Chap10 GM6e TIF

8/10/2019 Chap10 GM6e TIF

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Global Marketing, 6e(Keegan/Green)

Chapter 10 Brand and Product Decisions in Global Marketing

1) India's Suzlon Energy has become a major player in the wind-turbine industry due to an

inefficient and inconsistent power distribution system.

nswer! "#$E%iff! 1 &age #ef! (

) "he productPof the mar*eting mi+ is at the heart of the challenges and opportunities facingglobal companies today.

nswer! "#$E

%iff! &age #ef! (,

) rand e/uity is an e+ample of a tangible product attribute.

nswer! 0SE

%iff! &age #ef! (,

2) Intangible attributes of a product includes the status associated with the product ownership.

nswer! "#$E%iff! &age #ef! (,

3S! #eflecti4e "hin*ing

5) 6c%onald's golden arches ha4e the great ad4antage of transcending language and therefore

are 4ery 4aluable to global mar*eters.

nswer! "#$E

%iff! &age #ef! ((3S! #eflecti4e "hin*ing

) Strong brand e/uity is more 4ulnerable to mar*eting crises and actions.nswer! 0SE

%iff! &age #ef! (7

,) 3oca-3ola has a noncarbonated ginseng-fla4ored be4erage for sale only in 8apan.

nswer! "#$E

%iff! &age #ef! ((


7) 9illette reaps economies of scale associated with creating a single ad campaign for the world

and the ad4antages of e+ecuting a single brand strategy.nswer! "#$E

%iff! 1 &age #ef! ::

() global brand has the same name and in some cases a similar image and positioning

throughout the world.

nswer! "#$E

%iff! &age #ef! ::3S! #eflecti4e "hin*ing

13opyright ; :11 &earson Education< Inc.


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1:) i*e entertainment stars< sports celebrities< and politicians< global brands ha4e become a

lingua francafor consumers all o4er the world.

nswer! "#$E%iff! &age #ef! ::-:1


11) 9lobal brand is the same thing as global product.

nswer! 0SE

%iff! &age #ef! :13S! #eflecti4e "hin*ing

1) 9lobal brands are symbols of cultural ideals and as such< mar*eters can use global consumer

culture positioning =933&) to communicate a brand's global identity.nswer! "#$E

%iff! &age #ef! :1


1) "he Sony >al*man is an e+ample of combination or tiered branding< whereby a corporate

name is combined with a product name.nswer! "#$E

%iff! &age #ef! :1


12) Sony is a global brand and the company's portable 6& player is an e+ample of a global

product.

nswer! "#$E%iff! 1 &age #ef! :

15) "he ?Intel Inside? campaign is an e+ample of co-branding.nswer! "#$E

%iff! &age #ef! :


1) "he ?@irgin? brand is a global brand with se4eral brand e+tensions.

nswer! "#$E

%iff! &age #ef! :3S! #eflecti4e "hin*ing

1,) ccording to the top brand ran*ings< 6icrosoft is the world's most 4aluable brand.nswer! 0SE

%iff! 1 &age #ef! :




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17) #obust economic growth and rising incomes mean that consumers in 3hina< India< and other

emerging mar*ets can buy cell phones as status symbols.

nswer! "#$E%iff! &age #ef! :2


1() 3oca-3ola< 6c%onald's< Singapore irlines< 6ercedes-enz< and Sony are a few of the

companies that ha4e transformed local products and brands into global ones.nswer! "#$E

%iff! &age #ef! :,

3S! nalytic S*ills

:) "he basic human need to consume food and drin* is not the same thing as wanting or

preferring a ig 6ac or a 3o*e.



1) In countries li*e India and @ietnam< and other emerging mar*ets< amenities such as

refrigerators< flush toilets< and cell phones are considered as status symbols.

nswer! "#$E

%iff! &age #ef! :(3S! #eflecti4e "hin*ing

) 6ar*eters in 9illette's &ar*er &en subsidiary are confident that consumers in 6alaysia andSingapore shopping for an upscale gift will buy the same &ar*er &en as mericans shopping at

Aeiman 6arcus.


3S! nalytic S*ills

) #ecent research has confirmed that the le4els in 6aslow's hierarchy are the same in the

$nited States and sia.

nswer! 0SE

%iff! &age #ef! :,-:73S! #eflecti4e "hin*ing

2) #ecent research has suggested that< in sia< the highest le4el needs in 6aslow's hierarchypertain to status.

nswer! "#$E

%iff! &age #ef! :(-1:3S! #eflecti4e "hin*ing

5) In Bellmut Schutte's modified hierarchy to e+plain the needs and wants of sian consumers

the last three le4els are affiliation< admiration< and self actualization.nswer! 0SE

%iff! &age #ef! :7-:(




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) 0inland is home to Ao*ia< which rose in stature from a local brand to a global brand in little

more than a decade.

nswer! "#$E%iff! &age #ef! 1:


,) Studies conducted during the 1(,:s and 1(7:s indicated that the ?made in the $S? image

lost ground to the ?made in 8apan? image.nswer! "#$E

%iff! &age #ef! 1:


7) 6any consumers consider products with labels such as ?6ade in angladesh? and ?6ade in

razil? to be of inferior /uality and 4alue

nswer! "#$E%iff! &age #ef! 1:-11


() Scotland's top e+port category is information technology.

nswer! "#$E

%iff! &age #ef! 1:-11


:) In 9ermany< product pac*aging must conform to 9reen %ot regulations as part of ?Eco-

pac*aging.?nswer! "#$E

%iff! &age #ef! 11


1) "he European $nion now re/uires mandatory labeling for some foods containing genetically

modified ingredients.nswer! "#$E

%iff! &age #ef! 1


) In ::7< the $nited States enacted a country-of-origin labeling =3CC) law< which re/uires

supermar*ets to display information that identifies the country that meat< poultry< and certain

other food products come from.nswer! "#$E

%iff! &age #ef! 1


) &ac*aging aesthetics such as color or shape of a product< label< or pac*age are 4ery important

for 8apanese consumers.

nswer! "#$E%iff! &age #ef! 1-12




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2) %ue to the European 3ommission's regulation< 6c%onald's cannot gi4e away soft-plastic

toys with its Bappy 6eals in Europe.

nswer! "#$E%iff! &age #ef! 15


5) pple launched its i&hone in the $nited States in mid-::, and in the following months< it

was gradually rolled out in se4eral more mar*ets. "his is an e+ample of the dual-e+tensionstrategy.

nswer! "#$E

%iff! &age #ef! 1-1,


) $nile4er reformulated its 3if brand spray cleaner to do a better job on grease in Italy since it

was found that Italian women are not interested in labor-sa4ing con4eniences compared tocleanliness.

nswer! "#$E

%iff! &age #ef! 1(3S! #eflecti4e "hin*ing

,) company that is oriented towards product ?platforms? is li*ely to be pursuing a product

adaptation approach to global mar*eting.nswer! "#$E

%iff! &age #ef!


7) &roducts that fall under the dynamically continuous inno4ation category re/uire more # D %

e+penditures.nswer! 0SE

%iff! &age #ef! pp. -


() Sony created a new mar*et when it introduced @3#s< which can be considered as an

e+ample of discontinuous inno4ations.

nswer! "#$E%iff! &age #ef! -


2:) >hene4er a new product interacts with human< mechanical< or chemical elements< there is

the potential for a surprising and une+pected incompatibility.

nswer! "#$E%iff! &age #ef! 2




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21) 9enerally spea*ing< which of the following statements is true concerning product attributes

) "angible product attributes are more important than intangible ones.

) Intangible product attributes are more important than tangible ones.3) oth tangible and intangible product attributes are important.

%) Aeither tangible nor intangible product attributes are important.

E) product has more attributes than tangible and intangible ones.nswer! 3

%iff! &age #ef! (,


2) d4ertising< company name< news stories< and promotion acti4ities are a few of the elements

that contribute to a company's!) logo de4elopment.

) brand e/uity.

3) brand image.%) co-branding effort.

E) brand label.

nswer! 3%iff! &age #ef! (7-((


2) pple and Ao*ia both mar*et phones but their brand image differentiates them< which withpple can be partially attributed to all of the factors e+cept!

) i&hone has user-friendly features.

) Ao*ia's uses alphanumeric names for products.3) i&hone has more brand e/uity than Ao*ia.

%) pple's 3EC has more media presence than Ao*ia's.

E) Ao*ia's brand image is more s*ewed toward technology.nswer! 3

%iff! &age #ef! (7


22) FFFFFFFF represents the cumulati4e added 4alue of a company's in4estment in the mar*eting

of a brand o4er time.

) rand e+tensions) 3o-branding

3) rand image

%) rand e/uityE) rand loyalty

nswer! %

%iff! &age #ef! (7-((3S! #eflecti4e "hin*ing



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25) 0or nearly : years< %eeers has used the ad4ertising slogan ? diamond is fore4er.? Such a

long-term in4estment in mar*eting is central to de4eloping!

) brand e+tensions.) co-branding.

3) local brands.

%) brand e/uity.E) brand mar*s.

nswer! %


2) In recent years< the 3oca-3ola 3ompany has been plagued by such problems as employeelawsuits o4er di4ersity issues< deteriorating bottler relations< a production stoppage< and a

disastrous product recall in elgium. "a*en together< these problems could dilute the company's

FFFFFFFF.) brand e+tension program

) co-branding efforts

3) international brands%) brand e/uity

E) productGcommunications e+tension strategy

nswer! %


2,) "he Ai*e swoosh< 6c%onald's golden arches< and pple's rainbow apple are all e+amples of!) non-word mar*s.

) brand e+tensions.

3) brand symbols.%) global brands.

E) both and 3

nswer! E%iff! &age #ef! (7-((


27) Sony is famous worldwide for its >al*manH personal stereo. >hich of the following reflectsthe most accurate use of mar*eting terminology

) ?Sonyal*man


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2() round the world< 4arious brands of personal computers are sold with &entium processors.

"his fact is often used as a selling point< with ad4ertising that proclaims ?Intel Inside.? >hich

branding concept does such ad4ertising reflect) brand e/uity

) co-branding

3) brand image%) brand e+tension

E) tiered branding

nswer! %iff! &age #ef! (7-((


5:) s outlined by branding e+pert Je4in Jeller< the benefits of strong brand e/uity include all

of the following e+cept!

) greater loyalty.) more 4ulnerability to mar*eting actions.

3) less 4ulnerability to mar*eting crises.

%) more inelastic consumer response to price increases.E) more elastic consumer response to price decreases.

nswer!

%iff! &age #ef! (7-((


51) ritish entrepreneur #ichard ranson has built a global business empire by!

) relying on brand e+tension.) being the first to use smart cards in major mar*ets.

3) de4eloping local brands.

%) a4oiding consumer businesses with established leaders.E) restricting the ?@irgin? name only to airlines.

nswer!

%iff! &age #ef! :-:3S! #eflecti4e "hin*ing

5) >hich of the following is AC" in the top fi4e of the world's most 4aluable brands and

determined byBusiness Week=::7)) Sony

) 6icrosoft

3) 3oca-3ola%) 9E

E) Ao*ia

nswer! %iff! &age #ef! :




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5) 6aslow's hierarchy is applicable to global mar*eting because it can help e+plain how!

) basic human needs can dri4e the de4elopment of global products.

) ?self-actualization? is the highest-order need in 8apan as well as >estern nations.3) status needs in different countries can only be fulfilled with localized products.

%) ?lu+ury badging? is irrele4ant to companies mar*eting in sia.

E) sians differ from >esterners in their basic physiological needs.nswer!

%iff! &age #ef! :,-:(


52) lfred Keien< former chairman of 9illette< once noted that his company's &ar*er &en unit

does not ha4e to de4elop a special model for 6alaysia and Singapore because shoppersworldwide see* the same things when buying a gift that will ser4e the recipient as a status

symbol. "his insight relates to which le4el of 6aslow's hierarchy of needs

) physiological) safety

3) social

%) esteemE) self-actualization

nswer! %

%iff! &age #ef! :7-:(


55) 3omparing the traditional formulation of 6aslow's hierarchy with the results of current

research on the consumer needs and moti4ation in sia< which of the following is correct) "he lowest le4els of the hierarchy are the same in the traditional and sian 4ersions.

) "he lowest le4els of the hierarchy are the same in the traditional and sian 4ersions.

3) "he lowest 2 le4els of the hierarchy are the same in the traditional and sian 4ersions.%) "he fi4e le4els in the traditional formulation apply e/ually in the >est and in sia.

E) "he highest le4els of the hierarchy are same in the traditional and sian 4ersions.

nswer! %iff! &age #ef! :,-:(


5) >hich of the following is AC" one of the le4els in the sian 4ersion of 6aslow's hierarchy) physiological

) safety

3) affiliation%) admiration

E) self-actualization

nswer! E%iff! &age #ef! :,-:(


(3opyright ; :11 &earson Education< Inc.


10/22

5,) >hich of the following could hinder the success of products labeled ?6ade in angladesh?

or ?6ade in "hailand? in e+port mar*ets

) negati4e country-of-origin bias) no possible /ualityGprice positioning

3) low acceptance of pri4ate brands

%) high product saturation le4els in global mar*etsE) lac* of promotion in global mar*ets

nswer!

%iff! &age #ef! 1:-113S! #eflecti4e "hin*ing

57) "he mar*eters of 3orona beer achie4ed great success in the $.S. mar*et by!) retaining the bottle design originally used in 6e+ico.

) hiring Bispanic mo4ie stars as endorsers.

3) distributing 3orona in returnable bottles.%) changing the brewing recipe to conform to merican palates.

E) by ha4ing the label in Spanish language.

nswer! %iff! &age #ef! 1:-11


5() 3oca-3ola's distincti4e contour bottle< which is sold in many countries< illustrates the pointthat!

) the pac*aging strategies can 4ary by country and region.

) the pac*aging helps in storing large sizes in refrigerators.3) the pac*aging strategies do not change by country and region.

%) the pac*aging appeals only to sian consumers.

E) the pac*aging helps in brand identification.nswer!

%iff! &age #ef! 11-1


:) 9enerally spea*ing< which of the following product categories represents the best potential

for e+tension into international mar*ets without adaptation

) companion products) food products

3) industrial products

%) intangible productsE) non-alcoholic drin*s

nswer! 3

%iff! &age #ef! 13S! #eflecti4e "hin*ing

1:3opyright ; :11 &earson Education< Inc.


11/22

1) %ry soup mi+es that ha4e long been popular in Europe are mar*eted as sauces or dips in the

$.S. "his is an e+ample of the FFFFFFFF strategy.

) product-communications e+tension) product e+tension-communications adaptation

3) product adaptation-communications e+tension

%) dual adaptationE) product in4ention

nswer!

%iff! &age #ef! 1-1,3S! #eflecti4e "hin*ing

) "argeting the :: million farmers in India who still use plows harnessed to o+en< 8ohn %eereengineers created a line of relati4ely ine+pensi4e< no-frills tractors. "he %eere team then realized

that the same e/uipment could be mar*eted to hobby farmers and acreage owners in the $nited

States< a segment that they had pre4iously o4erloo*ed. "his is an e+ample of FFFFFFFF strategy.) product-communications e+tension

) product e+tension-communications adaptation

3) product adaptation-communications e+tension%) dual adaptation

E) product in4ention

nswer!


) 3ampbell's has been mar*eting soup in 8apan for more than 2: years. Early on< 8apaneseconsumers were not recepti4e to ads featuring the 3ampbell Jids and the ?6'm 6'm 9ood?

slogan. "his compelled 3ampbell's to de4elop ads featuring a tal*ing soup can *nown as ?6r.

3ampbell.? 3ampbell's also de4eloped soup 4arieties for 8apan with fish as the main proteinsource and spices that reflect local preferences. s described here< which of the following

strategies has 3ampbell's used in 8apan



%) product-communication adaptation

E) product in4entionnswer! %

%iff! 1 &age #ef! 1-1,




12/22

2) &rior to ::2< Ao*ia launched different cell phone products in different countries at different

times. Ao*ia also used different ad4ertising images and messages in different countries. >hich

approach to the world mar*etplace was Ao*ia using) product-communications e+tension


3) product adaptation-communications e+tension%) product-communication adaptation


nswer! %%iff! &age #ef! 17-1(


5) efore en D 8erry's launched their ice cream in the $nited Jingdom the company

conducted e+tensi4e research to determine whether the pac*age design was appropriate. "he

research indicated that ritish consumers percei4ed the colors differently than $.S. consumers."he pac*age design was changed accordingly. "his type of strategy can be defined as!

) product-communications e+tension.

) product e+tension-communications adaptation.3) product adaptation-communications e+tension.

%) product-communication adaptation.

E) product in4ention.

nswer! %iff! &age #ef! 1-1,


) "o promote its 3entrino wireless chip< Intel launched a global ad campaign that features

different combinations of celebrities. "hese celebrities were chosen because they are widely

recognized in the *ey world mar*ets. "his type of strategy is referred to as!) product-communications e+tension.

) product e+tension-communications adaptation.

3) product adaptation-communications e+tension.%) product-communication adaptation.

E) product in4ention.

nswer!


,) 3olgate's "otal is a new toothpaste brand whose formulation< imagery< and consumer appealwere designed from the beginning to translate across national boundaries. >hich strategy did

3olgate use with "otal



%) dual adaptation

E) product in4entionnswer! E

%iff! &age #ef! 1(-:

3S! #eflecti4e "hin*ing1



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7) Bindustan e4er recently de4eloped a hard candy fla4ored with natural fruit juice that it sells

profitably in India for the e/ui4alent of 1 cent per piece. "his is Bindustan e4er's first-e4er

candy product. >hat strategy is e4ident here) product-communications e+tension


3) product adaptation-communications e+tension%) dual adaptation


nswer! E%iff! &age #ef! 1(-:


() "he formulation< imagery< and consumer appeal of 3olgate's "otal brand toothpaste were

designed to translate across national boundaries. "his new global brand represents which type of

product inno4ation) discontinuous inno4ation

) dynamically continuous inno4ation

3) continuous inno4ation%) comparati4e inno4ation

E) dynamically discontinuous inno4ation

nswer! 3

%iff! &age #ef! 1-3S! #eflecti4e "hin*ing

,:) >hen introduced in the late 1(,:s< the @3# created new patterns of consumer beha4ior. 0ore+ample< assuming the user could learn to set the timer< he or she could tape programs to watch

at a later time. %@%< a playbac* only 4ideo system< was introduced in the late 1((:s. %@% discs

contain full-length mo4ies with digital sound in a format that resembles con4entional musiccompact discs. >hich of the following most accurately describes the respecti4e degree of

newness of these two global products

) "he @3# is a discontinuous inno4ation the %@% is a dynamically continuous inno4ation.) "he @3# is a dynamically continuous inno4ation the %@% is a discontinuous inno4ation.

3) "he @3# and %@% are both dynamically continuous inno4ations.

%) "he @3# and %@% are both discontinuous inno4ations.

E) "he @3# and %@% are both continuous inno4ations.nswer!

%iff! &age #ef! 1-




14/22

,1) "he introduction of consumer @3#s in the late 1(,:s initiated a re4olutionized in-home

electronic entertainment. 0or e+ample< assuming the user could learn to set the timer< he or she

could tape programs to watch at a later time. "he @3#'s popularity also ga4e rise to an entirelynew retailing concept< the 4ideo rental store. >hat type of inno4ation did the consumer @3#

represent

) a continuous inno4ation) a dynamically continuous inno4ation

3) a discontinuous inno4ation

%) a comparati4e inno4ationE) none of the abo4e

nswer! 3

%iff! &age #ef! 1-


,) "he d4anced &hoto System =&S) created by Joda* and its partners combines traditional

chemical photo processing with digital technology. Cne benefit of the system is that shutterbugs

can choose different print sizes. "he &S would best be described as a!) continuous inno4ation.

) dynamically continuous inno4ation.3) discontinuous inno4ation.

%) platform-based inno4ation.

E) new and impro4ed inno4ation.nswer!

%iff! &age #ef! 1-


,) fter four years of product de4elopment< &rocter D 9amble recently introduced a newhat *ind of

inno4ation do the new diapers represent

) platform-based inno4ation) dynamically continuous inno4ation

3) discontinuous inno4ation

%) continuous inno4ation

E) none of the abo4enswer! %

%iff! &age #ef! 1-




15/22

,2) &rocter D 9amble recently introduced &ampers #ash 9uard. #ash 9uard does not represent

a new productper se rather< the diapers are being mar*eted as an alternati4e to regular &ampers.

>hat type of inno4ation do &ampers #ash 9uard represent) a continuous inno4ation

) a dynamically continuous inno4ation

3) a discontinuous inno4ation%) a platform-based inno4ation

E) none of the abo4e

nswer! %iff! &age #ef! 1-


,5) 6otorola's failed Iridium 4enture was a global satellite telephone networ* designed to allowusers to ma*e or recei4e calls anywhere on the globe using handsets that are somewhat bigger

than typical cellular phones. >hat type of inno4ation did Iridium represent

) a continuous inno4ation

) a dynamically continuous inno4ation3) a discontinuous inno4ation

%) a platform-based inno4ationE) none of the abo4e

nswer!

%iff! &age #ef! 1-3S! #eflecti4e "hin*ing

,) y definition< a FFFFFFFF re/uires a large amount of learning on the part of users and

typically creates new mar*ets and consumption patterns.) continuous inno4ation

) dynamically continuous inno4ation

3) discontinuous inno4ation%) platform-based inno4ation

E) new and impro4ed inno4ation

nswer! 3%iff! &age #ef! 1-


,,) In 3hinese mar*ets< Ai*e had a problem using the ?8ust %o It? attitude which was not found

to be appropriate. 0inally< Ai*e decided to use 3hinese athletes in their promotion. "his type of

adaptation was needed due to!) 3hinese do not wear running shoes.

) ingrained 3hinese 4alues which respect authority.

3) 3hinese athletes use Ai*e shoes.%) ?8ust do it? in 3hinese has a negati4e connotation.

E) parents do not want their children to see such ads.

nswer!




16/22

,7) >hich of the following consumer products companies e+perienced a major product failure in

Europe due to inade/uate test mar*eting

) &rocter D 9amble) 3olgate

3) Jao

%) $nile4erE) Seagram

nswer! %


,() >hich global company was responsible for bringing the Smart car to mar*et

) Swatch) @ol*swagen

3) Aissan

%) 0ord

E) %aimler3hryslernswer! E


7:) "he corporate de4elopment team at @irgin e4aluates more than a dozen proposals each dayfrom outside and within the company. >hen assessing new-product ideas they loo* for all of the

following e+cept!

) synergy with e+isting @irgin products.

) pricing and return on in4estment.3) mar*eting opportunities.

%) if the idea ?uses or abuses? the @irgin brand.

E) aesthetic attributes of competitors products.nswer! E

%iff! &age #ef! 2




17/22

71) >hat are brands and what are their functions in global mar*eting Bow do brands de4elop

their image< identity< and e/uity re global product and global brands same

nswer! brand is a comple+ bundle of images and e+periences in the consumer's mind. randsperform two important functions< first they represents a promise by a particular company about a

particular product and secondly< brands enable customers to better organize their shopping

e+periences by helping them see* out and find a particular product. 3ustomers integrate all theire+periences of obser4ing< using< or consuming a product with other aspects that they obtain from

a 4ariety of published and 4erbal information. &erceptions can be based on price< after sale

ser4ice< distribution< and a 4ariety of other e+periences. "he sum of these impressions becomes abrand image which is actually a mental image of both the product as well as the company. rand

e/uity represents the total 4alue that accrues to a product as a result of a company's cumulati4e

in4estments in the mar*eting of the brand. 3ompanies de4elop logos< distincti4e pac*aging< and

other communication de4ises to pro4ide 4isual representations of their brands. local product orlocal brand is one that has achie4ed success in a single national mar*et. global product meets

the wants and needs of a global mar*et. true global product is offered in all world regions.

global brand has the same name and< in some instances< a similar image and positioning

throughout the world. "hus global products and global brands are different.%iff! &age #ef! (7-:


7) 3oca-3ola has de4eloped se4eral branded drin* products for sale only in 8apan< including a

noncarbonated ginseng-fla4ored be4erage. $sing this as an e+ample< outline the differencesbetween local brand and global brand combination branding communication-branding< and

brand e+tensions

nswer! local product or local brand is one that has achie4ed success in a single national

mar*et. global company creates local products and brands in an effort to cater to the needs andpreferences of a particular country mar*et. "he Sony >al*man is an e+ample of combination or

tiered branding whereby a corporate name =Sony) is combined with a product name =>al*man).

y using combination branding mar*eters can le4erage a company's reputation while de4elopinga distincti4e brand identity for the line of products. 3o-branding is a 4ariation of combination

branding in which two or more different company or product brands are featured prominently on

product pac*aging or ad4ertising. good e+ample would be the Intel Inside campaign promotingboth the Intel 3orporation and its &entium-brand processors in conjunction with ad4ertising for

4arious brands of personal computers. 9lobal companies can also le4erage strong brands by

creating brand e+tensions. rand names are used as an umbrella when entering new businesses

or de4eloping new product lines that represent new categories to the company. 0or e+ample the@irgin brand has been attached to a wide range of businesses and products such as airline< retail

stores< mo4ie theaters< financial ser4ices< and soft drin*s.

%iff! &age #ef! ((-:3S! #eflecti4e "hin*ing

1,3opyright ; :11 &earson Education< Inc.


18/22

7) %escribe the guidelines that can assist mar*eting managers in their efforts to establish global

brand leadership.

nswer! "he following si+ guidelines are mentioned as helpful for mar*eting managers in theirefforts to establish global brand leadership! =1) creating a compelling 4alue proposition for

consumers in e4ery mar*et entered< beginning with the home-country mar*et =) before going

international< thin*ing about all elements related to brand such as brand identity< names< mar*s


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75) If a label on a product states ?6ade in "hailand? and a similar product has a label ?6ade in

9ermany? then why do consumers consider the latter to be better than the former >hat different

does a label ma*e in the perception of a consumernswer! In global mar*eting consumer perceptions play a 4ery important role. Such perceptions

contribute to what is referred to as the ?country-of-origin? effect. "hey become part of a brand's

image and contribute to its brand e/uity. "his is particularly true for product categories that aremost commonly consumed such as automobiles< electronics< fashion< recorded music< food< and

other products. "he country of origin effect can be positi4e or negati4e. Cf course positi4e ones

add to the brand's image and contribute to its brand e/uity. 0or e+ample< Swiss watches< 0renchwines< or 8apanese cars are well *nown. &erceptions are hard to change and it ta*es time for

perceptions to set. "he manufacturing reputation of a particular country can change o4er time.

Jorea's image has impro4ed greatly in recent years. It is e+pected that some national brands

de4eloping from sian countries will ha4e an impact. Sometimes one brand can lead in forminga country of origin affect. Ao*ia phones for e+ample ha4e made 0inland popular and products

coming from there will ha4e the /uality impression that has been formed by Ao*ia. lsohat factors should managers ta*e into account in de4eloping new products for international

mar*ets >hat are the conse/uences for not ade/uately testing new products

nswer! It is e+tremely important to carefully de4elop new products for international mar*ets.In many corporations they ha4e a department which is continuously responsible for testing new

products. "here are three primary acti4ities that managers should underta*e and carry out on a

routine basis. 0irst< they should ensure that all rele4ant information sources are continuouslytapped for new-product ideas. "his can come from e+ternal or internal sources. Secondly< they

should carefully screen all ideas to identify potential candidates for further in4estigation. 0inally

Chap10 GM6e TIF

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Transcript of Chap10 GM6e TIF