Keegan Global Marketing 7e

Global Marketing, 7e (Keegan/Green)
Chapter 1 Introduction to Global Marketing

1) With rapid global market expansion, McDonald's identity as the quintessential American fastfood
restaurant is becoming blurred!
Ans"er# $A%&'
Diff# 1 (age )ef# *
AA+&,# )eflecti-e .hinking
/b0ecti-e# 1
1uestion .ype# Application
2) An organi3ation that engages in global marketing focuses its resources and competencies on global
market opportunities and threats!
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Diff# 1 (age )ef# 5
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*) &tarbucks is building on its loyalty card and re"ards program in the 4nited &tates "ith a smartphone
app that enables customers to pay for purchases electronically! .his is an example of Market (enetration!
Ans"er# .)4'
Diff# 2 (age )ef# 5
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5) &tarbucks is entering 6ndia -ia an alliance "ith the .ata 7roup! .he next phase "ill likely in-ol-e
opening &tarbucks outlets in .ata's upscale .a0 8otels in 6ndia! .hese are examples of Market
(enetration!
Ans"er# $A%&'
Diff# 2 (age )ef# 5
AA+&,# Analytic &kills
/b0ecti-e# 2
1uestion .ype# +ritical thinking
9) .he percei-ed -alue equation can be represented as :alue ; (rice<,enefits!
Ans"er# $A%&'
Diff# 1 (age )ef# 9
/b0ecti-e# 2
1uestion .ype# Definitional
1
=) .he transformation of formerly local or national industries into global ones is a part of a broader
economic process of globali3ation!
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Diff# 1 (age )ef# =
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?) 6f @estlA decides not to market biscuits Bcookies) in the 4nited &tates due to competiti-e reasons, it is
considered as a lack of strategic focus and missed opportunity!
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Diff# 2 (age )ef# ?
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>) :alue, competiti-e ad-antage, and the focus required to achie-e them are uni-ersal in their rele-ance
and should guide global marketing efforts in any part of the "orld!
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C) .he discipline of marketing is uni-ersal, and such marketing practices do not -ary from country to
country!
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1D) .he "ay a company addresses recognition of the extent to "hich programs can be expanded
"orld"ide and adaptations required to do so is a reflection of its global marketing strategy!
Ans"er# .)4'
Diff# 2 (age )ef# >
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11) @ike dropped their "ell kno"n tag line EFust do itE in ad-ertising "omen's clothing in 'urope and
replaced it by the slogan E8ere 6 amE since collegeage "omen in 'urope are not as competiti-e about
sports as men are!
Ans"er# .)4'
Diff# 2 (age )ef# 1D
/b0ecti-e# *
2
12) @ations referred to as M6@.s, "hich hold great potential marketing opportunities, are Mexico, 6ndia,
@igeria, and .urkey!
Ans"er# $A%&'
Diff# 2 (age )ef# 12
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1*) 7lobal locali3ation means that a successful global marketer must ha-e the ability to think locally and
act globally!
Ans"er# .)4'
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15) .he +oca+ola +ompany supports its +oke, $anta, and (o"erAde brands "ith marketing mix
elements that are both global and local!
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19) McDonald's global marketing strategy is based primarily on local marketing mix elements!
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1=) McDonald's home deli-ery of burgers in 6ndia is an example of unusual standardi3ed global
marketing practice!
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/b0ecti-e# *
1?) 8arleyDa-idson's motorcycles competiti-e ad-antage is based in part on its EMade in the 4&AE
positioning!
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*
1>) 7ap is a global brand, but recently the company has struggled to connect "ith customers in the
4nited &tates!
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/b0ecti-e# *
1C) WalMart is the largest corporation, based on re-enues, according to the $ortune 9DD 7lobal ranking
for 2D11!
Ans"er# .)4'
Diff# 1 (age )ef# 1=
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2D) 'xamining the si3e of indi-idual product markets, measured in terms of annual sales, pro-ides
another perspecti-e on global marketing's importance!
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21) .he form and substance of a company's response to global market opportunities depend greatly on
management's assumptions or beliefs about the nature of the "orld!
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Diff# * (age )ef# 1=
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22) 'thnocentric companies that conduct business outside the home country adhere to the notion that the
products that succeed in the home country are superior!
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Diff# * (age )ef# 1?
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2*) .oday, ethnocentrism is one of the ma0or internal "eaknesses that must be o-ercome if a company is
to transform itself into an effecti-e global competitor!
Ans"er# .)4'
Diff# 2 (age )ef# 1?
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5
25) .he term EpolycentricE describes management's belief or assumption that each country in "hich a
company does business is unique!
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Diff# 2 (age )ef# 1>
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29) 4nile-er's )exona deodorant brand had *D different package designs and 5> different formulations!
.his is an example of ethnocentrism!
Ans"er# $A%&'
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2=) A 4!&! company that focuses on the countries included in the @orth American $ree .rade Agreement
B@A$.A) has a regiocentric orientation!
Ans"er# .)4'
Diff# * (age )ef# 1>
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2?) A 'uropean company that focuses its attention on 'urope can be considered to ha-e regiocentric
orientation!
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2>) A company "ith a geocentric orientation -ie"s the "orld as a potential market and stri-es to
de-elop integrated global strategies!
Ans"er# .)4'
AA+&,# Dynamics of 7lobal 'conomy
/b0ecti-e# *
1uestion .ype# &ynthesis
2C) 7eocentric orientation represents true global marketing since it -ie"s the entire "orld as a potential
market and de-elops global strategy!
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9
*D) An ethnocentric management orientation is preferable to a geocentric orientation!
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*1) When a company establishes a site on the 6nternet, it automatically becomes global!
Ans"er# .)4'
Diff# 2 (age )ef# 1C
AA+&,# 4se of 6.
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*2) .he pressure for globali3ation is intense "hen ne" products require ma0or in-estments and long
periods of de-elopment time!
Ans"er# .)4'
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**) .he economic gro"th has reduced resistance that might other"ise ha-e de-eloped in response to the
entry of foreign firms into domestic economies!
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Diff# * (age )ef# 2*
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*5) 6n the context of global marketing, le-erage means some type of ad-antage that a company en0oys
by -irtue of the fact that it has experience in its home country!
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Diff# * (age )ef# 25
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*9) +ompanies that cannot formulate or successfully implement a coherent global strategy may lose
their independence!
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Diff# * (age )ef# 29
/b0ecti-e# =
=
*=) A company that is nearsighted and ethnocentric "ill not expand geographically!
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*?) .he term globaphobia is sometimes used to describe an attitude of hostility to"ard trade
agreements, global brands or company policies that appear to result in hardship for some indi-iduals or
countries "hile benefiting others!
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*>) @ontariff barriers B@.,s) are monetary restrictions on crossborder trade!
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*C) When management mo-es to integrate and coordinate acti-ities on a regional basis, the decision
reflects an ethnocentric orientation!
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5D) .he dynamic interplay of se-eral dri-ing and restraining forces shapes the importance of global
marketing!
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?
51) When you call 4nited Airlines for a reser-ation on a toll free number and get a response from an
operator in Mumbai, this is an example of#
A) antiglobali3ation!
,) global marketplace!
+) multilingual expression!
D) discrimination!
') 'ticketing!
Ans"er# ,
Diff# 2 (age )ef# 5
/b0ecti-e# 1
52) Slumdog Millionaire, a mo-ie "hich recei-ed se-eral a"ards and an /scar in 2DDC, "as filmed on a
location in and around#
A) %ondon!
,) &an $rancisco!
+) +ancun!
D) Mumbai!
') Mosco"!
Ans"er# D
Diff# 1 (age )ef# *
/b0ecti-e# 1
5*) A fundamental difference bet"een regular marketing and global marketing is#
A) the lack of marketing mix!
,) the scope of acti-ities!
+) the lack of strategic planning!
D) the focus on resources!
') the lack of communication!
Ans"er# ,
Diff# 2 (age )ef# 5
/b0ecti-e# *
>
55) &tarbucks is building on its loyalty card and re"ards program in the 4nited &tates "ith a smartphone
app that enables customers to pay for purchases electronically! .he app displays a bar code that the
barista can scan! .his is an example of#
A) Market (enetration!
,) Market De-elopment!
+) Market Di-ersification!
D) (roduct De-elopment!
') 7lobal Marketing!
Ans"er# A
Diff# 2 (age )ef# 5
AA+&,# 4se of 6.
/b0ecti-e# 1
59) &tarbucks is entering 6ndia -ia an alliance "ith the .ata 7roup! (hase one calls for sourcing coffee
beans in 6ndia and marketing them at &tarbucks stores throughout the "orld! .his is an example of#
A) Market (enetration!
,) Market De-elopment!
+) Market Di-ersification!
D) (roduct De-elopment!
') )egular Marketing!
Ans"er# ,
Diff# 2 (age )ef# 5
/b0ecti-e# 1
5=) .he essence of marketing "orld"ide is to surpass the competition in creating percei-ed -alue, "hich
can be represented as#
A) :alue ; (rice<,enefits
,) :alue ; ,enefits<(rice
+) :alue ; ,enefits x (rice
D) :alue ; ,enefits (rice
') :alue ; ,enefits G (rice
Ans"er# ,
Diff# 2 (age )ef# 9
/b0ecti-e# 1
C
5?) )enault and its ri-als are racing to offer middleclass consumers a ne" -alue proposition by selling
cars for the equi-alent of H1D,DDD or less! /n the heels of )enaultIs success "ith Dacia %ogan comes the
H2,9DD @ano from 6ndiaIs .ata Motors! .his illustrates that#
A) consumers are looking for lo" price irrespecti-e of quality!
,) )enault is o-ercharging for their cars compared to their competitors!
+) higher product de-elopment costs are a dri-ing force behind globali3ation!
D) market success depends on reaching a threshold of acceptable quality for consumers!
') cars are not -ery popular in emerging markets like 6ndia!
Ans"er# D
Diff# 2 (age )ef# =
/b0ecti-e# 1
5>) According to Michael (orter, a global industry is one in "hich JJJJJJJJ can be achie-ed by
integrating and le-eraging operations on a "orld"ide scale!
A) marketing mix
,) competiti-e ad-antage
+) cross border infiltration
D) ration analysis
') production capability
Ans"er# ,
Diff# 2 (age )ef# ?
/b0ecti-e# 1
5C) .he former chairman of @estlA recently told an inter-ie"er# EWe are food and be-erages! We are not
running bicycle shops! '-en in food "e are not in all fields! .here are certain areas "e do not touch!
Also, "e ha-e no soft drinks because 6 ha-e said "e either buy +oca+ola or "e lea-e it alone!E What
strategic marketing principle does the chairman's comment emphasi3e most specificallyK
A) customer -alue
,) competiti-e ad-antage
+) focus on specific food and be-erages
D) myopia
') policy of dealing only "ith &"iss businesses
Ans"er# +
Diff# 2 (age )ef# ?
/b0ecti-e# 1
1D
9D) @ike recently adopted the slogan E8ere 6 amE for its pan'uropean clothing ad-ertising targeting
"omen! .he decision to drop the famous EFust do itE tag line "as based on the research indicating that#
A) the famous slogan did not ha-e accurate translation in 'uropean languages!
,) 'uropeans do not like tag lines that portray American thinking!
+) collegeage "omen in 'urope are not as competiti-e about sports as men are!
D) the old slogan con-eys superiority of men o-er "omen!
') 'uropean "omen "ant to differentiate themsel-es from men!
Ans"er# +
Diff# 2 (age )ef# C
AA+&,# Multicultural and Di-ersity
/b0ecti-e# 2
91) .he decision to enter one or more particular markets outside the home country depends on all of the
mentioned factors except#
A) company's resources!
,) company's age!
+) company's managerial mindset!
D) nature of opportunities!
') threats!
Ans"er# ,
/b0ecti-e# 2
92) ."o decades ago, professor .ed %e-itt "rote a classic Harvard Business Review article titled E.he
7lobali3ation of Markets!E Which of the follo"ing statements about the author and the article is
accurateK
A) %e-itt urged companies to adopt products on a countrybycountry basis!
,) .here "as uni-ersal agreement about his thesis that the "orld is becoming homogeneous!
+) %e-itt urged companies to de-elop standardi3ed products that could be marketed "orld"ide "ith
little adaptation!
D) %e-itt "arned of the coming backlash against globali3ation!
') %e-itt did not recommend de-eloping standardi3ed products!
Ans"er# +
/b0ecti-e# 2
11
9*) +oca+ola achie-ed success in the Fapanese market primarily by#
A) standardi3ation of marketing mix elements!
,) global locali3ation!
+) -ending machine operations!
D) selecting market mix options!
') homogeni3ation!
Ans"er# ,
/b0ecti-e# *
95) A company that engages in global marketing#
A) pursues a Eone si3e fits allE strategy by creating identical products for homogeneous markets!
,) customi3es special products for each "orld country or region!
+) creates both standardi3ed and locali3ed products!
D) nurtures an ethnocentric management orientation!
') uses locali3ed products only!
Ans"er# +
/b0ecti-e# *
99) &tatements that illustrate the success of global marketing include all of the follo"ing except#
A) the +oca+ola company supports its +oke brand by utili3ing global and local marketing mix!
,) Apple is synonymous "ith cuttingedge inno-ation and hightech design!
+) 6talyIs ,enetton utili3es marketing as a knee0erk reaction to "orld marketing needs!
D) the backbone of +aterpillarIs global success is its net"ork of dealers!
') 7ermany's reputation for engineering and manufacturing pro-ides a competiti-e ad-antage!
Ans"er# +
/b0ecti-e# *
9=) McDonald's ser-es McAloo .ikki ,urger in 6ndia, Mc)ice ,urger in Malaysia, Mc/L ,urger in
Australia, Mi"i ,urger in @e" Lealand, and Mc8ue-o ,urger in 4ruguay and Mc&amurai ,urger in
.hailand! .hese menu -ariations are examples of#
A) a combination of global and local marketing mix elements!
,) a reflection of failure of 4& menu items in those countries!
+) a de-iation from successful marketing practices!
D) a replacement of standard menu names "ith fancy names!
') a selection of menu items that can be sold e-entually in 4!&! markets!
Ans"er# A
/b0ecti-e# *
12
9?) All of the follo"ing correctly states McDonald's approach to standardi3ation and adaptation of the
marketing mix except#
A) McDonald's standardi3es some product elements and adapts others!
,) McDonald's standardi3es some place elements and adapts others!
+) McDonald's standardi3es some promotion elements and adapts others!
D) McDonald's standardi3es some price elements and adapts others!
') McDonald's standardi3es all product elements!
Ans"er# '
/b0ecti-e# 9
9>) 'xamples of effecti-e global marketing by McDonaldIs include both standardi3ed and locali3ed
marketing mix elements! Which of the follo"ing does @/. represent a locali3ed elementK
A) 6t ser-es McAloo tikki potato burger in 6ndia!
,) 6t uses ad-ertising slogan E6Im lo-inI it!E
+) 6t operates themed dining cars on the &"iss national rail system!
D) 6t has home deli-ery ser-ice in 6ndia!
') 6t has slang nicknames such as MakDo in (hilippines and McDo in $rance!
Ans"er# ,
/b0ecti-e# =
9C) As of 2D1D, 7ap operated 2,9DD stores in the 4nited &tates and more than 9DD stores internationally!
.he company sources most of its clothing from apparel factories in 8onduras, the (hilippines, 6ndia, and
other lo""age countries! 6f 7ap "ould like to open more stores in Fapan, primary consideration should
include#
A) industry conditions!
,) sources of competiti-e ad-antage!
+) the condition of the apparel market "orld"ide!
D) demand in Fapan for 4!&! style garments!
') all of the abo-e
Ans"er# '
/b0ecti-e# 5
1*
=D) Measured by national income, the 4nited &tates represents the "orld's largest single market for
goods and ser-ices! )oughly "hat percentage of "orld income is found outside the 4!&!K
A) 29N
,) 9DN
+) ?9N
D) C9N
') *9N
Ans"er# +
/b0ecti-e# 9
=1) '-en though 7ermany is the largest singlecountry market in 'urope, "hat percent of the "orld
market potential for 7erman companies is outside 7ermanyK
A) 5DN
,) 99N
+) ?5N
D) C5N
') >9N
Ans"er# D
/b0ecti-e# 5
=2) According to the $ortune global 9DD companies for 2D11, the largest corporation based on re-enue
is#
A) 'xxon Mobil!
,) .oyota Motors!
+) WalMart stores!
D) 7eneral 'lectric!
') +itigroup!
Ans"er# +
/b0ecti-e# 5
15
=*) ,ased on 2D11 rankings of $ortune 7lobal 9DD companies, the "orld's most -aluable car company
is#
A) 7M!
,) Daimler A7!
+) .oyota!
D) $ord!
') +hrysler!
Ans"er# +
/b0ecti-e# 5
=5) ,ased on the si3e of the market in 4!&! dollars, the leading consumer products are#
A) cell phones!
,) bottled "ater!
+) cigarettes!
D) -ideo games!
') recorded music!
Ans"er# +
/b0ecti-e# 5
=9) ,ased on the si3e of the market in 4& dollars, the second highest consumer products are#
A) luxury goods!
,) cell phones!
+) cigarettes!
D) bottled "ater!
') recorded music!
Ans"er# A
/b0ecti-e# 5
==) ,ased on the total annual units sold in the "orld"ide market, the leading product category is#
A) flatpanel .: sets!
,) cigarettes!
+) cell phone handsets!
D) cars and light trucks!
') 8D.: sets!
Ans"er# ,
/b0ecti-e# 5
19
=?) A person "ho assumes that his or her home country is superior to the rest of the "orld is said to
ha-e#
A) ethnocentric orientation!
,) polycentric orientation!
+) regiocentric orientation!
D) geocentric orientation!
') no correct ans"er
Ans"er# A
/b0ecti-e# =
=>) .he cell phone di-isions of .oshiba, &harp, and other Fapanese companies prospered by focusing on
the domestic market! When handset sales in Fapan slo"ed a fe" years ago, the Fapanese companies
reali3ed that @okia, Motorola, and &amsung already dominated key "orld markets! Atsutoshi @ishida,
president of .oshiba, noted, EWe "ere thinking only about Fapan! We really missed our chance!E .his
example illustrates#
A) geocentric orientation!
,) regiocentric orientation!
+) polycentric orientation!
D) ethnocentric orientation!
') poor globali3ation orientation!
Ans"er# D
/b0ecti-e# =
=C) 4nile-er, the AngloDutch consumer products company, at one time had *D different package
designs and 5> different formulations for its )exona deodorant brand! .his is an example of#
A) ethnocentric orientation!
,) polycentric orientation!
+) regiocentric orientation!
D) geocentric orientation!
') transnational orientation!
Ans"er# ,
/b0ecti-e# =
1=
?D) .ransnational companies, such as .oyota and 8onda, ha-e characteristic features that include#
A) being in both global markets and utili3ing global supply chains!
,) characteri3ed by a mindset of being Estateless!E
+) using both locali3ed and standardi3ed elements in marketing programs!
D) decisions made on the basis of ongoing research!
') all of the abo-e
Ans"er# '
Diff# * (age )ef# 1C
/b0ecti-e# =
?1) @estlA, 4nile-er, 7laxo&mithMline, and )oyal (hilips 'lectronics can be considered transnational
companies on the basis of#
A) sales outside the home country to total sales!
,) assets outside the home country to total assets!
+) employees outside the home country to total employees!
D) headquartered in a relati-ely small homecountry market!
') all of the abo-e
Ans"er# '
Diff# * (age )ef# 1C
/b0ecti-e# =
?2) A number of multilateral trade agreements ha-e accelerated the pace of global integration "hich
include#
A) @A$.A!
,) 7A..!
+) W./!
D) '4!
') all of the abo-e
Ans"er# '
/b0ecti-e# =
?*) (fi3er, Merck, @o-artis, and other pharmaceutical companies ha-e little choice but to engage in
global marketing since#
A) there is little demand for their products in home countries!
,) their research centers are located o-erseas!
+) no single market is large enough to reco-er costs incurred in research!
D) there is more demand o-erseas for their products!
') technology is not a-ailable in home countries!
Ans"er# +
/b0ecti-e# =
1?
?5) 6n a recent book, Daniel Oergin and Foseph &tanisla" "rote E6t is the greatest sale in the history of
the "orld! 7o-ernments are getting out of businesses by disposing of "hat amounts to trillions of dollars
of assets! '-erything is going from steel plants and phone companies P! to hotels, restaurants, and
nightclubs!E .his is an indication of#
A) the fact that go-ernments can make more money by selling assets!
,) pri-ati3ation is becoming a dri-ing force for global marketing!
+) these businesses are considered as closed markets!
D) foreign companies are competing "ith go-ernments!
') there is less demand for these type of companies!
Ans"er# ,
/b0ecti-e# =
?9) When a country like +hina is experiencing rapid economic gro"th, policymakers are likely to#
A) look more fa-orably on outsiders!
,) look less fa-orably on outsiders!
+) experience more resistance to"ard outsiders!
D) feel threatened by outsiders!
') no correct ans"er
Ans"er# A
/b0ecti-e# =
?=) 8!$! 6skander, general manager of +he-ron's Mu"ait office, stated E+he-ron is pumping oil in
different locations all o-er the "orld P there isn't a rock "e ha-en't drilled through! We centrali3e all
that kno"ledge at our headquarters, analy3e it, sort it out, and that enables us to sol-e any oildrilling
problem any"here!E $rom the global marketing point of -ie" this is an example of a global company#
A) that is hungry to exploit natural resources!
,) that is trying to be first to explore oil!
+) that it is trying to sol-e "orld problems!
D) that gains le-erage through experience transfers!
') that does not ha-e easy access to information!
Ans"er# D
/b0ecti-e# =
1>
??) Fapan's giant Matsushita 'lectric +ompany achie-ed scale economies by exporting :+)s,
tele-isions, and other consumer electronics products throughout the "orld from "orldscale factories in
Fapan! .his is an example of the fact that#
A) scale economies "ere a cornerstone of Fapanese success in the 1C?Ds and 1C>Ds!
,) le-erage from scale economies is not limited to manufacturing!
+) a global company can achie-e the same economies on a global scale!
D) the larger scale of the global company also creates opportunities to impro-e corporate staff
competence and quality!
') all of the abo-e
Ans"er# '
/b0ecti-e# =
?>) Despite the impact of the dri-ing forces, se-eral restraining forces may slo" a company's efforts to
engage in global marketing! .hese restraining forces may include all of the follo"ing except#
A) management myopia!
,) national controls!
+) opposition to globali3ation!
D) ne"comers from emerging markets!
') organi3ational culture!
Ans"er# D
/b0ecti-e# =
?C) 6n the 4nited &tates, some people belie-e that globali3ation has depressed the "ages of American
"orkers and resulted in the loss of both bluecollar and "hitecollar 0obs! .his is an example of#
A) discrimination!
,) domination!
+) globaphobia!
D) management myopia!
') economic crisis!
Ans"er# +
/b0ecti-e# =
1C
>D) McDonald's restaurants are found in more than 11> countries! .o ensure high le-els of consistency
and quality, the company's farflung restaurant system incorporates many standardi3ed elements Be!g!
restaurant design, burgers<fries<soft drinks as basic menu offerings)! 8o"e-er, McDonald's also prides
itself on sourcing many of its food inputs Be!g! potatoes and dairy products) in indi-idual host countries!
McDonald's stri-es to be locally responsi-eit creates ne" menu items specifically designed "ith local
eating customs and preferences in mind! .ypically, McDonald's forms 0oint -entures "ith local partners,
a tactic that ensures that a local EfaceE is associated "ith the company! $inally, McDonald's has been in
many country markets long enough that a ne" generation of consumers has gro"n up "ith McDonald's
and are not a"are of the company's 4!&! origins! /n the basis of this summary, "hat is the highest stage
of corporate de-elopment that McDonald's arguably has achie-edK
A) international
,) multinational
+) global
D) transnational
') myopic
Ans"er# D
Diff# * (age )ef# *D*1
/b0ecti-e# *
>1) What is Eglobal marketingE and ho" does it differ from Eregular marketingEK 7i-ing examples of at
least one ma0or corporation, explain these differences!
Ans"er# Marketing is an organi3ational function and a set of processes for creating, communicating,
and deli-ering -alue to customers! An organi3ation that engages in global marketing focuses its
resources and competencies on global market opportunities and threats! A fundamental difference
bet"een Eregular marketingE and Eglobal marketingE is the scope of acti-ities! A company that engages
in global marketing conducts important business acti-ities outside the homecountry market! $or
example, as WalMart expands into 7uatemala and other +entral America countries, it is implementing a
market de-elopment strategy!
Diff# 2 (age )ef# 5
/b0ecti-e# 1
>2) What is meant by competiti-e ad-antageK 'xplain, gi-ing examples as to ho" globali3ation presents
companies "ith unprecedented opportunities to reconfigure themsel-es!
Ans"er# When a company succeeds in creating more -alue for customers than its competitors, that
company is said to en0oy Ecompetiti-e ad-antage!E 6t is measured relati-e to ri-als in a gi-en industry!
$or example, +oca+ola and (epsi are trying to maintain a competiti-e ad-antage in global markets!
7lobali3ation presents companies "ith unprecedented opportunities as "ell as challenges! Achie-ing
competiti-e ad-antage in a global industry requires executi-es and managers to maintain a "elldefined
strategic focus! 7lobali3ation pro-ides companies to de-elop ne" products, get ne" ideas, de-elop
markets, expand brand recognition, and e-entually profits!
Diff# 2 (age )ef# =?
/b0ecti-e# 2
2D
>*) What are the dimensions of global marketing strategy B7M&) that pertain to marketing
managementK 'xplain in detail gi-ing examples!
Ans"er# 7M& has three dimensions that pertain to marketing management! $irst, Econcentration of
marketing acti-itiesE such as promotional campaigns or pricing decisions are performed in one or a fe"
country locations! .he second, Ecoordination of marketing acti-ities,E refers to the extent to "hich
marketing acti-ities related to the marketing mix are planned and executed interdependently around the
globe! $inally, Eintegration of competiti-e mo-esE is the extent to "hich a firm's competiti-e marketing
tactics in different parts of the "orld are interdependent! 6n essence, 7M& should enhance the firm's
performance on a "orld"ide basis!
/b0ecti-e# *
>5) Describe ho" the global marketing strategy is different "hen compared to that of single country
marketing!
Ans"er# 6n single country marketing, choosing a target market and de-eloping a marketing mix are t"o
important considerations! .he same t"o aspects are also important in global marketingQ ho"e-er, they
are -ie"ed from a different perspecti-e! .here is standardi3ation or adaptation in each of the marketing
mix components in each country "here business is conducted! 7lobal marketing strategy has three
additional dimensions that pertain to marketing management# concentration of marketing acti-ities,
coordination of marketing acti-ities, and integration of competiti-e mo-es!
Diff# * (age )ef# C1D
/b0ecti-e# *
>9) .he +oca+ola +ompany has con-incingly demonstrated that the ability to think globally and act
locally can be a source of competiti-e ad-antage! Fustify this statement using examples!
Ans"er# +oke achie-ed success in Fapan by spending a great deal of time and money to become an
insider! .he company built a complete local infrastructure "ith its sales force and -ending machine
operations! +oke's success in Fapan is a function of its ability to achie-e Eglobal locali3ation,E being as
much of an insider as a local company but still reaping the benefits of "orld"ide operations! .he
company is adept at adapting sales promotion, distribution, and customer ser-ice efforts to local needs!
+oke has become one of the brands that has spent time and money getting this experience in unkno"n
territories!
/b0ecti-e# *
21
>=) 4sing McDonald's as an example, sho" ho" effecti-e global marketing can be successfully
achie-ed!
Ans"er# .he particular approach to global marketing that a company adopts "ill depend on industry
conditions and its source or sources of competiti-e ad-antage! McDonald's standardi3ed product is ,ig
Mac "hich is locali3ed in -arious countries, such as McAloo .ikka ,urger in 6ndia! &imilar products
"ith local slang names "ere used adapting to tastes in different countries! $or promotion the
standardi3ed slogan E6'm lo-in' itE is used "hereas indi-idual promotion is used in different countries!
$reestanding restaurants are a standardi3ed -ersion, "hich is locali3ed in se-eral countries by ha-ing
kiosks or home deli-ery! &imilarly, the a-erage price of ,ig Mac is used as a standard "hich is locali3ed
on the basis of currency fluctuation and affordability!
/b0ecti-e# *
>?) .he form and substance of a company's response to global market opportunities depend greatly on
management's assumptions or beliefs! What is meant by this statementK
Ans"er# .he form and substance of a company's response to global market opportunities depend greatly
on management's conscious and unconscious assumptions or beliefs pertaining to the nature of the
"orld! .he "orld -ie" of a company's personnel can be described as ethnocentric, polycentric,
regiocentric, and geocentric! .hese orientations are collecti-ely kno"n as '()7 frame"ork!
Diff# 1 (age )ef# 1=1?
/b0ecti-e# 9
>>) 8o" do ethnocentric orientations of a company differ from polycentric orientationsK 7i-e examples
of ho" companies react under both orientations!
Ans"er# A manager "ho assumes that his or her home country is superior to the rest of the "orld is said
to ha-e an ethnocentric orientation! (olycentric orientation is the opposite of ethnocentric orientation,
"here a manager assumes that each country in "hich a company does business is unique! 6n
ethnocentric orientation, foreign operations or markets are typically -ie"ed as being secondary or
subordinate to domestic ones! $or example @issan's ethnocentric orientation caused the managers to
belie-e that consumers all o-er the "orld should be able to beha-e as Fapanese! 6n @orthern Fapan,
people "ould put blankets o-er the hoods of their cars during cold "inters and managers assumed that
people in the 4!&! should be able to do the same! +iticorp's financial company executi-es ha-e
polycentric orientation, "here the assumption "as that each country is different, and there is a need for a
locali3ed or adaptation approach!
Diff# 2 (age )ef# 1?1>
/b0ecti-e# 9
22
>C) 7lobal marketing does not necessarily mean operating e-ery"here since there are forces affecting
global integration and global marketing! Fustify this statement using examples based on the "orld
economic trends!
Ans"er# 'conomic gro"th in key de-eloping countries creates market opportunities that pro-ide a
ma0or incenti-e for companies to expand globally! Due to the rising per capita incomes in 6ndia, +hina,
and else"here, the gro"ing ranks of middleclass consumers ha-e more money to spend than in the past!
At the same time, slo" gro"th in industriali3ed countries has compelled management to look ahead for
opportunities in nations or regions "ith high rates of gro"th! Also, the economic gro"th has reduced
resistance that might other"ise ha-e de-eloped in response to the entry of foreign firms into domestic
economies! .he "orld"ide mo-ement to"ard free markets, deregulation, and pri-ati3ation is also a
dri-ing force! .he trend to"ard pri-ati3ation is opening up formerly closed markets creating tremendous
opportunities!
/b0ecti-e# =
CD) %ist and briefly describe the forces affecting local integration and global marketing!
Ans"er# .he forces affecting local integration and global marketing are Ba) Multilateral .rade
Agreements such as @A$.A "hich has expanded trade among the 4nited &tates, +anada, and MexicoQ
Bb) con-erging market needs and "ants and the information re-olution# the de-elopment of technology
has a considerable impact on the market needs and "antsQ Bc) transportation and communication
impro-ements# the technology for transportation and communication is changing rapidlyQ Bd) product
de-elopment costs# ne" products require ma0or in-estments and considerable timeQ Be) "orld economic
trends# gro"ing economies "orld"ide ha-e an impact on global marketingQ and Bf) le-erage# it is an
ad-antage that a company en0oys by -irtue of ha-ing experience in more than one country!
Diff# 2 (age )ef# 2D29
/b0ecti-e# =
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Global Marketing, 7e (Keegan/Green)

Chapter 1 Introduction to Global Marketing

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