BA 370 Exam 2 | Questions with Verified Answers

BA 370 Exam 2 | Questions with Verified Answers The computer maker Lenovo started in China but has since expanded its operations. In addition to purchasing IBM's PC division and Motorola's handset business unit, it established parallel headquarters in both Beijing and North Carolina. This is an example of which global entry strategy? direct investment Because the United States imports more goods than it exports, it operates under a(n) trade deficit As noted in your text, the complexity of a global distribution channel is determined by the type of product that must be distributed Determining the selling price in the global marketplace is an extremely difficult task. Many countries still have rules governing the ________, including those that affect pricing. competitive marketplace For most of the 20th century, ________ experienced foreign occupation, civil unrest, major famine, and a strict one-party Communist regime. China Problems with which entry approach can arise when the partners disagree or if the government places restrictions on the firms ability to move its profits out of the foreign country and back to its home country? Joint venture To sell the same product or service in both the home-country market and the host country, referred to as Glocalization _____ involves a binding contractual agreement between a firm and another firm or individual whereby the business name and format have already been developed by the originating firm. Franchising The processes by which goods, services, capital, people, information, and ideas flow across national borders are referred to as Globalization Marsha is conducting a country market assessment and is focusing on four key elements: distribution channels, transportation systems, communication systems, and commerce. In doing so, Marsha is evaluating which component of the market assessment? Infrastructure refers to collaborative relationships between independent firms, though the partnering firms do not create an equity partnership; that is, they do not invest in one another. Strategic Alliances Which of Hofstede's cultural dimensions relates to a willingness to accept social inequality as natural? Power Distance The fact that Mercedes-Benz is known by three Chinese names in Asia-peng zee in Cantonese for Hong Kong, Peng chi in Mandarin for Tawian, and ben chi for mainland China-- illustrates the importance of different ______ global markets Communication Strategies Which global entry strategy has the highest degree of risk? Direct Investment the global product strategy a firm chooses depends on The needs of its target market the United States wants to limit the amount of product that can be imported into the country for a period of timely setting a maximum import quantity. To do so, the US should institute a Quota The measure of how much one currency is worth in relation to another Exchange rate BRIC countries Brazil, Russia, India, China Major trade agreement between the US, Canada, and Mexico USMCA Standardized metric of output used to gauge the size and market potential of the economy Gross domestic product If a small business wants to take the least risky strategy to enter its first foreign market, it would choose which of the following global entry strategies? Exporting Firms prefer to manufacture in a country that has ________ because it signals a greater opportunity to export products to more markets. a trade surplus Illegal subsidies offered by the EU to airplane manufacturer, Airbus, resulted in making products like French wine and European cheeses more expensive to purchase in the United States. In retaliation, the United States planned to introduce new _______ on EU products. Tariffs The Economists Big Mac index, suggests that exchange rates should adjust to equalize the cost of a basket of goods and services wherever it is bought around the world, is an example of which of the following metrics? Purchasing Power Parity is formed when a firm entering a market pools its resources with those of a local firm joint venture Behavioral segmentation based on when a product or service is purchased or consumed is called _______ segmentation. Occasion The positioning strategy can help communicate the firms or the products _________ which communicates the customer benefits to be received from a product or service and thereby provides reasons for wanting to purchase it. Value proposition Lands' End allows customers buying shirts to choose from a variety of fabrics and types of collar and sleeve based on the customer's specific measurements, capitalizing on new technologies to mass customize its products and services. This is an example of Micromarketing For a segmentation strategy to be successful, the customers in the segment must react similarly and positively to the firm's marketing mix. In other words, the market segment must be Responsive The _____ segmentation method is most closely related to providing value by satifying customer needs and wants Benefit The ____ indicates where a particular market segments ideal product lies on the perceptual map. Ideal point Large firms with multiple offerings in a particular product category engage in _____ targeting strategies to obtain a bigger share of the market, increase the overall market for the product categories they sell, and diversify their businesses. Differentiated Jodi describes herself as having a strong need to belong to a group, which motivates her to seek out activities that involve others. Marketers would use this type of information when developing ________ segments. Psychographic During which step of the STP process do marketers ask whether the segment is identifiable, substantial, reachable , responsive, and profitable? Evaluate segment attractiveness Lawn care products manufacturer Scotts has developed easy-to-follow, annual lawn care programs to help homeowners develop thick, green lawns that will combat weeds, insects, and diseases. The specific steps that must be used and their timing vary based on climate. What type of segmentation should Scotts use as the basis to design these programs? Geographic A manufacturer of hats concentrates all its efforts on cost containment by offering the product in only one size but in a variety colors, using a one-size-fits-all approach. This involves a ______ targeting strategy. Mass Marketing When defining its market segments, the ABC company identifies groups based on characteristics such as age, gender, income, and education. What type of market segmentation is this? Demographic The NFL targets several different market segments and designs separate clothing lines for men and women. This is an example of Differentiated Marketing When an organization selects a single, primary target market and focuses all its energies on providing a product to fit that market's needs it is using a(n) _____ targeting strategy. Concentrated Market growth, market competitiveness, and market access are all important factors in analyzing if a segmentation strategy is Profitable Which step in the STP process develops descriptions of the different segments, which helps firms better understand the customer profiles in each segment? Select segmentation method A high-end women's clothing company is evaluating its overall mission, including its strengths, weaknesses, opportunities, and threats. It is engaged in which step of the segmentation, targeting, and positioning process? Establishing overall strategy or objectives _______ segmentation delves into how consumers actually describe themselves. Psychographic For the ________ criteria to be met when evaluating segment attractiveness, the consumer must know the product or service exists, understand what it can do for him or her, and recognize how to buy it. Reachable When everyone might be considered a potential user of its product, a firm likely uses a(n) _____ targeting strategy. Undifferentiated Which of the following terms describes the overriding desires that drive how people live their lives? Self-value Which of the following best describes the notion of market positioning? The position that a company holds in the market in terms of size relative to its competitors Tony the Tiger is an example of which of the following positioning tools to create a position for the brand that distinguishes it from its competitors? Positioning based on symbolism ESRI's Tapestry is a widely used tool for _______ segmentation. Geodemographic After some preliminary research in 2000, Unilever's Dove soap brand initiated its Campaign for Real Beauty campaign. This tactic relates to women's Self-concept Star Wars memorabilia has been continually successful since the first film was released in the 1970s, and the most recent film releases have led to a massive increase in sales. This is an example of Brand Licensing Brand equity is determined by four aspects of a brand. Which of the following is not one of the four aspects? Brand awareness Introduced in 1920, Band-Aid now has more than 40 products in its product line to help heal cuts and scrapes. Band-Aid has, over the years, increased its Product line depth A marketer that wants to improve a brands fit with its target segment or boost the vitality of old brands would most likely use a _________ strategy Brand repositioning Companies like Lactose go to great lengths to protect themselves through the use of trademarks and copyrights. This best represents which of the following advantages? Brands are assets Kraft, Nike, Coca-Cola, KitchenAid, and Sony are all examples of the use of _____ brands. Manufacturer Leo never spends a lot of time or thought picking up lunch when he is at work. For him, lunch items would be considered to be ________ products. Convenience As the size of retail firms has increased through growth and consolidation, more retailers have developed _____ merchandise, which they use to establish a distinctive identity. Private-label The earning potential of a brand over a 12 month periods known as its Price potential When marketers develop nonphysical aspects of an offering by adding warranties, financing, and after-sales service, they are focusing on the Augmented product Insurance companies expend a lot of effort marketing their offerings, mainly due to the fact that insurance is an __________ that consumers don't normally think about much Unsought product For most products, the UPC code would be located the _______ package Secondary In the grocery store, you can see the Kraft name on its Kraft Mayo, and on Kraft salad dressings. Having the Kraft name on various products is an example of the use of A family brand In response to increased consumer demand for healthful beverages, companies like Coca-Cola and Pepsi introduced new product lines like fruit juice to________ their product mix. Increase the breadth When marketers carefully develop a set of product attributes such as the brand name, features/design, and quality level of an offering, they are developing the Actual Product When the bicycle manufacturer, Trek, determined that some consumers use bikes for green transportation whereas others use them for a hobby, they were most likely assessing the _____ of its bicycles to consumers. Core customer value When Dairy Queen teams up with Oreo cookies for its Blizzard frozen treats and advertises them with the Oreo name alongside the Dairy Queen name, it is an example of Cobranding In a failed attempt at extending its brand to a new product line, Bic introduced a line of disposable underwear. To the extent that this brand extension adversely affected consumers perceptions about its current product lines, this could lead to Brand dilution Poland Springs produces a variety of bottled water beverages, and as the market continues to show growth potential for new flavors and varieties of bottled water, the company should _____ its product lines. Increase the depth of The complete set of Kellogs offerings representing its _______ includes ready-to-eat cereal, toaster pastries, wholesome portable breakfast snacks, cookies, crackers, and natural and organic brands Product mix Kellogs has a variety of brands in its cookies and crackers ________, including Cheez-it crackers, Bear Naked, Famous Amos cookies, Austin cookies and crackers Product Line Measures how many consumers in a market are familiar with the brand and what it stands for and have an opinion about it. Brand awareness According to your text, anything that is of value to a consumer and can be offered through a voluntary marketing exchange is called a Product Gabriella spent a lot of time shopping for her wedding dress, spending considerable time and effort visiting some of the finest bridal shops in the area. For Gabriella, her wedding dress is a(n) ________ product. Specialty The set of assets and liabilities linked to a brand that add to or subtract from the value provided by the product or service is referred to as Brand Equity At which stage in the product life cycle do sales experience their most rapid increase? Growth People who get Botox treatments consider it to be a private matter, therefore, they do not discuss it with others. This lowers the level of _____, slowing down the diffusion process. Observability In managing its product portfolio, 3M demands that a specific percentage of its yearly sales come from new products introduced within the previous few years to better withstand external shocks and Manage risk through diversification Which of the following terms refers to the process by which ideas get transformed into new offerings, including products, services, processes, and branding concepts that will help firms grow? Innovation _______ refers to the process by which the use of a product, service, or process spreads throughout a market grouper time and across various categories. Diffusion of innovation The last group of buyers to enter a new product market are ________, and when they do, the product has achieved its full market potential. The Late Majority In the new product development process, companies have a variety of ways for _______ including collaborating with other firms, brainstorming, licensing, and customer research. Idea Generation To examine the potential success of its one-third-pound Angus hamburger, McDonald's started offering and promoting the product in three southern cities. This move is an example of Test marketing As _____, one of the advantages that pioneers have is they create a new market or product category, establishing a commanding initial market share lead. First movers