of tax evasion practices used in the international market?

Promotion has an impact on the other Ps of marketing. Explain.

What are the factors that decide the marketing mix of a company in a country?

How is business-to-business marketing in emerging economies different from that in the developed economies?

What is market segmentation?

What are the advantages and disadvantages of creating a global brand?

What are the advantages and the disadvantages of having a centralized-marketing organizational structure?

What are the advantages of the sole-sourcing strategy?

What are the disadvantages of the multisourcing strategy?

What are the distribution strategies followed by organizations for entering a new market?

What are the four Ps of marketing?

What are the different methods of product adaptation followed by organizations?

What are the challenges that organizations experience in distributing their goods in emerging-market countries?

The four Ps of marketing are product, price, _____, and place.

_____ refers to the series of firms or individuals who facilitate the movement of the product from the producer to the final consumer.

A consumer buys a product directly from the producer. This represents a(n) _____ channel of distribution.

In the _____ strategy, companies go back to the drawing board and rethink how best to design a product for a specific country or region.

_____ effect refers to a situation in which consumers' perception of the country influence whether they perceive the product favorably or unfavorably and thus whether they'll purchase the product.

The focus of _____ is increasing quality and reducing errors in production or service delivery.

_____ markets deceive customers into buying what they think is a branded product at a bargain cost.

The advantage of the _____ strategy of purchasing raw materials is that the company will often get a lower price by giving all of its volume to one supplier.

A(n) _____ means that there is no more stock of the company's product.

_____ refers to the inventory that helps ensure the company won't run out of products if there's a delay or crisis in a distant manufacturing region.

_____ refers to a market that exists because of price discrepancies between different markets.

_____ encompasses the planning and management of all activities involved in sourcing and procurement, conversion, and logistics.

_____ refers to a set of management practices that consists of systematic processes, planning, measurement, continuous improvement, and customer satisfaction.

_____ means setting up operations in a low-cost country for the purpose of hiring local workers at lower labor rates.

One advantage of the _____ strategy of purchasing raw materials is that an organization can negotiate lower rates by pitting one supplier against another.