International Marketing True/False Questions & Answers
True or False
Marketing Mix
FALSE – Price is the only marketing mix instrument that creates costs. All other elements entail revenues.
TRUE – Typically, for identifying new product ideas, we look at the 4 C’s, which are: Company, Customers, Competition and Collaborators.
Test Marketing & Global Advertising
TRUE – Test marketing may be skipped to save money, and lead markets can be used as projections.
TRUE – Global advertising encompasses areas such as advertising planning, budgeting, resource allocation issues, message strategy and media decisions.
Global Brand Equity & Product Adaptations
TRUE – The value of a global brand (brand equity) usually varies a great deal from country to country.
TRUE – Adaptations of products introduced in foreign markets are driven by consumer preferences, price spectrum, competitive climate, organizational structure and history.
Product Piracy & Global Pricing
TRUE – Any aspect of the product is vulnerable to piracy, including the brand name, the logo, the design and the package.
TRUE – Among the main drivers affecting global pricing we find the company goals and costs.
FALSE – Dumping occurs when imports are sold at a fair price.
Media Infrastructure & Sales Promotion
FALSE – Media infrastructure is very similar from country to country.
TRUE – Sales promotion refers to a collection of short-term incentive tools that lead to quicker and/or larger sales of a particular product.
International Sales Management & Expatriates
TRUE – Issues such as recruiting, training, supervising and evaluating sales force are an integral part of international sales management.
TRUE – Expatriates are home-country personnel sent overseas to manage local operations in the foreign market.
TRUE – Expatriates are especially important in complex operating environments, or when elevated political risk requires constant monitoring.
Indirect Exporting & Gray Market Channels
TRUE – Indirect exporting involves the use of independent middlemen to market the firm’s products overseas.
FALSE – Gray market channel refers to the illegal export/import transaction involving genuine products into a country by intermediaries other than the authorized distributors.
Global Logistics & New Product Takeoff
FALSE – Global logistics is defined as the design and management of a system that directs and controls the flows of people into, through and out of the firm across national boundaries.
TRUE – The following factors contribute to the increased complexity and cost of global logistics: Distance, Exchange rate fluctuations, foreign intermediaries, Regulation, Security.
FALSE – Most new products display the same period of time to takeoff.
Waterfall Timing & Mobilizing Knowledge
FALSE – A waterfall timing of entry is characterized by a global rollout simultaneously.
TRUE – Some possible scenarios for mobilizing knowledge are: move information about the technology to where the market knowledge is, and move knowledge by rotating people and by temporary co-location.
Global Brand Name & Product Line
FALSE – The development costs for products launched under the global brand name cannot be spread over large volumes.
TRUE – Width of product line refers to the number of different product lines of the firm.
TRUE – Length of product line is the number of different products within a single line.
TRUE – Firms with a narrow product assortment usually extend the domestic lines.
Country of Origin Effects & Global Services
TRUE – Countries of origin influences are greater among elderly, less educated and politically conservative.
TRUE – Some strategies to cope with country of origin effects involve pricing, the use of highly respected distribution channels and communication.
FALSE – Threats for global services include deregulation of services industries, increasing demand for premium services and increased value consciousness.
Global Pricing & Language Barriers
TRUE – The main drivers that affect global pricing are company goals and company costs.
TRUE – Ways to safeguard against inflation include to source material from low-cost suppliers, and to shorten credit terms.
TRUE – Language is one of the most formidable barriers in global marketing.
Advertising Budgeting & Export Management
TRUE – Percentage of sales, competitive parity, objective-and-task method and resource allocation are different kind of advertising budgeting methods.
TRUE – Some strategies to deal with advertising regulations include lobbying activities and to adapt marketing mix strategy.
FALSE – Export management is defined as the way that companies work for buying goods from other countries.
TRUE – The success or failure of the company rests largely on the ability of its sales force.
Multiple Choice Questions
Forces for Globalized Product Strategy
Forces that facilitate a globalized product strategy are:
- Common customer needs
- Global customers
- Scale economies
- Time to market
- Regional market agreements
e) ALL OF THE ABOVE
Factors Driving New Product Adoption
Multinational Diffusion: The Adoption of new products is driven by three types of factors:
- Population Health Standards
- Personal Influences
- Individual Differences
- Product Characteristics
- Country Competitiveness Index
b) II, III and IV
Predicting New Product Penetration
Other Country characteristics used to predict new product penetration patterns include:
- Homogeneous population
- Lead countries
- Lag countries
- Cosmopolitanism
- All of the above
e) ALL OF THE ABOVE
Global Branding Strategies
In relation to global branding strategies, which of the next statements are correct:
- A truly global brand is one that has a consistent identity with consumers across the world.
- The development costs for products launched under the global brand name can be spread over large volumes.
- A local brand has much more visibility than a global brand.
- The fact of being global adds to the image of a brand country.
b) I, II and IV
Management of Multinational Product Lines
In relation to management of multinational product lines, which of the next statements are correct:
- Length of product line refers to the number of different product lines of the firm.
- Width of product line is the number of different products within a single line.
- Firms with a narrow product assortment usually extend the domestic lines.
- Large companies select a subset for international dispersal.
d) III and IV
Options Against Product Piracy
Some options against product piracy are:
- Lobby
- Take legal action.
- Product protection options like holograms.
- Cur prices
- Launch educational campaigns against piracy.
e) ALL OF THE ABOVE
Lowering Export Prices
The following are options to lower the export price:
- Rearrange the distribution channel.
- Include costly features.
- Increase the product size.
- Assemble or manufacture the product in foreign markets.
- Adapt the product to escape tariffs or tax levies.
d) I, IV and V
Motives Behind Countertrade
The following are motives behind Countertrade:
- Gain access to new or difficult markets
- Overcome exchange rate controls or lack of hard currency
- Overcome low country credit worthiness
- Increase sales volume
- All of the above
e) ALL OF THE ABOVE
Barriers to Standardization
One of the following is not a barrier to standardization:
- Customers similar preferences
- Advertising regulations
- Market maturity
- “Not-Invented-Here” (NIH) Syndrome
- Cultural Differences
- CUSTOMERS SIMILAR PREFERENCES