International Marketing Strategy: Segmentation and Entry Modes

Chapter 12: International Marketing Concepts

Questions and Answers

1. Market Segmentation View (1990s)

   Question: Which of these best describes the view towards market segmentation in the 1990s?

   Answer: Global integration versus local responsiveness.

2. Dell's Inventory Policy (Question 2)

   Question: Dell Computer Corporation maintains no inventory and builds each computer to order. Dell is most likely following a policy of _____?

   Answer: Mass customization.

3. Marketing vs. Finance Conflict (Question 3)

   Question: John is part of the marketing team. There is a conflict between the finance team and the marketing team regarding market segmentation. The finance team argues for a standardized approach, while John's team emphasizes understanding customer requirements on an individual basis for greater satisfaction. Which term best describes John's team's approach?

   Answer: Customization.

4. First Phase of International Planning (Question 4)

   Question: Which aspect of international marketing is analyzed in the first phase of the international planning process?

   Answer: Company character.

5. Marketing Plan Decisions (Question 5)

   Question: At which stage of the international planning process would a marketing manager make decisions involving situation analysis, objectives and goals, budgets, and action programs?

   Answer: Developing the marketing plan.

6. Coffee Chain Planning Stage (Question 6)

   Question: 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?

   Answer: Developing the marketing plan.

7. Riskiest Entry Mode (Question 7)

   Question: Which of the following modes of foreign market entry is the riskiest?

   Answer: Direct foreign investment.

8. Direct Exporting (Question 8)

   Question: When a company sells to a customer in another country, the company is engaging in _____ exporting?

   Answer: Direct.

9. Indirect Exporting (Question 9)

   Question: When a company sells to a buyer (importer or distributor) in the home country who in turn exports the product, the company is engaging in _____?

   Answer: Indirect.

10. Low Risk Exporting (Question 10)

    Question: _____ requires no equity investment and thus has a low risk, low rate of return, and little control?

    Answer: Indirect exporting.

11. Strategic Alliance Definition (Question 11)

    Question: 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) _____?

    Answer: Strategic international alliance.

12. Joint Venture Definition (Question 12)

    Question: 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 _____?

    Answer: Joint venture.

13. Alliance Relationship Skill (Question 13)

    Question: During the imaging activity stage of building a strategic alliance, which relationship skill is most important?

    Answer: Creating intimacy.

14. Consortia vs. Joint Ventures (Question 14)

    Question: A point of difference between consortia and joint ventures is that consortia:

    Answer: Operate in a country or market in which none of the participants is currently active.

15. Global Reorganization Structure (Question 15)

    Question: In the current scenario, a company attempting to reorganize for global competition is most likely to adopt a _____?

    Answer: Matrix form.