Global Strategy and Pricing Quiz

<p>By adapting to frequent government policy changes. (D)</p> Signup and view all the answers

<p>Support from state resources. (C)</p> Signup and view all the answers

<p>Debt Levels of the Company (C)</p> Signup and view all the answers

<p>It can never be lower than manufacturing expenses. (C)</p> Signup and view all the answers

<p>A price war that can reduce overall profitability. (C)</p> Signup and view all the answers

<p>Demand increases significantly with price drops. (A)</p> Signup and view all the answers

<p>Cultural beliefs and perceived quality. (A)</p> Signup and view all the answers

<p>They can restrict pricing by setting maximum limits. (C)</p> Signup and view all the answers

<p>The relationships and margins with intermediaries. (D)</p> Signup and view all the answers

<p>It can lower costs and enhance competitive pricing. (D)</p> Signup and view all the answers

<p>To leverage strategic assets where global competitors are weak. (B)</p> Signup and view all the answers

<p>They upgrade capabilities to compete directly in certain niches. (A)</p> Signup and view all the answers

<p>They expand into foreign markets similar to their home market. (A)</p> Signup and view all the answers

<p>Companies organizing from emerging markets that exercise control over assets abroad. (B)</p> Signup and view all the answers

<p>Tata Motors acquiring Jaguar and Land Rover brands. (C)</p> Signup and view all the answers

<p>No pressure to engage in global strategies. (B)</p> Signup and view all the answers

<p>By competing in niche markets that are often overlooked. (B)</p> Signup and view all the answers

<p>Defenders have assets customized for the home market. (D)</p> Signup and view all the answers

<p>An exchange where cash is added to balance out the value of goods. (C)</p> Signup and view all the answers

<p>Channel (C)</p> Signup and view all the answers

<p>To convert an idea into understandable symbols. (C)</p> Signup and view all the answers

<p>How well the receiver interprets the received symbols. (C)</p> Signup and view all the answers

<p>Memory (C)</p> Signup and view all the answers

<p>Messages are designed to influence and change attitudes. (B)</p> Signup and view all the answers

<p>When technology or equipment is supplied in return for future products. (D)</p> Signup and view all the answers

<p>To present ideas, goods, or services to potential customers. (C)</p> Signup and view all the answers

<p>The image communicated can be identical across countries (D)</p> Signup and view all the answers

<p>Define the Business (A)</p> Signup and view all the answers

<p>Cost Focus (A)</p> Signup and view all the answers

<p>To contribute to financial performance and achieve objectives (B)</p> Signup and view all the answers

<p>Groupings within an organization based on shared attributes (D)</p> Signup and view all the answers

<p>It can be identical across countries (C)</p> Signup and view all the answers

<p>Both internal strengths and external market attractiveness (D)</p> Signup and view all the answers

<p>The price point needs to be identical universally (D)</p> Signup and view all the answers

<p>Emphasis on building trust and long-term relationships (B)</p> Signup and view all the answers

<p>Multidomestic Advertising (A)</p> Signup and view all the answers

<p>Success and winning (B)</p> Signup and view all the answers

<p>To execute programs for public understanding and acceptance (A)</p> Signup and view all the answers

<p>Percentage of Future Sales (B)</p> Signup and view all the answers

<p>Determine the Target Audience (A)</p> Signup and view all the answers

<p>Consumer satisfaction (C)</p> Signup and view all the answers

<p>Sponsorship (A)</p> Signup and view all the answers

<p>Competitive Parity (B)</p> Signup and view all the answers

<p>Understanding consumer motivation (C)</p> Signup and view all the answers

<p>Unique insights into customer needs (A)</p> Signup and view all the answers

<p>By enabling faster and cheaper product development (B)</p> Signup and view all the answers

<p>Ability to navigate corruption and policy changes (D)</p> Signup and view all the answers

<p>It provides significant competitive advantages. (C)</p> Signup and view all the answers

<p>Ability to adapt to low-cost and resource-constrained environments (D)</p> Signup and view all the answers

<p>Decreases acquisition costs for the subsidiary. (D)</p> Signup and view all the answers

<p>Cost Plus (C)</p> Signup and view all the answers

<p>Government scrutiny on pricing practices. (B)</p> Signup and view all the answers

<p>Shorten the distribution channel. (C)</p> Signup and view all the answers

<p>Cash in Advance (B)</p> Signup and view all the answers

<p>Develop the global marketing strategy (B)</p> Signup and view all the answers

<p>To reflect prices that would be charged by unrelated third parties. (C)</p> Signup and view all the answers

<p>Importer pays only once goods are sold. (C)</p> Signup and view all the answers

<p>The product features desired are different across markets (A)</p> Signup and view all the answers

<p>Trade where part payment is made in kind. (D)</p> Signup and view all the answers

<p>Focused Differentiation (B)</p> Signup and view all the answers

<p>Internal company strengths (D)</p> Signup and view all the answers

<p>Identifying the actual competitors (B)</p> Signup and view all the answers

<p>Its symbols carry the same meaning across countries (D)</p> Signup and view all the answers

<p>Market scope and competence (A)</p> Signup and view all the answers

<p>To identify specific customer segments (D)</p> Signup and view all the answers

<p>Global Advertising (D)</p> Signup and view all the answers

<p>Nurturing and caring (A)</p> Signup and view all the answers

<p>Direct inducements offering extra value (D)</p> Signup and view all the answers

<p>Competitors' past spending (D)</p> Signup and view all the answers

<p>Multidomestic Advertising (A)</p> Signup and view all the answers

<p>To evaluate sales, awareness, and recall (A)</p> Signup and view all the answers

<p>Percentage of Sales (A)</p> Signup and view all the answers

<p>Preoccupation with success and achievement (A)</p> Signup and view all the answers

<p>The target audience (C)</p> Signup and view all the answers

<p>Corporate objectives (D)</p> Signup and view all the answers

<p>The sensitivity of demand to price changes (D)</p> Signup and view all the answers

<p>Quality of alternative products (C)</p> Signup and view all the answers

<p>Enhancing product quality (B)</p> Signup and view all the answers

<p>It functions as a long-term pricing floor (C)</p> Signup and view all the answers

<p>Environmental impact (D)</p> Signup and view all the answers

<p>They impose limits on what can be charged (B)</p> Signup and view all the answers

<p>Cultural values regarding quality (C)</p> Signup and view all the answers

<p>It involves additional cash payments to balance value discrepancies. (D)</p> Signup and view all the answers

<p>Encoding (C)</p> Signup and view all the answers

<p>A seller's obligation to purchase back from the buyer. (D)</p> Signup and view all the answers

<p>Awareness, Interest, Evaluation, Trial, Adoption (A)</p> Signup and view all the answers

<p>It obstructs the understanding of the message. (B)</p> Signup and view all the answers

<p>To influence and persuade individual behavior. (D)</p> Signup and view all the answers

<p>Direct exchange of goods of approximately equal value. (C)</p> Signup and view all the answers

<p>To provide the sender with insights on message reception. (B)</p> Signup and view all the answers

Determining the price of a product in a foreign market, influenced by various factors like company goals, costs, competition, and demand.

Measures how sensitive customer demand is to price changes.

Demand greatly changes when price changes, often for luxury or non-essential goods.

Demand changes little with price changes, often for essential goods.

Setting prices in foreign markets is influenced by internal and external factors.

Company goals for pricing, including profit targets, market share, and product type considerations.

Government regulations that limit the maximum price that can be charged.

Firms can compete on price (lower prices) or non-price factors (quality, service).

A form of international trade where goods or services are exchanged for other goods or services, often used in situations where currency exchange is difficult or restricted.

The simplest form of countertrade where goods are exchanged directly for other goods of approximately equal value, without cash involved.

A countertrade arrangement where some cash is exchanged in addition to goods, aiming to equalize the values of the goods exchanged.

A countertrade deal where one party provides technology or equipment to enable the other party to produce goods, and the price of the supplies is repaid with those produced goods.

A countertrade arrangement involving two separate contracts: one for the sale of a product and another for the purchase of goods from the original buyer.

Involves sending a message from a sender (firm) to a receiver (customer, supplier, intermediary) through a channel, encoding and decoding the message with potential noise and feedback.

The process where a sender converts an idea into symbols that the receiver can understand.

The process where the receiver converts the symbols back into thoughts.

Advertising in collectivist cultures focuses on building trust and long-term relationships between buyers and sellers, emphasizing persuasion, repetition, and a hard sell.

Advertising in feminine societies emphasizes nurturing and caring, positioning products as safe and reliable.

Advertising in masculine societies focuses on success, winning, and being first, often showcasing achievements and competition.

Any unpaid, commercially significant news or editorial comment about ideas, products, or institutions.

Programs designed to earn public understanding and acceptance of a company and its products.

Direct inducements offering extra product value or incentives to sales forces, intermediaries, or consumers.

Promoting a company by associating it with a specific event or cause.

Advertising campaigns designed to be fairly uniform across many countries.

Advertising campaigns adapted to particular markets and audiences in message and/or creative execution.

Identifying the specific groups of people a campaign wants to reach, such as suppliers, intermediaries, government, or consumers.

Emerging Market Multinational Enterprises, these are companies that originated in developing countries and achieved global success.

A strategy used by EMMNEs to create new products or services that are cost-effective and meet the needs of developing markets.

EMMNEs often operate in developing countries with limited resources and infrastructure. They develop skills and strategies to manage costs effectively.

EMMNEs learn to operate in environments with frequent changes in political policies, economic conditions, and regulations.

Some EMMNEs benefit from government support and access to resources, giving them a competitive advantage in foreign markets.

A process for making long-term decisions in an international market. It involves aligning company strengths with global opportunities.

A division within a company that focuses on specific customers or product types.

Four frameworks for achieving competitive advantage: cost leadership, differentiation, cost focus, and focused differentiation.

A strategy that aims to be the lowest-cost producer in a broad market segment.

A strategy that sets a company's products apart from competitors with unique features.

A strategy focused on serving a specific market segment with the lowest cost.

A strategy targeting a specific market segment with unique and highly-valued products.

A company with strong home market assets but limited global expansion needs. They focus on leveraging their strengths in their home market, often adapting to local preferences.

A company aiming to compete head-to-head with global giants in specific niches. They have assets that work well internationally and face strong pressure to globalize.

A company targeting foreign markets similar to their home market to maintain profitability. They easily leverage their existing assets and face low global pressure.

Companies originating from developing countries, expanding globally with significant foreign investment. They control assets and participate in value-added activities abroad.

Tata Motors acquisition of Jaguar and Land Rover from Ford demonstrates EMMNES expansion. This involves a significant investment, taking control of assets and shaping the future of these brands in a new market.

Many EMMNES are now major players in various industries, like Haier becoming a leader in the white goods market. This demonstrates the growing influence of emerging markets on the global landscape.

Defender companies focus on their home market and adapt to local needs, while Contenders actively compete in niche markets against global giants.

Extenders focus on replicating success in similar markets, while EMMNES aim for global expansion with significant foreign investments and control.

The only element of the marketing mix that generates revenue, while others are costs.

Factors influencing pricing in foreign markets, including internal company aspects and external market conditions.

Company goals for pricing, including financial targets (like ROI), market-related goals (like market share), and product-specific considerations (like innovation or standard products).

The minimum price a company can charge to avoid long-term losses, considering production costs and potential cost reductions.

Companies can compete by offering lower prices (price competition) or focusing on non-price features like quality or service.

Rules set by governments to control the prices of goods and services, often through price controls, which set maximum prices for certain items.

Advertising effectiveness is heavily influenced by cultural context. In individualistic cultures, the focus is on personalized persuasion. In collectivist cultures, the focus is on building trust and long-term relationships.

Encoding is converting a message into symbols, while decoding is interpreting those symbols back into meaning.

A low transfer price reduces the acquisition cost for the foreign subsidiary, enabling it to price its goods more aggressively in target markets, thus increasing its competitiveness.

Transfer pricing can be used to artificially inflate the profitability of a subsidiary, providing justification for rewarding subsidiary managers.

Inputs are transferred to the subsidiary at the cost to the parent company. This increases profits for the subsidiary, but the supplying unit will not make any profit from the transaction.

Inputs are transferred to the subsidiary at the cost to the parent company plus a percentage markup, ensuring that the supplying unit also receives a profit.

The supplying and purchasing units negotiate a price for the transfer of inputs. If they can't agree, HQ steps in to finalize the price.

Inputs are transferred at a price that would have been agreed upon by independent third parties (not related to the company). This is the preferred method by governments and regulators.

As goods move through a distribution channel, the price at each intermediary stage is added to the cost of the product. This can result in a significantly higher price for the final consumer compared to the manufacturer's home country price.

Strategies include manufacturing overseas, adapting the product to a less expensive version for export, and shortening the distribution channel.

Advertising in collectivist cultures focuses on building trust and long-term relationships between buyers and sellers. It often emphasizes persuasion, repetition, and a hard sell.

EMMNEs often face challenges associated with their origin in developing countries, including weak infrastructure, political instability, and corruption.

For global advertising to be effective, the image, symbols, product features and usage conditions need to be consistent across different countries.

A plan for how a company will compete in international markets. It includes choosing a competitive strategy (like cost leadership) and a country market focus (which countries to target).

The first step in global strategic planning, clarifying the company's market, customers, and competitors. This helps define the scope of the business.

A visual representation of how people progress through a process, like becoming a customer or achieving a goal. It helps visualize the steps involved.

A plan for how a company will market its products or services in international markets. It builds on the global business strategy and includes decisions on product, price, promotion, and distribution.