Question

Principles of Marketing

1.

Ming, a global business person, had a conversation with a local shop owner in his city. The shop owner asked Ming about the challenges he has encountered doing business with many countries and cultures. Which types of business challenges did Ming most likely describe to the shop owner?

There are many challenges with ethical business practices while organizationing and integrating new regions into existing structures.

There are legal and regulatory structure differences, and challenges with public relations effectiveness.

There are no challenges with developing unsaturated markets for products and accessing lower labor costs.

2. Tony works as a marketer for a children’s toy company headquartered in the United States. The business is expanding to build toy factories in countries such as Bermuda, Great Britain, and Germany. Tony is now writing the marketing plan to address the pricing considerations the company will make for each of the countries. Which areas should Tony focus his attention to create the company’s pricing strategy?

He should research the cost of production, the availability of natural resources, the cost of delivery, and other localized factors that affect pricing.

He should research their languages, business norms, and religious beliefs.

He should research the condition of the infrastructure, their driving regulations, the retail store availability

3. When conducting business in Japan, Jessica, a marketer from a U.S. company, brings her business cards. She offers them with both hands and then bows after a Japanese businesswoman bowed. Which cultural area did Jessica understand to modify her usual business behavior?

cultural language

cultural business norms

cultural time and punctuality

Answer 1

1.

Answer

There are many challenges with ethical business practices while organizing and integrating new regions into existing structures.

There are legal and regulatory structure differences, and challenges with public relations effectiveness.

Explanation

Challenges in doing global business:

• Public imaging
• Branding
• Legal and regulatory issues
• Finding leadership talent
• Infrastructure to match the new region
• Ethical business practices
• Level of technology development
• Organisational structure

2. Answer

• He should research the cost of production, the availability of natural resources, the cost of delivery, and other localized factors that affect pricing.

Explanation

Global pricing considerations consists of- cost structure, market structure, competition and their pricing , exchange rate volatility , tax, governmental intervention etc

For promotions, we have to consider

Language, colours, values, beliefs, business norms, shopping patterns, time and punctuality

For place (distribution)

• size and nature of retailers
• channel structure
• infrastructure like roadways
• cost of transport
• warehousing and retail store availability

3.

Answer

• cultural business norms

Explanation

International Marketing Environment-

In international marketing we consider the following-Language, colours, values, beliefs, cultural norms, business norms, shopping patterns, time and punctuality. Aesthetics, customs and taboos

The norms of conducting business vary from place to place- eg handshaking, welcoming a guest, gestures, etc Bowing is a gesture in Japan