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 _________________ 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.