62 terms

Quiz 5


Terms in this set (...)

Making imported products more expensive
Tariffs protect domestic producers by
They must go though many different types of distribution channels
Global marketers typically find distribution in developing countries is more complex because
Divergence, hybridization, and convergence
Globalization results in
When entering a foreign market, the least risky strategy is
Can help to identify a particular group that might be interested in the markets products
When studying culture, the challenge for marketers is to determine whether culture
The needs of the target market
The most important consideration, when a firm chooses a global product
Russia is known for corruption, particularly bribe taking in business negotiations
Which of the following is currently a negative factor for foreign investment in Russia?
Pricing strategies
Tariffs, quotas, and currency exchange politics affect global
Simplifying the supply chain needed to make goods and services available
The shift of population from rural to urban areas in countries such as India helps global marketers by
Countries with high purchasing power today may not continue to show the same growth in the future
Cory is working on a global marketing assessment team looking out well into the future to help determine the most attractive market areas around the world. He is evaluating market sizes and growth rates. Based on population growth rates in different regions, he should consider that
India's infrastructure for supply chain management is not up-to-date
Which of the following is currently a negative factor for foreign investment in India?
The shared meanings, beliefs, morals, values, and customs of a group of people constitute their
More green-consumer conscious
Compared to consumers in the United States, Europeans are
Direct Investment
NCD company wants to expand into the Mexican market. They have financial resources, want to control business operations, and have had considerable success marketing to Hispanics in the United States. NCD will likely use __________ to expand into the Mexican market.
A tariff
When shopping for a car you notice a significant price gap between domestic and imported cars, with the imported cars being much more expensive. This could be the result of
Currency exchange rate
Exchange controls refers to the regulation of a country's
Consumers may vie their roles differently in different countries
Global segmentation, targeting, and positioning (STP) is more complicated than local STP because
As many measures as it can obtain
To determine the market potential for its particular product or service, a firm should use
Differences in languages, customs, and culture might make the campaign meaningless and ineffective in some markets
Graham had developed an extremely successful advertising and promotion campaign for a client in the United States. The client wanted to roll out the same campaign to markets worldwide, but Graham cautioned against doing this because
Underlying values
Geert Hofstede's cultural dimensions concept focuses on five dimensions of __________ in a country.
Differences in the way consumers see themselves and in the way they see products and services
Global segmenting, targeting and positioning is more complicated than domestic segmenting and positioning because of cultural nuances, significant subcultures within countries, and
Global product strategy
When Ford Motor Company decided to sell the Fiesta—in the same form and design—around the globe, instead of selling different versions in different countries, this was part of Ford's
Real income
Chris is gathering information about the general economic environment in Nepal. He will look for information about the general economic environment, population size and growth rate, and
Developing brand names that are meaningless is known languages
Brands can be extremely valuable domestically, but international use can be challenging. Companies can help to overcome language difficulties in using brands by
Instrumental equivalence
Aboxo Mustley LLC conducted a survey in France and Nigeria where it categorized respondents by ages - young adults; middle aged adults; senior citizens. The comparison didn't work. Why not?
Legal, banking, and regulatory systems
When Ben evaluated the commercial infrastructure in Mauritius, he considered the island's
All of the above
Why would a firm choose to market its products outside its home country?
Prone to misinterpretation of question meaning
Researching international marketing opportunities is ______________
Positioning strategies
Global pricing strategies should be consistent with
An order from another country
Global expansion often begins with
Globalization of production
Acme Creations sells a differentiated product in multiple countries. Recently it decided to outsource design and manufacturing to Liu & Fung in Hong Kong. This is an example of ____ .
Advertising regulations differ, including advertising to children
Celia's firm has developed a breakfast cereal targeted toward children. Rather than compete in the mature U.S. market, she has decided instead to introduce the product in Europe, where she feels it will be innovative. Her ad agency urged caution because
Underlying values
Global businesses often find it particularly difficult to understand the __________ of a country's culture.
If a retailer sells a product to a consumer for $6 that it purchased from a wholesaler for $3.60, what is its trade margin?
The average number of school-age children in families sending a child to daycare
Paula is trying to determine whether the segments she is considering for her day care center will be profitable. Which of the following will not specifically help her in this analysis?
All of the above
Sensitivity analysis refers to
Fiona wants to sell a local advertising calendar. There are 1,000 households in her community, and she estimates that 30 percent will buy a calendar. The printing company will charge a $100 setup fee, and calendars will cost $4.00 each to print. What price will she need to charge to cover all costs and make a $500 profit?
Jacob rents rooms in his hotel for an average of $100 per night. The variable cost per rented room is $20, to cover maid service and utilities. His fixed costs are $100,000 and his profit last year was $20,000. For Jacob, the contribution per unit is
Breakeven in units / breakeven in dollars
Unit contribution is needed to determine _____ while contribution margin is used to determine _____.
All of these
In addition to calculating the potential profitability of a market segment, marketers will also consider
Dividing fixed costs by contribution per unit
The break-even point is estimated by
If a manufacturer sells a product to a wholesaler $14.72 and that wholesaler charges $21.02 to a retailer, how much is the trade margin?
Changes in the quantity being produced
Variable costs change with
250 Units
If the fixed costs of manufacturing a new cell phone are $10,000, the sales price is $60, and variable cost per unit is $20, the break-even point is
Cash margin per customer
In the calculation used to determine CLV (customer lifetime value), $M represents _______ .
Estimate the quantity they will need to sell at a given price to break even
Bream-even analysis is useful because it allows managers to
Money paid; overall sacrifice
Earl was known for driving 30 miles to save a dollar on the price for his favorite beverage. Earl perceived price as ________________, while most consumers recognize price as the ______________ made to acquire a good or service.
Businesses with high fixed costs lose more money than businesses with high variable costs when sales decline
Which statement best reflects the impact of fixed and variable costs on profitability?
Raymond estimates that the fixed costs associated with opening a new bank branch are $500,000. He expects the branch to attract 1,000 new customer accounts in the first year, each of which will cost $50 per year to service. He also expects to generate $100,000 per year in revenue. For Raymond, the total cost of opening the new branch and remaining open for one year will be:
Sunk cost
John invested $2 million in his company's social media campaign last year. That $2 million represents a/an ___________ .
High fixed costs
To have high operating leverage means that a business has ___________ .
Occurs when the sale of one product causes someone not to buy another product
Cannibalization _____________
A firm must determine breakeven for an entire product
A sales mix analysis is used when:
Jason rents rooms in his hotel for an average of $100 per night. The variable cost per rented room is $20. His fixed costs are $100,000 and his target profit is $20,000. For Jason, to earn his target profit, he will need to rent out ________ rooms.
Gross margin
The difference between total sales revenue and total cost of good sold is known as ___________ .
Monthly rent on the restaurant building
David manages a Shoney's restaurant. He is considering staying open later in the evening. For David, the variable costs associated with staying open longer hours will include all of the following EXCEPT
Price minus variable cost per unit
The contribution per unit is
Displays projected revenues, budgeted expenses, and estimated net profit before taxes for an organization
A pro forma income statement:
Programmed costs are fixed marketing costs while committed costs are other than marketing expenses, i.e. rent
Which statement best reflects the difference between programmed and committed costs?
Sales revenue - Cost = profit
Which equation best represents what drives profit?
Determining the discount factor, projecting future revenues, setting the duration of time to consider break even
In discounted cash flow, the discount rate refers to
Which variable costs is NOT associated with production