Chapter 12: Global Marketing
There are two major markets within each foreign market that purchase products and
services: consumer markets and industrial markets
FALSE
The total number of units of a product that could possibly be sold by all companies
doing business in a specific international market is referred to as sales potential.
FALSE
A study analyzing why households have stopped purchasing a company’s product
would be an example of marketing research.
TRUE
An adaptation approach to foreign markets means that the marketing strategies a
company uses in its international operations will be different than those used
domestically.
TRUE
International marketing managers have four main methods of promoting products and
services in international markets: advertising, personal selling, sales promotion, and
distribution.
FALSE
A company’s international pricing mix involves consideration of four major
objectives: performance objectives, prevention objectives, maintenance objectives,
and survival objectives.
TRUE
Ironically, customer complaints can sometimes result in improved customer service.
TRUE
A diner complains to his server, Alyson, that his meal is not to his liking. Without
consulting with her manager, Alyson immediately tells the customer that he will not
need to pay for the meal, and offers to bring him a different entree at no charge.
Alyson is an empowered employee.
TRUE
_____ potential refers to the total number of units of a product that could possibly be
sold by all companies doing business in a specific international market.
MARKET
There are three major markets within each foreign market that can purchase products
and services and needs to be analyzed: consumer markets, the industrial market, and
_____ markets.
GOVERNMENT
The _____ market includes companies that purchase products and services such as
equipment and machinery, supplies, lubricants, consulting services, cleaning services,
advertising, and so on.
INDUSTRIAL
_____ is frequently used as an overall measure of a nation’s income; it represents the
total purchasing power of a nation.
GDP
Executives at Mary Kay Cosmetics’ European operations are conducting a study
analyzing why households have stopped purchasing certain products. These
executives are engaging in _____.
MARKET RESEARCH
KFC sells a number of core items around the world, but offers other items tailored to
specific markets. KFC is following a(n) _____ strategy.
GLOCALIZATION
Of the following, which is NOT an option for companies to consider when marketing
their products overseas?
Aligning with international companies and selling their products
Developing new products for foreign markets
Incorporating all product differences into one design and developing a global product
Modifying products for different countries and regions
Selling the same domestic product overseas
The step in the new-product development process in which the new product idea is
presented to a small sample of the international market to gauge its reaction is called
_____.
CONCEPT TESTING
What is the last step in the new-product development process?
COMMERCIALIZATION
In the _____ stage of the product life cycle, sales gradually increase, as do profits,
which often are losses in the early part of this stage.
INTRODUCTION
Prices usually need to be reduced in the _____ stage of the product life cycle due to
increased competition.
MATURITY
Of the following, which is NOT an advantage of locating R&D facilities in foreign
countries?
It costs more to build R&D facilities overseas.
New products developed overseas are more likely to be attuned to the company’s
overseas markets.
Products originally developed for emerging markets can be successfully sold in
developed markets.
Often, the technology developed overseas can be transferred back to the home
country.
The MNC can use the intelligence of foreign scientists and engineers.
Nestle had success with its Maggi noodles in South Asia; subsequently they were
introduced in Australia. Nestle is using a(n) _____ strategy.
REVERSE
Of the following, which is NOT one of the major methods that can be used to promote
products and services in international markets?
Distribution
Sales promotion
Advertising
Personal selling
Publicity
Contests and sweepstakes, coupons, end-aisle displays in stores, sponsorships, and
trade shows are all examples of _____.
SALES PROMOTION
A(n)_____ strategy refers to the use of channels of distribution to market products
and services to international markets.
INDIRECT
Storage and transportation operations that are used in moving products to a foreign
market are called _____.
PHYSICAL DISTRIBUTION
_____ pricing objectives for international products and services include bottom-line
goals such as net profit, return on investment, market share, and penetration.
PERFORMANCE
_____ refers to a price in a foreign market that undercuts the prices of companies
competing there.
DUMPING
_____ refers to unauthorized importers reselling a manufacturer’s product in the
manufacturer’s domestic market at a price less than what the manufacturer charges in
that domestic market.
GRAY MARKETING
_____ refers to the percentage of purchases in a category a buyer gives to one vendor.
SHARE OF WALLET
_____ refers to performance of various aspects of customer service that meets
customer expectations.
RELIABILITY
