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Supplement to case IN1271. The cases describe the development, worldwide launch, and subsequent marketing of a new pharmaceutical product which, although it represented only a slight improvement over the category pioneer, not only became the leading product in its category, but the largest prescription pharmaceutical product overall worldwide. Its success propelled Glaxo, the company which developed and marketed the product, from the minor leagues to the top ranks in the pharmaceutical industry.

Two-party, single-issue distributive negotiation between a publisher and a literary agent over the advance payment for the agent's unpublished but very promising client. Terry Holtz, a senior editor with a highly regarded, independent publishing firm has received a proposed book entitled Entrepreneurial Schools written by a young, up and coming, but never before published author. Terry is extremely interested in the book and is willing to pay an exceptionally high author's advance for the book. Jay McIntyre is a successful literary agent and represents Rachel Leonard, author of Entrepreneurial Schools. Jay has shown Rachel's manuscript to one other publishing firm than Terry's and has since found out that they are not interested. This coupled with Rachel's professional ambitions, which would be helped greatly by the visibility that comes with publication, has made Rachel anxious to close the deal with Terry's firm fast. She has told Jay to settle for what he can get from Terry's firm, but not to leave any money on the table.

Two-party, single-issue distributive negotiation between a publisher and a literary agent over the advance payment for the agent's unpublished but very promising client. Terry Holtz, a senior editor with a highly regarded, independent publishing firm has received a proposed book entitled Entrepreneurial Schools written by a young, up and coming, but never before published author. Terry is extremely interested in the book and is willing to pay an exceptionally high author's advance for the book. Jay McIntyre is a successful literary agent and represents Rachel Leonard, author of Entrepreneurial Schools. Jay has shown Rachel's manuscript to one other publishing firm than Terry's and has since found out that they are not interested. This coupled with Rachel's professional ambitions, which would be helped greatly by the visibility that comes with publication, has made Rachel anxious to close the deal with Terry's firm fast. She has told Jay to settle for what he can get from Terry's firm, but not to leave any money on the table.

Describes BASF's corporate advertising program in the United States. In 1992, BASF's U.S. companies extended an existing corporate advertising campaign to continue to build awareness of the German-based multinational's corporate identity. The core theme of the campaign is "We don't make the products you buy ... we make the products you buy better." The campaign appears only on television. The goals, target audiences, messages, media, budget, and approaches to evaluation are described. Acquaints students with the objectives and detailed program specifics of corporate advertising campaigns. Examines how a non-U.S. based company seeks to build corporate awareness and identity in the U.S. despite having only a single company-branded consumer product.

Describes the approach of the German-based multinational company, Siemens Corp., to establishing an identity in the United States. The specific goals for the 1991-92 corporate advertising campaign are described. Examples of print and television messages are included, using the core theme "That was then--This is now." Target audiences are identified, and the program's media, budget, and methods of evaluating the campaign are also described. Acquaints students with the objective and detailed program specifics of corporate advertising campaigns. Examines how a non-U.S. based company seeks to build corporate awareness and identity in the U.S. despite very limited product exposure to consumers.

Tracks changes in the luxury auto market during the 1980s and early 1990s. Shifts in target consumer behavior--particularly the yuppie lifestyle--serve as the basis for manufacturer modifications of product line, positioning, and advertising. The climax of the case is the 1991 overt effort by BMW to "de-yuppify" itself in the minds of the target market.

Nestle Italy marketing executives are considering options for increasing the sales and market share of Nescafe instant coffee. Forty years after being introduced, Nescafe still has a market share of only one percent.

The marketing director for the largest division of a health care products company is reviewing the structure and staffing of the division's marketing organization. The division has authorization to hire an additional marketing manager. Hence, the immediate case decisions are: 1) whether to hire an additional manager; and 2) if so, what should be the role and responsibilities of a new manager within the marketing organization. Industry developments, budgetary considerations, and changing field sales and service requirements make this a complex decision with larger implications for the division's marketing strategy and implementation.

In the several years preceding 1992, there had been a dramatic rise in the public's concern for environmental issues. Yet the Roper Organization reported that fewer than one in ten Americans made personal efforts to help solve environmental problems on a regular basis. The Environmental Federation approached the Advertising Council in New York to develop an advertising campaign to motivate individuals and businesses to modify their actions to restore and protect the environment. The case details three phases of campaign development: research, strategy, and execution.

Explores the circumstances under which a specialty store chain can profitably engage in large-scale non-price advertising.

Discusses a well-known traditional department store that confronts a very difficult issue of whether to change its pricing policy from a high-low to an everyday pricing approach. Demands that the student formulate a plan of execution for changing the pricing, if needed.

Staples is dissatisfied with the merchandising of its office furniture. The case reviews the situation, allowing students to consider whether the category should be dropped or changed. Permits consideration of the portfolio of products a positioning implies, and encourages a discussion on merchandising this particular category.

In 1992, the president of MEM (a producer of personal care products, including men's fragrances) considered a redeployment of field sales efforts and changes in sales compensation policies. Any changes, moreover, must consider the context of strategic decisions concerning English Leather, the firm's major product line. The case provides data concerning consumer behavior and attitudes in the product category, as well as information concerning how changes in competition and distribution channels affect the brand.

The chief executive of Trusthouse Forte, was preparing to meet with corporate shareholders to discuss both a proposed new corporate image and a new company name. Two key issues needed to be resolved. First, should the Forte brand name be extended across all of the company's businesses or more selectively reserved for particular operations? Second, the development of a strong communications plan would be critical to the success of the proposed changes.

Jim Wells has just developed moo shoes, specially designed shoes for cows that aid in the cure of foot problems. He wishes to market these shoes and is trying to decide price, channel, and promotion issues. Jim has access to a limited amount of investment capital and he must decide whether to proceed with his idea for moo shoes. The case contains sufficient data to calculate the potential market size, breakeven analysis, and profitability.

This case describes the introduction and marketing of an extended-life fluorescent bulb to replace incandescent bulbs. With the new bulb selling at retail for $15 to $20, successful marketing of the new bulb will require a major change in buying habits of both consumers and the trade.

The worldwide sales and marketing manager must determine the degree to which pricing strategy and tactics should be standardized or left to the discretion of the DHL subsidiary in each country.

Managers miss out on significant profits because they shy away from pricing decisions for fear that they will alienate their customers. But if management isn't controlling its pricing policies, the customers probably are. Two basic principles, the pocket price waterfall and the pocket price band, show managers how to control the pricing puzzle. The pocket price waterfall reveals how price erodes between a company's invoice figure and the actual amount paid by the customer--the transaction price. It tracks volume purchase discounts, early payment bonuses, and frequent customer incentives that squeeze a company's profits. The pocket price band plots the range of pocket prices over which any given unit volume of a single product sells. Wide price bands are common, with many manufacturer's transaction prices ranging over 60%. Using the pocket price bank enables a manager to control the price range to greater profits.

Logitech was one of three companies that dominated the global market for pointing devices for computers. While Logitech had captured a large share of the Original Equipment Manufacturer mouse market, Microsoft was the clear leader in terms of industry standards and dollar share of the retail market. KYE, with a strong presence in Europe, was poised to compete aggressively in North America. Faced with the intensifying competition and eroding margin, Logitech was considering the introduction of an innovative line of ergonomic mice, which promised to change the competitive dynamics of the industry.

This note provides a review of three different models of consumers' advertising response processes, and discusses the implications of these models for advertisers. It also describes the advertising agency's model or grid and its role in marketing communication planning. The model is known as AIDA, standing for getting Attention, developing Interest, building Desire, and finally getting Action.