GMS 522 UPDATED EXAMS SCRIPT QUESTIONS AND
ANSWERS SURE A+
✔✔Disadvantages of standardization - ✔✔-standardized product will likely not appeal
completely to all customers in every country
-vulnerability to local brands in some countries
✔✔Production localization - ✔✔involves making changes to the product that are
required for the unit to function or be saleable in the foreign country. also referred to as
mandatory adaptaion
✔✔Product adaptation - ✔✔involves changes which are made to the product in order to
better match consumer tastes and preferences
✔✔Homogeneous customer segments - ✔✔global product strategy
✔✔heterogeneous customer segments - ✔✔-multi domestic product strategy
-mass customization product strategy
✔✔Drivers of adaptation - ✔✔-country level
-industry/ Firm
-product
,✔✔Country level drivers - ✔✔-culture
-economic development
-regulations
-geography
✔✔Industry/ firm drivers - ✔✔-resource availability
-competitive pressures
-stage in the product life cycle
✔✔Product Drivers - ✔✔-degree of cultural grounding
-use conditions
✔✔Global brand names should - ✔✔-have a consistent pronunciation across all
languages
-have a positive meaning that fits the intended product attributes and positioning
-be simple enough for target market customers to be able to spell the name when they
hear it and pronounce it when they see it
✔✔Brand Transferability Approaches - ✔✔-translation
-transliteration
-transparency
✔✔Translation - ✔✔firms attempt to find words in the target country language that
correspond to the exact words used in the source country language
✔✔Transliteration - ✔✔firm attempts to reconstitute the connotative meaning of the
brand name in the target country language
✔✔Transparency - ✔✔use of names which are either source bland and/ or target blank
✔✔Brand changeover strategies - ✔✔-fade-in/fade-out
-summary axing
-forewarn
✔✔Fade-in Strategy - ✔✔the global brand is associated or linked with the local brand
for specified period of time after which the local brand is dropped
✔✔Summary axing - ✔✔the local brand is simply dropped and the global brand
simultaneously introduced
✔✔Forewarn - ✔✔company informs consumers in advance that their local brand will
soon be known by its new global name
✔✔New Product Development process - ✔✔-idea creation
, -idea screening
-concept testing
-sales forecasting
-test marketing
-global product launch
✔✔New Product development - ✔✔the process of new product development may be
conceptualized as a sequence of related steps. It is also referred to as a stage gate
process because at each stage members of the product development team are required
to provide adequate justification for moving on to the next stage
✔✔Counterfeit Products - ✔✔"knock-offs" or fakes which violate the intellectual property
protections accorded to the manufacturers or creators of the genuine product
✔✔Consequences of counterfeiting for the firm - ✔✔-leads to lost sales as authentic
products are crowded out of the market place
-results in lost goodwill for the owner of the intellectual property
-results in lost royalties for the owner of the intellectual property
-increases the firm's cost of operation
-dampens the incentive for innovation
✔✔consequences of counterfeiting for society - ✔✔-counterfeiting is illegal and provides
a source of funds for organized criminal networks
-counterfeiting stifles innovation and economic growth
-counterfeiting shifts jobs from the manufacture of genuine products to fakes
-counterfeit production may be costly to the environment
✔✔Options for Foreign Market Distribution - ✔✔-foreign sales subsidiary
-outsourcing
-distributor
-digital delivery
✔✔Options for Global Distribution - ✔✔the global marketing manager has a # of options
to make the firm's products available to foreign customers. The option selected will be
driven by considerations such as the nature of the product, costs involved and the
amount of risk the firm is prepared to take
✔✔Simple Global Distribution Channel - ✔✔Manufacturer -> Foreign distributor ->
foreign wholesaler -> foreign retailer -> foreign consumer
✔✔Complex Global Distribution Channel - ✔✔Manufacturer:
-Buying Agent -> Foreign Retailer -> Foreign Consumer
-Export management company -> Foreign Wholesaler
-Foreign Consumer
-Foreign distributor-> Foreign wholesaler-> Foreign Retailer-> Foreign consumer
ANSWERS SURE A+
✔✔Disadvantages of standardization - ✔✔-standardized product will likely not appeal
completely to all customers in every country
-vulnerability to local brands in some countries
✔✔Production localization - ✔✔involves making changes to the product that are
required for the unit to function or be saleable in the foreign country. also referred to as
mandatory adaptaion
✔✔Product adaptation - ✔✔involves changes which are made to the product in order to
better match consumer tastes and preferences
✔✔Homogeneous customer segments - ✔✔global product strategy
✔✔heterogeneous customer segments - ✔✔-multi domestic product strategy
-mass customization product strategy
✔✔Drivers of adaptation - ✔✔-country level
-industry/ Firm
-product
,✔✔Country level drivers - ✔✔-culture
-economic development
-regulations
-geography
✔✔Industry/ firm drivers - ✔✔-resource availability
-competitive pressures
-stage in the product life cycle
✔✔Product Drivers - ✔✔-degree of cultural grounding
-use conditions
✔✔Global brand names should - ✔✔-have a consistent pronunciation across all
languages
-have a positive meaning that fits the intended product attributes and positioning
-be simple enough for target market customers to be able to spell the name when they
hear it and pronounce it when they see it
✔✔Brand Transferability Approaches - ✔✔-translation
-transliteration
-transparency
✔✔Translation - ✔✔firms attempt to find words in the target country language that
correspond to the exact words used in the source country language
✔✔Transliteration - ✔✔firm attempts to reconstitute the connotative meaning of the
brand name in the target country language
✔✔Transparency - ✔✔use of names which are either source bland and/ or target blank
✔✔Brand changeover strategies - ✔✔-fade-in/fade-out
-summary axing
-forewarn
✔✔Fade-in Strategy - ✔✔the global brand is associated or linked with the local brand
for specified period of time after which the local brand is dropped
✔✔Summary axing - ✔✔the local brand is simply dropped and the global brand
simultaneously introduced
✔✔Forewarn - ✔✔company informs consumers in advance that their local brand will
soon be known by its new global name
✔✔New Product Development process - ✔✔-idea creation
, -idea screening
-concept testing
-sales forecasting
-test marketing
-global product launch
✔✔New Product development - ✔✔the process of new product development may be
conceptualized as a sequence of related steps. It is also referred to as a stage gate
process because at each stage members of the product development team are required
to provide adequate justification for moving on to the next stage
✔✔Counterfeit Products - ✔✔"knock-offs" or fakes which violate the intellectual property
protections accorded to the manufacturers or creators of the genuine product
✔✔Consequences of counterfeiting for the firm - ✔✔-leads to lost sales as authentic
products are crowded out of the market place
-results in lost goodwill for the owner of the intellectual property
-results in lost royalties for the owner of the intellectual property
-increases the firm's cost of operation
-dampens the incentive for innovation
✔✔consequences of counterfeiting for society - ✔✔-counterfeiting is illegal and provides
a source of funds for organized criminal networks
-counterfeiting stifles innovation and economic growth
-counterfeiting shifts jobs from the manufacture of genuine products to fakes
-counterfeit production may be costly to the environment
✔✔Options for Foreign Market Distribution - ✔✔-foreign sales subsidiary
-outsourcing
-distributor
-digital delivery
✔✔Options for Global Distribution - ✔✔the global marketing manager has a # of options
to make the firm's products available to foreign customers. The option selected will be
driven by considerations such as the nature of the product, costs involved and the
amount of risk the firm is prepared to take
✔✔Simple Global Distribution Channel - ✔✔Manufacturer -> Foreign distributor ->
foreign wholesaler -> foreign retailer -> foreign consumer
✔✔Complex Global Distribution Channel - ✔✔Manufacturer:
-Buying Agent -> Foreign Retailer -> Foreign Consumer
-Export management company -> Foreign Wholesaler
-Foreign Consumer
-Foreign distributor-> Foreign wholesaler-> Foreign Retailer-> Foreign consumer
