Global Marketing, 6e (Keegan/Green) Chapter 1 Introduction to Global Marketing

Global Marketing, 6e (Keegan/Green) Chapter 1 Introduction to Global Marketing 1) A management team that fails to understand the importance of global marketing risks losing its domestic business to competitors with lower costs, more experience, and better products.

Answer: TRUE

Diff: 1 Page Ref: 4

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2) As Wal-Mart expands into Guatemala and Central American countries, it is implementing a market development strategy.

Answer: TRUE

Diff: 1 Page Ref: 4

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3) Global marketing may take the form of diversification strategy in which a company creates new products or services for the domestic market.

Answer: FALSE

Diff: 2 Page Ref: 4

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4) The perceived value equation can be represented as Value = Price/Benefits.

Answer: FALSE

Diff: 2 Page Ref: 5

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5) Recently the auto industry is shifting its attention to emerging markets such as India and Africa.

Answer: TRUE

Diff: 1 Page Ref: 5

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6) Globalization is presenting significant marketing opportunities for professional sports organizations such as the National Football League and Major League Soccer.

Answer: TRUE

Diff: 1 Page Ref: 6

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7) If Nestlé decides not to market biscuits (cookies) in the United States due to competitive reasons, it is considered as a lack of strategic focus and missed opportunity.

Answer: FALSE

Diff: 2 Page Ref: 7

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8) Value, competitive advantage, and the focus required to achieve them are universal in their relevance and should guide global marketing efforts in any part of the world.

Answer: TRUE

Diff: 2 Page Ref: 9 9) The discipline of marketing is universal and such marketing practices do not vary from country to country.

Answer: FALSE

Diff: 1 Page Ref: 9 10) Standardization versus adaptation is the extent to which each marketing mix element is standardized or adapted in various country markets.

Answer: TRUE

Diff: 2 Page Ref: 9

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11) Nike dropped their well known tagline "Just do it" in advertising women's clothing in Europe and replaced it by the slogan "Here I am" since college-age women in Europe are not as competitive about sports as men are.

Answer: TRUE

Diff: 2 Page Ref: 9 12) Global localization means that a successful global marketer must have the ability to think locally and act globally.

Answer: FALSE

Diff: 2 Page Ref: 11

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13) The Coca-Cola Company supports its Coke, Fanta, and PowerAde brands with marketing mix elements that are both global and local.

Answer: TRUE

Diff: 2 Page Ref: 11

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14) That Gillette uses the same packaging for its flagship Mach3 razor everywhere in the world is an example of how companies have successfully pursued global marketing by creating strong global brands.

Answer: TRUE

Diff: 2 Page Ref: 12 15) McDonald's global marketing strategy is based primarily on local marketing mix elements.

Answer: FALSE

Diff: 2 Page Ref: 13

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16) McDonald's home delivery of burgers in India is an example of unusual standardized global marketing practice.

Answer: FALSE

Diff: 2 Page Ref: 13

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17) Harley-Davidson's motorcycles' competitive advantage is based in part on its "Made in the USA" positioning.

Answer: TRUE

Diff: 2 Page Ref: 14

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18) Some companies that fail to formulate adequate responses to the challenges and opportunities of globalization will be absorbed by more dynamic, visionary enterprises.

Answer: TRUE

Diff: 2 Page Ref: 15

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19) Wal-mart is the largest corporation, based on revenues, according to the Fortune 500 Global ranking for 2008.

Answer: TRUE

Diff: 1 Page Ref: 15

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20) Examining the size of individual product markets, measured in terms of annual sales, provides another perspective on global marketing's importance.

Answer: TRUE

Diff: 2 Page Ref: 16

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21) The 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 world.

Answer: TRUE

Diff: 3 Page Ref: 17

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22) Ethnocentrism is sometimes associated with attitudes of national arrogance or assumptions of national superiority.

Answer: TRUE

Diff: 3 Page Ref: 18

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23) Today, ethnocentrism is on one of the major internal weaknesses that must be overcome if a company is to transform itself into an effective global competitor.

Answer: TRUE

Diff: 2 Page Ref: 18

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24) The term 'polycentric' describes management's belief or assumption that each country in which a company does business is unique.

Answer: TRUE

Diff: 2 Page Ref: 19

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25) Unilever's Rexona deodorant brand had 30 different package designs and 48 different formulations. This is an example of ethnocentrism.

Answer: FALSE

Diff: 1 Page Ref: 19 26) A U.S. company that focuses on the countries included in the North American Free Trade Agreement (NAFTA) has a regiocentric orientation.

Answer: TRUE

Diff: 3 Page Ref: 19

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27) A European company that focuses its attention on Europe can be considered to have regiocentric orientation.

Answer: TRUE

Diff: 2 Page Ref: 19

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28) A company with a geocentric orientation views the world as a potential market and strives to develop integrated global strategies.

Answer: TRUE

Diff: 1 Page Ref: 19 29) Geocentric orientation represents true global marketing since it views the entire world as a potential market and develops global strategy.

Answer: FALSE

Diff: 3 Page Ref: 19

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30) An ethnocentric management orientation is preferable to a geocentric orientation.

Answer: FALSE

Diff: 2 Page Ref: 20

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31) As new global competitors emerge on the scene, management at long-established industry giants such as GM must face up to the challenge of organizational transformation.

Answer: TRUE

Diff: 2 Page Ref: 20

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