In the Australian market, rather than manufacturing disposable diapers, Proctor & Gamble decided to import them since the size of the market did not warrant local manufacturing according to P&G. unfortunately, by using packaging designed for the Asian region with non-English labeling, P&G alienated its customers in Australia. This is an example Of improper: a. Global policy decisions. B. Pricing decisions. C. Brand policy decisions. D. Product policy decisions. E. Company policy decisions. Answer: (d) Difficulty: (3) Knowledge: (F) page: 350 3.
Even though other combination alternatives can be devised, companies genera Lily can pursue the ere global product strategies to penetrate foreign arrests. These strategies are to extend the home-grown product/ communication strategies, adapt their strategy to the local marketplace, and: a. Invent new products for foreign customers. B. Concentrate on services. C. Apply for permission to copy domestic products. D. Concentrate on image adjustment. E. Focus on secondary issues (such as warranties). Answer: (a) Difficulty: (2) Knowledge: (F) Page: 351 4.
In the area of global product policy, companies can pursue three strategies to penetrate foreign markets. The strategies include: a. Extension, adaptation, and invention. B. Extension, adaptation, and prevention. C. Extension, adaptation, and creation. D. Extension, adaptation, and placement. E. Extension, adaptation, and balancing. 5. Which of the following is NOT one of the strategic options available to the marketing planner, considering various product policies that could be devised for the international marketplace? A. Product and communication extension–dual extension. Immunization extension–mono extension. C. Product extension–communications adaptation. D. Product adaptation–communications extension. B. E. Product and communications adaptation–dual adaptation. Answer: (b) Difficulty: (3) Knowledge: (F) page: 351-353 . If a company were to follow a strategy Of product and communication extension (dual extension) in a foreign market, an example of a product category that would fit this strategy would be a. Soft drinks b. Motocross’s c. Gasoline d. Clothing e. Hand-powered washing machines Answer: (a) Difficulty: (2) Knowledge: (A) Page: 352, Exhibit 1 1-1 7.
If a company were to follow a strategy of product adaptation- communications extension in a foreign market, an example Of a product Answer: (c) Difficulty: (3) Knowledge: (A) Page: 351, Exhibit 1 1-1 8. If a company were to follow a strategy of product extension ammunitions adaptation in a foreign market, an example of a product Answer: (b) Difficulty: (3) Knowledge: (A) Page: 351, Exhibit 11-1 9. If a company were to follow a strategy of product and communications adaptation (dual adaptation) in a foreign market, an example of a product Answer: (d) Difficulty: (3) Knowledge: (A) page: 351, Exhibit 11-1 10.
If a company is an early entrant in the global arena and wishes to spend much in the way of resources, they will probably chose as a method of entry. A. Product and communication extension–dual extension invention c. Product extension–communications adaptation . Product d. Product adaptation–communications extension e. Product and communications adaptation–dual adaptation Answer: (a) Difficulty: (1) Knowledge: (F) Page: -351;352, Exhibit 11-1 11. As a strategy, will work when the company targets a “global” segment with similar needs. A. Product and communication extension–dual extension b. Reduce Answer: (a) Difficulty: (2) Knowledge: (F) Page: 351-352 12. The biggest advantage of a product and communication extension–dual extension policy is: a. It is easy for management to understand. B. It offers substantial savings because of economies Of scale. Asses most legal tests. D. It is service oriented. E. It will usually not violate cultural taboos. Answer: (b) Difficulty: (2) Knowledge: (F) Page: 351-352 C. It 13. Due to differences in the cultural or competitive environment, a company may choose the strategy if it wishes to keep its product economies scale intact but customize its communications. . Product extension-?communications adaptation Answer: (c) Difficulty: (1) Knowledge: (F) page: 351-352 14. When the Wrigley chewing gum company markets its basic products abroad, it keeps its well-known brands but customizes promotional approaches in individual countries. Which of the following strategies best describes the strategy that Wrigley is following? D. Product adaptation-?communications extension Answer: (c) Difficulty: (1) Knowledge: (A) Page: 351-352 15. Many companies add brands to their portfolio via acquisitions of local companies.
When the local brand is retained but incorporated into the strategy, the strategy can be described as being existing communications one of: invention. Answer: (d) Difficulty: (2) Knowledge: (F) Page: 351-352 16. Differences in both the cultural and physical environment across countries call for a tragedy. Answer: (e) Difficulty: (1) Knowledge: (F) Page: 351-352 17. Because of differences in preferences in flavors and government regulations regarding the marketing of diet products, Slim-Fast normally uses which of the following strategies? A. Product and communication extension-?dual extension b. Reduce Answer: (e) Difficulty: (2) Knowledge: (A) Page: 351-352 18. Genuinely global marketers try to figure out how to create products with a global scope rather than just for a single country. The mindset is to zero in on global opportunities. The strategy that best describes this approach is allied: Answer: (b) Difficulty: (2) Knowledge: (F) Page: 353 19. Black & Decker is a good example of a company that adopts the approach to global expansion. The company aims to bring out new products that cater to common needs and opportunities around the world.
Answer: (b) Difficulty: (1) Knowledge: (A) page: 353 20. Means offering a uniform product on a regional or worldwide basis (only minor alterations are made to meet local standards). D. E. Customization Standardization Miniaturization Assimilation Normalization Answer: (b) Difficulty: (1) Knowledge: (F) page: 353 21 . The primary advantage to using a standardization approach to marketing a product in the international arena is: a. Minimization of costs (which can be passed on to customers). More profit. C. Less service complaints. D. Less product returns. E. Standard budgets.
Answer: (a) Difficulty: (2) Knowledge: (F) Page: 353 22. Standardization of product has a costs via mass production). . Market-driven service-driven . Budget-driven promotion-driven product-driven Answer: (e) Difficulty: (2) Knowledge: (F) Page: 353 orientation (lower 23. Is leveraging cross-border differences in needs and wants of the firm’s target customers. Customization . Proliferation Expansion Synthesizing Answer: (a) Difficulty: (1) Knowledge: (F) Page: 353 24. Customization of product has a orientation (increase customer satisfaction by adapting products to the local needs). . Market-driven b. Service-driven c. Budget-driven d. Promotion-driven e. Product-driven 25. All of the following are factors that favor a globalizes product strategy EXCEPT: a. Common customer needs. B. Global customers. C. Scale economies. D. Time-to-market. E. Rising strength of the Latin American markets. Answer: (e) Difficulty: (3) Knowledge: (F) Page: 354 26. Many product categories show a gradual but steady in consumer preferences. A. Slowdown. Difficulties c. Convergence. Divergence. Rising strength of the Latin American markets.
