4.7 International Marketing

What is a major risk of franchising for the brand owner?

• A loss of control.

• Royalty payments.

• The franchise fee.

• Rapid expansion is possible.

For a business to successfully pursue an international marketing strategy, which of the following needs to be present?

• All employees need to understand the vision and mission of the business.

• Understanding all stakeholders’ expectations.

• Flexibility and understanding between internal stakeholders

• An autocratic leader.

A firm once enjoyed a monopoly in its home country; however, due to globalization, its span and control have declined. Which of the following implication of globalization does the firm need to address?

• Location decisions

• Competition

• Economies of scale

• Diseconomies of scale

When businesses undergo expansion into overseas markets they can spread fixed costs over an increased output. This is also known as achieving (a)   of scale.

Which of the following is NOT a characteristic of international franchising?

• The franchisor provides the marketing and ensures quality standards

• The franchisee is not allowed to use the trademark or concepts of the franchisor

• The franchisee pays the franchisor royalties based on a percentage of the sales revenue

• Expertise is shared by the franchisor

Which of the following is not a benefit to entering international markets?

• Differences in demographics

• Enhanced brand image

• Diversification

• Larger markets

Many multinational companies are aggressively marketing their products to poor consumers in rapidly developing countries. What is a reason for doing this?

• Developing countries tend to have large populations.

• As these countries develop, incomes and consumer spending will increase.

• To increase sales revenue

Which region of the world is experiencing the highest rate of GDP growth?

• Asia

• Africa

• North-America

• Middle-east

A Pan-Global strategy involves:

• Using the same marketing mix in every country.

• Tailoring the marketing mix based on the target market.

• Only advertising internationally.

• Do what McDonald's does.

A global localisation strategy involves:

• Tailoring the marketing mix to meet the needs of local consumers.

• Doing what Ferrari does.

• Producing products locally.