Pre-Midterm (ch. 5-7)

Question 1

What is the denim example for unethical behavior from class?

Answer 1

Workers in factories making faded denim jeans are often exposed to crystalline silica, a dangerous chemical used to create the vintage look

Question 2

How did P&G position Pampers in China?

Answer 2

P&G conducted research showing that babies slept longer with Pampers diapers on. Used this to reframe how diapers are beneficial.

Question 3

Narayana Hrudayalaya sells health insurance for less than $0.20 per person per month in India. What strategy is he using?

Answer 3

Customize offerings to unique EM needs.

Question 4

China is working with different countries in Africa to sell natural resources there. What strategy is China using?

Answer 4

Targeting governments. Selling directly to gov’s establishes a huge customer.

Question 5

What are the six key criteria for assessing the attractiveness of emerging markets?

Answer 5

1. Market size
2. Market growth rate
3. Market consumption capacity
4. Commercial infrastructure
5. Economic freedom
6. Country risk

Question 6

Why is a Starbucks coffee $4 in China but $2.80 in India?

Answer 6

• India is a tea drinking country, so demand is lower.

* Coffee is locally sourced.

Question 7

What country group will grow the fastest in the coming years?

Answer 7

Emerging markets? Major cities in these countries will grow 10x faster than developed cities

Question 8

Tesco attempted to directly enter the US market, and Target attempted to directly enter Canada. What strategy did these two companies NOT use?

Answer 8

Partner with a family conglomerate. Direct entry without a cultural understanding led to their downfall.

Question 9

What are the three country groups in terms of economies?

Answer 9

1. Advanced Economies
2. Emerging Markets
3. Developing Economies

Question 10

Why did Godiva choose to be acquired by the Turkish brand Yildiz-Ulker, and what can other companies learn?

Answer 10

Because they would remain a stand-alone organization. Instead of integrating foreign acquisitions, partner with them!

Question 11

What are the four shortcomings of secondary data faced by foreign companies in EMs?

Answer 11

• Availability
• Reliability
• Authenticity
• Comparability

Question 12

What are the two ways we weaken cross-cultural negotiations (TED)?

Answer 12

• Underestimate CCNs. People will only look at national culture, not the more local culture. Ex. If I am opening a store in China, opening in inland China vs Shanghai has very different implications.
• Overestimate CCNs. People may overestimate their similarity to the other person. Ex. If I talk to someone from the South, we will have different cultural backgrounds even though we’re both American.

Question 13

In the marketing research process, what must you do after you determine the sources of information?

Answer 13

Weigh the costs and benefits? If costs > benefits, it’s not wise to engage in research.

Question 14

What is the cobalt example for unethical behavior from class?

Answer 14

Cobalt is often mined in the Congo using child labor

Question 15

What are the four main strategies for doing business in EMs mentioned in the slides?

Answer 15

1. Customize offerings to unique EM needs
2. Partner with a family conglomerate
3. Target governments
4. Skillfully challenge EM competitors

Question 16

What do the Big Mac Index and the SBUX latte video show? Hint: it’s an alliteration.

Answer 16

Purchasing Power Parity

Question 17

For a company doing business in an EM, advanced economies must first…

Answer 17

Conduct research and acquire new capabilities

Question 18

What was the example from Nigeria given for unethical behavior

Answer 18

Shell oil spill in Nigeria. Cleanup was slow and PR response was mediocre.

Question 19

What are the six steps of the marketing research process?

Answer 19

1. Define the research problem. Establish research objectives.
2. Determine source of info to fulfill research obj.
3. Consider costs and benefits of research effort.
4. Gather the relevant data from secondary or primary sources, or both.
5. Analyze, interpret, and summarize the results.
6. Effectively communicate the results to decision makers.

Question 20

Sustainability’s three interests

Answer 20

1. Economic interests
2. Social interests
3. Environmental interests

Question 21

What are the six steps of the Global Market Opportunity Assessment (GMOA)?

Answer 21

1. Analyze organizational readiness to internationalize
2. Assess suitability of the firm’s products and services for foreign markets
3. Screen countries to identify attractive target markets
4. Assess the industry market potential
5. Choose qualified business partners
6. Estimate company sales potential for each target market

Question 22

What are the two screening methodologies?

Answer 22

1. Gradual elimination. Firm starts with a lot of prospective target countries. Narrows choices by examining increasingly specific information.
2. Indexing and Ranking. The firm assigns scores to countries based on their overall market attractiveness.

Can be used in combination.

Question 23

What did William Ury (TED) say is the “secret to peace”? What is the phrase Ury used throughout the talk?

Answer 23

The people AROUND the conflict. Side 3 can see an unbiased perspective of the conflict. To enter this side, you must “go to the balcony.”

Question 24

In the GMOA, which comes first?

a. Assess suitability of firm’s products and services for foreign markets
b. Assess the industry market potential

Answer 24

a. You must make sure your companies offerings are good before you can start looking at the market potential of the selected country.

Question 25

In the marketing research process, what is the first thing you must do?

Answer 25

Define the research problem! Set objectives.

Question 26

What sort of products have the best foreign sales prospects?

Answer 26

• Sell well in domestic market.
• Cater to universal needs.
• Address a need not well served in foreign markets.
• Address a new or emergent need abroad. Ex. Major earthquake creates urgent need for portable housing.

Question 27

Unilever and P&G sell shampoo in India for less than $0.02 per mini-sachet. What strategy are they using?

Answer 27

Customizing its offerings to unique emerging market needs.