MKTG 190 Chapter 12- LEARNING MODULE 8 1 CORRECT Which of these best describes the view towards market

segmentation in the 1990s? A) B) C) D) E) Standardization versus adaptation Globalization versus localization Global integration versus local responsiveness Local responsiveness versus global integration Adaptation versus integration

Explanation: In the 1970s, the market segmentation argument was framed as "standardization versus adaptation." In the 1980s, it was "globalization versus localization," and in the 1990s, it was "global integration versus local responsiveness."

2 INCORRECT Dell Computer Corporation maintains no inventory and builds each computer to order. Dell is most likely following a policy of _____. A) B) C) D) E) cutting actual process time cost efficiency consumerism mass customization six sigma

Explanation: Part of the trend back toward localization is caused by the efficiencies of customization made possible by the Internet and increasingly flexible manufacturing processes. A good example of the "mass customization" is Dell Computer Corporation, which maintains no inventory and builds each computer to order.

3 CORRECT

John is a part of the marketing team in his company. There is a conflict between the finance team and the marketing team of the company on the issue of market segmentation. While the finance team is arguing for a standardized approach toward market segmentation, John and his team members feel that it is more important to understand customer requirements on an individual basis for greater customer satisfaction. Which of these terms best describes the approach adopted by John's team? A) B) C) D) E) standardization localization globalization customization integration

Explanation: Customization is the process of building each product to order so that it best fits the customer's requirements.

4 INCORRECT Which of these aspects of international marketing is analyzed in the first phase of the international planning process? A) B) C) D) E) company character product adaptation advertising situation analysis budgets

Explanation: Refer Exhibit 12.1 - International Planning Process

5 CORRECT

At which stage of the international planning process would a marketing manager make decisions involving situation analysis, objectives and goals, budgets, and action programs? A) B) C) D) E) adapting the marketing mix to target markets developing the marketing plan matching company and country needs implementation and control defining company objectives and resources

Explanation: Refer Exhibit 12.1 - International Planning Process

6 CORRECT Coffee a Day has recently decided on the mode of entry to a particular market. In which phase of the planning process is the coffee chain currently in ? A) B) C) D) E) preliminary analysis defining market segment developing the marketing plan implementation and control standardization of the marketing mix

Explanation: The marketing plan begins with a situation analysis and culminates in the selection of an entry mode and a specific action program for the market.

7 INCORRECT Which of the following modes of foreign market entry is the riskiest? A) B) C) exporting importing contractual agreements

D) E)

strategic alliances direct foreign investment

Explanation: Direct foreign investment requires the most equity of the four modes and creates the greatest risk while offering the most control and the potential highest return.

8 CORRECT When a company sells to a customer in another country, the company is into_____ exporting. A) B) C) D) E) direct indirect multiple layer parallel synergistic

Explanation: With direct exporting the company sells to a customer in another country. This method is the most common approach employed by companies taking their first international step because the risks of financial loss can be minimized.

9 CORRECT When a company sells to a buyer (importer or distributor) in the home country who in turn exports the product, the company is into _____. A) B) C) D) E) direct indirect multiple layers parallel synergistic

Explanation: Indirect exporting usually means that the company sells to a buyer (importer or distributor) in the home country, which in turn exports the product.

10 CORRECT _____ requires no equity investment and thus has a low risk, low rate of return, and little control. A) B) C) D) E) Direct foreign investment Indirect exporting Direct exporting Internet marketing Direct sales

Explanation: Indirect exporting requires no equity investment and thus has a low risk, low rate of return, and little control.

11 CORRECT When two or more companies enter into a business relationship to cooperate out of mutual need and to share risk in achieving a common objective, they are most likely a(n) _____. A) B) C) D) E) direct sales group contractual exploration online trading company strategic international alliance franchising organization

Explanation: A strategic international alliance (SIA) is a business relationship established by two or more companies to cooperate out of mutual need and to share risk in achieving a common objective.

12 CORRECT When two or more participating companies join forces to create a separate legal entity to facilitate doing business in the international arena, they are in a _____. A) B) C) D) E) consortium franchise license arrangement joint venture direct investment agreement

Explanation: A joint venture is a partnership of two or more participating companies that have joined forces to create a separate legal entity in order to enter a particular market.

13 INCORRECT During the imaging activity stage of building a strategic alliance, which of these relationship skills is most important? A) B) C) D) E) Good relationship self-awareness Creating intimacy Trust building Partnering Commitment

Explanation: Seeing the reality in possibilities, creating a shared vision from being together and involving trusted senior managers are actions taking during imaging which lead to creating intimacy.

14 CORRECT A point of difference between consortia and joint ventures is that consortia: A) make more money than a JV.

B) C) D) E)

operate in a country or market in which none of the participants is currently active. operate in only one market at a time. is associated with academic partners. operate in low visibility markets.

Explanation: Consortia frequently operate in a country or market in which none of the participants is currently active.

15 CORRECT In the current scenario, a company that is attempting to reorganize for global competition is most likely to adopt a _____. A) B) C) D) E) Feedback: Difficulty Level: Medium Learning Objective: 12-4 Topic: Organizing for Global Competition Bloom's: Knowledge AACSB: Analytic Page: 355 Explanation: A matrix organization consisting of either of these arrangements with centralized sales and marketing run by a centralized functional staff, or a combination of area operations and global product management. product form geographical form tall organization form pyramid structure matrix form