INTERNATIONAL MARKETING FINAL STUDY GUIDE QUESTIONS AND
CORRECT DETAILED ANSWERS WITH RATIONALES (VERIFIED
ANSWERS) |ALREADY GRADED A+
Quiz Investment Cost of Marketing Entry Strategies
Ans> Exporting
Licensing
Contract Manufacturing
Joint Venture
Equity Stake or Acquisition
Quiz Licensing
Ans> A contractual arrangement whereby one company (the licensor) makes a legally protected
asset available to another company (the licensee) in exchange for royalties, license fees, or some
other form of compensation.
Quiz Contract manufacturing
Ans> limited commitment of financial and managerial resources and quick entry into target
countries, especially when the target market is too small to justify significant investment
Disadvantage: companies may open themselves to public scrutiny and criticism if workers in
contract factories are poorly paid or labor in inhumane circumstances
Quiz Franchising
Ans> Great appeal to local entrepreneurs anxious to learn and apply Western-style marketing
techniques
ex) McDonalds
Quiz Foreign direct investment (FDI)
,Ans> Reflect investment flows out of the home country as companies invest in or acquire plants,
equipment, or other assets. Foreign direct investment allows companies to produce, sell, and
compete locally in key markets
Quiz Brand equity
Ans> The total value that accrues to a product as a result of investments in the marketing of the
brand
An asset that represents the value created by the relationship between the brand and customer
over time
Quiz Three Categories products & brands can be broken into
Ans> local, global, international
Quiz Co-branding
Ans> Engender customer loyalty and allow companies to achieve synergy. However, co-
branding can also confuse consumers and dilute brand equity. The approach works most
effectively when the products involved complement each other
Ex) Credit card companies have discounts for cars and frequent flyer miles
Quiz Maslow's hierarchy of needs
Ans> provides a useful framework for understanding how and why local products and brands
can be extended beyond home country borders
Quiz Extension Strategy
Ans> Strategy 1: Common for B2B
Strategy 2: Low-cost because the product is unchanged, communication is adapted
Strategy 3: Cadillac wanted to sell 20,000 autos outside the U.S. by 2010; will adapt to local
market requirements
Strategy 4: Combines local market conditions recognized in Strategies 2 and 3
Quiz Countertrade
Ans> • Countertrade occurs when payment is made in some form other than money
,• Options
- Barter
- Counterpurchase or parallel trading
- Offset
- Compensation trading or buyback
- Switch trading
Quiz Skimming Strategy
Ans> setting a deliberately high price, demand is limited to innovators and early adopters who
are willing and able to pay the price. When the product enters the growth stage of the life cycle
and competition increases, manufacturers start to cut prices
Quiz Global pricing
Ans> • Extension or Ethnocentric
• Adaptation or Polycentric
• Geocentric
Quiz Types of Retailers
Ans> • Hypermarkets are hybrid retailers combining the discounter, supermarket & warehouse
club; 20,000-30,000 sq. ft.
• Supercenters have lower priced groceries plus general merchandise; half the size of a
hypermarket
• Superstores aka Category Killers & Big-Box sell vast assortments of a product category
- Toys "R Us, Home Depot, IKEA
• Full-line discounters
- Wide variety of merchandise; Ex. Walmart
• Warehouse clubs
- Memberships fees; Ex. Sam's Costco
• Dollar stores
- Sell at a single low price; Ex. in U.S. Family Dollar, Dollar Tree, Internationally, My
Dollarstore has rapid growth
• Hard discounters
- Limited assortment, rock bottom prices
Quiz Retail Market Entry Strategy
Ans>
, Quiz Transportation
Ans> - Method or mode a company should utilize when moving products through domestic and
global channels; the most common modes of transportation are rail, truck, air, and water
Quiz Peer to Peer Marketing
Ans> • The Internet and other related media are dramatically altering distribution
• Interactive TV may become a viable direct marketing channel in the future
• eBay pioneered P2P
- Helped Disney and IBM set up auction sites for B2C auctions
• Interactive TV is coming when homes are wired for 2-way
Quiz Four difficulties that compromise an organization's communication efforts
Ans> - The message may not get through to the intended recipient.
- The message may reach the target audience but may not be understood or may even be
misunderstood.
- The message may reach the target audience and may be understood but still may not induce the
recipient to take the action desired by the sender.
- The effectiveness of the message can be impaired by noise.
Quiz Pattern Advertising
Ans> • A middle ground between 100% standardization and 100% adaptation
• A basic pan-regional or global communication concept for which copy, artwork, or other
elements can be adapted as required for individual countries
Quiz Advertising Appeal
Ans> • Rational appeal
- Depend on logic and speak to the consumer's intellect; based on the consumer's need for
information
• Emotional appeal
- Tugs at the heartstrings or uses humor
Quiz Advertising as PR function
Ans> • Corporate advertising
CORRECT DETAILED ANSWERS WITH RATIONALES (VERIFIED
ANSWERS) |ALREADY GRADED A+
Quiz Investment Cost of Marketing Entry Strategies
Ans> Exporting
Licensing
Contract Manufacturing
Joint Venture
Equity Stake or Acquisition
Quiz Licensing
Ans> A contractual arrangement whereby one company (the licensor) makes a legally protected
asset available to another company (the licensee) in exchange for royalties, license fees, or some
other form of compensation.
Quiz Contract manufacturing
Ans> limited commitment of financial and managerial resources and quick entry into target
countries, especially when the target market is too small to justify significant investment
Disadvantage: companies may open themselves to public scrutiny and criticism if workers in
contract factories are poorly paid or labor in inhumane circumstances
Quiz Franchising
Ans> Great appeal to local entrepreneurs anxious to learn and apply Western-style marketing
techniques
ex) McDonalds
Quiz Foreign direct investment (FDI)
,Ans> Reflect investment flows out of the home country as companies invest in or acquire plants,
equipment, or other assets. Foreign direct investment allows companies to produce, sell, and
compete locally in key markets
Quiz Brand equity
Ans> The total value that accrues to a product as a result of investments in the marketing of the
brand
An asset that represents the value created by the relationship between the brand and customer
over time
Quiz Three Categories products & brands can be broken into
Ans> local, global, international
Quiz Co-branding
Ans> Engender customer loyalty and allow companies to achieve synergy. However, co-
branding can also confuse consumers and dilute brand equity. The approach works most
effectively when the products involved complement each other
Ex) Credit card companies have discounts for cars and frequent flyer miles
Quiz Maslow's hierarchy of needs
Ans> provides a useful framework for understanding how and why local products and brands
can be extended beyond home country borders
Quiz Extension Strategy
Ans> Strategy 1: Common for B2B
Strategy 2: Low-cost because the product is unchanged, communication is adapted
Strategy 3: Cadillac wanted to sell 20,000 autos outside the U.S. by 2010; will adapt to local
market requirements
Strategy 4: Combines local market conditions recognized in Strategies 2 and 3
Quiz Countertrade
Ans> • Countertrade occurs when payment is made in some form other than money
,• Options
- Barter
- Counterpurchase or parallel trading
- Offset
- Compensation trading or buyback
- Switch trading
Quiz Skimming Strategy
Ans> setting a deliberately high price, demand is limited to innovators and early adopters who
are willing and able to pay the price. When the product enters the growth stage of the life cycle
and competition increases, manufacturers start to cut prices
Quiz Global pricing
Ans> • Extension or Ethnocentric
• Adaptation or Polycentric
• Geocentric
Quiz Types of Retailers
Ans> • Hypermarkets are hybrid retailers combining the discounter, supermarket & warehouse
club; 20,000-30,000 sq. ft.
• Supercenters have lower priced groceries plus general merchandise; half the size of a
hypermarket
• Superstores aka Category Killers & Big-Box sell vast assortments of a product category
- Toys "R Us, Home Depot, IKEA
• Full-line discounters
- Wide variety of merchandise; Ex. Walmart
• Warehouse clubs
- Memberships fees; Ex. Sam's Costco
• Dollar stores
- Sell at a single low price; Ex. in U.S. Family Dollar, Dollar Tree, Internationally, My
Dollarstore has rapid growth
• Hard discounters
- Limited assortment, rock bottom prices
Quiz Retail Market Entry Strategy
Ans>
, Quiz Transportation
Ans> - Method or mode a company should utilize when moving products through domestic and
global channels; the most common modes of transportation are rail, truck, air, and water
Quiz Peer to Peer Marketing
Ans> • The Internet and other related media are dramatically altering distribution
• Interactive TV may become a viable direct marketing channel in the future
• eBay pioneered P2P
- Helped Disney and IBM set up auction sites for B2C auctions
• Interactive TV is coming when homes are wired for 2-way
Quiz Four difficulties that compromise an organization's communication efforts
Ans> - The message may not get through to the intended recipient.
- The message may reach the target audience but may not be understood or may even be
misunderstood.
- The message may reach the target audience and may be understood but still may not induce the
recipient to take the action desired by the sender.
- The effectiveness of the message can be impaired by noise.
Quiz Pattern Advertising
Ans> • A middle ground between 100% standardization and 100% adaptation
• A basic pan-regional or global communication concept for which copy, artwork, or other
elements can be adapted as required for individual countries
Quiz Advertising Appeal
Ans> • Rational appeal
- Depend on logic and speak to the consumer's intellect; based on the consumer's need for
information
• Emotional appeal
- Tugs at the heartstrings or uses humor
Quiz Advertising as PR function
Ans> • Corporate advertising
