The CEO wants to fund a large budget for a new overseas marketing campaign. The marketing director, however, argues that Greenmax will not need a significant additional marketing outlay to distribute its product overseas

Question

Which of the following, if true, best supports the marketing director's position?
A) The currency exchange rate between the U.S. dollar and countries that Greenmax wants to sell to is stable.
B) Greenmax can use the same advertising in foreign markets as it does in domestic ones.
C) Greenmax could subcontract local sales staff in foreign countries to carry out its sales and distribution.
D) There is significant competition in the energy drink market in the countries into which Greenmax wants to expand.
E) The countries that Greenmax is planning to sell to have free-trade agreements with the United States.

Answer 1

Answer: B
Explanation: B) If the ads that Greenmax has already developed for the domestic market are equally appropriate for the new foreign markets (perhaps unusual but not impossible), then the company can limit its new marketing expenses. Choice A: The currency exchange rate is not relevant to the company's global marketing needs. Hiring local sales staff, Choice C, does not mean that a significant investment in additional marketing will not be needed. Choice D suggests that Greenmax would face stiff competition and would need to undertake a concerted marketing campaign, which weakens the marketing director's position. Tariffs and other issues relating to free trade (Choice E) would have to be dealt with on a country-by-country basis and are not really relevant to whether Greenmax will need a marketing campaign to successfully sell its products in other countries.