Keegan/Green Chapter 13 Global Marketing

7. 
   As a practical matter, marketing managers may choose to run both global and local ads rather than adopt an "either/or" stance.
   

7. 
   The "localized" versus "standardized" debate pertaining to global advertising has finally been resolved in favor of standardization.
   

7. 
   Standardized print campaigns can be used for industrial products or for technology- oriented consumer products such as Apple iPhone.
   

7. 
   Despite an unmistakable trend toward using global advertising agencies to support global marketing efforts, companies with geocentric orientations will adapt to the global market requirements and select the best agency or agencies accordingly.
   

7. 
   A German agency devised McDonald's "I'm lovin' it" tagline. Answer: TRUE
   

7. 
   In 1994, the Chinese government banned tobacco advertising from television, radio, newspaper, magazine, and cinema ads.
   

7. 
   The Omnicom Group is the world's largest advertising organization. Answer: TRUE
   

7. 
   If the product needs a strong local identification, it would be best to select an international agency.
   

7. 
   Western advertising agencies still find markets such as China and Japan to be very complex, as Asian agencies find it just as difficult to establish local agency presence in Western markets. Answer: TRUE
   

7. 
   In the advertising industry, "creative strategy" is a statement of what a particular message or campaign will say.
   

7. 
   The advertising agencies can be thought of as "idea factories." Answer: TRUE
   

7. 
   Some of the world's most memorable advertising campaigns originate from "big" ideas with unlimited number of new executions. Such a campaign is said to have "legs."
   

7. 
   When creating global advertising, it is important to remember that the "advertising appeal" should be based on the agency's understanding of the target audience's buying motives. Answer: TRUE
   

7. 
   The way a product's appeal or proposition is presented is called the "creative execution." Answer: TRUE
   

AACSB: Reflective Thinking

7. 
   Revlon has used a French producer to develop television commercials in English and Spanish for use in international markets.
   

7. 
   Copywriters are specialists who check advertisements to see that they meet copyright regulations in different countries.
   

7. 
   In spring 2004, Adidas launched a $50 million global print and TV campaign keyed to the tagline "Nothing is impossible."
   

7. 
   In China, McDonald's is careful not to advertise prices with multiple occurrences of the
   

7. 
   In China, a humorous TV ad showing a student humiliating a teacher in the classroom would be an effective execution for a soft drink brand.
   

7. 
   In Japan, intimate scenes between men and women are in bad taste and in Saudi Arabia such ads are outlawed.
   

7. 
   Ads that strike viewers in some countries as humorous or irritating may not necessarily be perceived that way by viewers in other countries.
   

7. 
   Partial nudity and same-sex couples are frequently seen in ads in Latin America and Europe. ^ADⁿif^sf^w: 2^erP^: a^Tge^RR^Ue^Ef: 411
   

7. 
   In Germany, expenditures for newspaper advertising are greater than those for television advertising.
   

7. 
   U.S. ads contain more price information, and are more likely to include comparative appeals than Arabic ads.
   

7. 
   Benetton's striking print and outdoor advantage campaigns keyed to the "United Colors of Benetton" generated both controversy and wide media attention.
   

7. 
   Publicity is similar to advertising in that companies pay the media for placement of stories and news items.
   

7. 
   Many companies utilize corporate advertising which, despite the name, is generally considered part of the PR function.
   

7. 
   Advocacy advertising enhances the public's perception of a company, creates goodwill, or announces a major change.
   

7. 
   Image advertising is used by global companies to present themselves as good corporate citizens in foreign countries.
   

7. 
   "United Colors of Benetton" generated both controversy and wide media attention, which executives consider as an opportunity to generate publicity.
   

7. 
   Consumer products companies typically use advocacy advertising to give the public reasons to buy their products.
   

7. 
   Any company that is increasing its activities outside the home country can utilize PR personnel as boundary spanners between the company and employees, unions, stockholders, customers, the media, financial analysts, governments, or suppliers.
   

7. 
   A company that is ethnocentric in its approach to PR will not extend home-country PR activities into host countries.
   

7. 
   As companies recognize and embrace new concepts such as the globalization of coffee culture, the potential for effective global advertising:
   
   1. 
      decreases.
      
   2. 
      increases.
      
   3. 
      remains the same.
      
   4. 
      becomes evident.
      
   5. 
      is ignored. Answer: B
      

7. 
   A company is one that targets customers worldwide or sources products worldwide, standardizing some marketing mix elements and adapting others.
   
   1. 
      domestic
      
   2. 
      local
      
   3. 
      global
      
   4. 
      international
      
   5. 
      multinational Answer: C
      

7. 
   Which of the following product category/company pairings best illustrates the concept of "product cultures?"
   

1. 
   earth-moving equipment/Caterpillar
   
2. 
   personal hygiene/Procter & Gamble
   

7. 
   A company that successfully creates standardized global advertising can reap which potential advantage?
   
   1. 
      economies of scale
      
   2. 
      improved access to distribution channels
      
   3. 
      "first mover" status in uncovering global market
      
   4. 
      creative leverage
      
   5. 
      all of the above
      

7. 
   Which company ranks number one in terms of worldwide ad spending?
   
   1. 
      General Motors
      
   2. 
      Philip Morris
      
   3. 
      Unilever
      
   4. 
      Procter & Gamble
      
   5. 
      Coca-Cola Answer: D
      

7. 
   Which company ranks number one in terms of ad spending in Europe?
   
   1. 
      General Motors
      
   2. 
      Philip Morris
      
   3. 
      Unilever
      
   4. 
      Procter & Gamble
      
   5. 
      Coca-Cola Answer: D
      

7. 
   What do Unilever and Procter & Gamble have in common?
   
   1. 
      Revenues at both companies have been hurt by regulations concerning tobacco advertising and promotion.
      
   2. 
      Both companies utilize extension approaches to advertising.
      
   3. 
      Both companies rank high in terms of non-U.S. ad spending.
      
   4. 
      Both companies use a great deal of corporate advertising.
      
   5. 
      Both companies use the same advertising agency. Answer: C
      

7. 
   A company's efforts to effectively communicate with customers may be hindered if the message:
   
   1. 
      does not reach the intended recipient.
      
   2. 
      reaches the intended recipient but is misunderstood.
      
   3. 
      reaches the intended recipient and is understood but the recipient may fail to take action.
      
   4. 
      is distorted by noise.
      
   5. 
      all of the above Answer: E
      

7. 
   is the phrase global marketers use to describe ads with common design elements into which localized elements are inserted for individual country markets.
   

1. 
   "Pattern advertising"
   
2. 
   "Template advertising"
   
3. 
   "Cookie-cutter advertising"
   
4. 
   "Model advertising"
   
5. 
   "Stereotype advertising" Answer: A
   

7. 
   In the language of global marketing, is the phrase used to describe advertising that represents a middle ground between 100% standardization and 100% localization:
   

1. 
   "stereotype advertising"
   
2. 
   "template advertising"
   
3. 
   "cookie-cutter advertising"
   
4. 
   "compromise advertising"
   
5. 
   "pattern advertising" Answer: E
   

7. 
   When the subheads and body copy of an advertisement is localized, not simply translated, is an example of:
   

1. 
   local advertising.
   
2. 
   global advertising.
   
3. 
   pattern advertising.
   
4. 
   advocacy advertising.
   
5. 
   stereotype advertising. Answer: C
   

7. 
   In selecting an advertising agency, all but one of the following issues should be taken into consideration.
   
   1. 
      company organization
      
   2. 
      national responsiveness
      
   3. 
      area coverage
      
   4. 
      buyer perception
      
   5. 
      franchise or company owned status Answer: E
      

7. 
   According to data published by Advertising Age (2009), which of the following is the largest global advertising organization?
   
   1. 
      WPP Group
      
   2. 
      Interpublic Group
      
   3. 
      Omnicom Group
      
   4. 
      Dentsu Inc.
      
   5. 
      Havas Answer: A
      

7. 
   When it is time to choose one or more advertising agencies, a company with a decentralized structure and a polycentric organization will:
   
   1. 
      make the decisions at headquarters.
      
   2. 
      leave the decision to local country managers.
      
   3. 
      automatically go with a home-country agency.
      
   4. 
      be most concerned with economies of scale.
      
   5. 
      make the decisions on a regional basis. Answer: B
      

7. 
   Tobacco companies in Central Europe face the prospect of tougher marketing and advertisement regulations due to the:
   
   1. 
      growing concern about health hazards associated with smoking.
      
   2. 
      a dislike of global brands crowding out local brands.
      
   3. 
      a desire to return to communist-era policies.
      
   4. 
      a desire to comply with EU regulations.
      
   5. 
      pressure from neighboring countries. Answer: D
      

7. 
   The advertising promise that captures the reason that people buy products is known as:
   

1. 
   creative strategy.
   
2. 
   the advertising appeal.
   
3. 
   the selling proposition.
   
4. 
   the creative execution.
   
5. 
   the big idea. Answer: C
   

7. 
   In many parts of the world, McDonald's utilizes TV advertising that shows parents interacting with their happy children. Such advertising utilizes:
   
   1. 
      rational appeals.
      
   2. 
      emotional appeals.
      
   3. 
      SRC appeals.
      
   4. 
      melodramatic appeals.
      
   5. 
      localized appeal. Answer: B
      

7. 
   The choice between demonstration, slice-of-life, straight sell, and other advertising forms is a matter of:
   

1. 
   creative strategy.
   
2. 
   the advertising appeal.
   
3. 
   the selling proposition.
   
4. 
   the creative execution.
   
5. 
   the big idea. Answer: D
   

1. 
   art director
   
2. 
   copywriter
   
3. 
   IMC manager
   
4. 
   PR practitioner
   
5. 
   stylist Answer: A
   

60. 
    According to recent research on advertising appeals in global marketing, which of the following countries rank high in both "think" and "feel" dimensions?
    

1. 
   Austria, Canada, Germany, United States, Korea
   
2. 
   Belgium, the Netherlands, India
   
3. 
   Argentina, Brazil, Italy
   
4. 
   Denmark, France, Hong Kong, Japan
   
5. 
   Spain, Sweden, Taiwan Answer: A
   

60. 
    According to a research study, a TV advertisement that presents a rational appeal by means of an argument-type execution would be well suited to:
    
    1. 
       monochronic cultures with low power distance, high uncertainty avoidance, and a good supply of marketing professionals.
       
    2. 
       collectivist cultures with high power distance and high uncertainty avoidance.
       
    3. 
       collectivist cultures with high power distance, high advertising expenditures, and strict government control.
       
    4. 
       high power distance, high advertising expenditures, and a limited supply of advertising professionals.
       
    5. 
       none of the above Answer: A
       

60. 
    According to a research study, a TV advertisement that presents an emotional appeal by means of a psychological-type execution would be well suited to:
    
    1. 
       monochronic cultures with low power distance, high uncertainty avoidance, and a good supply of marketing professionals.
       
    2. 
       collectivist cultures with high power distance and high uncertainty avoidance.
       
    3. 
       collectivist cultures with high power distance, high advertising expenditures, and strict government control.
       

60. 
    Which of the following is true about advertising expenditures in Germany and Brazil?
    

1. 
   Television is the leading medium in both Germany and Brazil.
   
2. 
   Newspapers are the leading medium in both Germany and Brazil.
   
3. 
   Television is the leading medium in Brazil; newspapers are the leading medium in Germany.
   
4. 
   Television is the leading medium in Germany; newspapers are the leading medium in Brazil.
   
5. 
   Magazines are the leading medium in Brazil and Germany.
   

60. 
    The United States and are the two top-ranked countries in terms of ad spending across all measured media.
    
    1. 
       UK
       
    2. 
       France
       
    3. 
       Canada
       
    4. 
       Japan
       
    5. 
       Germany Answer: D
       

60. 
    In which country are global marketers likely to encounter the most restrictions on advertising?
    
    1. 
       United States
       
    2. 
       Japan
       
    3. 
       Saudi Arabia
       
    4. 
       Russia
       
    5. 
       Germany Answer: C
       

60. 
    In which country would a global marketer most likely encounter the need to use print advertisements?
    
    1. 
       United States
       
    2. 
       Japan
       
    3. 
       China
       
    4. 
       India
       
    5. 
       Germany Answer: C
       

1. 
   image advertising.
   
2. 
   advocacy advertising.
   
3. 
   corporate advertising.
   
4. 
   TV advertising.
   
5. 
   radio advertising. Answer: C
   

68. 
    Which promotional mix element is most closely associated with activities designed to foster goodwill and understanding with various constituents both inside and outside the company?
    

1. 
   personal selling
   
2. 
   advertising
   
3. 
   public relations
   
4. 
   sales promotion
   
5. 
   publicity Answer: C
   

68. 
    One task of the department is to generate nonpaid forms of communication to foster goodwill among customers and others.
    

1. 
   sales promotion
   
2. 
   global marketing
   
3. 
   headquarters
   
4. 
   public relations
   
5. 
   advertising Answer: D
   

68. 
    What do Ford Motor Company, Coca-Cola, Nike, and McDonald's all have in common?
    
    1. 
       They are all consumer packaged-goods companies.
       
    2. 
       They all have foreign CEOs.
       
    3. 
       They have all received a great deal of negative publicity in recent years.
       
    4. 
       They all rely exclusively on TV advertising.
       
    5. 
       They spend more in advertising in foreign markets than home markets. Answer: C
       

1. 
   pricing problems
   
2. 
   distribution problems
   
3. 
   sales promotion problems
   
4. 
   public relations problems
   
5. 
   advertising problems Answer: D
   

72. 
    In the summer of 1999, Coca-Cola faced a major marketing problem in Europe. Which of the following was at the heart of the problem?
    
    1. 
       pricing problems
       
    2. 
       advertising problems
       
    3. 
       sales promotion problems
       
    4. 
       public relations problems
       
    5. 
       distribution problems Answer: D
       

72. 
    Japan's Fuji Photo Film asked its advertising agency to develop an advocacy campaign for the United States targeted to appeal both to Wal-Mart and to its customers. This is an example of
    

1. 
   local advertising
   
2. 
   pattern advertising
   
3. 
   global advertising
   
4. 
   advocacy advertising
   
5. 
   image advertising Answer: D
   

72. 
    Recently, some of the biggest advertising holding companies have acquired leading public relations agencies. The best explanation for this trend is:
    
    1. 
       a growing realization of the importance of IMC (Integrated Marketing Communications).
       
    2. 
       increasing client demands for localized PR campaigns.
       
    3. 
       stepped-up efforts by large companies to combat anti-globalization activists.
       
    4. 
       declining demand for global public relations means agencies have to agree to be acquired or risk going out of business.
       
    5. 
       increasing demand by global public for transparency. Answer: A
       

72. 
    Which of the following most accurately describes the state of global public relations (PR) today?
    
    1. 
       Expenditures on PR are dropping.
       
    2. 
       Expenditures on PR are increasing.
       
    3. 
       PR practices are standardized worldwide.
       
    4. 
       PR is not important in emerging markets like India.
       
    5. 
       Foreign investments are increasing. Answer: B
       

72. 
    A company adopting a(n) approach to worldwide PR activities gives the host- country practitioner maximum leeway to incorporate local customs and practices into the PR effort.
    

1. 
   ethnocentric
   
2. 
   regiocentric
   
3. 
   local
   
4. 
   polycentric
   
5. 
   publicity Answer: D
   

72. 
    Even in the face of such tough and growing competition, Adidas still enjoys high brand loyalty among older Europeans. The company recruits young people and pays them to wear Adidas shoes in public. This is an example of:
    

1. 
   local advertising.
   
2. 
   pattern advertising.
   
3. 
   global advertising.
   
4. 
   advocacy advertising.
   
5. 
   image advertising. Answer: E
   

72. 
    China's ongoing trade-related friction with the United States highlights the need for:
    

1. 
   a better distribution system.
   
2. 
   a better PR effort.
   
3. 
   sales promotion.
   
4. 
   a better transportation system.
   
5. 
   pattern advertising. Answer: B
   

72. 
    PepsiCo undertook an ambitious global program to revamp the packaging of its flagship
    

1. 
   product packaging that will help a product "sell itself."
   
2. 
   Concorde jet for advertising and promotion.
   
3. 
   IMC ( Integrated Marketing Communications).
   
4. 
   packaging that can be transported in various ways.
   
5. 
   advertising budget. Answer: C
   

72. 
    In developing countries, such as Ghana, the best way to communicate with market segments may be through:
    
    1. 
       mass media.
       
    2. 
       written word.
       
    3. 
       magazine ads.
       
    4. 
       TV ads.
       
    5. 
       dance, songs, and storytelling. Answer: E
       

72. 
    A global company that has the ability to successfully transform a domestic campaign into a worldwide one or to create a new global campaign from the ground up, possesses a critical marketing advantage. Explain this statement in light of the global advertising.
    

72. 
    There is an ongoing debate between "Standardization" versus "Adaptation" pertaining to global advertising. Explain how different sides of the arguments fit into the global context. Answer: Communication experts generally agree that the overall requirements of effective communication and persuasion are fixed and do not vary from country to country. The same is true for the components of communication process whereby the marketer is the source of the message; the message must be encoded, conveyed via the appropriate media, and decoded by a member of the target audience. Also, that the message is fully communicated when there is desired feedback. Four major difficulties can compromise an organization's attempt to communicate with customers in any location: (a) the message may not get through to the intended audience. This may be due to advertiser's lack of knowledge or experience about appropriate media to reach certain types of audiences; (b) the message may reach the target audience but may not be understood or may even be misunderstood. This may be due to inadequate understanding of the target audiences; (c) the message may reach the target audience and may be understood but still may not compel the recipient to take action. This could be due to the lack of cultural knowledge about a target audience; and the effectiveness of the message can be impaired by noise, which in this case is external influences such as competitive advertising, other prejudices and related factors. All these factors compel a marketer to think and decide whether to use adaptations in advertising from country to country and region to region. Proponents of the "one world; one voice" approach to global advertising believe that the era of
    

72. 
    What issues must be considered in selecting an advertising agency for global advertising? Answer: Care should be taken in selecting advertising agencies particularly when entering a new
    

market in a foreign country. The following issues should be considered: (a) company organization — companies that are decentralized may want to leave the choice to the local

72. 
    Considering the fact that the "message" is at the heart of advertising, discuss how creative strategy and different types of appeals can be created in global advertising.
    

72. 
    Food is a product category most likely to exhibit cultural sensitivity. Using Heinz ketchup as an example, discuss how the company has used its advertising taking into account cultural sensitivities in different parts of the world.
    

example, in Greece, ads show ketchup pouring over pasta, eggs, and cuts of meat. In Japan, they instruct Japanese homemakers on using ketchup as an ingredient in Western-style food such as

72. 
    Much academic research has been devoted to the impact of culture on advertising. Researcher Tamotsu Kishii identified seven characteristics that distinguish between Japanese and American creative strategy. Briefly describe those characteristics.
    

72. 
    One of the issues facing advertisers is which medium or media to use when communicating with global target market. Discuss how these media differ from country to country, giving
    

India, paper shortages may require booking an ad six months in advance. In some countries, especially those where the electronic media are government owned, television and radio stations

72. 
    Because of its size and presence in more than 200 countries, the Coca-Cola Company is often the target of antiglobalization protests. Giving examples, show how negative publicity affects global marketers?
    

72. 
    Companies use corporate advertising; image advertising, and advocacy advertising from time to time. How are these advertising methods used and what are are the circumstances under which they are used?
    

company's other communications efforts, rather than enticing the customers. On the other hand, "image advertising" enhances the public's perception of a company, creates goodwill, or

72. 
    The ultimate test of an organization's understanding of the power and importance of public relations occurs during a time of environmental turbulence. In light of this statement, explain the importance of public relations and show how it differs around the world.