Chapter 17*

Question 1

Marketing principles are global, but

Answer 1

companies may need to apply them differently abroad

Question 2

Serving niche markets abroad may

Answer 2

forgo the need to be nationally responsive

Question 3

The unaltered product may have appeal at home and abroad because of

Answer 3

• globally similar demand
• spillover in product information from its home country
• foreign and domestic input in development

Question 4

Customer orientation

Answer 4

takes geographic areas as given and seeks products to sell there

Question 5

Companies consider

Answer 5

the effects on all stakeholders when producing and selling their products

Question 6

Companies must decide

Answer 6

their target markets, which may include segments that exist in more than one country

Question 7

Direct and indirect legal factors

Answer 7

are usually related to safety, health, and environmental protection

Question 8

Although some global product standardization would eliminate wasteful alterations, there is resistance because

Answer 8

• a changeover would be costly
• people are familiar with the “old”E

Question 9

Examination of cultural differences

Answer 9

may pinpoint possible product problems

Question 10

Personal incomes and infrastructures affect product demand, thus firms may

Answer 10

• aim product variations at different income levels
• tailor products to compensate for infrastructure differences

Question 11

The cost of product alterations

Answer 11

should be compares with their expected sales generation

Question 12

Broadening the product line may

Answer 12

gain distribution economies, but not all of a company’s line has sales appeal everywhere

Question 13

Some nationalities

Answer 13

simply like certain products more and are willing to pay more for them

Question 14

Export prices generally

Answer 14

rise by more than incremental transport and duty costs, thus exporters may have to lower margins to make sales

Question 15

Gray market (product diversion)

Answer 15

is the selling and handling of goods through unofficial distributors, thus enabling the import of cheaper supplies from abroad to compete against official ones

Question 16

There are country-to-country differences in

Answer 16

• whether prices are fixed or bargained
• where bargaining occurs
• what products’ prices are bargained

Question 17

Markets’ dominant companies

Answer 17

have strong negotiating power

Question 18

Using the same brand name globally

Answer 18

• helps develop a common image
• may increase consumers’ demand if they think global products are better
• is hampered by language differences
• has a drawback in the case of acquisitions

Question 19

Images of products

Answer 19

are affected by where they are made

Question 20

When the country of origin affects consumers’ opinion of a product

Answer 20

• a positive brand image may help overcome a negative country-of-origin image
• these opinions can change over time

Question 21

If a brand name is used for a class of product

Answer 21

a company may lose its trademark

Question 22

Distribution

Answer 22

is the course - physical pather or legal title - that goods take between production and consumption

Question 23

Because distribution reflects different country environments

Answer 23

• it may vary substantially among countries
• it is difficult to change

Question 24

A company may enter a market

Answer 24

gradually by limiting geographic coverage

Question 25

Distributors choose which companies and products to handle. Companies

Answer 25

• may need to give incentives
• may use successful products as bait for new ones
• must convince distributors that product and company are viable

Question 26

Confidence in securing replacement parts and service

Answer 26

are important for sales, especially for imported products

Question 27

Distribution costs increase when there is

Answer 27

• poor infrastructure
• many levels in the distribution system
• inefficient retail distribution
• inadequate carrying of inventory by retailers

Question 28

Emphasis in marketing mix

Answer 28

• should be on the functions that account for major lost sales
• may differ by country
• may combine needs from different countries

Question 29

Gap analysis

Answer 29

whereby a company estimates potential sales for a given type of product and compares how emphasis on different marketing mix elements can better help it serve prospective customers

Question 30

Usage gap

Answer 30

collectively, all competitors sell less than the market potential

Question 31

Product line gap

Answer 31

the company lacks some product variations

Question 32

Distribution gap

Answer 32

the company misses coverage by geography or type of outlet

Question 33

Competitive gap

Answer 33

competitors’ sales are not explained by product-line and distribution gaps