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business
global marketing

Questions and Answers of Global Marketing

10. Search the internet for a product you want to buy. Are there differences in the prices, delivery charges or return policies among the different retailers offering the product? From which retailer
9. Should Eva, a young entrepreneur launching a new line of environmentally friendly (green) cosmetics, sell through a physical store, catalogues or the internet? Explain two key benefits of each
8. You can purchase clothing at a discount store, specialty store, category specialist, off-price retailer, department store or internet-only store. From which of these types of stores do you shop
3. Assume that Adidas, the shoe manufacturer, has decided to sell expensive watches for men and women. What factors should it consider when developing its strategy for choosing retail partners?
2. Why don’t traditional department stores have the same strong appeal to younger Australian consumers that they enjoyed in the last half of the 20th century? Discuss which types of retailers are
2. What are the advantages of traditional stores versus internet-only stores?
1. What are the components of a retail strategy?
LO 12.8 Identify the benefits and challenges of stores and multichannel retailing.
LO 12.7 Describe the various types of retailers.
LO 12.6 List the three levels of distribution intensity.
LO 12.5 Outline the considerations associated with choosing retail partners.
LO 12.4 Discuss the factors manufacturers should consider as they develop their strategy for working with retailers.
LO 12.3 Describe how marketing channels are managed.
LO 12.2 Understand the difference between direct and indirect marketing channels.
LO 12.1 Understand the importance of marketing channels and their management.
4. Price elasticity is an important concept in pricing. With new competitors continuing to enter the market, what strategies might Netflix undertake to make its offering more inelastic to retain
3. One of this chapter’s learning objectives suggested marketers have a choice of price-setting methods. Identify appropriate pricing strategies for Netflix and Disney+ and explain why your choices
2. Show how the different pricing strategies of Netflix and Disney+ (i.e. with Netflix being closer to market skimming and Disney to market penetration) appeal to different household types?Netflix
1. How does a market penetration pricing strategy fit the positioning of Disney and Disney+, which for many decades has always been about superior products and service quality rather than
2. Prices can vary, depending on the market being served. Because Dell sells its computers directly to consumers all around the world, the Dell website makes it easy to compare prices for various
2. The Porsche 918 Spyder is priced at $550 000. The demand for such a prestigious car is likely to be:a. cross-price elasticb. price inelasticc. price elasticd. status quo elastice. derived demand
1. If a shoe company has $2 million in fixed costs, its average shoe sells for $100 a pair, and variable costs are $60 per unit, how many units does the company need to sell to break even?a. 5000b.
11. Has the internet helped lower the price of some types of merchandise? Justify your answer.
10. Suppose you are in the market for a new Samsung LCD television. You see one advertised at a locally owned store for$300 less than it costs at Harvey Norman. The salesperson at the local store
9. How do pricing strategies vary across markets that are characterised by monopoly, oligopolistic competition, pure competition and monopolistic competition?
8. Zinc Energy Resources Co., a new division of a major battery manufacturing company, recently patented a new battery that uses zinc-air technology. The unit costs for the zinc-air battery are as
7. On your weekly grocery shopping trip, you notice that the price of spaghetti has gone up 50 cents a kilogram. How will this price increase affect the demand for spaghetti sauce, rice and parmesan
6. A soft-drink manufacturer has opened a new manufacturing plant in Perth. The total fixed costs are $100 million. It plans to sell soft drinks to retailers for $6 for a package of 10 × 350 mL
5. Is there a difference between a $5900 Hermès cashmere sweater and a $150 cashmere sweater from Myer? Have you ever purchased a higher-priced product because you thought the quality was better
2. One of your housemates believes the most important objective in setting prices for the new pet grooming business is to generate a large profit while keeping an eye on your competitors’ prices;
1. You and your two housemates are starting a pet grooming service to help put yourselves through university. There are two other well-established pet services in your area. Should you set your price
LO 11.9 Identify tactics used to reduce prices to businesses.
LO 11.8 Identify tactics used to reduce prices to consumers.
LO 11.7 Explain the difference between price skimming and market penetration pricing.
LO 11.6 Identify three methods that firms commonly use to set their prices.
LO 11.5 Indicate the four price competition levels.
LO 11.4 Describe how to calculate a product’s break-even point.
LO 11.3 Explain the price elasticity of demand.
LO 11.2 Explain the relationship between price and quantity sold.
LO 11.1 List the four pricing orientations.
4. What key operational issues can you identify in this situation?Happy Airways flight HA009 from Bangkok to Sydney was scheduled to depart at 10:40pm. The pilot informed the passengers before the
3. Were all passengers equally or similarly affected by the baggage issue? What were the different passenger segments?Happy Airways flight HA009 from Bangkok to Sydney was scheduled to depart at
2. What would you do to address the issues identified earlier?Happy Airways flight HA009 from Bangkok to Sydney was scheduled to depart at 10:40pm. The pilot informed the passengers before the
1. Identify and explain the communication failure points in this case.Happy Airways flight HA009 from Bangkok to Sydney was scheduled to depart at 10:40pm. The pilot informed the passengers before
2. Go to the iiNet website (www.iinet.com.au) and examine its customer service offerings. Next, go to Product Review(www.productreview.com.au) and look up iiNet. Based on these reviews, does iiNet
1. What services does Singapore Airlines (www.singaporeair.com) offer? Go to Singapore Airlines’ website and click on‘Flying with us’. Compare the services of Singapore Airlines and AirAsia
2. A gap reflects the difference between a firm’s perception of customer expectations and a firm’s standards for service to be delivered.a. seniorityb. knowledgec. standardsd. deliverye.
1. Barbara manages a Golden Chain Motel on a highway. She knows from experience that five to 10 last-minute customers will call after 8pm each evening looking for a room and asking the price. Barbara
9. Suppose the health club didn’t listen to your advice and ran the promotional campaign discussed in question 8 as is.A new member has come in to complain that not only did they not lose
7. What technologies do you use that help facilitate your transactions with a specific retailer or service provider? Would you rather use the technology or engage in a face-to-face relationship with
6. What types of support and incentives could your university provide to lecturers to help make them more attentive to students’ needs?
5. What should a restaurant waiter do when faced with an irate customer who has received undercooked food after a long wait? How can they avoid a service failure by being empowered?
4. Assume you were hired by your local supermarket to help assess its service quality. How would you go about undertaking this project?
1. Companies from which you purchase goods and services are not pure sellers of services, nor are they pure sellers of products. What services does a pizza restaurant provide? What goods does a post
LO 10.5 Identify three service recovery strategies.
LO 10.4 Explain the zone of tolerance.
LO 10.3 Examine the five service quality dimensions.
LO 10.2 Discuss the four gaps in the Service Gaps Model.
LO 10.1 Describe how the marketing of services differs from the marketing of products.
4. Conduct some press and media research, and present at least two or three news articles that critique the co-working space business models. What is your personal opinion regarding this business
3. Imagine that you and your co-founders are planning to open a co-working space in your city. As the first part of the ‘new product development process’ is idea generation, you should conduct a
2. Based on the diffusion of innovation theory, explain how co-working spaces are increasingly being adopted by companies and organisations.Digital technology. Digital technologies, such as mobile
1. Identify the reasons why co-working spaces are the preferred workplace for millennials and generation Z employees.Digital technology. Digital technologies, such as mobile devices and social media,
2. The automotive industry is constantly adding new and different products and technologies to their cars—both above and under the bonnet. Conduct an internet or library database search and discuss
1. Go to www.inventables.com. Choose two of the products on the site. What are some potential applications of these ideas?
2. Lorraine belongs to a national consumer panel created by a market research company. She regularly receives samples of new products from a variety of firms and fills out questionnaires about the
1. By the time BMW and Mercedes-Benz entered the mini-SUV market, there were many competitors, sales had peaked and profits were declining. These firms entered the market during which stage of the
11. You have recently been hired by a cosmetics company in its product development group. The firm’s brand is a top-selling, high-end line of cosmetics. The head of the development team has just
10. In what stage of the product life cycle is a new model of a PlayStation video game console? Is Sony’s marketing strategy—its four Ps—consistent with the product’s stage in its life cycle?
9. What type of deodorant do you use? What stage of the product life cycle is it in? Is the deodorant manufacturer’s marketing strategy—its four Ps—consistent with the product’s stage in its
8. As a brand manager at Moi Moi you are responsible for marketing its range of moissanite jewellery. How would you approach this task of promoting your product to a new market?
7. Assume Kellogg’s is about to introduce a type of muesli and is in the market-testing phase of the new product development process. Describe two ways that Kellogg’s might conduct initial market
6. How does the internet help companies gain customer input on existing and new products?
5. Describe an example of a new product that is targeted at the university student market. Using the concept testing discussion in the chapter, describe how you would conduct a concept test for this
4. Identify and describe the ways in which companies generate new product ideas. Which of these ways involve the customer? How can firms assess the value of the ideas that customers generate?
2. Panasonic’s 3D HD personal camcorder allows users to record live events in three dimensions instead of two. How quickly do you think this product will diffuse among the Australian population?
LO 9.4 Explain the product life cycle.
LO 9.3 Describe the various stages involved in developing a new product.
LO 9.2 Describe the different groups of adopters articulated by the diffusion of innovation theory.
LO 9.1 Identify the reasons firms create new products.
4. What could be some of the challenges for Coca-Cola when it undertakes a line-extension strategy?In 2018, in response to growing public concern about Australians’ sugar consumption, members of
3. Coca-Cola used surveys to collect data about consumers’ opinions on a new product. What could be some of the concerns in relying on survey data?In 2018, in response to growing public concern
2. This case study demonstrates how a line-extension strategy can be used by organisations in response to a growing social issue. Can you think of situations in which companies/brands have used a
1. In what ways did the introduction of ‘no-sugar’ variants (such as Coke No Sugar and Fanta Light) affect the overall product mix of Coca-Cola?In 2018, in response to growing public concern
3. Go to Woolworths’ website (www.woolworths.com.au) and click on the ‘Discover’ tab and then on ‘Our Brands’. Review the different private-label brands Woolworths has, including
2. Go to Kellogg’s website (www.kelloggs.com.au) and identify a few recently introduced brand extensions to the marketplace. Discuss whether you believe the brand extension examples you provided
1. Visit Revlon’s website (www.revlon.com.au). Identify and briefly describe the depth and the breadth of its product lines.
2. ____________ is the set of assets and liabilities linked to a brand that add to or subtract from the value provided by the product.a. Brand positioningb. Brand licensingc. National brandingd.
1. A university that has separate undergraduate and postgraduate admission offices recognises that these are distinct:a. brand associationsb. product/service linesc. product mixesd. brandse.
9. You are the brand manager for a firm that makes herbs, spices and other food additives. You have had complaints from some of your retail outlets that they are finding empty bottles of pure vanilla
7. Nestlé owns many brands, including Purina Petcare, Peters ice cream, Jenny Craig diet foods, Mövenpick ice cream and Musashi health supplements. Each brand features many models that may appeal
5. Identify a brand that has developed a high level of brand equity. What specific aspects of that brand establish its brand equity?
4. Suppose you are the coffee buyer at Coles. There is a strong corporate initiative to increase retailer-brand merchandise.Discuss the advantages and disadvantages of offering retailer-brand coffee.
3. Consider the following two product mixes. For Product Mix 1: A, B, C and D are the lines. For Product Mix 2: X, Y and Z are the lines. Which mix has more breadth and why? Which mix is deeper and
2. Classify each of the following products into convenience, shopping, specialty or unsought goods: toothpaste, life insurance, Sharp TV, waffles, lettuce, Coach handbag, Adidas soccer studs,
1. Nike guarantees that its products will last one year. What features of a Nike+ product would be part of the actual product and what features would be part of the associated services?
LO 8.8 Indicate the advantages of a product’s packaging and labelling strategy.
LO 8.7 Distinguish between brand extension and line extension.
LO 8.6 Determine the various types of branding strategies used by firms.
LO 8.5 Explain the various components of brand equity.

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