Chapter 1 warmup

MKTG 401 Chapter 1 Warm Up 1. Which of the following is true about Starbucks’ growth strategy? A. It uses only a market penetration strategy B. It uses only a diversification strategy C. It uses only a market development strategy D. It uses only a product development strategy E. It uses all four of the growth strategies 2. Which of the following defines diversification growth strategy? A. Creating a new pricing strategy for existing products B. New products for existing markets C. Existing products for existing markets D. New products for new markets E. Existing products for new markets 3. Which of the following is most important for a company in order to achieve competitive advantage in the global marketplace? A. Implement a low-cost leader pricing strategy B. Utilize the same product strategy for global application as it does for the domestic market C. Standardize the marketing mix for global implementation D. Develop new products E. Focus 4. Which of the following best defines competitive advantage? A. Creating more perceived value for customers than the competitors do B. Having more investment capital than the competitors C. Always being the low-price leader D. Using comparison advertising to create a negative image for your competitors E. Having a more efficient distribution system than the competitors 5. A single-country marketing strategy addresses which of the following pairs of fundamental issues? A. Assessing direct competitors and indirect competitors B. Segmentation and targeting C. Deciding between standardization and adaptation D. Choosing a target market and developing a marketing mix 6. In addition to developing a marketing strategy, a global marketing strategy (GMS) requires managers to recognize the necessary extent to which _________ is needed. A. Collaboration B. Positioning C. Adaptation

D. Importing E. Discounting 7. Fortune magazine’s Global 500 rankings are based on which of the following? A. Total assets B. Number of locations C. Number of employees D. Number of products in the portfolio E. Revenues 8. Most of the companies in the Global 500 rankings _________. A. Are key players in the global marketplace B. Are focused on the tourism business C. Are smaller, start-up companies D. Are struggling to capture market share E. Have not entered the global marketplace 9. Managers who assume that products and strategies that succeed in the home country will succeed anywhere reject a(n) ___________ orientation. A. Polycentric B. Regiocentric C. Geocentric D. Extension E. Ethnocentric 10. Which of the following best describes the geocentric management orientation? A. It views the entire world as one potential market and strives to develop integrated global strategies B. The belief that each country is unique and requires a localized approach C. It adopts a marketing strategy that focuses on one region, seeing similarities in countries within that region D. All markets are seen as similar and there is no need to localize or adapt the marketing mix E. It does not adopt a formal marketing strategy; it rather allows each global group to create a plan of its own 11. Which of the following best states the purpose of the World Trade Organization (WTO)? A. To promote democracy as a form of government B. To develop new channels of distribution C. To promote and protect free trade D. To create a singular world marketplace E. To improve infrastructure in developing countries 12. Which of the following is a barrier to trade based on hostility towards globalization?