global business multiple choice

Questions and Answers

What is a reason why the price of Guinness differs between Ireland and Malaysia?

Diverse consumer preferences in taste

Different alcohol regulations and price restrictions (correct)

Variations in currency exchange rates

Different shipping costs to each country

What is an example of a direct export method?

Allowing a franchisee to operate a business

Partnering with a local business

Opening a new store in a different country

Using e-commerce to sell directly to consumers (correct)

Which channel of distribution involves allowing a local entrepreneur to operate a business?

Opening a branch

Using an agent

Franchising (correct)

Creating an alliance

What is the primary characteristic of a standardised marketing mix?

It uses the same marketing mix elements globally. Signup and view all the answers

Why is understanding cultural differences important in global promotion?

To create advertisements that resonate with local audiences Signup and view all the answers

What could be a result of ignoring language variations in advertising?

Potentially offensive advertising messages Signup and view all the answers

Which of the following statements is NOT true about a standardised marketing mix?

It is more flexible than an adapted marketing mix. Signup and view all the answers

Which factor is generally NOT associated with the need for a standardised marketing mix?

Cultural tailoring. Signup and view all the answers

One of the primary benefits of a standardised marketing mix is:

Simplified global operations and consistency. Signup and view all the answers

In a standardised marketing mix, which of the following elements is kept the same worldwide?

All of the above. Signup and view all the answers

What does a global business typically use when offering its products worldwide?

A standardised marketing mix Signup and view all the answers

Which of the following is most closely associated with a global firm utilizing a standardised marketing mix?

Selling the same product at the same price globally Signup and view all the answers

Which of the following global firms is known for applying a standardised marketing mix?

Coca-Cola, which markets its beverage consistently across different countries Signup and view all the answers

Which term describes the approach where a global firm treats the entire world as a single market?

Global marketing Signup and view all the answers

What is NOT a characteristic of global firms using a standardised marketing mix?

Adapting product features to local preferences Signup and view all the answers

Study Notes

Standardised vs. Adapted Marketing Mix

Standardised marketing mix employs an undifferentiated approach, keeping price, product, promotion, and place consistent globally.
Adapted marketing mix adjusts elements to align with local market needs, such as varying price based on income, product alterations for local tastes, and tailored promotion for cultural differences.
Adapted marketing mix is more prevalent than standardised marketing mix due to its responsiveness to local markets.

Reasons for Adapted Marketing Mix

Cultural, language, and geographical differences necessitate local adjustments.
Economic factors influence pricing and product strategies to cater to diverse consumer bases.

Global Product Considerations

Products may require adjustments for technical, legal, and language standards in different countries.
Compliance with local regulations, such as packaging and safety guidelines, is essential.
Example: McDonald’s menu varies globally, offering localized items like a fried shrimp burger in Japan.

Global Pricing Strategies

Some firms attempt to maintain uniform pricing across markets to prevent arbitrage.
Local cost of living and disposable income may necessitate differentiated pricing.
Additional costs, such as taxes or custom duties, can influence the final selling price in various countries.

Characteristics of Global Firms

Global firms view the world as a single market, allowing for the standardisation or adaptation of products and marketing strategies.
They often locate production in low-wage countries and source materials from the cheapest suppliers.

Reasons for Global Firm Presence

Market saturation in domestic markets prompts firms to seek international expansion for growth.
Economies of scale reduce costs with increased production.
Advancement in technology, communication, and transportation facilitates global operations.
Deregulation and free trade enable smoother international commerce.

Global Marketing Overview

Global marketing treats the world as a unified marketplace, promoting consistent product marketing across regions.
Companies like Nike and Starbucks employ similar marketing mixes globally.

Global Marketing Mix

Composed of the 4Ps (product, price, place, promotion) tailored to a global context.
Currency variations and differing tax rates must be considered in global pricing.
Example: Guinness pricing varies by country due to local regulations.

Global Distribution Channels

Different distribution channels may be required to effectively reach consumers in various markets.
Strategies may include direct export through e-commerce, opening branches, franchising, using agents, or forming local alliances.

Global Promotion Adaptations

Promotion strategies must accommodate local legislation, language, and cultural nuances.
TV advertisements may require language modification and sensitivity to cultural perceptions to avoid offensiveness.

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Description

This quiz explores the differences between standardised and adapted marketing mixes. Learn how these strategies align with global and local market needs and their impact on pricing, products, and promotions. Test your understanding of how marketing adapts to cultures and consumer behaviors.