International Marketing Final Test example questions These are not actual questions, only show the type of questions. Part A 1. B2B Market Segmentation Variables Variables Factors are being considered Geographic location Where does the organization operate? (Could be multiple locations) Business Description What sort of business is it, where does it fit into its industry? (Standard Industry Classification, size, growth, profitability etc) Behavioural/operating practices How does the organisation undertake its purchasing decisions? (benefits looking for, price sensitivity, urgency, loyalty, frequent users, occasions, etc) Product Application What are the purchasing requirements and with varying needs of business clients? 2. Many people today do not understand dining-out etiquette–that is, which piece of cutlery to use in a multiple course banquet, how to eat special foods such as whole fish, strawberries, butter a dinner roll. To provide this etiquette knowledge for business professionals, many companies are hiring a service that offers short, one-day courses in table etiquette. Use the four characteristics of service to describe this service and provide one method that can be used to reduce the problems associated with each characteristic. Guide Issues to consider: a. Intangibility: The service is offering a product that cannot be seen, tasted, felt, heard or smelt before it is purchased. Testimonial letters from satisfied customers can be used to reduce this intangibility. Also, the way the teacher acts can also reduce and even overcome intangibility. The service firm might consider committing some or all of the training to a tangible format–student notes, training videos or DVDs. b. Inseparability: The etiquette class is consumed at the same time it is produced. One method the owner of the etiquette teaching system can use to overcome this problem with inseparability is to hire and train more etiquette teachers. The service firm could also consider ways to deliver the service at arm's length, such as via virtual seminars delivered online (webinars). c. Perishability: Services cannot be stored. The perishability of services is a problem when demand is not steady. The owner of the etiquette training service could use differential pricing, reservation systems or cultivate requests from different market segments for the service at non-peak times. For instance, the business sector is likely to want seminars on weekdays during office hours but the consumer market may want services on weekends or evenings. d. Variability: Because etiquette training depends on who is providing it and when and where it is provided, this service could be highly variable. The owner of the etiquette teaching system can invest in good human resources selection and training. Recruiting the right person is very important for this service. The service firm could also consider techniques for standardising the service, e.g. using codified teaching notes and scripts. 3. Discuss how the following strategies (additional 3Ps) can be applied in above Q2 situation. 1. Physical Evidence 2. Process 3. People Part B 1. Describe the most likely marketing channel structure for each of these consumer products (intensive, selective, exclusive), briefly explaining why it is the most suitable for each product and/or market: a. chocolate bars – b. text books – c. new cars d. Handmade designer jewelry – 2. Provide relevant examples of products for which marketers use the following pricing strategies  Penetration pricing  Price skimming  Product-line pricing  Captive-product pricing 3. Explain the concept of positioning for competitive advantage. 4. How do marketers select specific target markets based on evaluation of potential market segments? 5. McDonald's nickname is Macca's. What other well-known brands have nicknames? Why do you think that it would be special for a company to have a nickname for its brand? 6. Think of your own example of a co-branded product. What are the benefits for each organization? 7. Using your own examples outline the two main functions that product packaging can perform. 8. a) Briefly outline the following concepts: Price ceiling. Price floor b) Compare cost-based pricing and demand-based pricing 9 a) Briefly outline how channel members add value to a marketing system b) Explain the three levels of distribution intensities and provide one example of each category 10 a) Companies bringing out a new product can choose between two broad strategies: market-skimming pricing and market-penetration pricing. It is important to select the optimal approach because it is difficult to go back once prices have been established. Discuss the market and environmental indications suitable for each approach b) Marketers can choose from two basic promotion mix strategies — push promotion or pull promotion. Compare these two strategies