Full file at http://testbankcart.eu/Test-Bank-for-Global-Mar http://testbankcart.eu/Test-Bank-for-Global-Marketing-6th-Edition-by-eegan keting-6th-Edition-by-eegan Global Marketing, 6e (Keegan/Green) 6e (Keegan/Green) Chapter 1 Introduction to Global Marketing
!" # $anage$ent tea$ that fails to understand the i$portance of global $arketing risks losing its do$estic business to co$petitors %ith lo%er costs& $ore e'perience& and better produc ts. #ns%er: T()E *iff: ! +age (ef: , ##B: (eflectie Thinking 0" #s 1al-Mart 1al-Mart e'pands into Guate$ala and entral #$erican countries& it is i$ple$enting a $arket deelop$ent strategy. strategy. #ns%er: T()E *iff: ! +age (ef: , ##B: (eflectie Thinking 2" Global $arketing $ay take the for$ of diersification strategy in %hich a co$pany creates ne% products or serices for the do$estic $arket. #ns%er: F#3E *iff: 0 +age (ef: , ##B: (eflectie Thinking ," The perceied alue alue e4uation can be represented as 5alue 5alue +rice/Benefits. #ns%er: F#3E *iff: 0 +age (ef: 7 ##B: #nalytic kills 7" (ecently the auto industry is shifting its attention to e$erging $arkets such as 8ndia and #frica. #ns%er: T()E *iff: ! +age (ef: 7 ##B: (eflectie Thinking 6" Globali9ation is presenting significant $arketing opportunities for professional sports organi9ations such as the ational Football 3eague and Ma;or 3eague occer. #ns%er: T()E *iff: ! +age (ef: 6 ##B: (eflectie Thinking <" 8f estl= decides not to $arket biscuits >cookies" in the )nited tates due to co$petitie reasons& it is considered as a lack of strategic focus and $issed opportunity. opportunity. #ns%er: F#3E *iff: 0 +age (ef: < ##B: (eflectie Thinking
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Full file at http://testbankcart.eu/Test-Bank-for-Global-Marketing-6th-Edition-by-eegan A" 5alue& co$petitie adantage& and the focus re4uired to achiee the$ are uniersal in their releance and should guide global $arketing efforts in any part of the %orld. #ns%er: T()E *iff: 0 +age (ef: " The discipline of $arketing is uniersal and such $arketing practices do not ary fro$ country to country. #ns%er: F#3E *iff: ! +age (ef: !@" tandardi9ation ersus adaptation is the e'tent to %hich each $arketing $i' ele$ent is standardi9ed or adapted in arious country $arkets. #ns%er: T()E *iff: 0 +age (ef: ##B: (eflectie Thinking !!" ike dropped their %ell kno%n tagline CDust do itC in adertising %o$ens clothing in Europe and replaced it by the slogan Cere 8 a$C since college-age %o$en in Europe are not as co$petitie about sports as $en are. #ns%er: T()E *iff: 0 +age (ef: !0" Global locali9ation $eans that a successful global $arketer $ust hae the ability to think locally and act globally. #ns%er: F#3E *iff: 0 +age (ef: !! ##B: (eflectie Thinking !2" The oca-ola o$pany supports its oke& Fanta& and +o%er#de brands %ith $arketing $i' ele$ents that are both global and local. #ns%er: T()E *iff: 0 +age (ef: !! ##B: (eflectie Thinking !," That Gillette uses the sa$e packaging for its flagship Mach2 ra9or eery%here in the %orld is an e'a$ple of ho% co$panies hae successfully pursued global $arketing by creating strong global brands. #ns%er: T()E *iff: 0 +age (ef: !0 !7" Mc*onalds global $arketing strategy is based pri$arily on local $arketing $i' ele$ents. #ns%er: F#3E *iff: 0 +age (ef: !2 ##B: (eflectie Thinking
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Full file at http://testbankcart.eu/Test-Bank-for-Global-Marketing-6th-Edition-by-eegan !6" Mc*onalds ho$e deliery of burgers in 8ndia is an e'a$ple of unusual standardi9ed global $arketing practice. #ns%er: F#3E *iff: 0 +age (ef: !2 ##B: (eflectie Thinking !<" arley-*aidsons $otorcycles co$petitie adantage is based in part on its CMade in the )#C positioning. #ns%er: T()E *iff: 0 +age (ef: !, ##B: (eflectie Thinking !A" o$e co$panies that fail to for$ulate ade4uate responses to the challenges and opportunities of globali9ation %ill be absorbed by $ore dyna$ic& isionary enterprises. #ns%er: T()E *iff: 0 +age (ef: !7 ##B: (eflectie Thinking !" 1al-$art is the largest corporation& based on reenues& according to the Fortune 7@@ Global ranking for 0@@A. #ns%er: T()E *iff: ! +age (ef: !7 ##B: (eflectie Thinking 0@" E'a$ining the si9e of indiidual product $arkets& $easured in ter$s of annual sales& proides another perspectie on global $arketings i$portance. #ns%er: T()E *iff: 0 +age (ef: !6 ##B: (eflectie Thinking 0!" The for$ and substance of a co$panys response to global $arket opportunities depend greatly on $anage$ents assu$ptions or beliefs about the nature of the %orld. #ns%er: T()E *iff: 2 +age (ef: !< ##B: (eflectie Thinking 00" Ethnocentris$ is so$eti$es associated %ith attitudes of national arrogance or assu$ptions of national superiority. #ns%er: T()E *iff: 2 +age (ef: !A ##B: #nalytic kills 02" Today& ethnocentris$ is on one of the $a;or internal %eaknesses that $ust be oerco$e if a co$pany is to transfor$ itself into an effectie global co$petitor. #ns%er: T()E *iff: 0 +age (ef: !A ##B: (eflectie Thinking 2 opyright ? 0@!! +earson Education& 8nc.
Full file at http://testbankcart.eu/Test-Bank-for-Global-Marketing-6th-Edition-by-eegan 0," The ter$ polycentric describes $anage$ents belief or assu$ption that each country in %hich a co$pany does business is uni4ue. #ns%er: T()E *iff: 0 +age (ef: ! ##B: #nalytic kills 07" )nileers (e'ona deodorant brand had 2@ different package designs and ,A different for$ulations. This is an e'a$ple of ethnocentris$. #ns%er: F#3E *iff: ! +age (ef: ! 06" # ).. co$pany that focuses on the countries included in the orth #$erican Free Trade #gree$ent >#FT#" has a regiocentric orientation. #ns%er: T()E *iff: 2 +age (ef: ! ##B: #nalytic kills 0<" # European co$pany that focuses its attention on Europe can be considered to hae regiocentric orientation. #ns%er: T()E *iff: 0 +age (ef: ! ##B: (eflectie Thinking 0A" # co$pany %ith a geocentric orientation ie%s the %orld as a potential $arket and stries to deelop integrated global strategies. #ns%er: T()E *iff: ! +age (ef: ! 0" Geocentric orientation represents true global $arketing since it ie%s the entire %orld as a potential $arket and deelops global strategy. #ns%er: F#3E *iff: 2 +age (ef: ! ##B: (eflectie Thinking 2@" #n ethnocentric $anage$ent orientation is preferable to a geocentric orientation. #ns%er: F#3E *iff: 0 +age (ef: 0@ ##B: (eflectie Thinking 2!" #s ne% global co$petitors e$erge on the scene& $anage$ent at long-established industry giants such as GM $ust face up to the challenge of organi9ational transfor$ation. #ns%er: T()E *iff: 0 +age (ef: 0@ ##B: (eflectie Thinking
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Full file at http://testbankcart.eu/Test-Bank-for-Global-Marketing-6th-Edition-by-eegan 20" #s GM teetered on the brink of bankruptcy in 0@@& it %as clear that it %ould hae to be re$ade as a s$aller& leaner co$pany. #ns%er: T()E *iff: 0 +age (ef: 0@ ##B: (eflectie Thinking 22" # global co$pany can be described as one that pursues either a strategy of sering %orld $arkets fro$ a single country& or one that sources globally for the purpose of focusing on select country $arkets. #ns%er: T()E *iff: 2 +age (ef: 0@ ##B: (eflectie Thinking 2," ne %ay to assess a co$panys Cdegree of transnationalityC is to look at the sales outside the ho$e country to total sales. #ns%er: F#3E *iff: 2 +age (ef: 0@ ##B: #nalytic kills 27" estl=& being %ith a s$all ho$e country $arket& is co$pelled to adopt regiocentric or geocentric orientations in order to gro% profitably. #ns%er: T()E *iff: 2 +age (ef: 0! ##B: #nalytic kills 26" The ethnocentric co$pany is decentrali9ed in its $arketing $anage$ent %hereas the polycentric co$pany is centrali9ed. #ns%er: F#3E *iff: 0 +age (ef: 0! ##B: (eflectie Thinking 2<" # key challenge facing organi9ational leaders today is $anaging a co$panys eolution beyond an ethnocentric& polycentric& or regiocentric orientation to a geocentric one. #ns%er: T()E *iff: 2 +age (ef: 0! ##B: (eflectie Thinking 2A" 8n the conte't of global $arketing& leerage $eans so$e type of adantage that a co$pany en;oys by irtue of the fact that it has e'perience in $ore than one country. #ns%er: T()E *iff: 0 +age (ef: 06 ##B: (eflectie Thinking 2" Econo$ic gro%th has reduced resistance that $ight other%ise hae deeloped in response to the entry of foreign fir$s into do$estic econo$ies. #ns%er: T()E *iff: 0 +age (ef: 06 ##B: #nalytic kills 7 opyright ? 0@!! +earson Education& 8nc.
Full file at http://testbankcart.eu/Test-Bank-for-Global-Marketing-6th-Edition-by-eegan ,@" o$panies that cannot for$ulate or successfully i$ple$ent a coherent global strategy $ay lose their independence. #ns%er: T()E *iff: 0 +age (ef: 0A ##B: (eflectie Thinking ,!" 1hen you call )nited #irlines for reseration on a toll free nu$ber and get a response fro$ an operator in Mu$bai& this is an e'a$ple of: #" anti-globali9ation. B" global $arketplace. " $ultilingual e'pression. *" discri$ination. E" E-ticketing. #ns%er: B *iff: 0 +age (ef: 2 ##B: (eflectie Thinking ,0" Slumdog Millionaire, a $oie %hich receied seeral a%ards and an scar in 0@@ %as fil$ed on a location in and around: #" 3ondon. B" an Francisco. " ancun. *" Mu$bai. E" Mosco%. #ns%er: * *iff: ! +age (ef: 2 ,2" # funda$ental difference bet%een regular $arketing and global $arketing is: #" the lack of $arketing $i'. B" the scope of actiities. " the lack of strategic planning. *" the focus on resources. E" the lack of co$$unication. #ns%er: B *iff: 0 +age (ef: , ##B: #nalytic kills ,," The essence of $arketing %orld%ide is to surpass the co$petition in creating perceied alue %hich can be represented as: #" 5alue +rice/Benefits B" 5alue Benefits/+rice " 5alue Benefits ' +rice *" 5alue Benefits H +rice E" 5alue Benefits I +rice #ns%er: B *iff: 0 +age (ef: 7 ##B: #nalytic kills 6 opyright ? 0@!! +earson Education& 8nc.
Full file at http://testbankcart.eu/Test-Bank-for-Global-Marketing-6th-Edition-by-eegan ,7" # Ger$an-$ade Montblanc fountain pen retailing for J07@ in the ).. is a lu'ury good that represents an e'ception to %hich general principleK #" The s$aller the deno$inator in the alue e4uation& the higher the oerall alue created. B" Dapanese co$panies e'ploited econo$ies of scale to beco$e %orld-class co$petitors. " The %orld is beco$ing $ore ho$ogeneous. *" igher product deelop$ent costs are a driing force behind globali9ation. E" 3u'ury goods are ta'ed at a higher rate. #ns%er: # *iff: 0 +age (ef: 7 ##B: #nalytic kills ,6" 1hen a co$pany succeeds in creating $ore alue for custo$ers than its co$petition& that co$pany is said to en;oy LLLLLLLL in an industry. #" co$petitie adantage B" alue " leerage *" focus E" scale econo$ies #ns%er: # *iff: 0 +age (ef: 6 ##B: #nalytic kills ,<" #ccording to Michael +orter& a global industry is one in %hich LLLLLLLL can be achieed by integrating and leeraging operations on a %orld%ide scale. #" $arketing $i' B" co$petitie adantage " cross border infiltration *" ration analysis E" production capability #ns%er: B *iff: 0 +age (ef: < ##B: (eflectie Thinking ,A" The for$er chair$an of estl= recently told an interie%er: C1e are food and beerages. 1e are not running bicycle shops. Een in food %e are not in all fields. There are certain areas %e do not touch. #lso& %e hae no soft drinks because 8 hae said %e either buy oca-ola or %e leae it alone.C 1hat strategic $arketing principle does the chair$ans co$$ent e$phasi9e $ost specificallyK #" custo$er alue B" co$petitie adantage " focus on specific food and beerages *" $yopia E" policy of dealing only %ith %iss businesses #ns%er: *iff: 0 +age (ef: < ##B: (eflectie Thinking
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Full file at http://testbankcart.eu/Test-Bank-for-Global-Marketing-6th-Edition-by-eegan ," +epsio diested its restaurant diisions. # ne% co$pany& )MN Brands& is co$prised of Taco Bell& +i99a ut& and F. By spinning off the restaurants& +epsio $anage$ent %ill be able to concentrate its attention on the beerage and snack foods industries. +epsios actions illustrate the concept of: #" leerage. B" standardi9ed global $arketing. " ethnocentric orientation. *" focus. E" $yopia. #ns%er: * *iff: 0 +age (ef: < ##B: (eflectie Thinking 7@" # fir$s global $arketing strategy addresses %hich of the follo%ing issuesK #" standardi9ation ersus adaptation of the $arketing $i' B" global $arket participation " coordination of $arketing actiities *" integration of co$petitie $oes E" all of the aboe #ns%er: E *iff: 0 +age (ef: 7!" #n e'a$ple of the benefit of globali9ation is that #pple can $arket i+od $odels %orld%ide %ithout e'tensie: #" standardi9ation. B" $odification. " integration. *" concentration. E" $arket participation. #ns%er: B *iff: 0 +age (ef: !@ ##B: (eflectie Thinking 70" T%o decades ago& professor Ted 3eitt %rote a classic Harvard Business Review article titled CThe Globali9ation of Markets.C 1hich of the follo%ing state$ents about the author and the article is accurateK #" 3eitt urged co$panies to adopt products on a country-by-country basis. B" There %as uniersal agree$ent about his thesis that the %orld is beco$ing ho$ogeneous. " 3eitt urged co$panies to deelop standardi9ed products that could be $arketed %orld%ide %ith little adaptation. *" 3eitt %arned of the co$ing backlash against globali9ation. E" 3eitt did not reco$$end deeloping standardi9ed products. #ns%er: *iff: 0 +age (ef: !! ##B: (eflectie Thinking
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Full file at http://testbankcart.eu/Test-Bank-for-Global-Marketing-6th-Edition-by-eegan 72" oca-ola achieed success in Dapanese $arket pri$arily by: #" standardi9ation of $arketing $i' ele$ents. B" global locali9ation. " ending $achine operations. *" selecting $arket $i' options. E" ho$ogeni9ation. #ns%er: B *iff: 0 +age (ef: !! ##B: (eflectie Thinking 7," Global locali9ation $eans that a successful global $arketer $ust hae the ability to: #" Cthink globally& act globally.C B" Cthink globally& act locally.C " Cthink locally& act locally.C *" Cthink locally& act globally.C E" none of the aboe #ns%er: B *iff: 0 +age (ef: !! 77" # co$pany that engages in global $arketing: #" pursues a Cone si9e fits allC strategy by creating identical products for ho$ogeneous $arkets. B" custo$i9es special products for each %orld country or region. " creates both standardi9ed and locali9ed products. *" nurtures an ethnocentric $anage$ent orientation. E" uses locali9ed products only. #ns%er: *iff: 0 +age (ef: !! ##B: (eflectie Thinking 76" E'a$ples of co$panies that hae successfully pursued global $arketing by creating strong global brands include: #" 8talys Benetton using a sophisticated distribution syste$. B" Marlboro identifying the brand na$e %ith a co%boy. " Gillette using the sa$e packaging for Mach2 ra9or %orld%ide. *" # and E" all of the aboe #ns%er: E *iff: 0 +age (ef: !! ##B: (eflectie Thinking
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Full file at http://testbankcart.eu/Test-Bank-for-Global-Marketing-6th-Edition-by-eegan 7<" Mc*onalds seres Mc#loo Tikki Burger in 8ndiaO Mc(ice Burger in MalaysiaO McP Burger in #ustraliaO i%i Burger in e% PealandO and Mcueo Burger in )ruguay and Mca$urai Burger in Thailand. These $enu ariations are e'a$ples of: #" a co$bination of global and local $arketing $i' ele$ents. B" a reflection of failure of ) $enu ite$s in those countries. " a deiation fro$ successful $arketing practices. *" a replace$ent of standard $enu na$es %ith fancy na$es. E" a selection of $enu ite$s that can be sold eentually in ).. $arkets. #ns%er: # *iff: 0 +age (ef: !2 ##B: (eflectie Thinking 7A" 1hich of the follo%ing correctly states Mc*onalds approach to standardi9ation a nd adaptation of the $arketing $i'K #" Mc*onalds standardi9es so$e product ele$ents and adapts others. B" Mc*onalds standardi9es so$e place ele$ents and adapts others. " Mc*onalds standardi9es so$e pro$otion ele$ents and adapts others. *" Mc*onalds standardi9es so$e price ele$ents and adapts others. E" all of the aboe #ns%er: E *iff: ! +age (ef: !2 ##B: (eflectie Thinking 7" #s of 0@@< Gap operated 0&60 stores in the )nited tates and $ore than ,7@ stores internationally. The co$pany sources $ost of its clothing fro$ apparel factories in onduras& the +hilippines& 8ndia& and other lo%-%age countries. 8f Gap %ould like to open $ore stores in Dapan& pri$ary consideration should include: #" industry conditions. B" sources of co$petitie adantage. " the condition of the apparel $arket %orld%ide. *" de$and in Dapan for ).. style gar$ents. E" all of the aboe #ns%er: E *iff: 0 +age (ef: !, ##B: (eflectie Thinking 6@" Measured by national inco$e& the )nited tates represents the %orlds largest single $arket for goods and serices. (oughly %hat percentage of %orld inco$e is found outside the )..K #" 07Q B" 7@Q " <7Q *" 7Q E" 27Q #ns%er: *iff: 0 +age (ef: !7 ##B: #nalytic kills
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Full file at http://testbankcart.eu/Test-Bank-for-Global-Marketing-6th-Edition-by-eegan 6!" Measured by national inco$e& Dapan represents the %orlds second largest single $arket for goods and serices. 1hat percentage of %orld inco$e is found outside DapanK #" ,@Q B" 77Q " <@Q *" A7Q E" <7Q #ns%er: * *iff: 0 +age (ef: !7 ##B: #nalytic kills 60" #ccording to the Fortune global 7@@ co$panies for 0@@A& the largest corporation based on reenue is: #" E''on Mobil. B" Toyota Motors. " 1al-Mart tores. *" General Electric. E" itigroup. #ns%er: *iff: 0 +age (ef: !7 ##B: #nalytic kills 62" Based on 0@@A rankings of Fortune Global 7@@ co$panies& the %orlds $ost aluable car co$pany today is: #" GM. B" *ai$ler #G. " Toyota. *" Ford. E" hrysler. #ns%er: *iff: 0 +age (ef: !7 ##B: #nalytic kills 6," The highest-ranked Ger$an co$pany in the 0@@A Fortune Global 7@@ surey %as: #" *ai$ler. B" #llian9. " 5olks%agen. *" ie$ens. E" none of the aboe #ns%er: # *iff: 2 +age (ef: !7 ##B: #nalytic kills
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Full file at http://testbankcart.eu/Test-Bank-for-Global-Marketing-6th-Edition-by-eegan 67" Based on the si9e of the $arket in ).. dollars the leading consu$er products are: #" cell phones. B" bottled %ater. " cigarettes. *" ideo ga$es. E" recorded $usic. #ns%er: *iff: 2 +age (ef: !6 ##B: #nalytic kills 66" Based on the total annual units sold in the %orld%ide $arket& the leading product category is: #" flat-panel T5 sets. B" cigarettes. " cell phone handsets. *" cars and light trucks. E" *T5 sets. #ns%er: B *iff: 2 +age (ef: !< ##B: #nalytic kills 6<" # person %ho assu$es that his or her ho$e country is superior to the rest of the %orld is said to hae: #" ethnocentric orientation. B" polycentric orientation. " regiocentric orientation. *" geocentric orientation. E" no correct ans%er #ns%er: # *iff: 0 +age (ef: !A ##B: (eflectie Thinking 6A" The cell phone diisions of Toshiba& harp& and other Dapanese co$panies prospered by focusing on the do$estic $arket. 1hen handset sales in Dapan slo%ed a fe% years ago& the Dapanese co$panies reali9ed that okia& Motorola& and a$sung already do$inated key %orld $arkets. #tsutoshi ishida& president of Toshiba& noted& C1e %ere thinking only about Dapan. 1e really $issed our chance.C This e'a$ple illustrates: #" geocentric orientation. B" regiocentric orientation. " polycentric orientation. *" ethnocentric orientation. E" poor globali9ation orientation. #ns%er: * *iff: 0 +age (ef: !A ##B: (eflectie Thinking
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Full file at http://testbankcart.eu/Test-Bank-for-Global-Marketing-6th-Edition-by-eegan 6" )nileer& the #nglo-*utch consu$er products co$pany& at one ti$e had 2@ different package designs and ,A different for$ulations for its (e'ona deodorant brand. This is an e'a$ple of: #" ethnocentric orientation. B" polycentric orientation. " regiocentric orientation. *" geocentric orientation. E" transnational orientation. #ns%er: B *iff: 0 +age (ef: ! ##B: (eflectie Thinking <@" Transnational co$panies& such as Toyota and onda& hae characteristic features that include: #" being in both global $arkets and utili9es global supply chains. B" characteri9ed by a $ind-set of being Cstateless.C " using both locali9ed and standardi9ed ele$ents in $arketing progra$s. *" decisions $ade on the basis of ongoing research. E" all of the aboe #ns%er: E *iff: 2 +age (ef: 0@ ##B: (eflectie Thinking
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Full file at http://testbankcart.eu/Test-Bank-for-Global-Marketing-6th-Edition-by-eegan <2" +fi9er& Merck& oartis& and other phar$aceutical co$panies hae little choice but to engage in global $arketing since: #" there is little de$and for their products in ho$e countries. B" their research centers are located oerseas. " no single $arket is large enough to recoer costs incurred in research. *" there is $ore de$and oerseas for their products. E" technology is not aailable in ho$e countries. #ns%er: *iff: 0 +age (ef: 0, ##B: (eflectie Thinking <," 8n a recent book& *aniel ergin and Doseph tanisla% %rote C8t is the greatest sale in the history of the %orld. Goern$ents are getting out of businesses by disposing of %hat a$ounts to trillions of dollars of assets. Eerything is going fro$ steel plants and phone co$panies R. to hotels& restaurants& and nightclubs.C This is an indication of: #" the fact that goern$ents can $ake $ore $oney by selling assets. B" priati9ation is beco$ing a driing force for global $arketing. " these businesses are considered as closed $arkets. *" foreign co$panies are co$peting %ith goern$ents. E" there is less de$and for these type of co$panies. #ns%er: B *iff: 0 +age (ef: 06 ##B: #nalytic kills <7" 1hen a country like hina is e'periencing rapid econo$ic gro%th& policy$akers are likely to: #" look $ore faorably on outsiders. B" look less faorably on outsiders. " e'perience $ore resistance to%ard outsiders. *" feel threatened by outsiders. E" no correct ans%er #ns%er: # *iff: 0 +age (ef: 06 ##B: (eflectie Thinking
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Full file at http://testbankcart.eu/Test-Bank-for-Global-Marketing-6th-Edition-by-eegan <6" .F. 8skander& general $anager of herons u%ait office stated Cheron is pu$ping oil in different locations all oer the %orld R there isnt a rock %e haent drilled through. 1e centrali9e all that kno%ledge at our head4uarters& analy9e it& sort it out& and that enables us to sole any oil-drilling proble$ any%here.C Fro$ the global $arketing point of ie% this is an e'a$ple of a global co$pany: #" that is hungry to e'ploit natural resources. B" that is trying to be first to e'plore oil. " that it is trying to sole %orld proble$s. *" that gains leerage through e'perience transfers. E" that it does not hae easy access to infor$ation. #ns%er: * *iff: 0 +age (ef: 0< ##B: (eflectie Thinking <<" Dapans giant Matsushita Electric o$pany achieed scale econo$ies by e'porting 5(s& teleisions& and other consu$er electronics products throughout the %o rld fro$ %orld-scale factories in Dapan. This is an e'a$ple of the fact that: #" scale econo$ies %ere a cornerstone of Dapanese success in the !<@s and !A@s. B" leerage fro$ scale econo$ies in not li$ited to $anufacturing. " a global co$pany can achiee the sa$e econo$ies on a global scale. *" the larger scale of the global co$pany also creates opportunities to i$proe corporate staff co$petence and 4uality. E" all of the aboe #ns%er: E *iff: 0 +age (ef: 0< ##B: (eflectie Thinking
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Full file at http://testbankcart.eu/Test-Bank-for-Global-Marketing-6th-Edition-by-eegan <" 8n the )nited tates& so$e people beliee that globali9ation has depressed the %ages of #$erican %orkers and resulted in the loss of both blue-collar and %hite-collar ;obs. This is an e'a$ple of: #" discri$ination. B" do$ination. " globaphobia. *" $anage$ent $yopia. E" econo$ic crisis. #ns%er: *iff: 0 +age (ef: 0 ##B: (eflectie Thinking A@" Mc*onalds restaurants are found in $ore than !!A countries. To ensure high leels of consistency and 4uality& the co$panys far-flung restaurant syste$ incorporates $any standardi9ed ele$ents >e.g. restaurant design& burgers/fries/soft drinks as basic $enu offerings". o%eer& Mc*onalds also prides itself on sourcing $any of its food inputs >e.g. potatoes and dairy products" in indiidual host countries. Mc*onalds stries to be locally responsieit creates ne% $enu ite$s specifically designed %ith local eating custo$s and preferences in $ind. Typically& Mc*onalds for$s ;oint entures %ith local partners& a tactic that ensures that a local CfaceC is associated %ith the co$pany. Finally& Mc*onalds has been in $any country $arkets long enough that a ne% generation of consu$ers has gro%n up %ith Mc*onalds and are not a%are of the co$panys ).. origins. n the basis of this su$$ary& %hat is the highest stage of corporate deelop$ent that Mc*onalds arguably has achieed: #" international B" $ultinational " global *" transnational E" $yopic #ns%er: * *iff: 2 +age (ef: 22-26 ##B: (eflectie Thinking A!" 1hat is Cglobal $arketingC and ho% does it differ fro$ Cregular $arketingKC Giing e'a$ples of at least one $a;or corporation& e'plain these differences. #ns%er: Marketing is an organi9ational function and a set of processes for creating& co$$unicating& and deliering alue to custo$ers. #n organi9ation that engages in global $arketing focuses its resources and co$petencies on global $arket opportunities and threats. # funda$ental difference bet%een Cregular $arketingC and Cglobal $arketingC is the scope of actiities. # co$pany that engages in global $arketing conducts i$portant business actiities outside the ho$e-country $arket. For e'a$ple& as 1al-Mart e'pands into Guate$ala and other entral #$erica countries& it is i$ple$enting a $arket deelop$ent strategy. *iff: 0 +age (ef: , ##B: (eflectie Thinking
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Full file at http://testbankcart.eu/Test-Bank-for-Global-Marketing-6th-Edition-by-eegan A0" 1hat do you understand by co$petitie adantageK E'plain& giing e'a$ples as to ho% globali9ation presents co$panies %ith unprecedented opportunities to reconfigure the$seles. #ns%er: 1hen a co$pany succeeds in creating $ore alue for custo$ers than its co$petitors& that co$pany is said to en;oy Cco$petitie adantage.C 8t is $easured relatie to rials in a gien industry. For e'a$ple& oca-ola and +epsi are trying to $aintain a co$petitie adantage in global $arkets. Globali9ation presents co$panies %ith unprecedented opportunities as %ell as challenges. #chieing co$petitie adantage in a global industry re4uires e'ecuties and $anagers to $aintain a %ell-defined strategic focus. Globali9ation proides co$panies to deelop ne% products& get ne% ideas& deelop $arkets& e'pand brand recognition& and eentually profits. *iff: 0 +age (ef: 6 ##B: #nalytic kills A2" France and the )nited tates hae a Cloe-hateC relationship. Giing e'a$ples& sho% ho% this relationship relates to global $arketing. #ns%er: The Bush ad$inistration %as irate that the French did not support the decision to inade 8ra4. 8n addition there hae been other points of disagree$ent as %ell& including concern about the threat of #$erican-style eating habits and fast food to Frances culinary tradition. #$erican consu$ers took out their frustration at France by launching boycotts and other for$s of protest. French fries %ere rena$ed Cfreedo$ fries&C and restaurateurs poured e'pensie French %ines do%n the drain. o$e co$panies used public relations to $ini$i9e or neutrali9e potential losses. Mean%hile& the French Goern$ent Tourist ffice esti$ated that losses associated %ith reduced #$erican touris$ in 0@@2 %ould total J 7@@ $illion. o$e French citi9ens responded to the #$erican boycott %ith sy$bolic acts of their o%n. For e'a$ple& the staff of a bar in Bayonne poured oca-ola into the gutter. The anti-#$erican senti$ent %as shared by French citi9ens %orking else%here in the European )nion. European ads satiri9ed #$erican $anners and behaior. #ll of these actions hae an aderse i$pact on the global $arketing. *iff: 0 +age (ef: A ##B: Multicultural and *iersity A," *escribe ho% the global $arketing strategy is different %hen co$pared to that of single country $arketingK #ns%er: 8n single country $arketing& choosing a target $arket and deeloping a $arketing $i' are t%o i$portant considerations. The sa$e t%o aspects are also i$portant in global $arketingO ho%eer& they are ie%ed fro$ a different perspectie. There is standardi9ation or adaptation in each of the $arketing $i' co$ponents in each country %here business is conducted. Global $arketing strategy has three additional di$ensions that pertain to $arketing $anag e$ent: concentration of $arketing actiitiesO coordination of $arketing actiitiesO and integration of co$petitie $oes. *iff: 2 +age (ef: -!@ ##B: (eflectie Thinking
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Full file at http://testbankcart.eu/Test-Bank-for-Global-Marketing-6th-Edition-by-eegan A7" The oca-ola o$pany has conincingly de$onstrated that the ability to think globally and act locally can be a source of co$petitie adantage. Dustify this state$ent using e'a$ples. #ns%er: oke achieed success in Dapan by spending a great deal of ti$e and $oney to beco$e an insider. The co$pany built a co$plete local infrastructure %ith its sales force and ending $achine operations. okes success in Dapan is a function of its ability to achiee Cglobal locali9ation&C being as $uch of an insider as a local co$pany& but still reaping the benefits of %orld-%ide operations. The co$pany is adept at adapting sales pro$otion& distribution& and custo$er serice efforts to local needs. oke has beco$e one of the brands that has spent ti$e and $oney getting this e'perience in unkno%n territories. *iff: 0 +age (ef: !! ##B: (eflectie Thinking A6" )sing Mc*onalds as an e'a$ple& sho% ho% effectie global $arketing can be successfully achieed. #ns%er: The particular approach to global $arketing that a co$pany adopts %ill depend on industry conditions and its source or sources of co$petitie adantage. Mc*onalds standardi9ed product is Big Mac %hich is locali9ed in arious countries& such as Mc#loo Tikka Burger in 8ndia. i$ilar products %ith local slang na$es %ere used adapting to tastes in different countries. For pro$otion the standardi9ed slogan C8$ loin itC is used %hereas indiidual pro$otion is used in different countries. Free standing restaurants are a standardi9ed ersion& %hich is locali9ed in seeral countries by haing kiosks or ho$e deliery. i$ilarly& the aerage price of Big Mac is used as a standard %hich is locali9ed on the basis of currency fluctuation and affordability. *iff: 0 +age (ef: !2 ##B: (eflectie Thinking A<" The for$ and substance of a co$panys response to global $arket opportunities depend greatly on $anage$ents assu$ptions or beliefs. 1hat do you understand by this state$entK #ns%er: The for$ and substance of a co$panys response to global $arket opportunities depend greatly on $anage$ents conscious and unconscious assu$ptions or beliefs pertaining to the nature of the %orld. The %orld ie% of a co$panys personnel can be described as ethnocentric& polycentric& regiocentric& and geocentric. These orientations are collectiely kno%n as E+(G fra$e%ork. *iff: ! +age (ef: !<-!A ##B: (eflectie Thinking
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Full file at http://testbankcart.eu/Test-Bank-for-Global-Marketing-6th-Edition-by-eegan AA" o% do ethnocentric orientations of a co$pany differ fro$ polycentric orientationK Gie e'a$ples of ho% co$panies react under both orientations. #ns%er: # $anager %ho assu$es that his or her ho$e country is superior to the rest of the %orld is said to hae an ethnocentric orientation. 1hereas& polycentric orientation is opposite of ethnocentric orientation& %here a $anager assu$es that each country in %hich a co$pany does business is uni4ue. 8n the ethnocentric orientation& foreign operations or $arkets are typically ie%ed as being secondary or subordinate to do$estic ones. For e'a$ple issans ethnocentric orientation caused the $anagers to beliee that consu$ers all oer the %orld should be able to behae as Dapanese. 8n orthern Dapan& people %ould put blankets oer the hoods of their cars during cold %inters and $anagers assu$ed that people in the ).. should be able to do the sa$e. iticorps financial co$pany e'ecuties hae polycentric orientation& %here the assu$ption %as that each country is different and there is a need for a locali9ed or adaptation approach. *iff: 0 +age (ef: !A-! ##B: (eflectie Thinking A" Global $arketing does not necessarily $ean operating eery%here since there are forces affecting global integration and global $arketing. Dustify this state$ent using e'a$ples based on the %orld econo$ic trends. #ns%er: Econo$ic gro%th in key deeloping countries creates $arket opportunities that proide a $a;or incentie for co$panies to e'pand globally. *ue to the rising per capita inco$es in 8ndia& hina& and else%here& the gro%ing ranks of $iddle-class consu$ers hae $ore $oney to spend than in the past. #t the sa$e ti$e& slo% gro%th in industriali9ed countries has co$pelled $anage$ent to look ahead for opportunities in nations or regions %ith high rates of gro%th. #lso& the econo$ic gro%th has reduced resistance that $ight other%ise hae deeloped in response to the entry of foreign fir$s into do$estic econo$ies. The %orld%ide $oe$ent to%ard free $arkets& deregulation& and priati9ation is also a driing force. The trend to%ard priati9ation is opening up for$erly closed $arkets creating tre$endous opportunities. *iff: 0 +age (ef: 07-06 ##B: #nalytic kills @" 3ist and briefly describe the forces affecting local integration and g lobal $arketing. #ns%er: The forces affecting local integration and global $arketing are >a" Multilateral Trade #gree$ents: such as #FT# %hich has e'panded trade a$ong the )nited tates& anada& and Me'icoO >b" conerging $arket needs and %ants and the infor$ation reolution: the deelop$ent of technology has a considerable i$pact on the $arket needs and %antsO >c" transportation and co$$unication i$proe$ents: the technology for transportation and co$$unication is changing rapidlyO >d" product deelop$ent costs: ne% products re4uire $a;or inest$ents and considerable ti$eO >e" %orld econo$ic trends: gro%ing econo$ies %orld%ide has an i$pact on global $arketingO and >f" leerage: it is an adantage that a co$pany en;oys by irtue of haing e'perience in $ore than one country. *iff: 0 +age (ef: 0,-0 ##B: #nalytic kills
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