Global Marketing 5th Edition Johny K Johansson - Solutions

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5. Would you say that the program was a success? Are there any negatives? Where should H-P go from here?
4. How did H-P try to make the GAM program acceptable to the current sales managers? Are there any other options?
Why are they necessary?How do GAMs and HAMs collaborate? Is there any conflict?
3. What is the role of the HAMs?
2. How does the GAM program solve some of the global synergy problems of H-P?
1. What obstacles to global synergy do you see in the current sales organization?
4. Should Cathay focus on China by attempting to develop it further or instead focus on the overall global market?
3. How should Cathay develop and market its global image without diminishing its local/regional identity as the Hong Kong (and China) carrier?
2. What strategic alternatives are there for Cathay to develop the mainland market? Should it rely on Dragonair, develop new alliances, or continue to go it alone?
1. Given the political complications, how attractive is the China mainland market? How would you evaluate the threat from Baiyun? What if China’s economic expansion slows down?
5. Discuss the ethical aspects of using human suffering in ads. Does your answer influence how likely you would be to buy a Benetton product? Why, or why not?
4. To what extent is the communicated message universal?To the extent the message is universal, one would expect a uniform global ad campaign to be successful.Would this be the case here? Why, or why not?
What is it in the ads that makes for this?
3. Why do some people (including Benetton’s own distributors)react so negatively to some of the advertising?Judging from the research, some of the ads score high on “Liking” while others are clearly “Disliked.”
2. What is the marketing logic behind the “United Colors of Benetton” campaign? Do the Toscani photographs“add value” to the Benetton brand name or dilute it?
1. What are the explanations for the global success of Benetton?
4. How would you try to manage the global pricing process—by formalization of the pricing process, economic controls, centralization, or informal persuasion?Are there any other options?
3. Who has most power in the value chain from manufacturers through distributors to customers?
2. What drives the need for global pricing? Is there any risk of gray markets? Are there any options apart from global pricing?
1. What are the reasons the semiconductor market is global? Why is it so difficult to create an FSA or CSA? Are there any differential advantages?
5. How would you evaluate the probability of success in building the brand equity of Banyan Tree further? Are there any threats that could derail the effort? What would your recommendation be for the next few steps in the brand building effort?
4. What alternative kinds of promotions are most likely to build brand equity further? How can product/service extensions do the same? What are the pros and cons of each? How would you evaluate the choice to launch a second brand—a good idea or not?
3. How important is the brand name to the target customers?How important is it for the brand to be considered local versus global?
2. In these markets, who are the main competitors? What are the competitive advantages of Banyan Tree (country-or firm-specific advantages)? Disadvantages?Case 4-2 Texas Instruments: Global Pricing in the Semiconductor Industry 615
1. How would you describe the appropriate target market(s) for Banyan Tree? How wide is its geographical reach—local, regional, global?
4. See Rugman and Verbeke, 2004.
3. See Rugman, 2005, and Ghemawat, 2007. Much of this section draws on these two sources.
2. This is the terminology proposed by Bartlett and Ghoshal, 1989.
1. The burdensome tasks are well documented by Davidson and Haspeslagh, 1982.
5. What are the pros and cons for a native country manager to drop a strong local brand in favor of a global brand? How would you go about presenting the need for the global brand to your local staff?
4. Why are people skills so important in the implementation of global marketing? Will the emergence of electronic communications over the various networks (Internet, intranets) make people skills more or less important than before?
3. Discuss how a multinational can use its Web site home page to share information with its employees around the world. Try to identify several ways in which the emergence of electronic communication links make it less difficult to implement a global strategy? Any negatives?
2. “Global managers are made, not born. This is not a natural process. We are herd animals. We like people who are like us. But there are many things you can do. Obviously, you rotate people around the world. There is no substitute for line experience in three or four countries to create a global
1. Discuss how a global team would work to create the kind of pricing “corridor” to control gray trade mentioned in Chapter 14. How would it work with the local subsidiaries to create and implement the kind of global advertising campaign created by Goodyear in Chapter 16?
Motivate the team, maintain a positive work environment, and secure team member commitment and shared ownership to the project’s success. Reward team and individual performance.
Identify present and future hiring needs and make primary selection of team members.
Manage the team’s recruitment, objective setting, issue resolution, and appraisals in line with the overall global strategy.
Lead the team through the development of a clear vision and common goals. Motivate team members to reach goals through sound decision making and effective conflict resolution.
Lead the economic evaluation process for the strategic global brands, including new indications and line extensions. Consolidate global forecasts and develop priorities and recommendations.
Manage the salary, expense, and budget for all team members.
Allocate resources across the functions that contribute to global strategic brand development.
Develop global strategic brand plans in collaboration with other business units.
Ensure optimal communication, collaboration, and synergies with all other business units.
Lead the development of life-cycle management strategies.
Responsible for setting and achieving annual sales and marketing objectives.
Responsible for unifying marketing and nonmarketing strategies, coordinating sales and marketing functions between countries and regions.
Lead the strategic market process to develop global product positioning, global product pricing strategies, global brand development, and global communication strategies.
Lead the development and implementation of global marketing strategies to ensure maximization of the XYZ product line’s growth and long-term profitability. The strategies must be commercially viable, customer focused, innovative, and market driven to ensure commercial success.
People adapting. The organization can rely on people to change their behavior and accommodate the changes. In one technology-intensive firm, the global “change agent” was the marketing manager at headquarters who spent most of his time on the road explaining the global strategy and sharing
Creating new systems. The organization can create new systems and procedures within the given structure. Generally, this means that local managers retain formal authority and reporting lines but are forced to work harder and/or differently. For example, among globalizing firms it is very common to
Changing the reporting lines. The organization can change the existing structure, that is, the formal lines of reporting and authority. This is in some ways the most clear-cut change toward centralization and the most far-reaching and dramatic change in the local organization. For example, one
Creating new positions (or reformulating existing position descriptions) that emphasize global responsibilities. A typical example is the creation of a global marketing director.
Creating new organizational units. The most common new units are perhaps global teams, drawing members from headquarters and country subsidiaries, with the team leader from a major lead country.
8. The initiative for the global strategy comes from the top.
7. One obvious effect of a global strategy will be less autonomy for the local subsidiary.
(c) serving global customers. Only in the last category will the benefits be unequivocal.
6. The global advantage derives from (a) cost savings, (b) demand spillover effects, and
5. The legitimacy of the global marketing “imperative” is not all that obvious in the organization—unless successful competitors have forced the issue.
4. The country managers have experience and status at home and in the organization.For administrative and control reasons the subsidiaries may be run by expatriates, but the local marketing effort is run by a local marketing manager (and/or by the country manager, when a native).
3. There is a history of quite successful operations with local autonomy.
2. The company is successful in at least some of the major markets (global marketing is usually not a crisis solution).
1. The company is already present in many markets.
5. Realize how the organizational structure and systems can be designed to serve one common purpose: to bring the global company closer to the local customer—global localization.
4. Help institute coordination mechanisms that range from creating a common global culture, sharing information, and establishing personal relations to the creation of new organizational units such as global account managers and global teams.
3. Recognize that local managers can assume a more global view and that local subsidiaries can be given global responsibilities for a particular product line—local globalization.
2. Understand why local managers are consulted early in a global strategy formulation process so that local motivation is not diminished.
1. See how to leverage the global network of the multinational firm with a global strategy by creating the appropriate organizational linkages to the local market.
5. Drawing on the cultural discussion in Chapter 3 and your own cultural background, compare the salesmanship skills needed to sell an automobile in Germany, in the United States, and in Japan(or some other countries of your own choice). What skills would be most advantageous? Which ones could land
4. What are the forces that have led to the success of direct marketing? What are the threats against its continued success? What has helped the globalization of direct marketing? Do you see any obstacles now or in the future?
3. As we saw in the opening vignette to Chapter 2, Nike’s high visibility and publicity have had some negative effects. Use the Internet and other media sources to find out what they are. What can Nike do to counter the product “misplacement” effects?
2. Analyze how some companies’Web sites serve as both a source of information and a point-ofpurchase promotional site. What do the companies do in order to create an interactive, highly involved encounter? How do they try to induce “action”?
1. What is it that makes a created media event such as a Hollywood movie opening a powerful promotional tool? What does this tell you about when such events should (or should not) be attempted by the global marketer?
5. Help design a field sales staff that can be the front-line service providers for global customers and be part of the localization of global strategies
4. Implement an e-commerce solution as a new medium that combines one-to-one communication and sales transactions— especially in services and in B2B.
3. Use the advances in the Internet, telecommunications, and express mail—as well as the development of address lists and the availability of credit cards—to transform direct mail from a simple promotional tool to a viable global marketing option, especially for small businesses.
2. Engage local representatives to find out exactly what local regulations are so that the constraints can be adjusted for implementation of the global promotion strategy.
1. See how to integrate global advertising with other promotional tools so a unified image and message is communicated.
14. The following account draws on the excellent article by Hanni et al., 1995.
13. My colleague Gary Bamossy was very helpful with the material on digitalization of advertising.
12. Many of these culturally based idiosyncrasies are documented by Ricks, 1993.
11. From Hill and Shao, 1994.
10. See Johnson, 1994.
9. See, for example, the role of Saatchi & Saatchi in the British Airways’ decision to use global advertising.
8. From Harris, 1994.
7. See Mueller, 1991.
6. See, for example, the contrasts between Banerjee, 1994, and Elliott, 1995a.
5. From Lippman, 1988.
4. Although not always as advantageous as one would initially assume. In one case an American company wanted to use the same TV commercials abroad as the ones used at home, without any dubbing or change of language. But the actors employed for the U.S. commercials demanded so high a compensation
3. See DeMooij and Keegan, 1991.
2. From Greyser, 1992.
1. These definitions are necessarily crude. Some “global” advertising, such as the pan-European ads done by Pioneer car audio products, is perhaps better seen as “regional.” Even the most multidomestic advertising, such as that done for Budweiser beer in many countries, retains a certain
5. Rather than enforcing complete uniformity, global advertising tends to follow a “pattern standardization approach.” What does this mean? How does this help avoid the pitfalls of standardized and translated messages?
4. How can an advertiser use the company Web site to create global advertising? How can the message be localized?
3. Discuss what an advertiser may do to avoid conflicts with country managers when a global advertising campaign is contemplated.
2. Using the same sources, can you find examples of global advertising for which the markets are not global but “multidomestic”?
1. Using library sources and the Internet, find three examples of global advertising. What characteristics make these campaigns global?
4. Media. Global advertising draws on media with global reach such as satellite TV and international editions of magazines and newspapers to create spillovers in two ways: (a) crossing borders to reach customers in different countries and (b) following traveling customers around the globe
3. Message and creative. The copy and visualization go to the heart of the global campaigns.Global advertising is basically uniform in copy and visualization across markets. Three levels of gradually decreasing uniformity can be distinguished: identical ads, prototype advertising, and pattern
2. Budgeting and Organization. Global advertising is typically directed from headquarters with the help of advertising agencies with a global network. The overall budget and its allocation between markets and products needs to be determined. The need for central control of the global advertising

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