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