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Solution Manual for Global Marketing, 9/E –
Warren J. Keegan & Mark C. Green
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CHAPTER 1
INTRODUCTION TO GLOBAL MARKETING
SUMMARY
A. Marketing is an organizational function and a set of processes for creating,
communicating, and delivering value to customers and for managing customer
relationships in ways that benefit the organization and its stakeholders. A company that
engages in global marketing focuses resources on global market opportunities and threats.
Successful global marketers such as Nestlé, Coca-Cola, and Honda use familiar
marketing mix elements – the four Ps – to create global marketing programs.
B. Marketing, R&D, manufacturing, and other activities comprise a firm’s value chain the
value equation (V =B/P) expresses the relationship between values and the marketing
mix.
C. Global companies also maintain strategic focus while pursuing competitive advantage.
The marketing mix, value chain, competitive advantage, and focus are universal in their
applicability, irrespective of whether a company does business only in the home country
or has a presence in many markets around the world. However, in a global industry,
companies that fail to pursue global opportunities risk being pushed aside by stronger
global competitors.
D. A firm’s global marketing strategy (GMS) can enhance its worldwide performance. The
GMS addresses several issues. First is the nature of the marketing program in terms of the
balance between a standardization (extension) approach to the marketing mix and a
localization (adaptation) approach that is responsive to country or regional differences.
Second is the concentration of marketing activities in a few countries or the dispersal of
such activities across many countries. Companies that engage in global marketing can
also engage in coordination of marketing activities. Finally, a firm’s GMS will address
the issue of global market participation.
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E. The importance of global marketing today can be seen in the company rankings compiled
by the Wall Street Journal, Fortune, Financial Times, and other publications. Whether
ranked by revenues, market capitalization, or some other measure, most of the world’s
major corporations are active regionally or globally. The size of global markets for
individual industries or product categories helps explain why companies “go global”.
Global markets for some product categories represent hundreds of billions of dollars in
annual sales; other markets are much smaller. Whatever the size of the opportunity,
successful industry competitors find that increasing revenues and profits means seeking
markets outside the home country.
F. Company management can be classified in terms of its orientation toward the world:
ethnocentric, polycentric, regiocentric, or geocentric. The terms reflect progressive levels
of development or evolution. An ethnocentric orientation characterizes domestic and
international companies; international companies pursue marketing opportunities outside
the home market by extending various elements of the marketing mix. A polycentric
worldview predominates at a multinational company, where the marketing mix is adapted
by country managers operating autonomously. Managers at global and transnational
companies are regiocentric or geocentric in their orientation and pursue both extension
and adaptation strategies in global markets.
G. The dynamic interplay of several driving and restraining forces shapes the importance of
global marketing. Driving forces include market needs and wants, technology,
transportation and communication improvements, product costs, quality, world economic
trends, and recognition of opportunities to develop leverage by operating globally.
Restraining forces include market differences, management myopia, organizational
culture, and national controls such as nontariff barriers (NTBs).
OUTLINE OF THE BOOK
The book is divided into five parts.
Part 1: An overview of global marketing and the basic theory of global marketing.
Part 2: The environments of global marketing.
Part 3: Approaching global markets (global strategy)
Part 4: The marketing mix in global marketing.
Part 5: Corporate strategy, leadership, and the impact of the digital revolution on global
marketing.
LEARNING OBJECTIVES
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1 Use the product/market growth matrix to explain the various ways a company can expand
globally
2 Describe how companies in global industries pursue competitive advantage
3 Compare and contrast single-country marketing strategy with global marketing strategy (GMS)
4 Identify the companies at the top of the Global 500 rankings
5 Explain the stages a company goes through as its management orientation evolves from
domestic and ethnocentric to global and geocentric.
6 Discuss the driving and restraining forces affecting global integration today.
DISCUSSION QUESTIONS
1-1. What are the basic goals of marketing? Are these goals relevant to global marketing?
Marketing activities represent an organization’s efforts to satisfy customer wants and
needs by offering products and services that create value. These goals are relevant in
virtually every part of the world; however, when an organization pursues market
opportunities outside of its home country (domestic) market, managers need an
understanding of additional conceptual tools and guidelines in order to do business in
these other countries – in other words, to create value and satisfy consumer needs and
wants.
1-2. What is meant by “global localization?” Is Coca-Cola a global product? Explain.
The phrase “global localization” represents an attempt to capture the spirit of the rallying
cry for organizations in the 21st
century, namely, “think globally, act locally, and manage
regionally.” Most students will agree that Coca-Cola is a global product by virtue of the
fact that it is available in more than 195 countries in red cans bearing the distinctive
signature style. It must be noted, however, that customer service efforts are adapted to the
needs of particular markets (for example, vending machines in Japan). Thus, Coca-Cola
is both global and local.
1-3. A company’s global marketing strategy (GMS) is a crucial, competitive tool. Describe
some of the global marketing strategies available to companies. Give examples of companies that
use the different strategies.
This question invites reference to Table 1-5. Strategies include global branding (Coca-
Cola, Marlboro), product design (McDonald’s restaurants and menu items), positioning
(Harley-Davidson), packaging (Gillette Sensor), distribution (Benetton), customer service
(Caterpillar), and sourcing (Toyota, Gap).
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1-4. UK-based Burberry is a luxury fashion brand that appeals to both genders and all ages. To
improve Burberry’s competitiveness in the luxury goods market, CEO Angela Ahrendts recently
unveiled a new strategy that includes all the elements of the marketing mix. Their strategy also
addresses key markets that Burberry will participate in, as well as the integration and
coordination of marketing activities. Search for recent articles about Burberry and write a brief
summary that outlines Burberry’s GMS.
Student answers will vary, but all should contain the facts that the new CEO intends to
broaden the brand’s appeal and introduce two new logos.
1-5. Discuss the differences between the global marketing strategies of Harley-Davidson and
Toyota?
Harley-Davidson motorcycles are known the world over as “the” all-American
motorcycle. Harley’s mystique and heritage are associated with America. The company
backs up this positioning with exports from two U.S. manufacturing locations. By
contrast, Toyota builds some models (e.g. Camry) for the U.S. market in the U.S., a fact
that Toyota stresses in its American advertising. Thus, Harley-Davidson serves global
markets while sourcing locally, while Toyota’s strategy calls for serving world markets
and using the world as a source of supply.
1-6. Describe the difference between ethnocentric, polycentric, regiocentric, and geocentric
management orientations.
The premise of an ethnocentric orientation is that home country products and
management processes are superior. An ethnocentric company that neither sources inputs
from, nor seeks market opportunities in the world outside the home country may be
classified as an international company. A company that does business abroad while still
presuming the superiority of the home country may be classified as an international
company. Such a company would rely on an extension strategy whereby it would export,
without adaptation, products designed for the domestic market.
The polycentric orientation that predominates at a multinational company leads to a view
of the world in which each country market is different from the others. Local country
managers operating with a high degree of autonomy adapt the marketing mix in a
polycentric, multinational company. Managers who are regiocentric or geocentric in their
orientations recognize both similarities and differences in world markets. Market
opportunities are pursued using both extension and adaptation strategies. The regiocentric
and geocentric orientations are characteristic of global transnational companies.
1-7. Identify and briefly describe some of the forces that have resulted in increased global
integration and the growing importance of global marketing.
The dynamic involving driving and restraining forces is shown diagrammatically in
Figure 1-1. Driving forces include regional economic agreements such as NAFTA,
converging market needs and wants, technology advances such as the Internet and global
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TV networks, transportation improvements, the need to recoup high product development
costs in global markets, the need to improve quality through R&D investment, world
economic trends such as privatization and finally, opportunities to use leverage, corporate
culture, and the continuing presence of national controls that create trade barriers.
1-8. Define leverage and explain the different types of leverage utilized by companies with
global operations.
Webster’s New World Dictionary defines “leverage” as an “increased means of
accomplishing some purpose.” A global company can take advantage of several types of
leverage in pursuit of corporate goals such as profit or revenue growth. These include
experience transfers, scale economies, enhanced resource utilization, and global strategy.
1-9. Each July, Fortune publishes its Global 500 listing of the world’s largest companies.
You can find the current rankings online at: www.fortune.com/global500. Alternatively, you can
consult the print edition of Fortune. Browse through the list and choose any company that
interests you. Compare its 2014 ranking with the most recent ranking. Has the company’s
ranking changed? Consult additional sources (e.g., magazine articles, annual reports, the
company’s Web site) to get a better understanding of the factors and forces that contributed to
the company’s move up or down in the rankings. Write a brief summary of your findings.
Each student’s answer will vary based upon the company they chose.
1-10. There’s a saying in the business world that “nothing fails like success”. Take Gap, for
example. How can a fashion retailer that was once the source for wardrobe staples such as
chinos and white T-shirts suddenly lose its marketing edge? Motorola has also fallen victim to
its own success. The company’s Razr cell phone was a huge hit, but Motorola struggled to
leverage that success. Now, Google owns Motorola Mobility. Also, Starbucks CEO Howard
Shultz recently warned that his company and brand risk becoming commoditized. And, as noted
in Case 1-3, some industry observers are saying that Apple has “lost its cool”. If you were to
make separate recommendations to management at each of these companies, what would you
say?
Each student’s answer will vary but their answers should incorporate such terms as global
marketing, marketing mix strategy, value chain, V = B/P, strategic focus, global
marketing strategy, extension, adaption, ethnocentric, polycentric, regiocentric, or
geocentric orientations in their responses. Perhaps, a phrase that could be said to each of
these chief executives is “think globally, act locally”.
OVERVIEW
The growing importance of global marketing is one aspect of a sweeping transformation that has
profoundly affected the people and industries of many nations during the past 160 years.
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Four decades ago, the phrase global marketing did not even exist. Today businesspeople utilize
global marketing to realize their companies’ full commercial potential. However, there is
another, even more critical reason why companies need to take global marketing seriously:
survival. A management team that fails to understand the importance of global marketing risks
losing its domestic business to competitors with lower costs, more experience, and better
products.
But what is global marketing? How does it differ from “regular” marketing? Marketing can be
defined as the activity, set of institutions, and processes for creating, communicating, and
delivering value for customers, clients, partners, and society at large.
Marketing activities center on an organization’s efforts to satisfy customer wants and needs with
products and services that offer competitive value and for managing customer relationships in
ways that benefit the organization and its stakeholders. The marketing mix (product, price, place,
and promotion) comprises a contemporary marketer’s primary tools. Marketing is a universal
discipline – as applicable in Argentina as it is in Zimbabwe.
 (Learning Objective #1)
This book is about global marketing. An organization that engages in global marketing focuses
its resources and competencies on global market opportunities and threats. A fundamental
difference between regular marketing and global marketing is the scope of activities. A company
that engages in global marketing conducts important business activities outside the home-country
market. The scope issue can be conceptualized in terms of the familiar product/market matrix of
growth strategies (see Table 1-1). Some companies pursue a market development strategy; this
involves seeking new customers by introducing existing products or services to a new market
segment or to a new geographical market.
Global marketing can also take the form of a diversification strategy in which a company creates
new product or service offerings targeting a new segment, a new country, or a new region. Four
of the growth strategies shown in Table 1-1:
(Chapter 1, Page 5)
Four Stages - Starbucks
Market penetration: Starbucks is building on its loyalty card and rewards program in
the United States with a smartphone app that enables customers to pay for purchases
electronically. The app displays a bar code that the barista can scan.
Market development: Starbucks is entering India via an alliance with the Tata Group.
Phase one calls for sourcing coffee beans in India and marketing them at Starbucks
stores throughout the world. The next phase will likely involve opening Starbucks
outlets in Tata’s upscale Taj hotels in India.
Product development: Starbucks created a brand of instant coffee, Via, to enable its
customers to enjoy coffee at the office and other locations where brewed coffee is not
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available. After a successful launch in the United States, Starbucks rolled out Via in
Great Britain, Japan, South Korea, and several other Asian countries.
Diversification: Starbucks has launched several new ventures, including music CDs
and movie production. Next up: Revamping stores so they can serve as wine bars and
attract new customers in the evening.
Companies that engage in global marketing frequently encounter unique or unfamiliar features in
specific countries or regions of the world. In some regions of the world, bribery and corruption
are deeply entrenched. A successful global marketer understands specific concepts and has a
broad and deep understanding of the world’s varied business environments. He or she also must
understand the strategies that, when skillfully implemented in conjunction with universal
marketing fundamentals, increase the likelihood of market success.
ANNOTATED LECTURE/OUTLINE
Principles of Marketing: A Review
Marketing is one of the functional areas of business – distinct from finance and operations.
Marketing is the set of activities and processes that (along with product design, manufacturing,
and transportation) comprises a firm’s value chain.
Decisions at every stage of the process – from idea conceptualization to customer support after
the sale – should be assessed in terms of their ability to create value for customers.
The core of marketing is to surpass the competition in creating perceived value for customers.
The value equation is the guide to this task:
Value = Benefits / Price (money, time, effort, etc.)
The marketing mix is central to this equation because benefits are a combination of the product,
promotion, and distribution components of the mix.
Value to the customer can be increased in two ways – 1) an improved bundle of benefits or 2) a
lower price (or both):
1) Marketers may improve the product, design new channels of distribution, communicate
better – or a combination of all three.
2) Marketers may seek ways to cut costs or lower the price. Nonmonetary costs may be
lowered by decreasing the time and effort customers must expend to learn about or
acquire a product.
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If a company is able to offer a combination of superior product, distribution, and promotion of
the benefits AND offer lower prices than its competition, it should enjoy an extremely
advantageous position. Recall the definition of a market: people or organizations that are both
able and willing to buy. In order to achieve market success, a product or brand must measure up
to a threshold of acceptable quality and be consistent with buyer behavior, expectations, and
preferences
Competitive Advantage, Globalization, and Global Industries
 (Learning Objective #2)
When a company succeeds in creating more value for customers than its competitors, that
company is said to enjoy competitive advantage in an industry. Competitive advantage is
measured relative to rivals with whom you compete in the industry – whether that is on a local,
national, or global level.
Global marketing is essential if a company competes in a global industry or one that is
globalizing.
The process of globalization is the transformation of formerly local or national industries into
global ones.
From a marketing point of view, globalization presents companies with tantalizing
opportunities—and challenges—as executives decide whether to offer their products and services
everywhere.
As defined by management guru Michael Porter, a global industry is one in which competitive
advantage can be achieved by integrating and leveraging operations on a worldwide scale. Put
another way, an industry is global to the extent that a company’s industry position in one country
is interdependent with its industry position in other countries. Indicators of globalization include
the ratio of cross-border trade to total worldwide production, the ratio of cross-border investment
to total capital investment, and the proportion of industry revenue generated by companies that
compete in all key world regions. One way to determine the degree of globalization in an
industry sector is to calculate the ratio of the annual value of global trade in the sector—
including components shipped to various countries during the production process—to the annual
value of industry sales.
Achieving competitive advantage in a global industry requires executives and managers to
maintain a well-defined strategic focus. Focus is simply the concentration of attention on a core
business or competence. Companies that understand and engage in global marketing can offer
more overall value to customers than companies that do not have that understanding.
Value, competitive advantage, and the focus required to achieve them are universal in their
relevance, and they should guide marketing efforts in any part of the world. Global marketing
requires attention to these issues on a worldwide basis and utilization of a business intelligence
system capable of monitoring the globe for opportunities and threats. A fundamental premise of
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this book can be stated as follows: Companies that understand and engage in global marketing
can offer more overall value to customers than companies that do not have that understanding.
Global Marketing: What It Is and What It Isn’t
The discipline of marketing is universal. It is natural, however, that marketing practices will
vary from country to country, for the simple reason that the countries and peoples of the world
are different. A successful marketing approach in one country may not necessarily succeed in
another. Customer preferences, competitors, channels of distribution, and communication media
may differ. An important managerial task in global marketing is learning to recognize the extent
to which it is possible to extend marketing plans and programs worldwide, as well as the extent
to which adaptation is required.
 (Learning Objective #3)
The way a company addresses this task is a reflection of its global marketing strategy (GMS). In
single-country marketing, strategy development addresses two fundamental issues: choosing a
target market and developing a marketing mix. The same two issues are at the heart of a firm’s
GMS, although they are viewed from a somewhat different perspective (see Table 1-3).
A Long, Strange Trip: The Grateful Dead at 50
Tells the story about how the band, the Grateful Dead, in 1965 created a new art form with a
sound that incorporated blues, jazz, rock, jug band, folk, and other cultural influences. In 2015
as the bad approached their 50th
anniversary, many industry observers hailed the Dead for
innovations that continue to impact the music scene in the present day. Precursors of
contemporary marketing concepts such as brand equity, freenomics, brand tribes, the sharing
economy, customer relationship management, niche marketing, and word-of-mouth marketing
can be seen in their business practices.
a) Global market participation – is the extent to which a company has operations in major
world markets.
b) Standardization versus adaptation – is the extent to which each marketing mix element
can be standardized (used the same way) or must be adapted (used in different ways) in
different country markets.
c) Concentration of marketing activities – is the extent to which activities related to the
marketing mix (such as pricing decisions) are performed in one or only a few country
locations.
d) Coordination of marketing activities – is the extent to which marketing activities related
to the mix are planned and executed interdependently around the globe.
e) Integration of competitive moves – the extent to which a firm’s competitive marketing
tactics in different parts of the world are interdependent.
The decision to enter one or more particular markets outside the home country depends on a
company’s resources, its managerial mind-set, and the nature of opportunities and threats.
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Global marketing does mean widening business horizons to encompass the world in scanning for
opportunities and threats.
The five emerging markets of Brazil, Russia, India, China, and South Africa represent significant
growth opportunities. They are known as BRICS. Mexico, Indonesia, Nigeria, and Turkey—the
so-called MINTs—also hold great potential.
We can use Burberry as a case study in global marketing strategy. The U.K.-based luxury brand
is available in scores of countries, and Burberry’s current expansion plans emphasize several
geographical areas. Burberry’s marketing mix strategy includes the following:
Product: Boost sales of handbags, belts, and accessories—products whose sales are less cyclical
than clothing.
Price: More expensive than Coach, less expensive than Prada. “Affordable luxury” is central to
the value proposition.
Place: Burberry intends to open more independent stores in the United States as well as
expansion in London and Hong Kong.
Promotion: Encourage advocacy and sharing social media and online channels such as Twitter,
Instagram, and www.artofthetrench.com. Launch Burberry Acoustic to enhance brand relevance
and to provide exposure for emerging music talent via www.burberry.com/acoustic.
The issue of standardization versus adaption has been at the center of a long-standing
controversy among both academicians and business practitioners. Much of the controversy dates
back to the days of Theodore Levitt’s (1983) “homogenized global market.” Levitt envisioned a
global community where standardized, high-quality world products would be marketed in a
standardized manner.
The “homogenized global market” view didn’t work. Even those companies that have become
global successes have not done so through total standardization of the product.
Global marketing made Coke a worldwide success. However, that success was not based on a
total standardization of marketing mix elements.
Coca-Cola succeeded through the application of global localization. What does the term “global
localization” really mean? Global localization: Think globally, act locally (refer to Table 1-4).
a) For example, Cinnabon’s customers in Central and South America prefer dulce de leche.
Products developed in those regions being introduced in the U.S., where the Hispanic
population is a key segment.
b) Starbucks opened an experimental store in Amsterdam that serves as a testing ground for
new design concepts such as locally sourced and recycled building materials.
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c) Kraft’s Tang powder became a $ 1 billion brand as regional managers in Latin American
and the Middle East moved beyond orange (the top-seller) into popular local flavors such
as mango and pineapple. Kraft plans to use these lessons learned on the U.S. market.
Global marketing may include a combination of standard and nonstandard approaches. Global
marketing requires marketers to think and act in a way that is both global and local by
responding to similarities and differences in world markets.
The particular approach to global marketing that a company employs will depend on industry
conditions and its sources of competitive advantage.
For example, McDonald’s global marketing strategy is based on a combination of global and
local marketing mix elements (refer to Table 1-4).
a) For example, Harley-Davidson’s competitive advantage is based in part on “Made in the
USA.” Moving production to a low-wage country would tarnish its image.
b) Toyota’s and Honda’s success in the US has come through its ability to transfer world-
class manufacturing skills to America and advertising that the Camry is “Made in the
USA” by Americans.
c) Uniqlo, a division of Japan’s Fast Retail operates about 850 stores in Japan and 300
stores in 12 overseas countries. Uniqlo currently has 6 stores in the U.S. but plans call
for a total of 200 stores by 2020.
The Importance of Global Marketing
The largest single market in the world in terms of national income is The United States,
representing roughly 25 percent of the total world market for all products and services.
U.S. companies that wish to achieve maximum growth potential must “go global” because 75
percent of the world market potential is outside of their home country.
Non-US companies have an even greater incentive to “go global;” their potential markets include
the 300 million people in the US.
Management Orientations
 (Learning Objective #5)
The form and substance of a company’s response to global market opportunities will depend
greatly on its management’s assumptions and beliefs – both conscious and unconscious - about
the nature of the world.
The world view of a company’s personnel can be described as ethnocentric, polycentric,
regiocentric, and geocentric. The orientations are collectively known as the EPRG framework.
Ethnocentric Orientation:
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a) A person who assumes that his/her home country is superior to the rest of the world.
b) Associated with national arrogance or feelings of national superiority.
c) At some companies, the ethnocentric orientation means that opportunities outside of the
home country are routinely ignored (domestic companies).
d) Ethnocentric companies that conduct business outside their home country are known as
international companies – they believe products that succeed in the home country are
superior.
e) Leads to a standardized or extension approach – the belief that products can be sold
everywhere without adaptation.
f) Foreign operations or markets are viewed as inferior or subordinate to the home market.
g) Headquarters knowledge is applied everywhere; local knowledge is viewed as
unnecessary.
Polycentric Orientation:
a) The opposite view of ethnocentrism.
b) The belief that each country in which you do business is unique.
c) This assumption allows each subsidiary to develop its own unique marketing strategies in
order to succeed.
d) The term multinational company is often used to describe such a structure.
e) Leads to a localized or adaptation view that assumes products MUST be adapted to
succeed.
Regiocentric Orientation:
a) The region becomes the relevant geographic unit.
b) Management’s goal is to develop a regionally integrated strategy (e.g. NAFTA or the
EU).
c) May be viewed as a variant of the multinational view (polycentric).
Geocentric Orientation:
a) Views the entire world as a potential market and strives to develop integrated global
strategies.
b) These companies are known as global or transnational companies.
c) Serves world markets from a single country or sources globally for the purposes of
focusing on select country markets.
d) Tend to maintain their association with a particular headquarters country. (Harley-
Davidson and Waterford serve world markets from the US and Ireland, respectively.)
e) Transnational companies serve global markets and utilize global supply chains.
f) Transnational companies both serve global markets and utilize global supply chains and
often have a blurring of national identity. A true transnational would be stateless. (Toyota
and Honda are examples of companies that exhibit key characteristics of transnationality
(see Exhibit 1-7)
g) A key factor that distinguishes global and transnational companies from international or
multinational companies is mind-set: At global and transnational companies, decisions
regarding extension and adaptation are not based on assumptions but rather on made on
the basis of ongoing research into market needs and wants.
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h) It is a synthesis of ethnocentrism and polycentrism – it is a “world view.”
i) Seeks to build a global strategy that is responsive to local needs and wants.
It is a positive sign that, at many companies, management realizes the need to adopt a geocentric
orientation. However, the transition to new structures and organizational forms can take time to
bear fruit.
A global company can be further described as one that pursues either a strategy of serving world
markets from a single country or one that sources globally for the purposes of focusing on select
country markets. In addition, global companies tend to retain their association with a particular
headquarters country. At global and transnational companies, management uses a combination
of standardized (extension) and localized (adaptation) elements in the marketing program.
One way to assess a company’s “degree of transnationality” is to compute an average of three
figures: (1) sales outside the home country to total sales, (2) assets outside the home country to
total assets, and (3) employees outside the home country to total employees. Viewed in terms of
these metrics, Nestlé, Unilever, Royal Philips Electronics, GlaxoSmithKline, and the News
Corporation can also be categorized as transnational companies.
Each is headquartered in a relatively small home country market, a fact of life that has compelled
management to adopt regiocentric or geocentric orientations to achieve revenue and profit
growth.
The geocentric orientation represents a synthesis of ethnocentrism and polycentrism; it is a
“worldview” that sees similarities and differences in markets and countries and seeks to create a
global strategy that is fully responsive to local needs and wants.
A regiocentric manager might be said to have a worldview on a regional scale; the world outside
the region of interest will be viewed with an ethnocentric or a polycentric orientation, or a
combination of the two.
However, recent research suggests that many companies are seeking to strengthen their regional
competitiveness rather than moving directly to develop global responses to changes in the
competitive environment
The ethnocentric company is centralized in its marketing management; the polycentric company
is decentralized; and the regiocentric and geocentric companies are integrated on a regional and
global scale, respectively. A crucial difference between the orientations is the underlying
assumption for each.
The ethnocentric orientation is based on a belief in home-country superiority. The underlying
assumption of the polycentric approach is that there are so many differences in cultural,
economic, and marketing conditions in the world that it is futile to attempt to transfer experience
across national boundaries.
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A key challenge facing organizational leaders today is managing a company’s evolution beyond
an ethnocentric, polycentric, or regiocentric orientation to a geocentric one. As noted in one
highly regarded book on global business,
“The multinational solution encounters problems by ignoring a number of organizational
impediments to the implementation of a global strategy and underestimating the impact of global
competition.”
Innovation, Entrepreneurship, and the Global Startup
Kevin Plank, Under Armour
In less than 20 years Under Armour is on track to reach $ 2.0 billion in sales. Under Armour is
intent on building their brand into “the biggest brand in the land”. In 2012, only 6 percent of
Under Armour’s revenues were generated outside of North America. Some industry observers
think Under Armour is planning significant global product introductions times to coincide with
the 2016 Summer Olympic Games in Brazil.
Forces Affecting Global Integration and Global Marketing
 (Learning Objective #6)
The remarkable growth of the global economy over the past 65 years has been shaped by the
dynamic interplay of various driving and restraining forces. Regional economic agreements,
converging market needs and wants, technology advances, and pressures to cut costs, pressures
to improve quality, improvements in communications and transportation technology, global
economic growth, and opportunities for leverage all represent important driving forces.
Multilateral Trade Agreements
A number of multilateral trade agreements have accelerated the pace of global integration. In
Europe, the expanding membership of the European Union is lowering boundaries to trade
within the region. NAFTA is expanding trade between the United States, Canada and Mexico.
Converging Market Needs and Wants and the Information Revolution
A person studying markets around the world will discover cultural universals as well as
differences. The common elements in human nature provide an underlying basis for the
opportunity to create and serve global markets. Most global markets do not exist in nature –
marketing efforts must create them. (For example, no one needs soft drinks.)
Evidence is mounting that consumer needs and wants around the world are converging today as
never before. This creates an opportunity for global marketing.
Multinational companies pursuing a strategy of product adaptation run the risk of falling victim
to global competitors that have recognized opportunities to serve global customers.
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The information revolution — what some refer to as the “democratization of information” — is
one reason for the trend toward convergence. Thanks to satellite dishes and globe-spanning TV
networks (CNN and MTV), it seems as though almost everyone has the opportunity to compare
their lives against everyone else’s.
The Internet is an even stronger driving force. When a company establishes a presence on the
Internet, it is automatically a global company.
Transportation and Communication Improvements
Time and cost barriers associated with distance have fallen tremendously over the past 100 years.
The jet airplane revolutionized communication by making it possible for people to travel around
the world in less than 48 hours.
In 1970, 75 million passengers traveled internationally. By 2011, that figure rose to almost 980
million.
The newest communication technologies, such as e-mail, video teleconferencing, and Wi-Fi,
mean that managers, executives, and customers can link up electronically from virtually any part
of the globe without traveling at all.
A similar revolution is occurring in transportation technology. The costs associated with physical
distribution – in both money and time – have been greatly reduced.
Product Development Costs
The pressure for globalization is intense when new products require major investment and long
periods of development time. The pharmaceutical industry provides a good example of this
driving force.
Today, the process of developing a new drug and bringing it to market can span 14 years and
exceed $400 million. Such cost must be recovered globally because no single national market is
likely to be large enough to support investments of this size. (Refer to Table 1- 6).
Quality
Global companies “raise the bar” for all competitors in an industry. When a global company
establishes a benchmark for quality, competitors must quickly make their own improvement and
come up to par. Global marketing strategies can generate greater revenue and greater operating
margins, which, in turn, support design and manufacturing quality.
World Economic Trends
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Prior to the global economic crisis that began in 2008, economic growth had been a driving force
in the expansion of the international economy and the growth of global marketing for three
reasons:
a) Economic growth in key developing countries has created market opportunities that
provide a major incentive for companies to expand globally.
b) Economic growth has reduced resistance that might otherwise have developed in
response to the entry of foreign firms into domestic economies. (When a country such as
China experiences rapid economic growth, policy makers are more likely to look
favorably on outsiders.)
c) The worldwide movement toward free markets, deregulation, and privatization is the
third driving force. (Telephone company privatization is an example.)
Leverage
A global company possesses the unique opportunity to develop leverage. In the context of global
marketing, leverage means some type of advantage that a company enjoys by virtue of the fact
that it has experience in more than one country.
Leverage allows a company to conserve resources when pursuing opportunities in new
geographical markets.
Four important types of leverage exist:
1) Experience Transfers – A global company can leverage its experience in any
market in the world by drawing on management practices, strategies, products,
advertising appeals, or sales or promotional ideas that have been market-tested in
one country and applied to another.
2) Scale Economies – The global company can take advantage of its greater
manufacturing volume to obtain traditional scale advantages. Finished products
can be manufactured by combining components manufactured in scale-efficient
plants in different countries.
3) Resource Utilization – A global company has the ability to scan the entire world
to identify people, money, and raw materials that will enable it to compete most
effectively in world markets.
4) Global Strategy – The global company’s greatest advantage is its global strategy.
A global strategy is built on an information system that scans the world business
environment to identify opportunities, trends, threats, and resources. A global
strategy is a design to create a winning strategy on a global scale. Note: A global
strategy is NO guarantee of ongoing organizational success. (Consider InBev’s
acquisition of Anheuser-Bush, Daimler-Chrysler, and Deutsche Post’s DHL unit.)
Restraining Factors
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Despite the impact of the driving forces previously discussed, several restraining forces may
slow a company’s efforts to engage in global marketing. Luckily, in today’s world the driving
forces predominate over the restraining forces. That is why the importance of global marketing is
steadily growing.
Important restraining forces include:
a) Management Myopia and Organizational Culture – Management may simply ignore
opportunities to pursue global marketing. A company that is ethnocentric (or
“nearsighted”) will not expand geographically. Myopia is a recipe for market disaster if
headquarters attempts to dictate when it should listen. Successful global marketing
requires a strong local team “on the ground” to provide information about local markets.
b) National Controls – Every country protects the commercial interests of local businesses
by maintaining control over market access and entry in both low- and high-tech
industries. Today, tariff barriers have been largely removed in high-income countries.
Still, nontariff barriers (NTBs), such as “Buy American” campaigns, make it difficult for
companies to gain access to local markets.
c) Opposition to Globalization – To many people, globalization represents a threat.
Globaphobia is used to describe an attitude of hostility toward trade agreements or global
brands. Opponents of globalization include labor unions, university students and
nongovernmental organizations (NGOs).
CASES
Case 1-1: The Global Marketplace: The Assignment
Answers given in the text book.
Case 1-1 Discussion Questions
1-11. Anheuser-Busch, which has been described as “an American icon,” is now under the
ownership of a company based in Belgium. Responding to reports that some consumers planned
to boycott Bud products to protest the deal, one industry observer said, “Brand nationality is all
about where it was born, and also the ingredients of that beer and how they make the beer:
Basically, it doesn’t matter who owns it. We are in a global world right now”. Do you agree?
Students answers will vary based on their agreement or disagreement with this statement.
Good students will introduce key words like ethnocentric, polycentric, regiocentric, and
geocentric in their answers to describe their view of the manufacturer of beer and how
they “feel” about the national origin(s) of and about the beer they drink.
1-12. Anheuser-Busch, (A-B) has long enjoyed a reputation as a very desirable place to work.
Executives were awarded well-appointed corporate suites and traveled on corporate jets; many
had secretaries as well as executive assistants. When managers took commercial flights, they
flew first class. Most employees received beer for free and could count on donations of beer and
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merchandise for community events. Tickets to Cardinal home games were also used as a
marketing tool. A-B spent heavily on advertising and promotion; various advertising agencies
produced about 100 new ads for A-B each year. Given these facts, what changes, if any, would
you expect A-B’s new owners to make? Why?
Student answers should explain the differences in / among / between the different
management orientations and compare and contrast the ethnocentric orientation of A-B
beverage company versus their new Belgium owners. One could argue that A-B InBev,
the new owners of A-B practice a polycentric orientation towards selling beer around the
world. In that case, the marketing sales and promotional practices previously enjoyed by
A-B most likely will continue. However, the executive “perks” will most likely decrease.
1-13. In 2009, Italy’s Fiat acquired a 20 percent stake in Chrysler, another iconic American
company. Are you familiar with Fiat? What do you think CEO Sergio Marchionne hope to
accomplish with this deal? How might Chrysler benefit from the alliance?
CEO Sergio Marchionne hopes to turn Fiat into a transnational company serving global
markets and utilizing global supply chains. His strategy might be to turn Fiat into a
geocentric company. Chrysler might benefit from the alliance by becoming a “global”
brand instead of just an “American icon.”
1-14. Ben & Jerry’s Homemade is a quirky ice cream marketer based in Burlington, Vermont.
Founders Ben Cohen and Jerry Greenfield are legendary for enlightened business practices that
include a three-part mission statement: product mission, financial mission, and social mission.
When the company was acquired by consumer products giant Unilever, some of the brand’s
loyal customers were alarmed. What do you think was the source of their concern?
The form and substance of a company’s response to global market opportunities depends
greatly on the management’s assumption or beliefs. In this case, Ben & Jerry consumers
were afraid that Unilever’s management orientation would be different from the original
owners views—either ethnocentric, polycentric, or regiocentric.
Case 1-2: McDonald’s Expands Globally While Adjusting Its Local Recipe
Overview: Today, McDonald’s golden arches are one of the most recognized symbols in the
world, just behind the Olympic rings. While growth within the U.S. has slowed, the picture
outside the U.S. has appeared brighter, until recently. However, globally, taste profiles and
consumer desires are changing. McDonald’s has responded to these changes by altering their
basic products (when necessary) to fit the requirements of the local markets. While not always
successful, it has proven to be a winning strategy.
1-15. Identify the key elements in McDonald’s global marketing strategy (GMS). In particular,
how does McDonald’s approach the issue of standardization? Does McDonald’s think global and
act local? Does it also think local and act global?
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The popularity of American-style hamburgers, fries, and soft drinks is growing around
the world, supporting Levitt’s view of the global village. Also, the restaurants themselves
offer the consumers a chance to experience for themselves a fast food legend. However,
students should point out that, in many locations, menu items are adapted according to
the customs and tastes of individual countries. McDonald’s offers an ideal example of
“global localization.”
With McDonald’s offering of local tastes and a combination of American fare,
McDonald’s thinks globally (product adaption) and acts globally (standardization).
1-16. Do you think government officials in developing countries such as Russia, China, and
India welcome McDonald’s? Do consumers in these countries welcome McDonald’s? Why or
why not?
Despite concerns by governments and citizens in some countries about “cultural
imperialism,” McDonald’s and other franchises with well-known brand names are
generally welcome. Such businesses provide both much-needed jobs and employee
training.
McDonald’s does a good job of earning the support of local authorities and the local
population by working with agricultural producers to develop local supply sources for
beef, potatoes, and dairy products. Finally, thanks to changing lifestyles around the globe,
more people are embracing the whole concept of fast food.
1-17. Is it realistic to expect that McDonald’s – or any well-known company – can expand
globally without occasionally making mistakes or generating controversy? Why do anti-
globalization protesters around the world frequently target McDonald’s?
McDonald’s has a reputation for being sensitive to local issues and mentalities.
According to the staff director for international human resources in Central Europe, “One
of our guiding principles is that our restaurants should always be a reflection of the
communities they serve.” Mistakes such as the one in France represent exceptions that
can serve as learning experiences. Still, each new nation has the potential to present
unique problems. In Israel, for example, McDonald’s must deal diplomatically and
appropriately with dietary laws pertaining to kosher foods and operating restaurants on
the Sabbath (Friday and Saturday).
Another issue is to maintain the service attitude that was a cornerstone of McDonald’s
U.S. reputation. A German student noted that in Germany, good service is not associated
with McDonald’s because counter-help consists of immigrants who do not exhibit the
cheerful demeanor of their U.S. counterparts.
1-18. Assess the changes McDonald’s is making to its marketing strategy in the United States
and around the world.
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McDonald’s executives intend to create a modern, streamlined environment that will
encourage customers to stay longer and spend more. They have included more salads
healthier food options on their ‘better for you’ menus. McDonald’s has pledged that they
would ‘listen to the customer’ with a rapid rollout of a menu innovation called ‘Create
Your Taste’.
CASE 1-3: Apple versus Samsung: The Battle for Smartphone Supremacy Heats Up
Overview: Apple’s reputation was based on its proven ability to disrupt existing markets and
create new markets with technical and design innovations. In some circles the launch of the
iPhone 5 was viewed as an evolution, rather than a revolution. Samsung makes several versions
of their Galaxy S 4 to suit the needs of different markets, Apple does not. In India, the number
three smart-phone market, Apple lags far behind Samsung, offering an Android phone for about
$ 100. Indian consumers pay $ 500 for an iPhone 4 and about $ 850 for the iPhone 5.
1-19. Do you own a smartphone? If so, which brand did you buy, and why?
Student answers will vary based on which phone they own.
1-20. In 2013, Apple introduced the iPhone 5c to attract consumers who were not willing or able
to pay a premium for an Apple device. The price was about $100 less than the top of the line 5s.
Was this the right pricing decision?
Yes this is a correct decision. This is the only way Apple was able to compete in the
ever-expanding Indian market. Samsung’s success has proved that in the emerging
country markets, this is necessary to compete.
1-21. Do you think Apple can continue to grow by developing break-through products that create
new markets, as it did with the iPod, iPhone, and iPad?
Apple needs to embrace the concept of formal market research. Steve Jobs downplayed
the importance of this concept saying that consumers don’t know what they want.
Samsung Electronics on the other hand, relies heavily on market research. 60,000 staff
members work in dozens of research centers in China, Great Britain, India, Japan, the
United States, and elsewhere. Samsung designers have backgrounds in such diverse
disciplines as psychology, sociology, and engineering.
1-22. How has Samsung’s global marketing strategy enabled it to compete so effectively against
Apple?
In many developing countries, there is a strong demand for inexpensive mobile phones.
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Some Android-based models from Android models from Samsung sell for much less than
the iPhone 5. Apple does not offer a lower-cost version of the iPhone. Samsung has
done their research and found the unsatisfied needs of the consumers.
1-23.Assess the prospects for the global success of Apple Pay and Apple Watch.
Apple Pay and Apple Watch will be game changers for their competition. These
products, priced properly, will do well across many global markets. Gender and age
demographics will show that these products will succeed in all demographics
TEACHING TOOLS AND EXERCISES
Additional Cases:
"GENICON: A Surgical Strike into Emerging Markets" by Allen H. Kupetz; Adam P. Tindall;
Gary Haberland. June 2010, HBS: 910M41-PDF-ENG.
"Market Stretch" by Gavin Price and Margaret Sutherland. June 2009. HBS: 909M46-PDF-
ENG.
“Global Brand Face-Off”, HBR Case Study and Commentary RO 306A. Anand P. Raman, Peter
M. Thompson, Jennifer L. Aaker; Harish Manwani; Simon Clift; Masaaki Mike Kotabe.
“Mary Kay Inc: Asian Market Entry (B)”, John A. Quelch. HBS 509067.
Video: This article is from Management International Review, March 2011. It is titled “Effective
Global Strategy Implementation: Structural and Process Choices Facilitating Global Integration
and Coordination.”
The abstract states that this article offers “a contingency framework of global strategy
implementation effectiveness on firm performance. The research question we seek to address is
what the structural and process requirements are for MNEs to successfully implement global
strategy through increased efficiency and effectiveness of integration and coordination across
world markets. Our central premise is that MNEs' capabilities in establishing supporting
structural and process mechanisms will enhance the effectiveness and efficiency of
implementing their global strategies which would, in turn, lead to better firm performance.”
Link: http://www.freepatentsonline.com/article/Management-International-
Review/256930786.html and here is a different link to the PDF of this document:
http://www.springerlink.com/content/12181r4440117312/
This next video is just a quick two-minute video showing Pepsi’s marketing throughout the
world, and how they differentiate packaging and advertising to adapt to the region in which they
are marketing. It provides a good example to show how companies cater their products to
different regions.
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Film: Assign “The Gods Must Be Crazy.” This classic, humor-filled movie examines the life of
a bushman unaware of white culture who finds a Coca-Cola bottle in the Kalahari (dropped by a
passing pilot) and promptly has his life turned around by this mystical object. It shows how our
simplest acts can have far-reaching impacts. This is a great introduction to global awareness.
Out-of-Class Reading: Zou, Shaoming and S. Tamer Cavusgil, “The GMS: A Broad
Conceptualization of Global Marketing Strategy and Its Effect on Performance.” Journal of
Marketing 66 (October 2002) pp. 40-56.
Internet Exercise: Fortune magazine profiled the world’s richest man
(http://money.cnn.com/2007/08/03/news/international/carlosslim.fortune/). Have students read
and summarize this piece and use this as the basis for an in-class discussion on the changing face
of world business.
Full Semester Research Assignment and Activity
This is a full semester cultural and marketing plan project designed for individuals or groups.
Students should choose a country and a product / service that is not currently found in the
targeted country and devise a cultural analysis and marketing plan for the chosen country.
For example, students can choose to market an automobile from the United States into a foreign
country or can choose to market an automobile into the United States that is not currently
available here.
At the Instructors discretion, this project can be spread over the entire semester or used as a “take
home” final exam, collected in sections as the material is covered in class or any combination
deemed.
Foreign students are especially encouraged to find products / services that they’ve been
accustomed to or enjoyed (a favorite type of food product) here in the United States and wish to
“export” to their home country.
Cultural Analysis: The data suggested in the cultural analysis includes information that helps the
marketer make market-planning decisions. However, its application extends beyond product and
market analysis to being an important source of information for someone interested in
understanding business customs and other important cultural features of the country. This
cultural analysis is composed of two parts: information on the cultural makeup of the country
and the economic analysis of the country.
The information in this analysis must be more than a collection of facts. In preparing this
material, you should attempt to interpret the meaning of cultural information. With that said,
your country analysis should contain at least one paragraph on each of the following areas:
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Per the instructor’s discretion, this section could be collected either before or after Part 2 of the
text has been discussed in class (Part 2 is chapters 2, 3, 4, and 5).
PART I: Introduction to the Culture of the Country
I. Include short profiles of the company, the product to be exported and the country with
which you wish to trade.
II. Brief discussion of the country’s relevant history
III. Geographical setting
a) location
b) climate
c) topography
IV. Social institutions
a) Family
i) The nuclear family
ii) The extended family
iii) Dynamics of the family
(1) Parental roles
(2) Marriage and courtship
b) Education
i) The role of education in society
(1) Primary education (quality, levels of development, etc)
(2) Secondary education (quality, levels of development, etc.)
(3) Higher education (quality, levels of development, etc.)
ii) Literacy rates
c) Political System
i) Political structure
ii) Political Parties
iii) Stability of government
iv) Special taxes
v) Role of local government
d) Legal System
i) Organization of the judiciary system
ii) Code, common, socialist, or Islamic-law country?
iii) Participation in patents, trademarks and other conventions
e) Organizations
i) Group behavior
ii) Social classes
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iii) Clubs, other organizations
iv) Race, ethnicity and subcultures
f) Business customs and practices
V. Religion and aesthetics
a) Religion and other belief systems
i) Orthodox doctrines and structures
ii) Relationship with the people
iii) Which religions are prominent?
iv) Membership of each religion
v) Any powerful or influential cults?
b) Aesthetics
i) Visual arts (fine arts, plastics, graphics, public arts, colors etc.)
ii) Music
iii) Drama, ballet, and other performing arts
iv) Folklore and relevant symbols
VI. Living conditions
a) Diet and nutrition
i) Meat and vegetable consumption rates
ii) Typical meals
iii) Malnutrition rates
iv) Foods available
b) Housing
i) Types of housing available
ii) Do most people own or rent?
iii) Do most people live in one-family dwellings or with other families?
c) Clothing
i) National dress
ii) Types of clothing worn at work
d) Recreation, sports, and other leisure activities
i) Types available and in demand
ii) Percentage of income spent on such activities
e) Social security
f) Health Care
VII. Language
a) Official language(s)
b) Spoken versus written language(s)
c) Dialects
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VIII. Executive Summary
After completing all of the other sections, prepare a two-page (maximum length) summary of the
major points and place it at the front of the report. The purpose of an executive summary is to
give the reader a brief glance at the critical points of your report. Those aspects of the culture a
reader should know to do business in the country but would not be expected to know or would
find different based on his or her home country should be included in this summary.
IX. Sources of information
X. Appendixes
Per the discretion of the instructor, this part could be collected after Part 3 of the textbook has
been covered in the class. (Part 3 of the text includes chapter 6, 7, 8, and 9).
PART II: The Economic Analysis of the Country
The reader may find the data collected for the economics analysis guideline are more
straightforward than for the cultural analysis guideline. There are two broad categories of
information in this guideline: general economic data that serve as a basis for an evaluation of the
economic soundness of a country and information on channels of distribution and media
availability. As mentioned earlier, the guideline focuses only on broad categories of data and
must be adapted to the particular company and its product needs. With that said, write at least
one (1) paragraph for each of these sections.
Guideline
I. Introduction
II. Population
a) Total
i) Growth rates
ii) Number of live births
iii) Birth rates
b) Distribution of population
i) Age
ii) Sex
iii) Geographic areas (urban suburban, and rural density and concentration)
iv) Migration rates and patterns
v) Ethnic groups
III. Economic statistics and activity
c) Gross national product (GNP or GDP)
1. Total
2. Rate of growth (Real GNP or GDP)
a. Personal income per capita
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b. Average family income
d) Distribution of wealth
i) Income classes
ii) Proportion of the population in each class
iii) Is the distribution distorted?
e) Minerals and resources
f) Surface transportation
i) Mode
ii) Availability
iii) Usage rates
iv) Ports.
g) Communication systems
i) Types
ii) Availability
iii) Usage rates
h) Working conditions
i) Employer-Employee relations
ii) Employee participation
iii) Salaries and benefits
i) Principal industries
i) What proportion of the GNP does each industry contribute?
ii) Ratio of private to publicly owned industries
j) Foreign Investment
i) Opportunities?
ii) Which industries?
k) International trade statistics
i) Major exports
(1) Dollar value
(2) Trends
ii) Major imports
(1) Dollar value
(2) Trends
iii) Balance-of-payments situation
(1) Surplus or deficit?
(2) Recent trends
iv) Exchange rates
(1) Single or multiple exchange rates?
(2) Current rate of exchange
(3) Trends
l) Trade restrictions
i) Embargoes
ii) Quotas
iii) Import taxes
iv) Tariffs
v) Licensing
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vi) Customs duties
m) Extent of economic activity not included in cash income activities
i) Counter trades
(1) Products generally offered for counter trading
(2) Types of counter trades requested (i.e. barter, counter purchase, etc.)
(3) Foreign aid received
n) Labor force
i) Size
ii) Unemployment rates
o) Inflation rates
IV. Developments in science and technology
a) Current technology available (computers, machinery, tools etc.)
b) Percentage of GNP invested in research and development
c) Technological skills of the labor force and general population
V. Channels of distribution (macro analysis)
This section reports data on all channel middlemen available within the market. Select a specific
channel as part of your distribution strategy for your marketing plan
a) Retailers
i) Number of retailers
ii) Typical size of retail outlets
iii) Customary markup for various classes of goods
iv) Methods of operation (cash/credit)
v) Scale of operation (large/small)
vi) Role of chain stores, department stores specialty shops
b) Wholesale middlemen
i) number and size
ii) Customary markup for various classes of goods
iii) Method of operation (cash/credit)
c) Import/Export agents
d) Warehousing
e) Penetration of urban and rural markets
VI. Media
This section reports data on all media available within the country or market. Select specific
media as part of the promotional mix and strategy for your marketing plan.
a) Availability of media
b) Costs
i) Television
ii) Radio
iii) Print
iv) Other media (cinema, outdoor etc.)
c) Agency assistance
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d) Coverage of various media
e) Percentage of population reached by each of the media
VII. Executive summary
After completing the research for this report, prepare a two-page (maximum) summary of
the major economic points and place it at the front of the report
VIII. Sources of information
IX. Appendixes
Per the instructor’s discretion, this section can be used as a final exam, a take home writing
assignment or group work. It can / could be used in conjunction with Part 4 of the textbook,
which are chapters 10, 11, 12, 13, 14, and 15).
THE MARKETING PLAN
Market-oriented firms build strategic market plans around company objectives, markets and the
competitive environment. Planning for marketing can be complicated even for one country, but
when a company is doing business internationally, the problems are multiplied. Company
objectives may vary from market to market and from time to time; the structure of international
markets also changes periodically and from country to country; and the competitive,
governmental, and economic parameters affecting market planning are in a constant state of flux.
These variations require international marketing executives to be specially flexible and creative
in their approach to strategic marketing planning.
PART III: Market Audit and Competitive Market Analysis
Of the guidelines presented, this is the most product or brand specific. Information in the other
guidelines is general in nature, focusing on product categories, whereas data in this guideline are
brand specific and are used to determine competitive market conditions and market potential.
Two different components of the planning process are reflected in this guideline. Information in
Parts I and II, Cultural Analysis and Economic Analysis, serve as the basis for an evaluation of
the product or brand in a specific country market.
Information in this guideline provides an estimate of market potential and an evaluation of the
strengths and weaknesses of competitive marketing efforts. The data generated in this step are
used to determine the extent of adaptation of the company’s marketing mix necessary for
successful market entry and to develop the final step, the action plan.
The detailed information needed to complete this guideline is not necessarily available without
conducting a thorough marketing research investigation. Thus another purpose of this part of the
country notebook is to identify the correct questions to ask in a formal market study.
1-29
Copyright © 2017 Pearson Education, Inc.
Write at least one (1) paragraph on each in each of these areas.
I. Introduction
II. The Product
A. Evaluate the product as an innovation as it is perceive by the intended market.
1. Relative advantage
2. Compatibility
3. Complexity
4. Trialability
5. Observability
B Major problems and resistance to product acceptance based on the preceding
evaluation
III. The Market
A. Describe the market(s) in which the product is to be sold
1. Geographical region(s)
2. Forms of transportation and communication available in that (those)
region(s)
3. Consumer buying habits
a. Product-use patterns
b. Product feature preferences
c. Shopping habits
4. Distribution of the product
a. typical retail outlets
b. Product sales by other middlemen
5. Advertising and promotion
a. Advertising media usually used to reach your target market(s)
b. Sales promotions customarily used (sampling, coupons, etc.)
6. Pricing strategy
a. Customary markup
b. Types of discounts available
B. Compare and contrast your product and the competition’s product(s).
1. Competitor’s product(s)
a. Brand name
b. Features
c. Package
2. Competitor’s prices
3. Competitor’s promotion and advertising methods
4. Competitor’s distribution channels
C. Market size
1. Estimated industry sales for the planning year
2. Estimated sales for your company for the planning Year
D. Government participation in the marketplace
1. Agencies that can help you.
1-30
Copyright © 2017 Pearson Education, Inc.
2. Regulations you must follow
IV. Executive Summary
Based on your analysis of the market, briefly summarize (two-page maximum) the major
problems and opportunities requiring attention in your marketing mix, and place the summary at
the front of the report
V. Sources of information
VI. Appendixes
SUGGESTED READINGS
Books
Arnold, David. The Mirage of Global Markets. Upper Saddle River, NJ: Pearson Education,
2004.
Barnet, Richard J., and John Cavanaugh. Global Dreams: Imperial Corporations and the New
World Order. New York: Simon & Schuster, 1994.
Bartlett, Christopher A., Sumantra Ghoshal, and Paul W. Beamish. Transnational Management,
5th
edition. New York: McGraw-Hill/Irwin, 2006.
Bryan, Lowell. Race for the World: Strategies to Build a Great Global Firm. Boston: Harvard
Business School Press, 1999.
Doremus, Paul. The Myth of the Global Corporation. Princeton, NJ: Princeton University Press,
1998.
Friedman, Thomas L. The World Is Flat 3.0: A Brief History of the Twenty-First Century, New
York, Picador 2005.
Friedman, Thomas L. The Lexus and the Olive Tree. New York: Anchor Books, 2000.
Garten, Jeffrey. World View: Global Strategies for the New Economy. Cambridge, MA: Harvard
University Press, 2000.
Greider, William. One World, Ready or Not: The Manic Logic of Global Capitalism. New York:
Simon & Schuster, 1997.
Johnson, Chalmers. Japan, Who Governs? The Rise of the Developmental State. New York: W.
W. Norton, 1995.
Another Random Document on
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JOLI PARIS
no de los primeros libros que despertaron mi imaginación de
niño: las Mil y una noches. Uno de los preferidos libros, que
actualmente releo con invariable complacencia: las Mil y una
noches. Antes leía la única versión española, aún más expurgada y
traidora que la francesa de Galand; hoy me recreo con la literal de
Mardrus, en su libertad de verbo y figura y su prestigio oriental, tan
maravillosamente transpuesto. Allí concebí primeramente la
verdadera realeza, la absoluta, la esplendorosa. Allí se me
aparecieron, allí—y en los «nacimientos» ó «presepios», con
Melchor, Gaspar y Baltasar—los verdaderos reyes, los reyes de los
cuentos que empiezan: «Este era un rey ...»
Reyes de Oriente, magos extraordinarios; reyes que tienen
jardines donde vagan libres leones y panteras, y en que hay pájaros
de dulce encanto en jaulas de oro ... Reyes con tantas mujeres como
el rey Salomón, y piedras preciosas como huevos de paloma, y
esclavos negros que cortan cabezas, y pipas en que humean tabacos
que huelen á esencia de rosa ... Reyes que se parecían al belga
Leopoldo como un clavel á un cepillo de dientes, ó un pavo real á un
impermeable.
El original y picante Luis Bonafoux cuenta, en una de sus
impagables crónicas, su desilusión cuando el rey de Siam, no sé en
dónde, le preguntó apurado por cierto lugar ... Si non é vero, está
muy bien contado. A mí no me ha preguntado por nada el cha de
Persia, Mouzaffer-ed-Dine, pero le he visto varias veces, con su
levita, su gorro, sus diamantes, sus bigotes largos y grises, y su cara
de fastidiado, de muy fastidiado; y confieso que me ha destruído
una ilusión más. No importa que se describa en los periódicos el
trono suyo de Teherán, todo de oro y pedrería, y un pavo real
también hecho de oro y gemas luminosas; ni la esfera en oro macizo
en que los mares están representados por innumerables esmeraldas,
el Africa por rubíes, la Persia en turquesas, Francia é Inglaterra por
diamantes, y los otros países por diferentes piedras preciosas; sin
saber que cuando da una audiencia—siempre allá en Teherán—
ofrece en una caja rubíes, zafiros, esmeraldas, diamantes, perlas,
turquesas, como quien da un cigarrillo ó una pastilla. Cuando le he
visto, se me ha parecido á todo menos á un «rey de reyes», como
sus antecesores y mis ilustres tocayos los Daríos, más ó menos ocos
ó codomanos, pero admirables en el prestigio de su poética gloria y
en la grandeza semidivina de las leyendas. Gracias á los Dieulafoy
podemos admirar en el Louvre aquella civilización ostentosa y
potente, bajo aquellos conquistadores de la India, vencedores del
macedón y del tracio, que no iban á tomar curas en los Contrexeville
de la época.
La impresión que tengo del cha, es que es un señor que se
aburre soberanamente, y á quien le importa un comino todo lo que
no sean las «cositas» de París, ó las berenjenas con queso ó sin él; á
las berenjenas las adora, y en el Elisée-Palace-Hotel, donde vive, y
en todo lugar oficial en donde come, hay que servírselas
irremisiblemente. Y en cuanto á su manera de pensar sobre el país
que hoy le acoge y le festeja, se resume en la única frase de francés
que sabe, y que repite para todo: Joli Paris! Joli Paris!
A este propósito cuenta un indiscreto la visita que acaba de hacer
á su majestad persa el ministro de la Guerra, general André. Lo
primero que dijo el cha al ministro, al estrecharle la mano, fué: Joli
Paris! Joli Paris! Luego, ya sentados, le señaló una tabaquera
incrustada de las indispensables piedras que sabéis, y le dijo en su
idioma: Kerli, lo cual quiere decir tabaco. Tradujo la palabra el
intérprete imperial, Freydoun Montazem Saltanek. El general tomó
un cigarrillo, y el gran visir, haciéndose el pillín, como dicen en
España, le ofreció fuego en un aparatito eléctrico. El general André
encendió, y en ese momento el aparatito se puso á tocar el Vals des
anglais. Y el cha, que esperaba la sorpresa del general, con los ojos
alegres, contentísimo: Joli Paris! Joli Paris!
Después, se puso hablar en persa con su ministro en París, el
general Nazare-Agha. Y éste tradujo al ministro de la Guerra: que su
majestad estaba muy deseoso de conocer el nuevo fusil del Ejército
francés, «el fusil con que V. E. acaba de armar tropas».
André se quedó asombradísimo, aún más que con lo de la cajita
de música: «No hay ningún fusil nuevo—dijo—. Ya he tenido el
honor de mostrar en persona á S. M. nuestro armamento, cuando
nos visitó el año pasado.» El cha, á quien se tradujo esa respuesta,
pareció no darse bien cuenta de ella; pero para no darse por
vencido, se puso un poco serio, y luego, dirigiéndose al ministro,
sonriente: Joli Paris! Joli Paris!
Como le invitasen á ir á las maniobras, contestó que iría con
placer; pero cuando supo que había doce horas de ferrocarril,
manifestó que no iría, pues no le place viajar mucho en ferrocarril.
No faltó el regalo. Ofreció al general André un estuche con una
cigarrera—demás está decirlo—de oro y piedras preciosas, con su
cifra grabada. Luego fué la despedida. Antes de partir díjole el
general el último oficial cumplimiento. El cha se puso á mirar las
muchas condecoraciones de André. Y como viese sobre todas el
cordón de la Orden del León y del Sol, su Orden, dijo,
señalándosela, en persa: «La Orden del León y del Sol no podría
recompensar á un militar más ilustre, á un jefe más valiente, á un
ministro más esclarecido.» Y luego, en francés: Joli Paris! Joli Paris!
Mouzaffer-ed-Dine es un estimable filósofo.
En el lugar donde ha estado últimamente «en villegiature», un
quiromante mundano consiguió que el potentado oriental le diese á
estudiar su diestra. He aquí el resultado: «La línea de cabeza del
soberano es casi nula; sin embargo, es fina como un cabello
femenino, é indica aptitudes diplomáticas». La línea del corazón, por
el contrario, se desenvuelve majestuosamente, sembrada de islotes,
de meandros rojos, que indican pasiones carnales violentas y
complicadas. La línea de vida es débil, pero prolongada; días largos
y malestares constantes. Su Majestad es glotón—¡aquí de las
berenjenas!—y se inclina á hacer trampa en el juego. El Monte de
Mercurio tiene un desarrollo normal: si el cha no fuese un poderoso
monarca, sería un comerciante de mérito. Pero lo que está sobre
todo en su real mano, es la línea de las artes. Entre las manos
«conocidas» la del pintor Carolus-Duran, es la que más se le parece.
Si el cha pintase, escribiese, triunfaría. Y el cha no lo hace. ¡El cha
es un señor muy cuerdo!
No creamos en las quirománticas rayas, ni dejemos de creer. El
cha será un gran diplomático natural, y desde luego más culto que
su difunto padre, que se limpiaba los dedos, después de comer, en
los ricos cortinajes de los palacios en que se le hospedaba. Aunque
la diplomacia y la buena educación pueden estar muy desunidas,
como en el chino Li-Hung-Chang, de sonora memoria; pero, lo que
es el protocolo, gime por él á cada paso. El cha no admite
programas, ni disposiciones anteriores. Cada vez que se anuncia que
ha de ir á alguna parte, él, en el momento de subir al coche, ó al
automóvil, da orden de ir á otra parte. Il s’en fiche de M. Crozier, de
M. Mollard, de todo el personal del palacio d’Orsay, y de M. Lépine,
con su Policía. Como no habla más que persa, no conversa más que
por medio de sus intérpretes, y allá las cosas que les dirá de cuando
en cuando. A pesar de la opinión quiromántica, no parece que el rey
de reyes sea muy aficionado á las damas. Quizás será que, dueño y
señor de tantas, allá en Persia, se encuentra ahito. Sin embargo,
¿cómo no ha de haber encantado su alma de primitivo, su espíritu
de Oriente, esta joya humana, este bijou con vida que se llama la
parisiense? Yo me figuro que es esa una de las cosas que más le
atraen en esta capital de atractivos. Joli Paris!
Taciturno, como cansado, lleva este hombre raro su vida de
Camaralzamán moderno, contagiado, aunque no tanto como se
quisiera, de la enfermedad occidental, de la fiebre de progreso. Trajo
diez millones, como dinerito de viaje. Ya se le acabaron. No importa.
Pedirá otros diez. Compra todo lo que le gusta; y al bárbaro que hay
en él le gusta, como al niño, lo que reluce, lo que hace ruido, lo que
sorprende. Compra cajas de música, lámparas eléctricas, juguetes,
espadas, bronces, muebles. Compra pájaros disecados, anillos,
medallones, escopetas y automóviles. Sobre todo automóviles. Tiene
ya como treinta, allá en Teherán. Los compra de todas las marcas.
Los regala á sus ministros y á sus amigos. Para su uso particular
tiene de los mejores, de los hipogrifos que hacen una enormidad de
kilómetros por hora. Se ha llevado á uno de los mejores chauffeurs
de París. Cuando sale con él, le dice: «Muy despacio.» Y el imperial
auto, que es muy cómodo y lujoso, no va más ligero que un carruaje
cualquiera. El cha es un sabio.
Mouzaffer-ed-Dine es un sabio; daría seguramente todo lo que
tiene por la camisa del hombre feliz. ¡Se aburre! He ahí su mal; no
los riñones, ni el estómago. El otro día decía un obrero parisiense al
verle pasar: «Le hacen falta cuidados. Si tuviese algunas
«molestias», se molestaría menos.» Es la verdad. Tiene la desgracia
del hombre á quien no le falta nada. Cuentan que el príncipe
imperial, en tiempos de Napoleón III, un día que veía desde las
Tullerías jugar á unos niños pobres, bajo la lluvia, dijo á la
emperatriz, que acababa de regalarle como presente de Noel una
linda y rica colección de juguetes: «Mamá, yo te pediría otra cosa
mejor». «¿Qué?» «Déjame ir á meterme descalzo, en ese «hermoso
lodo» que hay allí afuera ...» El cha no ha tenido hermosos lodos en
su vida. Y ha tenido, en cambio, una existencia de honores
continuos y placeres. Su soberbia, su gula, su lujuria, su cólera han
estado siempre satisfechas. Es señor de vidas y haciendas. Tiene
harén y verdugo. No hay cosa que haya deseado que no la haya
tenido inmediatamente. Si no ha tenido la luna, es porque no ha
querido. Seguramente no le ha picado nunca un mosquito, ni la
pulga del cuento de Víctor Hugo. Hay mil ojos que velan sus sueños
y que inspeccionan sus vigilias. El oro y las piedras preciosas no
tienen ningún valor para él. El amor le ha sido negado y la
voluptuosidad le ha hartado y quebrantado. Alá le ha librado hasta
ahora de los babistas que asesinaron á su padre Naser-ed-Dine, y de
los anarquistas de otras tierras. Y él se fastidia, se fastidia
soberanamente. Viene á París, y el pueblo le aclama, y se siente
feliz, y toma una cantidad increíble de naranja y se deleita con la
leguminosa consabida. El pueblo parisiense le ve pasar; le escribe
cartas pidiendo todo lo que se puede pedir: le grita ¡viva! como á
Krüger, como á Ranavalo, como á Cristina, como á la reina de las
lavanderas y como á cualquier rey de oros, de copas, de espadas ó
de bastos ...
Joli Paris!
DIVAGACIONES SOBRE EL CRIMEN
l canónigo Rosenberg-Montrose y el banquero Boulain han
sucedido en la celebridad de las fuertes estafas á la
novelesca madame Humbert.
Un canónigo que roba con la mayor sangre fría á estúpidos
corderos, á excelentes devotas, apoyado en la curia romana y
ejerciendo de apóstol del bien y de filósofo de una ideal Jerusalén,
no es cosa trivial. Así el banquero Boulain queda en segundo
término. Es un vulgar escroc. Los parisienses tienen con qué
entretenerse mientras no haya otro escándalo de mayor fuste.
No hay duda de que esas sonoras fechorías tienen más de
cómico que de trágico, con todo y dejar en la miseria á muchos
infelices. Lo cómico está en que las víctimas son todas como las del
«cuento del tío», engañados que han querido engañar, ó codiciosos
que no han visto las orejas del lobo.
Hay, pues, crímenes cómicos; lo que no es fácil aceptar, á pesar
de las más bravas paradojas, es que haya crímenes bellos. Quincey,
el comedor de opio, escribió un famoso ensayo sobre «El asesinato
considerado como una de las bellas artes», que Gómez Carrillo ha
hecho conocer en lengua española. Esta estupenda obra de humour,
está paralela á la memoria de Swift sobre el aprovechamiento
antropofágico de los niños. Los artistas en crímenes no existen;
talentos criminales sí hay, como sabuesos raros á lo Sherlock
Holmes.
Muchos opinan que sí hay crímenes artísticos. Y otros, como
Osmont, afirman: Si se coloca uno exclusivamente en el punto de
vista de la Moral, no hay, no podría haber ningún bello crimen. Las
circunstancias contingentes que pueden dar algún lustre á una
acción generalmente culpable, deben aún excitar tanto más horror
cuanto que parecen, según la vieja metáfora que todavía le gusta á
M. Prud’homme, flores que tapan un abismo. Esta concesión hecha,
confesemos—agrega—que hay muy pocas personas que se coloquen
en el punto de vista de la moral pura y que allí permanezcan.
Y aquí entra la cuestión del «gusto». Si se permite á alguna
estética mezclarse en la moral, el bello crimen existe evidentemente.
Sería tan pueril negarlo como escribir—alguien lo ha dicho—que una
flor envenenada no es nunca bella. Testigos el radioso acónito, el
botón de oro, y entre otros, la digital, de purpurinas flores. Cuando
un crimen es de un profundo horror, á que no se mezclan motivos
bajos, y que el cuadro en que se produce no perturba la emoción, es
cierto, para el lector que no verá el horror directo de la sangre
vertida y los gestos de agonía, que una especie de salvaje grandeza
se mezcla á la tragedia verdadera y hay quienes aplaudirían como en
la escena de un drama bien construído. El reciente drama italiano en
que el conde de Bonmartini fué la víctima, es lo que llaman «un
bello crimen». ¿Por qué? M. Osmont dirá: Porque la pasión sola, ¡y
qué pasión monstruosa!, ha guiado la mano de los asesinos. El
espantable riesgo que corrían los culpables, si eran descubiertos,
pues un hombre, y sobre todo una mujer de alto rango pierde, al
mismo tiempo que la libertad y el honor interior, el respeto de los
demás, y ese lujo habitual desde la infancia que llega á ser como
una atmósfera; los dramas espantosos que descubre la catástrofe
final, todo eso impresiona, desconcierta, turba, agrada aún, de cierta
manera. En ese crimen de Bolonia una figura surge que lo domina
extrañamente: el senador Murri. Esa virtud romana, ese coraje
estoico, no podían producirse sino en una circunstancia semejante,
desmesurada en nuestros menguados tiempos. Y como conviene en
un drama en que la justicia eterna parece intervenir, el crimen
tendrá su castigo y la virtud encontrará su recompensa en el
cumplimiento de su deber terrible. Pues—y esto para contestar á la
probable objeción—nadie, pienso, admira el «bello crimen» en sí. Es
una imagen de tintes violentos, un drama conmovedor. Su relación
puede hacer una impresión estética. ¿Quién no ha admirado con
espanto los cuadros de tortura de los pintores españoles y las
pesadillas de Goya? No quiero hablar del asesinato político. Aquí un
elemento nuevo aparece: la fe. Eso basta para elevar el acto al
sacrificio. Con todo aun conviniendo en la existencia del «bello
crimen», hay que decir que es un espectáculo muy lamentable, y
que no es una escuela de la cual se deban formar cerebros y
corazones. Así, admirando en un libro, ó en un diario,
ocasionalmente, el crimen de Bolonia, me parece que los crímenes,
bellos ó no, ocupan demasiado lugar en el periodismo y en la
literatura. Ensangrientan cada página y perpetúan en el pueblo la
concepción byroniana de la sublimidad del crimen y la elegancia de
la desesperación. Se debería también mostrar la virtud, dejarla ver
como es, de una belleza superior. Las ideas de Osmont, me seducen
más, lo confieso, que las originalidades estéticas y las desviaciones
de la sensibilidad. El erudito Tomás de Quincey, «que á los quince
años componía odas en griego y á los veinte había leído todos los
libros antiguos», me parece que no andaba muy bien de la cabeza,
con perdón de las opiniones de Baudelaire—otro que tal—y de mi
amigo Carrillo.
No me meteré con los nietzscheanos; pero sí me referiré á los
que, como M. Colah, en la cuestión opinan que á la palabra héroe se
le puede dar un obscuro reverso. Ciertamente, dice dicho señor,
desde el punto de vista filosófico y moral el crimen es indigno de
admiración; pero la imaginación, ante el éxito de ciertas hazañas
malas, cae en un estado que no es otro que la admiración. Admiráis
un héroe cualquiera por su audacia, la habilidad que ha empleado
para franquear lo infranqueable, el desprecio del peligro que ha
mostrado en el cumplimiento de un acto de abnegación patriótica ó
social. Es porque el asesino obra antimoralmente, que el valor
evidente, las mañas increíbles, la insensata audacia, la terrible
temeridad, las mil dificultades que deben, en fin, componer un
«bello crimen» y que se ha llegado á dominar, ¿no son, por su
asombroso éxito, dignas de un héroe? ¡Es un héroe de la mala
causa, pero un héroe! Lo que admiráis no es el desenlance, la
escena final, sino las complicaciones casi borradas, los peligros casi
apartados, que preceden. Pues un «bello crimen» debe ser
seguramente trabajado, combinado, reflexionado, sabiamente
premeditado, y, sin embargo, trae después combinaciones cuyo
triunfo es más ó menos aleatorio. Un drama de la miseria, el triste
fin de un idilio amoroso, el resultado trágico de una escena de celos,
no pueden dar lugar á un «bello crimen», atendido que puede ser
cometido bajo la presión y la ceguedad de la desesperación, de la
cólera ó de la pasión.
Antes que M. Colah, J. J. Weiss, en el tercer tomo de sus Annales
de Théatre, ha escrito á propósito del viejo melodrama Fualdes:
«Para el bello crimen, es necesario que el personaje criminal obre
por temperamento y no por impulso fortuito y singular. Es necesario
además que los detalles innobles que acompañan casi siempre un
asesinato, sean excusados de algún modo de su ignominia, porque
la casualidad los ha disputado de manera tal, que parecen un
esfuerzo del arte y como un contraste creado y arreglado por una
retórica misteriosa de las cosas. Es preciso que la culpabilidad sea
demostrada hasta la evidencia y que, sin embargo, se cierna sobre
los motivos y sobre la ejecución del crimen un resto de misterio que
se querrá siempre penetrar y que no se logrará nunca. Es necesario
que los indiferentes hayan sido mezclados á la historia de ese
crimen, que no les toca de ninguna manera, por algún incidente
trivial, por algún juego cruel de la suerte que inquietará la
existencia, á ellos mismos, por un tiempo, ó por toda la vida. Es
preciso, si es posible, que toda una ciudad, ó toda una clase de la
sociedad sea conmovida y turbada. Es preciso ... sería cuento de
nunca acabar». El buen sentido de aquel crítico teatral que tenía
mucho talento, salta á la vista.
No, no hay crímenes bellos, sino ante la filosofía de la crueldad y
ante las razones del egoísmo, por más estéticos que sean. No hay
crímenes bellos, como no hay enfermedades bellas.
Solamente los médicos encuentran «hermosas llagas» y «lindos
casos». Hay artistas criminales, como Benvenuto, y enfermos, como
el autor de las Flores del Mal, que dan razón á las nuevas teorías de
los filósofos del delito.
En cuanto á la delincuencia bufa y á los crímenes cómicos, son
indiscutibles. Los criminales de la estofa de la señora Humbert y del
canónigo Rosenberg aguardan el libreto del vaudeville y son puestos
en solfa. Son tipos que hacen resaltar los lados grotescos y
malignamente burlones de la criatura humana. Su obra gira
alrededor de las concupiscencias y de las avaricias. Cierto es que
muchos inocentes caen en sus garras; pero en la piel de cada
cordero inocente hay con mucha frecuencia, en el mundo de los
negocios, el alma de un pícaro lobo. París, como Nueva York, como
Londres, como Buenos Aires, dan albergue y vasto campo á los Carlo
Lanza, á los Arton, á los Boulain, á los Humbert-D’Aurignac. La
última obra del antiguo jefe de Policía Macé, es rica en enseñanzas á
este respecto.
En el crimen cómico suele haber sangre, como consecuencia;
pero lo que más hay, es oro; el oro de los engañados, evaporado en
las cajas de los engañadores. Luego, la mayoría aplaude, ríe, está
casi de parte de los hábiles burladores ... «¡Ah!—decían algunos—
¡Mme. Humbert es la mujer más grande que la Francia ha producido,
Juana de Arco comprendida! ¡Habría que elevarle una estatua!» Y
hay más que lástima, sonrisas para los embaucados. Y es que se
cultiva, más ó menos, el arte de engañar.
He oído contar lo siguiente: «Hace poco, unos muebles Imperio,
puestos en depósito en un hotel célebre, por un tapicero de mala fe,
han sido vendidos para América por una fuerte suma.—¡El mobilier
de la emperatriz Josefina—decía una réclame—, histórico, herencia
de familia», etc.! El mobilier de la emperatriz venía de la calle de la
Pépinière. Un marqués ha cobrado una buena comisión, y un
periodista otra. Esas son prácticas corrientes. Se sonríe con
indulgencia ... Desgraciadamente, el «americano» se hace raro ...
Comienza á desconfiar.
BAMBINI DE SUFRIMIENTO
Quisiera dedicar estas líneas á los niños italianos del Río de la
Plata; pero diré en ellas algunas cosas que sus inocentes espíritus no
podrían comprender y que sus frescos corazones no deben saber. A
los corazones de sus padres hablaré, á los espíritus de sus padres
me dirigiré.
Hace ya mucho frío, á la entrada de este invierno, que se anuncia
el más fuerte y cruel, dicen los sabios, que desde hace cincuenta
años haya habido. Una noche de éstas, en que el aire sopla,
flagelando, por el puente del Louvre, sobre el Sena, que refleja el
oro y sangre de las luces amarillas y rojas, fantasmales á través de
la neblina, sentí que corría tras de mí una vocecilla tímida: Mosiú,
mosiú! ... Se acercó un pequeño punto blanco, que tenía en los
brazos otros bultitos blancos. La luz del próximo farol me hizo ver
que el bulto era un pobre niño y los bultitos estatuítas y figuras de
yeso. Su francés, sus ojos, su cara, su vivacidad, su mercancía,
decían de dónde era el infantil vendedor que iba desabrigado, en la
bruma y el frío, en busca de unos cuantos céntimos. Era una de
tantas víctimas de la trata de niños, más horrible que la trata de
mujeres; era uno de esos infelices de los rebaños de exportación en
que Italia ha tenido desde antaño triste privilegio.
Ya le habían enseñado á mentir.—Combien?—Si fran. Le di unos
sous y le dejé perderse en la noche parisiense.
He visto más; he visto lo que creía que ya no existía sino en los
viejos cuadros, en los viejos grabados: he visto en ciertos barrios de
París el antiguo pifferraro y el organillo y la mona vestida de
colorines, y la linda italianica, ya casi púber, que danza al són del
violín y recoge después en un plato las limosnas de los curiosos. Y
existen aún, aunque en menor escala que antes, los saboyanitos de
los melodramas y de las romanzas. Y el horrible mercado de la
prostitución pueril, la importación de niñas, por inicuos proxenetas
de ambos sexos, que no temen exhibir su especialidad en pleno
bulevar. Pero no trato de este tópico, en que actualmente la Policía
se ocupa, y los miembros de la liga—¡quizá inútil!—de la moral
urbana. Eso pertenece á la «trata de blancas», denominación que un
japonés amigo mío encuentra, con justicia, exclusiva, «pues de mi
país y de la China se ha exportado mucha carne amarilla á los
Estados Unidos y á otras partes». Me circunscribo, pues,
únicamente, á la explotación de niños italianos que aquí se hace, y
contra la cual, felizmente, acaba de formarse una asociación que
ojalá encuentre apoyo en todas partes en donde se encuentre unun
alma italiana, ó que abrigue simpatía por Italia. Por esto, si estas
líneas mías lograsen producir algún buen movimiento entre vosotros
—¡así fuese el de mis lectores!—quedaría más satisfecho de ellas,
que de un bello poema ó una hermosa página literaria.
No hay nada más horrible que la esclavitud de estos bambini; no
hay nada más lastimoso que la existencia de martirios que les hacen
padecer los hombres viles que les tratan como á bestias
productoras. ¿Qué digo? Peor que á los perros. Esta infamia habría
continuado sin ser advertida por la generalidad, si el Sr. Paulucci di
Calboli, secretario de la Embajada italiana de París, no hubiese
llamado la atención en artículos publicados en importantes revistas.
A él, pues, y á otros hombres de corazón y buena voluntad, se debe
que ahora se trate de favorecer la suerte de esos niños, florida carne
itálica, flores de sangre latina que, si escapan de una muerte casi
segura, es para caer en poco tiempo en la degradación de todos los
vicios y en la posibilidad de todos los crímenes. Después se dice: El
asesino Tal, italiano; el asesino Cual, italiano. ¡Es claro!
Los mercaderes de sangre y carne humana van á las pobres
aldeas lombardas, á todos los lugares de la Romaña, á todas las
provincias del Mediodía, en busca del productivo gibier. Les visten de
harapos, los acuestan sobre la paja, como animales, con abrigo
insuficiente, y les dan de comer bazofias inmundas compradas por
nada, ó simplemente patatas cocidas, ó fritas en grasas
innominables, atroces polentas, ó pan solo á veces, duro é
incomible. Luego los mandan á vender las estatuítas, y les señalan
una cantidad «que irremisiblemente deben traer» por la noche, so
pena de recibir azotes y bofetadas. La escena es igual á la que en su
novela Sin Familia pinta Héctor Malot. Donde dice musiquitos, poned
vendedores, y es lo mismo.
Es en un desván de la calle Lourcine, alrededor de una parrilla en
que hierve una olla, cerrada con un candado para que los niños no
puedan intentar calmar su hambre. Los musiquitos entran, depositan
arpas, violines y flautas. Garofoli, el padrone, los hace ponerse en
fila delante de él: «Ahora, á arreglar cuentas, angelitos—dice, y á
una seña, un niño se acerca—. Tú me debes un sou de ayer, y me
has prometido dármelo hoy: ¿Cuánto me traes?» El niño vacila largo
tiempo antes de responder; se pone rojo. «Me falta un sou.» «¡Ah!,
te falta un sou, ¿y me lo dices tan tranquilo?» «No es el sou de ayer,
es uno para hoy.» «Entonces son dos sous. ¿Sabes que no he visto
otro como tú?» «No tengo culpa.» «Dejémonos de tonterías, bien
conoces la regla: quítate la blusita: dos golpes por ayer y dos por
hoy, y además nada de patatas, por tu audacia. Ricardo, toma el
azote ...» Y Ricardo toma su azote de cabo corto, que termina en
correas de cuero con gruesos nudos.
Tal es la escena que se desarrolla, más ó menos dura, en París,
en innumerables, sórdidos habitáculos, en que los alojan esos
comerciantes en figuritas; abominables yeseros, más ruines que los
comprachicos, puesto que desfiguran y mutilan también el alma de
tantos desventurados italianitos. Y todavía hay excelentes
burgueses, rubicundos ciudadanos patriotas, que al verse
importunados, cuando toman su ajenjo en una terraza, por uno de
esos niños de hermosos ojos, «se sublevan contra esos
«extranjeros», que vienen á comerse el pan de los franceses», como
dice un periodista.
En un ya viejo keepsake, oloroso al alcanfor del mueble en que
ha estado por tantos años, y que habría ilustrado con su delicioso
arte la adorable Kate Greeneway, he encontrado las impresiones de
una sentimental y culta señora, Mme. Louis Janet, sobre los
pobrecitos pifferari. Dice que le interesaban profundamente esos
niños y niñas que iban por las calles, no por su arte rudo y su
pintoresco atractivo, sino «desde el punto de vista de la
humanidad». «Vedlos en cualquier tiempo que haga, recorriendo las
calles más frecuentadas, los bulevares ó los grandes paseos de la
capital: su rostro hace una mueca, bajo el canto que su boca entona
y la miseria traspasa los pliegues de sus escasos vestidos, así como
se ve sobre los rasgos ya marchitos, ó casi, por las fatigas de su
oficio penoso». ¿No es penoso, en efecto, el cantar á toda hora,
cantar siempre, cantar á pesar de todo? ¡Eso hacen esos pequeños
desgraciados! Y eso con un aire tan profundamente forzado, con un
sentimiento de obediencia tan grande, que se adivina en seguida
que en medio de la muchedumbre que les rodea, muchedumbre
compuesta de curiosos en apariencia, hay ojos de Argos que velan
sobre ellos, y brazos listos para golpearles, «si no desplegan todos
sus medios» ó no usan todas las gracias y habilidades de su edad
para obtener la ligera ofrenda de los asistentes. En efecto: la mayor
parte de esos niños que os parecen abandonados á sí mismos sobre
la vía pública, van acompañados de sus padres, que calculan las
ganancias del día y preparan las del siguiente. Y cuando digo
acompañados debería decir seguidos, pues los padres, en ese caso,
afectan no conocerlos. Les siguen de lejos, como indiferentes, se
detienen cuando los niños se detienen, y algunas veces hasta dejan
caer unos céntimos en el plato de la cantadorcita ó del joven artista,
para que esa munificencia sea imitada por el público, que por
naturaleza es un poco mouton de Panurge. Hoy, más que á los
padres, encontraría Mme. Janet á los empresarios. Empresarios de
vendedorcitas, de pifferari, y de deshollinadores de chimenea, los
ramoneurs, que también tuvieron su tiempo en las leyendas y en los
cuentos. En cuanto á las núbiles cantadorcitas ó modelos, tienen
otro fin, en la corrupción cosmopolita y gastada de la vasta capital.
El romanticismo doró la vida de esta mísera infancia esclavizada.
Ya es el bonito pifferaro solo, con su sombrero puntiagudo, sus
negras pupilas, su sano rostro de niño de país solar, y su
indumentaria convencional, sentado sobre una roca del camino,
como un pastor, soplando en su flauta; ya es el grupo errante de tez
morena, una niña, como de catorce años, toca la pandereta; otra,
más pequeña, el violín, y un niño semejante á un San Juan de
retablo, tiende su sombrero con ambas manos, en demanda del
óbolo de los transeuntes. O ya en el cuadro de Haquette, canta el
viejo ciego, y el niño, un amor que sopla convencido, le acompaña
en su flauta, ante unos marineros y una vieja que escuchan serios,
conmovidos, atentos. Todos esos niños románticos, tienen frescas
caras de flores y de frutos, parece que un deus artístico más que
otra cosa les animase; cuando más, es una miseria de convención y
llena de cierto encanto, la que representan. Se diría que están para
aparecer en una escena del Chatelet, ó que posan ante un pintor.
¡Cuán lejos de la realidad! Casi no hay pobrecito de estos que
venden yesos que no revele en su rostro, en sus harapos, la negra
vida que pasan. Los ojos de Italia brillan en sus ojos, la luz de la
divina península; sonríen á veces y ríen, en la inconsciencia de la
infancia; pero sus rasgos están atajados, más ó menos, según el
tiempo de martirio que lleven; se podría también calcular ese tiempo
por lo que dicen sus tristes cuerpos delgados, á través de los
andrajos, y á menudo la chispa del sol italiano en sus miradas, se
confunde con la llama de la tisis. Los niños menores, los pequeñitos,
son los que dan más lástima. Los crecidos, los hombrecitos, los que
han pasado, vencedores de la tuberculosis, quizás no reciben ya
golpes ... Los hay que dicen en sus gestos y en sus palabras la
independencia próxima, la fuga al trabajo libre ó al crimen.
¡Ah!, ¡si la liga que hoy se funda pudiera remediar en alguna
manera la perra suerte de estos sin ventura! ¡Si en Italia, en Buenos
Aires, en Nueva York, en Chile, en la República Oriental, en todas
parte donde los italianos y los amigos de Italia pueden hacer algo,
se ayudase á la liga para lograr la libertad de estos niños, para
encaminarlos á una vida de trabajo y de energía, para arrancar de la
muerte ó del presidio de mañana á estos tiernos seres!
Sería una obra de bien. El Gobierno francés, estoy seguro que
ayudaría con leyes y disposiciones oportunas, y el siglo xx quitaría
del mundo una enorme infamia del pasado.

Solution Manual for Global Marketing, 9/E – Warren J. Keegan & Mark C. Green

  • 1.
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    We believe theseproducts will be a great fit for you. Click the link to download now, or visit testbankbell.com to discover even more! Solution Manual for Global Marketing, 10th Edition, Mark C. Green, Warren J. Keegan https://testbankbell.com/product/solution-manual-for-global- marketing-10th-edition-mark-c-green-warren-j-keegan/ Test Bank for Global Marketing, 10th Edition, Mark C. Green, Warren J. Keegan https://testbankbell.com/product/test-bank-for-global- marketing-10th-edition-mark-c-green-warren-j-keegan/ Solution Manual for Global Marketing Plus 2014 MyMarketingLab with Pearson eText — Package, 8/E – Warren J. Keegan & Mark C. Green https://testbankbell.com/product/solution-manual-for-global- marketing-plus-2014-mymarketinglab-with-pearson-etext- package-8-e-warren-j-keegan-mark-c-green/ Global Marketing Management 8th Edition Keegan Test Bank https://testbankbell.com/product/global-marketing-management-8th- edition-keegan-test-bank/
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  • 4.
    1-1 Copyright © 2017Pearson Education, Inc. Solution Manual for Global Marketing, 9/E – Warren J. Keegan & Mark C. Green Download full chapter at: https://testbankbell.com/product/solution-manual-for- global-marketing-9-e-warren-j-keegan-mark-c-green/ CHAPTER 1 INTRODUCTION TO GLOBAL MARKETING SUMMARY A. Marketing is an organizational function and a set of processes for creating, communicating, and delivering value to customers and for managing customer relationships in ways that benefit the organization and its stakeholders. A company that engages in global marketing focuses resources on global market opportunities and threats. Successful global marketers such as Nestlé, Coca-Cola, and Honda use familiar marketing mix elements – the four Ps – to create global marketing programs. B. Marketing, R&D, manufacturing, and other activities comprise a firm’s value chain the value equation (V =B/P) expresses the relationship between values and the marketing mix. C. Global companies also maintain strategic focus while pursuing competitive advantage. The marketing mix, value chain, competitive advantage, and focus are universal in their applicability, irrespective of whether a company does business only in the home country or has a presence in many markets around the world. However, in a global industry, companies that fail to pursue global opportunities risk being pushed aside by stronger global competitors. D. A firm’s global marketing strategy (GMS) can enhance its worldwide performance. The GMS addresses several issues. First is the nature of the marketing program in terms of the balance between a standardization (extension) approach to the marketing mix and a localization (adaptation) approach that is responsive to country or regional differences. Second is the concentration of marketing activities in a few countries or the dispersal of such activities across many countries. Companies that engage in global marketing can also engage in coordination of marketing activities. Finally, a firm’s GMS will address the issue of global market participation.
  • 5.
    1-2 Copyright © 2017Pearson Education, Inc. E. The importance of global marketing today can be seen in the company rankings compiled by the Wall Street Journal, Fortune, Financial Times, and other publications. Whether ranked by revenues, market capitalization, or some other measure, most of the world’s major corporations are active regionally or globally. The size of global markets for individual industries or product categories helps explain why companies “go global”. Global markets for some product categories represent hundreds of billions of dollars in annual sales; other markets are much smaller. Whatever the size of the opportunity, successful industry competitors find that increasing revenues and profits means seeking markets outside the home country. F. Company management can be classified in terms of its orientation toward the world: ethnocentric, polycentric, regiocentric, or geocentric. The terms reflect progressive levels of development or evolution. An ethnocentric orientation characterizes domestic and international companies; international companies pursue marketing opportunities outside the home market by extending various elements of the marketing mix. A polycentric worldview predominates at a multinational company, where the marketing mix is adapted by country managers operating autonomously. Managers at global and transnational companies are regiocentric or geocentric in their orientation and pursue both extension and adaptation strategies in global markets. G. The dynamic interplay of several driving and restraining forces shapes the importance of global marketing. Driving forces include market needs and wants, technology, transportation and communication improvements, product costs, quality, world economic trends, and recognition of opportunities to develop leverage by operating globally. Restraining forces include market differences, management myopia, organizational culture, and national controls such as nontariff barriers (NTBs). OUTLINE OF THE BOOK The book is divided into five parts. Part 1: An overview of global marketing and the basic theory of global marketing. Part 2: The environments of global marketing. Part 3: Approaching global markets (global strategy) Part 4: The marketing mix in global marketing. Part 5: Corporate strategy, leadership, and the impact of the digital revolution on global marketing. LEARNING OBJECTIVES
  • 6.
    1-3 Copyright © 2017Pearson Education, Inc. 1 Use the product/market growth matrix to explain the various ways a company can expand globally 2 Describe how companies in global industries pursue competitive advantage 3 Compare and contrast single-country marketing strategy with global marketing strategy (GMS) 4 Identify the companies at the top of the Global 500 rankings 5 Explain the stages a company goes through as its management orientation evolves from domestic and ethnocentric to global and geocentric. 6 Discuss the driving and restraining forces affecting global integration today. DISCUSSION QUESTIONS 1-1. What are the basic goals of marketing? Are these goals relevant to global marketing? Marketing activities represent an organization’s efforts to satisfy customer wants and needs by offering products and services that create value. These goals are relevant in virtually every part of the world; however, when an organization pursues market opportunities outside of its home country (domestic) market, managers need an understanding of additional conceptual tools and guidelines in order to do business in these other countries – in other words, to create value and satisfy consumer needs and wants. 1-2. What is meant by “global localization?” Is Coca-Cola a global product? Explain. The phrase “global localization” represents an attempt to capture the spirit of the rallying cry for organizations in the 21st century, namely, “think globally, act locally, and manage regionally.” Most students will agree that Coca-Cola is a global product by virtue of the fact that it is available in more than 195 countries in red cans bearing the distinctive signature style. It must be noted, however, that customer service efforts are adapted to the needs of particular markets (for example, vending machines in Japan). Thus, Coca-Cola is both global and local. 1-3. A company’s global marketing strategy (GMS) is a crucial, competitive tool. Describe some of the global marketing strategies available to companies. Give examples of companies that use the different strategies. This question invites reference to Table 1-5. Strategies include global branding (Coca- Cola, Marlboro), product design (McDonald’s restaurants and menu items), positioning (Harley-Davidson), packaging (Gillette Sensor), distribution (Benetton), customer service (Caterpillar), and sourcing (Toyota, Gap).
  • 7.
    1-4 Copyright © 2017Pearson Education, Inc. 1-4. UK-based Burberry is a luxury fashion brand that appeals to both genders and all ages. To improve Burberry’s competitiveness in the luxury goods market, CEO Angela Ahrendts recently unveiled a new strategy that includes all the elements of the marketing mix. Their strategy also addresses key markets that Burberry will participate in, as well as the integration and coordination of marketing activities. Search for recent articles about Burberry and write a brief summary that outlines Burberry’s GMS. Student answers will vary, but all should contain the facts that the new CEO intends to broaden the brand’s appeal and introduce two new logos. 1-5. Discuss the differences between the global marketing strategies of Harley-Davidson and Toyota? Harley-Davidson motorcycles are known the world over as “the” all-American motorcycle. Harley’s mystique and heritage are associated with America. The company backs up this positioning with exports from two U.S. manufacturing locations. By contrast, Toyota builds some models (e.g. Camry) for the U.S. market in the U.S., a fact that Toyota stresses in its American advertising. Thus, Harley-Davidson serves global markets while sourcing locally, while Toyota’s strategy calls for serving world markets and using the world as a source of supply. 1-6. Describe the difference between ethnocentric, polycentric, regiocentric, and geocentric management orientations. The premise of an ethnocentric orientation is that home country products and management processes are superior. An ethnocentric company that neither sources inputs from, nor seeks market opportunities in the world outside the home country may be classified as an international company. A company that does business abroad while still presuming the superiority of the home country may be classified as an international company. Such a company would rely on an extension strategy whereby it would export, without adaptation, products designed for the domestic market. The polycentric orientation that predominates at a multinational company leads to a view of the world in which each country market is different from the others. Local country managers operating with a high degree of autonomy adapt the marketing mix in a polycentric, multinational company. Managers who are regiocentric or geocentric in their orientations recognize both similarities and differences in world markets. Market opportunities are pursued using both extension and adaptation strategies. The regiocentric and geocentric orientations are characteristic of global transnational companies. 1-7. Identify and briefly describe some of the forces that have resulted in increased global integration and the growing importance of global marketing. The dynamic involving driving and restraining forces is shown diagrammatically in Figure 1-1. Driving forces include regional economic agreements such as NAFTA, converging market needs and wants, technology advances such as the Internet and global
  • 8.
    1-5 Copyright © 2017Pearson Education, Inc. TV networks, transportation improvements, the need to recoup high product development costs in global markets, the need to improve quality through R&D investment, world economic trends such as privatization and finally, opportunities to use leverage, corporate culture, and the continuing presence of national controls that create trade barriers. 1-8. Define leverage and explain the different types of leverage utilized by companies with global operations. Webster’s New World Dictionary defines “leverage” as an “increased means of accomplishing some purpose.” A global company can take advantage of several types of leverage in pursuit of corporate goals such as profit or revenue growth. These include experience transfers, scale economies, enhanced resource utilization, and global strategy. 1-9. Each July, Fortune publishes its Global 500 listing of the world’s largest companies. You can find the current rankings online at: www.fortune.com/global500. Alternatively, you can consult the print edition of Fortune. Browse through the list and choose any company that interests you. Compare its 2014 ranking with the most recent ranking. Has the company’s ranking changed? Consult additional sources (e.g., magazine articles, annual reports, the company’s Web site) to get a better understanding of the factors and forces that contributed to the company’s move up or down in the rankings. Write a brief summary of your findings. Each student’s answer will vary based upon the company they chose. 1-10. There’s a saying in the business world that “nothing fails like success”. Take Gap, for example. How can a fashion retailer that was once the source for wardrobe staples such as chinos and white T-shirts suddenly lose its marketing edge? Motorola has also fallen victim to its own success. The company’s Razr cell phone was a huge hit, but Motorola struggled to leverage that success. Now, Google owns Motorola Mobility. Also, Starbucks CEO Howard Shultz recently warned that his company and brand risk becoming commoditized. And, as noted in Case 1-3, some industry observers are saying that Apple has “lost its cool”. If you were to make separate recommendations to management at each of these companies, what would you say? Each student’s answer will vary but their answers should incorporate such terms as global marketing, marketing mix strategy, value chain, V = B/P, strategic focus, global marketing strategy, extension, adaption, ethnocentric, polycentric, regiocentric, or geocentric orientations in their responses. Perhaps, a phrase that could be said to each of these chief executives is “think globally, act locally”. OVERVIEW The growing importance of global marketing is one aspect of a sweeping transformation that has profoundly affected the people and industries of many nations during the past 160 years.
  • 9.
    1-6 Copyright © 2017Pearson Education, Inc. Four decades ago, the phrase global marketing did not even exist. Today businesspeople utilize global marketing to realize their companies’ full commercial potential. However, there is another, even more critical reason why companies need to take global marketing seriously: survival. A management team that fails to understand the importance of global marketing risks losing its domestic business to competitors with lower costs, more experience, and better products. But what is global marketing? How does it differ from “regular” marketing? Marketing can be defined as the activity, set of institutions, and processes for creating, communicating, and delivering value for customers, clients, partners, and society at large. Marketing activities center on an organization’s efforts to satisfy customer wants and needs with products and services that offer competitive value and for managing customer relationships in ways that benefit the organization and its stakeholders. The marketing mix (product, price, place, and promotion) comprises a contemporary marketer’s primary tools. Marketing is a universal discipline – as applicable in Argentina as it is in Zimbabwe.  (Learning Objective #1) This book is about global marketing. An organization that engages in global marketing focuses its resources and competencies on global market opportunities and threats. A fundamental difference between regular marketing and global marketing is the scope of activities. A company that engages in global marketing conducts important business activities outside the home-country market. The scope issue can be conceptualized in terms of the familiar product/market matrix of growth strategies (see Table 1-1). Some companies pursue a market development strategy; this involves seeking new customers by introducing existing products or services to a new market segment or to a new geographical market. Global marketing can also take the form of a diversification strategy in which a company creates new product or service offerings targeting a new segment, a new country, or a new region. Four of the growth strategies shown in Table 1-1: (Chapter 1, Page 5) Four Stages - Starbucks Market penetration: Starbucks is building on its loyalty card and rewards program in the United States with a smartphone app that enables customers to pay for purchases electronically. The app displays a bar code that the barista can scan. Market development: Starbucks is entering India via an alliance with the Tata Group. Phase one calls for sourcing coffee beans in India and marketing them at Starbucks stores throughout the world. The next phase will likely involve opening Starbucks outlets in Tata’s upscale Taj hotels in India. Product development: Starbucks created a brand of instant coffee, Via, to enable its customers to enjoy coffee at the office and other locations where brewed coffee is not
  • 10.
    1-7 Copyright © 2017Pearson Education, Inc. available. After a successful launch in the United States, Starbucks rolled out Via in Great Britain, Japan, South Korea, and several other Asian countries. Diversification: Starbucks has launched several new ventures, including music CDs and movie production. Next up: Revamping stores so they can serve as wine bars and attract new customers in the evening. Companies that engage in global marketing frequently encounter unique or unfamiliar features in specific countries or regions of the world. In some regions of the world, bribery and corruption are deeply entrenched. A successful global marketer understands specific concepts and has a broad and deep understanding of the world’s varied business environments. He or she also must understand the strategies that, when skillfully implemented in conjunction with universal marketing fundamentals, increase the likelihood of market success. ANNOTATED LECTURE/OUTLINE Principles of Marketing: A Review Marketing is one of the functional areas of business – distinct from finance and operations. Marketing is the set of activities and processes that (along with product design, manufacturing, and transportation) comprises a firm’s value chain. Decisions at every stage of the process – from idea conceptualization to customer support after the sale – should be assessed in terms of their ability to create value for customers. The core of marketing is to surpass the competition in creating perceived value for customers. The value equation is the guide to this task: Value = Benefits / Price (money, time, effort, etc.) The marketing mix is central to this equation because benefits are a combination of the product, promotion, and distribution components of the mix. Value to the customer can be increased in two ways – 1) an improved bundle of benefits or 2) a lower price (or both): 1) Marketers may improve the product, design new channels of distribution, communicate better – or a combination of all three. 2) Marketers may seek ways to cut costs or lower the price. Nonmonetary costs may be lowered by decreasing the time and effort customers must expend to learn about or acquire a product.
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    1-8 Copyright © 2017Pearson Education, Inc. If a company is able to offer a combination of superior product, distribution, and promotion of the benefits AND offer lower prices than its competition, it should enjoy an extremely advantageous position. Recall the definition of a market: people or organizations that are both able and willing to buy. In order to achieve market success, a product or brand must measure up to a threshold of acceptable quality and be consistent with buyer behavior, expectations, and preferences Competitive Advantage, Globalization, and Global Industries  (Learning Objective #2) When a company succeeds in creating more value for customers than its competitors, that company is said to enjoy competitive advantage in an industry. Competitive advantage is measured relative to rivals with whom you compete in the industry – whether that is on a local, national, or global level. Global marketing is essential if a company competes in a global industry or one that is globalizing. The process of globalization is the transformation of formerly local or national industries into global ones. From a marketing point of view, globalization presents companies with tantalizing opportunities—and challenges—as executives decide whether to offer their products and services everywhere. As defined by management guru Michael Porter, a global industry is one in which competitive advantage can be achieved by integrating and leveraging operations on a worldwide scale. Put another way, an industry is global to the extent that a company’s industry position in one country is interdependent with its industry position in other countries. Indicators of globalization include the ratio of cross-border trade to total worldwide production, the ratio of cross-border investment to total capital investment, and the proportion of industry revenue generated by companies that compete in all key world regions. One way to determine the degree of globalization in an industry sector is to calculate the ratio of the annual value of global trade in the sector— including components shipped to various countries during the production process—to the annual value of industry sales. Achieving competitive advantage in a global industry requires executives and managers to maintain a well-defined strategic focus. Focus is simply the concentration of attention on a core business or competence. Companies that understand and engage in global marketing can offer more overall value to customers than companies that do not have that understanding. Value, competitive advantage, and the focus required to achieve them are universal in their relevance, and they should guide marketing efforts in any part of the world. Global marketing requires attention to these issues on a worldwide basis and utilization of a business intelligence system capable of monitoring the globe for opportunities and threats. A fundamental premise of
  • 12.
    1-9 Copyright © 2017Pearson Education, Inc. this book can be stated as follows: Companies that understand and engage in global marketing can offer more overall value to customers than companies that do not have that understanding. Global Marketing: What It Is and What It Isn’t The discipline of marketing is universal. It is natural, however, that marketing practices will vary from country to country, for the simple reason that the countries and peoples of the world are different. A successful marketing approach in one country may not necessarily succeed in another. Customer preferences, competitors, channels of distribution, and communication media may differ. An important managerial task in global marketing is learning to recognize the extent to which it is possible to extend marketing plans and programs worldwide, as well as the extent to which adaptation is required.  (Learning Objective #3) The way a company addresses this task is a reflection of its global marketing strategy (GMS). In single-country marketing, strategy development addresses two fundamental issues: choosing a target market and developing a marketing mix. The same two issues are at the heart of a firm’s GMS, although they are viewed from a somewhat different perspective (see Table 1-3). A Long, Strange Trip: The Grateful Dead at 50 Tells the story about how the band, the Grateful Dead, in 1965 created a new art form with a sound that incorporated blues, jazz, rock, jug band, folk, and other cultural influences. In 2015 as the bad approached their 50th anniversary, many industry observers hailed the Dead for innovations that continue to impact the music scene in the present day. Precursors of contemporary marketing concepts such as brand equity, freenomics, brand tribes, the sharing economy, customer relationship management, niche marketing, and word-of-mouth marketing can be seen in their business practices. a) Global market participation – is the extent to which a company has operations in major world markets. b) Standardization versus adaptation – is the extent to which each marketing mix element can be standardized (used the same way) or must be adapted (used in different ways) in different country markets. c) Concentration of marketing activities – is the extent to which activities related to the marketing mix (such as pricing decisions) are performed in one or only a few country locations. d) Coordination of marketing activities – is the extent to which marketing activities related to the mix are planned and executed interdependently around the globe. e) Integration of competitive moves – the extent to which a firm’s competitive marketing tactics in different parts of the world are interdependent. The decision to enter one or more particular markets outside the home country depends on a company’s resources, its managerial mind-set, and the nature of opportunities and threats.
  • 13.
    1-10 Copyright © 2017Pearson Education, Inc. Global marketing does mean widening business horizons to encompass the world in scanning for opportunities and threats. The five emerging markets of Brazil, Russia, India, China, and South Africa represent significant growth opportunities. They are known as BRICS. Mexico, Indonesia, Nigeria, and Turkey—the so-called MINTs—also hold great potential. We can use Burberry as a case study in global marketing strategy. The U.K.-based luxury brand is available in scores of countries, and Burberry’s current expansion plans emphasize several geographical areas. Burberry’s marketing mix strategy includes the following: Product: Boost sales of handbags, belts, and accessories—products whose sales are less cyclical than clothing. Price: More expensive than Coach, less expensive than Prada. “Affordable luxury” is central to the value proposition. Place: Burberry intends to open more independent stores in the United States as well as expansion in London and Hong Kong. Promotion: Encourage advocacy and sharing social media and online channels such as Twitter, Instagram, and www.artofthetrench.com. Launch Burberry Acoustic to enhance brand relevance and to provide exposure for emerging music talent via www.burberry.com/acoustic. The issue of standardization versus adaption has been at the center of a long-standing controversy among both academicians and business practitioners. Much of the controversy dates back to the days of Theodore Levitt’s (1983) “homogenized global market.” Levitt envisioned a global community where standardized, high-quality world products would be marketed in a standardized manner. The “homogenized global market” view didn’t work. Even those companies that have become global successes have not done so through total standardization of the product. Global marketing made Coke a worldwide success. However, that success was not based on a total standardization of marketing mix elements. Coca-Cola succeeded through the application of global localization. What does the term “global localization” really mean? Global localization: Think globally, act locally (refer to Table 1-4). a) For example, Cinnabon’s customers in Central and South America prefer dulce de leche. Products developed in those regions being introduced in the U.S., where the Hispanic population is a key segment. b) Starbucks opened an experimental store in Amsterdam that serves as a testing ground for new design concepts such as locally sourced and recycled building materials.
  • 14.
    1-11 Copyright © 2017Pearson Education, Inc. c) Kraft’s Tang powder became a $ 1 billion brand as regional managers in Latin American and the Middle East moved beyond orange (the top-seller) into popular local flavors such as mango and pineapple. Kraft plans to use these lessons learned on the U.S. market. Global marketing may include a combination of standard and nonstandard approaches. Global marketing requires marketers to think and act in a way that is both global and local by responding to similarities and differences in world markets. The particular approach to global marketing that a company employs will depend on industry conditions and its sources of competitive advantage. For example, McDonald’s global marketing strategy is based on a combination of global and local marketing mix elements (refer to Table 1-4). a) For example, Harley-Davidson’s competitive advantage is based in part on “Made in the USA.” Moving production to a low-wage country would tarnish its image. b) Toyota’s and Honda’s success in the US has come through its ability to transfer world- class manufacturing skills to America and advertising that the Camry is “Made in the USA” by Americans. c) Uniqlo, a division of Japan’s Fast Retail operates about 850 stores in Japan and 300 stores in 12 overseas countries. Uniqlo currently has 6 stores in the U.S. but plans call for a total of 200 stores by 2020. The Importance of Global Marketing The largest single market in the world in terms of national income is The United States, representing roughly 25 percent of the total world market for all products and services. U.S. companies that wish to achieve maximum growth potential must “go global” because 75 percent of the world market potential is outside of their home country. Non-US companies have an even greater incentive to “go global;” their potential markets include the 300 million people in the US. Management Orientations  (Learning Objective #5) The form and substance of a company’s response to global market opportunities will depend greatly on its management’s assumptions and beliefs – both conscious and unconscious - about the nature of the world. The world view of a company’s personnel can be described as ethnocentric, polycentric, regiocentric, and geocentric. The orientations are collectively known as the EPRG framework. Ethnocentric Orientation:
  • 15.
    1-12 Copyright © 2017Pearson Education, Inc. a) A person who assumes that his/her home country is superior to the rest of the world. b) Associated with national arrogance or feelings of national superiority. c) At some companies, the ethnocentric orientation means that opportunities outside of the home country are routinely ignored (domestic companies). d) Ethnocentric companies that conduct business outside their home country are known as international companies – they believe products that succeed in the home country are superior. e) Leads to a standardized or extension approach – the belief that products can be sold everywhere without adaptation. f) Foreign operations or markets are viewed as inferior or subordinate to the home market. g) Headquarters knowledge is applied everywhere; local knowledge is viewed as unnecessary. Polycentric Orientation: a) The opposite view of ethnocentrism. b) The belief that each country in which you do business is unique. c) This assumption allows each subsidiary to develop its own unique marketing strategies in order to succeed. d) The term multinational company is often used to describe such a structure. e) Leads to a localized or adaptation view that assumes products MUST be adapted to succeed. Regiocentric Orientation: a) The region becomes the relevant geographic unit. b) Management’s goal is to develop a regionally integrated strategy (e.g. NAFTA or the EU). c) May be viewed as a variant of the multinational view (polycentric). Geocentric Orientation: a) Views the entire world as a potential market and strives to develop integrated global strategies. b) These companies are known as global or transnational companies. c) Serves world markets from a single country or sources globally for the purposes of focusing on select country markets. d) Tend to maintain their association with a particular headquarters country. (Harley- Davidson and Waterford serve world markets from the US and Ireland, respectively.) e) Transnational companies serve global markets and utilize global supply chains. f) Transnational companies both serve global markets and utilize global supply chains and often have a blurring of national identity. A true transnational would be stateless. (Toyota and Honda are examples of companies that exhibit key characteristics of transnationality (see Exhibit 1-7) g) A key factor that distinguishes global and transnational companies from international or multinational companies is mind-set: At global and transnational companies, decisions regarding extension and adaptation are not based on assumptions but rather on made on the basis of ongoing research into market needs and wants.
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    1-13 Copyright © 2017Pearson Education, Inc. h) It is a synthesis of ethnocentrism and polycentrism – it is a “world view.” i) Seeks to build a global strategy that is responsive to local needs and wants. It is a positive sign that, at many companies, management realizes the need to adopt a geocentric orientation. However, the transition to new structures and organizational forms can take time to bear fruit. A global company can be further described as one that pursues either a strategy of serving world markets from a single country or one that sources globally for the purposes of focusing on select country markets. In addition, global companies tend to retain their association with a particular headquarters country. At global and transnational companies, management uses a combination of standardized (extension) and localized (adaptation) elements in the marketing program. One way to assess a company’s “degree of transnationality” is to compute an average of three figures: (1) sales outside the home country to total sales, (2) assets outside the home country to total assets, and (3) employees outside the home country to total employees. Viewed in terms of these metrics, Nestlé, Unilever, Royal Philips Electronics, GlaxoSmithKline, and the News Corporation can also be categorized as transnational companies. Each is headquartered in a relatively small home country market, a fact of life that has compelled management to adopt regiocentric or geocentric orientations to achieve revenue and profit growth. The geocentric orientation represents a synthesis of ethnocentrism and polycentrism; it is a “worldview” that sees similarities and differences in markets and countries and seeks to create a global strategy that is fully responsive to local needs and wants. A regiocentric manager might be said to have a worldview on a regional scale; the world outside the region of interest will be viewed with an ethnocentric or a polycentric orientation, or a combination of the two. However, recent research suggests that many companies are seeking to strengthen their regional competitiveness rather than moving directly to develop global responses to changes in the competitive environment The ethnocentric company is centralized in its marketing management; the polycentric company is decentralized; and the regiocentric and geocentric companies are integrated on a regional and global scale, respectively. A crucial difference between the orientations is the underlying assumption for each. The ethnocentric orientation is based on a belief in home-country superiority. The underlying assumption of the polycentric approach is that there are so many differences in cultural, economic, and marketing conditions in the world that it is futile to attempt to transfer experience across national boundaries.
  • 17.
    1-14 Copyright © 2017Pearson Education, Inc. A key challenge facing organizational leaders today is managing a company’s evolution beyond an ethnocentric, polycentric, or regiocentric orientation to a geocentric one. As noted in one highly regarded book on global business, “The multinational solution encounters problems by ignoring a number of organizational impediments to the implementation of a global strategy and underestimating the impact of global competition.” Innovation, Entrepreneurship, and the Global Startup Kevin Plank, Under Armour In less than 20 years Under Armour is on track to reach $ 2.0 billion in sales. Under Armour is intent on building their brand into “the biggest brand in the land”. In 2012, only 6 percent of Under Armour’s revenues were generated outside of North America. Some industry observers think Under Armour is planning significant global product introductions times to coincide with the 2016 Summer Olympic Games in Brazil. Forces Affecting Global Integration and Global Marketing  (Learning Objective #6) The remarkable growth of the global economy over the past 65 years has been shaped by the dynamic interplay of various driving and restraining forces. Regional economic agreements, converging market needs and wants, technology advances, and pressures to cut costs, pressures to improve quality, improvements in communications and transportation technology, global economic growth, and opportunities for leverage all represent important driving forces. Multilateral Trade Agreements A number of multilateral trade agreements have accelerated the pace of global integration. In Europe, the expanding membership of the European Union is lowering boundaries to trade within the region. NAFTA is expanding trade between the United States, Canada and Mexico. Converging Market Needs and Wants and the Information Revolution A person studying markets around the world will discover cultural universals as well as differences. The common elements in human nature provide an underlying basis for the opportunity to create and serve global markets. Most global markets do not exist in nature – marketing efforts must create them. (For example, no one needs soft drinks.) Evidence is mounting that consumer needs and wants around the world are converging today as never before. This creates an opportunity for global marketing. Multinational companies pursuing a strategy of product adaptation run the risk of falling victim to global competitors that have recognized opportunities to serve global customers.
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    1-15 Copyright © 2017Pearson Education, Inc. The information revolution — what some refer to as the “democratization of information” — is one reason for the trend toward convergence. Thanks to satellite dishes and globe-spanning TV networks (CNN and MTV), it seems as though almost everyone has the opportunity to compare their lives against everyone else’s. The Internet is an even stronger driving force. When a company establishes a presence on the Internet, it is automatically a global company. Transportation and Communication Improvements Time and cost barriers associated with distance have fallen tremendously over the past 100 years. The jet airplane revolutionized communication by making it possible for people to travel around the world in less than 48 hours. In 1970, 75 million passengers traveled internationally. By 2011, that figure rose to almost 980 million. The newest communication technologies, such as e-mail, video teleconferencing, and Wi-Fi, mean that managers, executives, and customers can link up electronically from virtually any part of the globe without traveling at all. A similar revolution is occurring in transportation technology. The costs associated with physical distribution – in both money and time – have been greatly reduced. Product Development Costs The pressure for globalization is intense when new products require major investment and long periods of development time. The pharmaceutical industry provides a good example of this driving force. Today, the process of developing a new drug and bringing it to market can span 14 years and exceed $400 million. Such cost must be recovered globally because no single national market is likely to be large enough to support investments of this size. (Refer to Table 1- 6). Quality Global companies “raise the bar” for all competitors in an industry. When a global company establishes a benchmark for quality, competitors must quickly make their own improvement and come up to par. Global marketing strategies can generate greater revenue and greater operating margins, which, in turn, support design and manufacturing quality. World Economic Trends
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    1-16 Copyright © 2017Pearson Education, Inc. Prior to the global economic crisis that began in 2008, economic growth had been a driving force in the expansion of the international economy and the growth of global marketing for three reasons: a) Economic growth in key developing countries has created market opportunities that provide a major incentive for companies to expand globally. b) Economic growth has reduced resistance that might otherwise have developed in response to the entry of foreign firms into domestic economies. (When a country such as China experiences rapid economic growth, policy makers are more likely to look favorably on outsiders.) c) The worldwide movement toward free markets, deregulation, and privatization is the third driving force. (Telephone company privatization is an example.) Leverage A global company possesses the unique opportunity to develop leverage. In the context of global marketing, leverage means some type of advantage that a company enjoys by virtue of the fact that it has experience in more than one country. Leverage allows a company to conserve resources when pursuing opportunities in new geographical markets. Four important types of leverage exist: 1) Experience Transfers – A global company can leverage its experience in any market in the world by drawing on management practices, strategies, products, advertising appeals, or sales or promotional ideas that have been market-tested in one country and applied to another. 2) Scale Economies – The global company can take advantage of its greater manufacturing volume to obtain traditional scale advantages. Finished products can be manufactured by combining components manufactured in scale-efficient plants in different countries. 3) Resource Utilization – A global company has the ability to scan the entire world to identify people, money, and raw materials that will enable it to compete most effectively in world markets. 4) Global Strategy – The global company’s greatest advantage is its global strategy. A global strategy is built on an information system that scans the world business environment to identify opportunities, trends, threats, and resources. A global strategy is a design to create a winning strategy on a global scale. Note: A global strategy is NO guarantee of ongoing organizational success. (Consider InBev’s acquisition of Anheuser-Bush, Daimler-Chrysler, and Deutsche Post’s DHL unit.) Restraining Factors
  • 20.
    1-17 Copyright © 2017Pearson Education, Inc. Despite the impact of the driving forces previously discussed, several restraining forces may slow a company’s efforts to engage in global marketing. Luckily, in today’s world the driving forces predominate over the restraining forces. That is why the importance of global marketing is steadily growing. Important restraining forces include: a) Management Myopia and Organizational Culture – Management may simply ignore opportunities to pursue global marketing. A company that is ethnocentric (or “nearsighted”) will not expand geographically. Myopia is a recipe for market disaster if headquarters attempts to dictate when it should listen. Successful global marketing requires a strong local team “on the ground” to provide information about local markets. b) National Controls – Every country protects the commercial interests of local businesses by maintaining control over market access and entry in both low- and high-tech industries. Today, tariff barriers have been largely removed in high-income countries. Still, nontariff barriers (NTBs), such as “Buy American” campaigns, make it difficult for companies to gain access to local markets. c) Opposition to Globalization – To many people, globalization represents a threat. Globaphobia is used to describe an attitude of hostility toward trade agreements or global brands. Opponents of globalization include labor unions, university students and nongovernmental organizations (NGOs). CASES Case 1-1: The Global Marketplace: The Assignment Answers given in the text book. Case 1-1 Discussion Questions 1-11. Anheuser-Busch, which has been described as “an American icon,” is now under the ownership of a company based in Belgium. Responding to reports that some consumers planned to boycott Bud products to protest the deal, one industry observer said, “Brand nationality is all about where it was born, and also the ingredients of that beer and how they make the beer: Basically, it doesn’t matter who owns it. We are in a global world right now”. Do you agree? Students answers will vary based on their agreement or disagreement with this statement. Good students will introduce key words like ethnocentric, polycentric, regiocentric, and geocentric in their answers to describe their view of the manufacturer of beer and how they “feel” about the national origin(s) of and about the beer they drink. 1-12. Anheuser-Busch, (A-B) has long enjoyed a reputation as a very desirable place to work. Executives were awarded well-appointed corporate suites and traveled on corporate jets; many had secretaries as well as executive assistants. When managers took commercial flights, they flew first class. Most employees received beer for free and could count on donations of beer and
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    1-18 Copyright © 2017Pearson Education, Inc. merchandise for community events. Tickets to Cardinal home games were also used as a marketing tool. A-B spent heavily on advertising and promotion; various advertising agencies produced about 100 new ads for A-B each year. Given these facts, what changes, if any, would you expect A-B’s new owners to make? Why? Student answers should explain the differences in / among / between the different management orientations and compare and contrast the ethnocentric orientation of A-B beverage company versus their new Belgium owners. One could argue that A-B InBev, the new owners of A-B practice a polycentric orientation towards selling beer around the world. In that case, the marketing sales and promotional practices previously enjoyed by A-B most likely will continue. However, the executive “perks” will most likely decrease. 1-13. In 2009, Italy’s Fiat acquired a 20 percent stake in Chrysler, another iconic American company. Are you familiar with Fiat? What do you think CEO Sergio Marchionne hope to accomplish with this deal? How might Chrysler benefit from the alliance? CEO Sergio Marchionne hopes to turn Fiat into a transnational company serving global markets and utilizing global supply chains. His strategy might be to turn Fiat into a geocentric company. Chrysler might benefit from the alliance by becoming a “global” brand instead of just an “American icon.” 1-14. Ben & Jerry’s Homemade is a quirky ice cream marketer based in Burlington, Vermont. Founders Ben Cohen and Jerry Greenfield are legendary for enlightened business practices that include a three-part mission statement: product mission, financial mission, and social mission. When the company was acquired by consumer products giant Unilever, some of the brand’s loyal customers were alarmed. What do you think was the source of their concern? The form and substance of a company’s response to global market opportunities depends greatly on the management’s assumption or beliefs. In this case, Ben & Jerry consumers were afraid that Unilever’s management orientation would be different from the original owners views—either ethnocentric, polycentric, or regiocentric. Case 1-2: McDonald’s Expands Globally While Adjusting Its Local Recipe Overview: Today, McDonald’s golden arches are one of the most recognized symbols in the world, just behind the Olympic rings. While growth within the U.S. has slowed, the picture outside the U.S. has appeared brighter, until recently. However, globally, taste profiles and consumer desires are changing. McDonald’s has responded to these changes by altering their basic products (when necessary) to fit the requirements of the local markets. While not always successful, it has proven to be a winning strategy. 1-15. Identify the key elements in McDonald’s global marketing strategy (GMS). In particular, how does McDonald’s approach the issue of standardization? Does McDonald’s think global and act local? Does it also think local and act global?
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    1-19 Copyright © 2017Pearson Education, Inc. The popularity of American-style hamburgers, fries, and soft drinks is growing around the world, supporting Levitt’s view of the global village. Also, the restaurants themselves offer the consumers a chance to experience for themselves a fast food legend. However, students should point out that, in many locations, menu items are adapted according to the customs and tastes of individual countries. McDonald’s offers an ideal example of “global localization.” With McDonald’s offering of local tastes and a combination of American fare, McDonald’s thinks globally (product adaption) and acts globally (standardization). 1-16. Do you think government officials in developing countries such as Russia, China, and India welcome McDonald’s? Do consumers in these countries welcome McDonald’s? Why or why not? Despite concerns by governments and citizens in some countries about “cultural imperialism,” McDonald’s and other franchises with well-known brand names are generally welcome. Such businesses provide both much-needed jobs and employee training. McDonald’s does a good job of earning the support of local authorities and the local population by working with agricultural producers to develop local supply sources for beef, potatoes, and dairy products. Finally, thanks to changing lifestyles around the globe, more people are embracing the whole concept of fast food. 1-17. Is it realistic to expect that McDonald’s – or any well-known company – can expand globally without occasionally making mistakes or generating controversy? Why do anti- globalization protesters around the world frequently target McDonald’s? McDonald’s has a reputation for being sensitive to local issues and mentalities. According to the staff director for international human resources in Central Europe, “One of our guiding principles is that our restaurants should always be a reflection of the communities they serve.” Mistakes such as the one in France represent exceptions that can serve as learning experiences. Still, each new nation has the potential to present unique problems. In Israel, for example, McDonald’s must deal diplomatically and appropriately with dietary laws pertaining to kosher foods and operating restaurants on the Sabbath (Friday and Saturday). Another issue is to maintain the service attitude that was a cornerstone of McDonald’s U.S. reputation. A German student noted that in Germany, good service is not associated with McDonald’s because counter-help consists of immigrants who do not exhibit the cheerful demeanor of their U.S. counterparts. 1-18. Assess the changes McDonald’s is making to its marketing strategy in the United States and around the world.
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    1-20 Copyright © 2017Pearson Education, Inc. McDonald’s executives intend to create a modern, streamlined environment that will encourage customers to stay longer and spend more. They have included more salads healthier food options on their ‘better for you’ menus. McDonald’s has pledged that they would ‘listen to the customer’ with a rapid rollout of a menu innovation called ‘Create Your Taste’. CASE 1-3: Apple versus Samsung: The Battle for Smartphone Supremacy Heats Up Overview: Apple’s reputation was based on its proven ability to disrupt existing markets and create new markets with technical and design innovations. In some circles the launch of the iPhone 5 was viewed as an evolution, rather than a revolution. Samsung makes several versions of their Galaxy S 4 to suit the needs of different markets, Apple does not. In India, the number three smart-phone market, Apple lags far behind Samsung, offering an Android phone for about $ 100. Indian consumers pay $ 500 for an iPhone 4 and about $ 850 for the iPhone 5. 1-19. Do you own a smartphone? If so, which brand did you buy, and why? Student answers will vary based on which phone they own. 1-20. In 2013, Apple introduced the iPhone 5c to attract consumers who were not willing or able to pay a premium for an Apple device. The price was about $100 less than the top of the line 5s. Was this the right pricing decision? Yes this is a correct decision. This is the only way Apple was able to compete in the ever-expanding Indian market. Samsung’s success has proved that in the emerging country markets, this is necessary to compete. 1-21. Do you think Apple can continue to grow by developing break-through products that create new markets, as it did with the iPod, iPhone, and iPad? Apple needs to embrace the concept of formal market research. Steve Jobs downplayed the importance of this concept saying that consumers don’t know what they want. Samsung Electronics on the other hand, relies heavily on market research. 60,000 staff members work in dozens of research centers in China, Great Britain, India, Japan, the United States, and elsewhere. Samsung designers have backgrounds in such diverse disciplines as psychology, sociology, and engineering. 1-22. How has Samsung’s global marketing strategy enabled it to compete so effectively against Apple? In many developing countries, there is a strong demand for inexpensive mobile phones.
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    1-21 Copyright © 2017Pearson Education, Inc. Some Android-based models from Android models from Samsung sell for much less than the iPhone 5. Apple does not offer a lower-cost version of the iPhone. Samsung has done their research and found the unsatisfied needs of the consumers. 1-23.Assess the prospects for the global success of Apple Pay and Apple Watch. Apple Pay and Apple Watch will be game changers for their competition. These products, priced properly, will do well across many global markets. Gender and age demographics will show that these products will succeed in all demographics TEACHING TOOLS AND EXERCISES Additional Cases: "GENICON: A Surgical Strike into Emerging Markets" by Allen H. Kupetz; Adam P. Tindall; Gary Haberland. June 2010, HBS: 910M41-PDF-ENG. "Market Stretch" by Gavin Price and Margaret Sutherland. June 2009. HBS: 909M46-PDF- ENG. “Global Brand Face-Off”, HBR Case Study and Commentary RO 306A. Anand P. Raman, Peter M. Thompson, Jennifer L. Aaker; Harish Manwani; Simon Clift; Masaaki Mike Kotabe. “Mary Kay Inc: Asian Market Entry (B)”, John A. Quelch. HBS 509067. Video: This article is from Management International Review, March 2011. It is titled “Effective Global Strategy Implementation: Structural and Process Choices Facilitating Global Integration and Coordination.” The abstract states that this article offers “a contingency framework of global strategy implementation effectiveness on firm performance. The research question we seek to address is what the structural and process requirements are for MNEs to successfully implement global strategy through increased efficiency and effectiveness of integration and coordination across world markets. Our central premise is that MNEs' capabilities in establishing supporting structural and process mechanisms will enhance the effectiveness and efficiency of implementing their global strategies which would, in turn, lead to better firm performance.” Link: http://www.freepatentsonline.com/article/Management-International- Review/256930786.html and here is a different link to the PDF of this document: http://www.springerlink.com/content/12181r4440117312/ This next video is just a quick two-minute video showing Pepsi’s marketing throughout the world, and how they differentiate packaging and advertising to adapt to the region in which they are marketing. It provides a good example to show how companies cater their products to different regions.
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    1-22 Copyright © 2017Pearson Education, Inc. Film: Assign “The Gods Must Be Crazy.” This classic, humor-filled movie examines the life of a bushman unaware of white culture who finds a Coca-Cola bottle in the Kalahari (dropped by a passing pilot) and promptly has his life turned around by this mystical object. It shows how our simplest acts can have far-reaching impacts. This is a great introduction to global awareness. Out-of-Class Reading: Zou, Shaoming and S. Tamer Cavusgil, “The GMS: A Broad Conceptualization of Global Marketing Strategy and Its Effect on Performance.” Journal of Marketing 66 (October 2002) pp. 40-56. Internet Exercise: Fortune magazine profiled the world’s richest man (http://money.cnn.com/2007/08/03/news/international/carlosslim.fortune/). Have students read and summarize this piece and use this as the basis for an in-class discussion on the changing face of world business. Full Semester Research Assignment and Activity This is a full semester cultural and marketing plan project designed for individuals or groups. Students should choose a country and a product / service that is not currently found in the targeted country and devise a cultural analysis and marketing plan for the chosen country. For example, students can choose to market an automobile from the United States into a foreign country or can choose to market an automobile into the United States that is not currently available here. At the Instructors discretion, this project can be spread over the entire semester or used as a “take home” final exam, collected in sections as the material is covered in class or any combination deemed. Foreign students are especially encouraged to find products / services that they’ve been accustomed to or enjoyed (a favorite type of food product) here in the United States and wish to “export” to their home country. Cultural Analysis: The data suggested in the cultural analysis includes information that helps the marketer make market-planning decisions. However, its application extends beyond product and market analysis to being an important source of information for someone interested in understanding business customs and other important cultural features of the country. This cultural analysis is composed of two parts: information on the cultural makeup of the country and the economic analysis of the country. The information in this analysis must be more than a collection of facts. In preparing this material, you should attempt to interpret the meaning of cultural information. With that said, your country analysis should contain at least one paragraph on each of the following areas:
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    1-23 Copyright © 2017Pearson Education, Inc. Per the instructor’s discretion, this section could be collected either before or after Part 2 of the text has been discussed in class (Part 2 is chapters 2, 3, 4, and 5). PART I: Introduction to the Culture of the Country I. Include short profiles of the company, the product to be exported and the country with which you wish to trade. II. Brief discussion of the country’s relevant history III. Geographical setting a) location b) climate c) topography IV. Social institutions a) Family i) The nuclear family ii) The extended family iii) Dynamics of the family (1) Parental roles (2) Marriage and courtship b) Education i) The role of education in society (1) Primary education (quality, levels of development, etc) (2) Secondary education (quality, levels of development, etc.) (3) Higher education (quality, levels of development, etc.) ii) Literacy rates c) Political System i) Political structure ii) Political Parties iii) Stability of government iv) Special taxes v) Role of local government d) Legal System i) Organization of the judiciary system ii) Code, common, socialist, or Islamic-law country? iii) Participation in patents, trademarks and other conventions e) Organizations i) Group behavior ii) Social classes
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    1-24 Copyright © 2017Pearson Education, Inc. iii) Clubs, other organizations iv) Race, ethnicity and subcultures f) Business customs and practices V. Religion and aesthetics a) Religion and other belief systems i) Orthodox doctrines and structures ii) Relationship with the people iii) Which religions are prominent? iv) Membership of each religion v) Any powerful or influential cults? b) Aesthetics i) Visual arts (fine arts, plastics, graphics, public arts, colors etc.) ii) Music iii) Drama, ballet, and other performing arts iv) Folklore and relevant symbols VI. Living conditions a) Diet and nutrition i) Meat and vegetable consumption rates ii) Typical meals iii) Malnutrition rates iv) Foods available b) Housing i) Types of housing available ii) Do most people own or rent? iii) Do most people live in one-family dwellings or with other families? c) Clothing i) National dress ii) Types of clothing worn at work d) Recreation, sports, and other leisure activities i) Types available and in demand ii) Percentage of income spent on such activities e) Social security f) Health Care VII. Language a) Official language(s) b) Spoken versus written language(s) c) Dialects
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    1-25 Copyright © 2017Pearson Education, Inc. VIII. Executive Summary After completing all of the other sections, prepare a two-page (maximum length) summary of the major points and place it at the front of the report. The purpose of an executive summary is to give the reader a brief glance at the critical points of your report. Those aspects of the culture a reader should know to do business in the country but would not be expected to know or would find different based on his or her home country should be included in this summary. IX. Sources of information X. Appendixes Per the discretion of the instructor, this part could be collected after Part 3 of the textbook has been covered in the class. (Part 3 of the text includes chapter 6, 7, 8, and 9). PART II: The Economic Analysis of the Country The reader may find the data collected for the economics analysis guideline are more straightforward than for the cultural analysis guideline. There are two broad categories of information in this guideline: general economic data that serve as a basis for an evaluation of the economic soundness of a country and information on channels of distribution and media availability. As mentioned earlier, the guideline focuses only on broad categories of data and must be adapted to the particular company and its product needs. With that said, write at least one (1) paragraph for each of these sections. Guideline I. Introduction II. Population a) Total i) Growth rates ii) Number of live births iii) Birth rates b) Distribution of population i) Age ii) Sex iii) Geographic areas (urban suburban, and rural density and concentration) iv) Migration rates and patterns v) Ethnic groups III. Economic statistics and activity c) Gross national product (GNP or GDP) 1. Total 2. Rate of growth (Real GNP or GDP) a. Personal income per capita
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    1-26 Copyright © 2017Pearson Education, Inc. b. Average family income d) Distribution of wealth i) Income classes ii) Proportion of the population in each class iii) Is the distribution distorted? e) Minerals and resources f) Surface transportation i) Mode ii) Availability iii) Usage rates iv) Ports. g) Communication systems i) Types ii) Availability iii) Usage rates h) Working conditions i) Employer-Employee relations ii) Employee participation iii) Salaries and benefits i) Principal industries i) What proportion of the GNP does each industry contribute? ii) Ratio of private to publicly owned industries j) Foreign Investment i) Opportunities? ii) Which industries? k) International trade statistics i) Major exports (1) Dollar value (2) Trends ii) Major imports (1) Dollar value (2) Trends iii) Balance-of-payments situation (1) Surplus or deficit? (2) Recent trends iv) Exchange rates (1) Single or multiple exchange rates? (2) Current rate of exchange (3) Trends l) Trade restrictions i) Embargoes ii) Quotas iii) Import taxes iv) Tariffs v) Licensing
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    1-27 Copyright © 2017Pearson Education, Inc. vi) Customs duties m) Extent of economic activity not included in cash income activities i) Counter trades (1) Products generally offered for counter trading (2) Types of counter trades requested (i.e. barter, counter purchase, etc.) (3) Foreign aid received n) Labor force i) Size ii) Unemployment rates o) Inflation rates IV. Developments in science and technology a) Current technology available (computers, machinery, tools etc.) b) Percentage of GNP invested in research and development c) Technological skills of the labor force and general population V. Channels of distribution (macro analysis) This section reports data on all channel middlemen available within the market. Select a specific channel as part of your distribution strategy for your marketing plan a) Retailers i) Number of retailers ii) Typical size of retail outlets iii) Customary markup for various classes of goods iv) Methods of operation (cash/credit) v) Scale of operation (large/small) vi) Role of chain stores, department stores specialty shops b) Wholesale middlemen i) number and size ii) Customary markup for various classes of goods iii) Method of operation (cash/credit) c) Import/Export agents d) Warehousing e) Penetration of urban and rural markets VI. Media This section reports data on all media available within the country or market. Select specific media as part of the promotional mix and strategy for your marketing plan. a) Availability of media b) Costs i) Television ii) Radio iii) Print iv) Other media (cinema, outdoor etc.) c) Agency assistance
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    1-28 Copyright © 2017Pearson Education, Inc. d) Coverage of various media e) Percentage of population reached by each of the media VII. Executive summary After completing the research for this report, prepare a two-page (maximum) summary of the major economic points and place it at the front of the report VIII. Sources of information IX. Appendixes Per the instructor’s discretion, this section can be used as a final exam, a take home writing assignment or group work. It can / could be used in conjunction with Part 4 of the textbook, which are chapters 10, 11, 12, 13, 14, and 15). THE MARKETING PLAN Market-oriented firms build strategic market plans around company objectives, markets and the competitive environment. Planning for marketing can be complicated even for one country, but when a company is doing business internationally, the problems are multiplied. Company objectives may vary from market to market and from time to time; the structure of international markets also changes periodically and from country to country; and the competitive, governmental, and economic parameters affecting market planning are in a constant state of flux. These variations require international marketing executives to be specially flexible and creative in their approach to strategic marketing planning. PART III: Market Audit and Competitive Market Analysis Of the guidelines presented, this is the most product or brand specific. Information in the other guidelines is general in nature, focusing on product categories, whereas data in this guideline are brand specific and are used to determine competitive market conditions and market potential. Two different components of the planning process are reflected in this guideline. Information in Parts I and II, Cultural Analysis and Economic Analysis, serve as the basis for an evaluation of the product or brand in a specific country market. Information in this guideline provides an estimate of market potential and an evaluation of the strengths and weaknesses of competitive marketing efforts. The data generated in this step are used to determine the extent of adaptation of the company’s marketing mix necessary for successful market entry and to develop the final step, the action plan. The detailed information needed to complete this guideline is not necessarily available without conducting a thorough marketing research investigation. Thus another purpose of this part of the country notebook is to identify the correct questions to ask in a formal market study.
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    1-29 Copyright © 2017Pearson Education, Inc. Write at least one (1) paragraph on each in each of these areas. I. Introduction II. The Product A. Evaluate the product as an innovation as it is perceive by the intended market. 1. Relative advantage 2. Compatibility 3. Complexity 4. Trialability 5. Observability B Major problems and resistance to product acceptance based on the preceding evaluation III. The Market A. Describe the market(s) in which the product is to be sold 1. Geographical region(s) 2. Forms of transportation and communication available in that (those) region(s) 3. Consumer buying habits a. Product-use patterns b. Product feature preferences c. Shopping habits 4. Distribution of the product a. typical retail outlets b. Product sales by other middlemen 5. Advertising and promotion a. Advertising media usually used to reach your target market(s) b. Sales promotions customarily used (sampling, coupons, etc.) 6. Pricing strategy a. Customary markup b. Types of discounts available B. Compare and contrast your product and the competition’s product(s). 1. Competitor’s product(s) a. Brand name b. Features c. Package 2. Competitor’s prices 3. Competitor’s promotion and advertising methods 4. Competitor’s distribution channels C. Market size 1. Estimated industry sales for the planning year 2. Estimated sales for your company for the planning Year D. Government participation in the marketplace 1. Agencies that can help you.
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    1-30 Copyright © 2017Pearson Education, Inc. 2. Regulations you must follow IV. Executive Summary Based on your analysis of the market, briefly summarize (two-page maximum) the major problems and opportunities requiring attention in your marketing mix, and place the summary at the front of the report V. Sources of information VI. Appendixes SUGGESTED READINGS Books Arnold, David. The Mirage of Global Markets. Upper Saddle River, NJ: Pearson Education, 2004. Barnet, Richard J., and John Cavanaugh. Global Dreams: Imperial Corporations and the New World Order. New York: Simon & Schuster, 1994. Bartlett, Christopher A., Sumantra Ghoshal, and Paul W. Beamish. Transnational Management, 5th edition. New York: McGraw-Hill/Irwin, 2006. Bryan, Lowell. Race for the World: Strategies to Build a Great Global Firm. Boston: Harvard Business School Press, 1999. Doremus, Paul. The Myth of the Global Corporation. Princeton, NJ: Princeton University Press, 1998. Friedman, Thomas L. The World Is Flat 3.0: A Brief History of the Twenty-First Century, New York, Picador 2005. Friedman, Thomas L. The Lexus and the Olive Tree. New York: Anchor Books, 2000. Garten, Jeffrey. World View: Global Strategies for the New Economy. Cambridge, MA: Harvard University Press, 2000. Greider, William. One World, Ready or Not: The Manic Logic of Global Capitalism. New York: Simon & Schuster, 1997. Johnson, Chalmers. Japan, Who Governs? The Rise of the Developmental State. New York: W. W. Norton, 1995.
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    Another Random Documenton Scribd Without Any Related Topics
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    JOLI PARIS no delos primeros libros que despertaron mi imaginación de niño: las Mil y una noches. Uno de los preferidos libros, que actualmente releo con invariable complacencia: las Mil y una noches. Antes leía la única versión española, aún más expurgada y traidora que la francesa de Galand; hoy me recreo con la literal de Mardrus, en su libertad de verbo y figura y su prestigio oriental, tan maravillosamente transpuesto. Allí concebí primeramente la verdadera realeza, la absoluta, la esplendorosa. Allí se me aparecieron, allí—y en los «nacimientos» ó «presepios», con Melchor, Gaspar y Baltasar—los verdaderos reyes, los reyes de los cuentos que empiezan: «Este era un rey ...» Reyes de Oriente, magos extraordinarios; reyes que tienen jardines donde vagan libres leones y panteras, y en que hay pájaros de dulce encanto en jaulas de oro ... Reyes con tantas mujeres como el rey Salomón, y piedras preciosas como huevos de paloma, y esclavos negros que cortan cabezas, y pipas en que humean tabacos que huelen á esencia de rosa ... Reyes que se parecían al belga Leopoldo como un clavel á un cepillo de dientes, ó un pavo real á un impermeable. El original y picante Luis Bonafoux cuenta, en una de sus impagables crónicas, su desilusión cuando el rey de Siam, no sé en dónde, le preguntó apurado por cierto lugar ... Si non é vero, está muy bien contado. A mí no me ha preguntado por nada el cha de Persia, Mouzaffer-ed-Dine, pero le he visto varias veces, con su levita, su gorro, sus diamantes, sus bigotes largos y grises, y su cara de fastidiado, de muy fastidiado; y confieso que me ha destruído una ilusión más. No importa que se describa en los periódicos el trono suyo de Teherán, todo de oro y pedrería, y un pavo real también hecho de oro y gemas luminosas; ni la esfera en oro macizo en que los mares están representados por innumerables esmeraldas, el Africa por rubíes, la Persia en turquesas, Francia é Inglaterra por
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    diamantes, y losotros países por diferentes piedras preciosas; sin saber que cuando da una audiencia—siempre allá en Teherán— ofrece en una caja rubíes, zafiros, esmeraldas, diamantes, perlas, turquesas, como quien da un cigarrillo ó una pastilla. Cuando le he visto, se me ha parecido á todo menos á un «rey de reyes», como sus antecesores y mis ilustres tocayos los Daríos, más ó menos ocos ó codomanos, pero admirables en el prestigio de su poética gloria y en la grandeza semidivina de las leyendas. Gracias á los Dieulafoy podemos admirar en el Louvre aquella civilización ostentosa y potente, bajo aquellos conquistadores de la India, vencedores del macedón y del tracio, que no iban á tomar curas en los Contrexeville de la época. La impresión que tengo del cha, es que es un señor que se aburre soberanamente, y á quien le importa un comino todo lo que no sean las «cositas» de París, ó las berenjenas con queso ó sin él; á las berenjenas las adora, y en el Elisée-Palace-Hotel, donde vive, y en todo lugar oficial en donde come, hay que servírselas irremisiblemente. Y en cuanto á su manera de pensar sobre el país que hoy le acoge y le festeja, se resume en la única frase de francés que sabe, y que repite para todo: Joli Paris! Joli Paris! A este propósito cuenta un indiscreto la visita que acaba de hacer á su majestad persa el ministro de la Guerra, general André. Lo primero que dijo el cha al ministro, al estrecharle la mano, fué: Joli Paris! Joli Paris! Luego, ya sentados, le señaló una tabaquera incrustada de las indispensables piedras que sabéis, y le dijo en su idioma: Kerli, lo cual quiere decir tabaco. Tradujo la palabra el intérprete imperial, Freydoun Montazem Saltanek. El general tomó un cigarrillo, y el gran visir, haciéndose el pillín, como dicen en España, le ofreció fuego en un aparatito eléctrico. El general André encendió, y en ese momento el aparatito se puso á tocar el Vals des anglais. Y el cha, que esperaba la sorpresa del general, con los ojos alegres, contentísimo: Joli Paris! Joli Paris! Después, se puso hablar en persa con su ministro en París, el general Nazare-Agha. Y éste tradujo al ministro de la Guerra: que su
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    majestad estaba muydeseoso de conocer el nuevo fusil del Ejército francés, «el fusil con que V. E. acaba de armar tropas». André se quedó asombradísimo, aún más que con lo de la cajita de música: «No hay ningún fusil nuevo—dijo—. Ya he tenido el honor de mostrar en persona á S. M. nuestro armamento, cuando nos visitó el año pasado.» El cha, á quien se tradujo esa respuesta, pareció no darse bien cuenta de ella; pero para no darse por vencido, se puso un poco serio, y luego, dirigiéndose al ministro, sonriente: Joli Paris! Joli Paris! Como le invitasen á ir á las maniobras, contestó que iría con placer; pero cuando supo que había doce horas de ferrocarril, manifestó que no iría, pues no le place viajar mucho en ferrocarril. No faltó el regalo. Ofreció al general André un estuche con una cigarrera—demás está decirlo—de oro y piedras preciosas, con su cifra grabada. Luego fué la despedida. Antes de partir díjole el general el último oficial cumplimiento. El cha se puso á mirar las muchas condecoraciones de André. Y como viese sobre todas el cordón de la Orden del León y del Sol, su Orden, dijo, señalándosela, en persa: «La Orden del León y del Sol no podría recompensar á un militar más ilustre, á un jefe más valiente, á un ministro más esclarecido.» Y luego, en francés: Joli Paris! Joli Paris! Mouzaffer-ed-Dine es un estimable filósofo. En el lugar donde ha estado últimamente «en villegiature», un quiromante mundano consiguió que el potentado oriental le diese á estudiar su diestra. He aquí el resultado: «La línea de cabeza del soberano es casi nula; sin embargo, es fina como un cabello femenino, é indica aptitudes diplomáticas». La línea del corazón, por el contrario, se desenvuelve majestuosamente, sembrada de islotes, de meandros rojos, que indican pasiones carnales violentas y complicadas. La línea de vida es débil, pero prolongada; días largos y malestares constantes. Su Majestad es glotón—¡aquí de las berenjenas!—y se inclina á hacer trampa en el juego. El Monte de Mercurio tiene un desarrollo normal: si el cha no fuese un poderoso monarca, sería un comerciante de mérito. Pero lo que está sobre
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    todo en sureal mano, es la línea de las artes. Entre las manos «conocidas» la del pintor Carolus-Duran, es la que más se le parece. Si el cha pintase, escribiese, triunfaría. Y el cha no lo hace. ¡El cha es un señor muy cuerdo! No creamos en las quirománticas rayas, ni dejemos de creer. El cha será un gran diplomático natural, y desde luego más culto que su difunto padre, que se limpiaba los dedos, después de comer, en los ricos cortinajes de los palacios en que se le hospedaba. Aunque la diplomacia y la buena educación pueden estar muy desunidas, como en el chino Li-Hung-Chang, de sonora memoria; pero, lo que es el protocolo, gime por él á cada paso. El cha no admite programas, ni disposiciones anteriores. Cada vez que se anuncia que ha de ir á alguna parte, él, en el momento de subir al coche, ó al automóvil, da orden de ir á otra parte. Il s’en fiche de M. Crozier, de M. Mollard, de todo el personal del palacio d’Orsay, y de M. Lépine, con su Policía. Como no habla más que persa, no conversa más que por medio de sus intérpretes, y allá las cosas que les dirá de cuando en cuando. A pesar de la opinión quiromántica, no parece que el rey de reyes sea muy aficionado á las damas. Quizás será que, dueño y señor de tantas, allá en Persia, se encuentra ahito. Sin embargo, ¿cómo no ha de haber encantado su alma de primitivo, su espíritu de Oriente, esta joya humana, este bijou con vida que se llama la parisiense? Yo me figuro que es esa una de las cosas que más le atraen en esta capital de atractivos. Joli Paris! Taciturno, como cansado, lleva este hombre raro su vida de Camaralzamán moderno, contagiado, aunque no tanto como se quisiera, de la enfermedad occidental, de la fiebre de progreso. Trajo diez millones, como dinerito de viaje. Ya se le acabaron. No importa. Pedirá otros diez. Compra todo lo que le gusta; y al bárbaro que hay en él le gusta, como al niño, lo que reluce, lo que hace ruido, lo que sorprende. Compra cajas de música, lámparas eléctricas, juguetes, espadas, bronces, muebles. Compra pájaros disecados, anillos, medallones, escopetas y automóviles. Sobre todo automóviles. Tiene ya como treinta, allá en Teherán. Los compra de todas las marcas. Los regala á sus ministros y á sus amigos. Para su uso particular
  • 39.
    tiene de losmejores, de los hipogrifos que hacen una enormidad de kilómetros por hora. Se ha llevado á uno de los mejores chauffeurs de París. Cuando sale con él, le dice: «Muy despacio.» Y el imperial auto, que es muy cómodo y lujoso, no va más ligero que un carruaje cualquiera. El cha es un sabio. Mouzaffer-ed-Dine es un sabio; daría seguramente todo lo que tiene por la camisa del hombre feliz. ¡Se aburre! He ahí su mal; no los riñones, ni el estómago. El otro día decía un obrero parisiense al verle pasar: «Le hacen falta cuidados. Si tuviese algunas «molestias», se molestaría menos.» Es la verdad. Tiene la desgracia del hombre á quien no le falta nada. Cuentan que el príncipe imperial, en tiempos de Napoleón III, un día que veía desde las Tullerías jugar á unos niños pobres, bajo la lluvia, dijo á la emperatriz, que acababa de regalarle como presente de Noel una linda y rica colección de juguetes: «Mamá, yo te pediría otra cosa mejor». «¿Qué?» «Déjame ir á meterme descalzo, en ese «hermoso lodo» que hay allí afuera ...» El cha no ha tenido hermosos lodos en su vida. Y ha tenido, en cambio, una existencia de honores continuos y placeres. Su soberbia, su gula, su lujuria, su cólera han estado siempre satisfechas. Es señor de vidas y haciendas. Tiene harén y verdugo. No hay cosa que haya deseado que no la haya tenido inmediatamente. Si no ha tenido la luna, es porque no ha querido. Seguramente no le ha picado nunca un mosquito, ni la pulga del cuento de Víctor Hugo. Hay mil ojos que velan sus sueños y que inspeccionan sus vigilias. El oro y las piedras preciosas no tienen ningún valor para él. El amor le ha sido negado y la voluptuosidad le ha hartado y quebrantado. Alá le ha librado hasta ahora de los babistas que asesinaron á su padre Naser-ed-Dine, y de los anarquistas de otras tierras. Y él se fastidia, se fastidia soberanamente. Viene á París, y el pueblo le aclama, y se siente feliz, y toma una cantidad increíble de naranja y se deleita con la leguminosa consabida. El pueblo parisiense le ve pasar; le escribe cartas pidiendo todo lo que se puede pedir: le grita ¡viva! como á Krüger, como á Ranavalo, como á Cristina, como á la reina de las
  • 40.
    lavanderas y comoá cualquier rey de oros, de copas, de espadas ó de bastos ... Joli Paris!
  • 42.
    DIVAGACIONES SOBRE ELCRIMEN l canónigo Rosenberg-Montrose y el banquero Boulain han sucedido en la celebridad de las fuertes estafas á la novelesca madame Humbert. Un canónigo que roba con la mayor sangre fría á estúpidos corderos, á excelentes devotas, apoyado en la curia romana y ejerciendo de apóstol del bien y de filósofo de una ideal Jerusalén, no es cosa trivial. Así el banquero Boulain queda en segundo término. Es un vulgar escroc. Los parisienses tienen con qué entretenerse mientras no haya otro escándalo de mayor fuste. No hay duda de que esas sonoras fechorías tienen más de cómico que de trágico, con todo y dejar en la miseria á muchos infelices. Lo cómico está en que las víctimas son todas como las del «cuento del tío», engañados que han querido engañar, ó codiciosos que no han visto las orejas del lobo. Hay, pues, crímenes cómicos; lo que no es fácil aceptar, á pesar de las más bravas paradojas, es que haya crímenes bellos. Quincey, el comedor de opio, escribió un famoso ensayo sobre «El asesinato considerado como una de las bellas artes», que Gómez Carrillo ha hecho conocer en lengua española. Esta estupenda obra de humour, está paralela á la memoria de Swift sobre el aprovechamiento antropofágico de los niños. Los artistas en crímenes no existen; talentos criminales sí hay, como sabuesos raros á lo Sherlock Holmes. Muchos opinan que sí hay crímenes artísticos. Y otros, como Osmont, afirman: Si se coloca uno exclusivamente en el punto de vista de la Moral, no hay, no podría haber ningún bello crimen. Las circunstancias contingentes que pueden dar algún lustre á una acción generalmente culpable, deben aún excitar tanto más horror cuanto que parecen, según la vieja metáfora que todavía le gusta á M. Prud’homme, flores que tapan un abismo. Esta concesión hecha,
  • 43.
    confesemos—agrega—que hay muypocas personas que se coloquen en el punto de vista de la moral pura y que allí permanezcan. Y aquí entra la cuestión del «gusto». Si se permite á alguna estética mezclarse en la moral, el bello crimen existe evidentemente. Sería tan pueril negarlo como escribir—alguien lo ha dicho—que una flor envenenada no es nunca bella. Testigos el radioso acónito, el botón de oro, y entre otros, la digital, de purpurinas flores. Cuando un crimen es de un profundo horror, á que no se mezclan motivos bajos, y que el cuadro en que se produce no perturba la emoción, es cierto, para el lector que no verá el horror directo de la sangre vertida y los gestos de agonía, que una especie de salvaje grandeza se mezcla á la tragedia verdadera y hay quienes aplaudirían como en la escena de un drama bien construído. El reciente drama italiano en que el conde de Bonmartini fué la víctima, es lo que llaman «un bello crimen». ¿Por qué? M. Osmont dirá: Porque la pasión sola, ¡y qué pasión monstruosa!, ha guiado la mano de los asesinos. El espantable riesgo que corrían los culpables, si eran descubiertos, pues un hombre, y sobre todo una mujer de alto rango pierde, al mismo tiempo que la libertad y el honor interior, el respeto de los demás, y ese lujo habitual desde la infancia que llega á ser como una atmósfera; los dramas espantosos que descubre la catástrofe final, todo eso impresiona, desconcierta, turba, agrada aún, de cierta manera. En ese crimen de Bolonia una figura surge que lo domina extrañamente: el senador Murri. Esa virtud romana, ese coraje estoico, no podían producirse sino en una circunstancia semejante, desmesurada en nuestros menguados tiempos. Y como conviene en un drama en que la justicia eterna parece intervenir, el crimen tendrá su castigo y la virtud encontrará su recompensa en el cumplimiento de su deber terrible. Pues—y esto para contestar á la probable objeción—nadie, pienso, admira el «bello crimen» en sí. Es una imagen de tintes violentos, un drama conmovedor. Su relación puede hacer una impresión estética. ¿Quién no ha admirado con espanto los cuadros de tortura de los pintores españoles y las pesadillas de Goya? No quiero hablar del asesinato político. Aquí un elemento nuevo aparece: la fe. Eso basta para elevar el acto al
  • 44.
    sacrificio. Con todoaun conviniendo en la existencia del «bello crimen», hay que decir que es un espectáculo muy lamentable, y que no es una escuela de la cual se deban formar cerebros y corazones. Así, admirando en un libro, ó en un diario, ocasionalmente, el crimen de Bolonia, me parece que los crímenes, bellos ó no, ocupan demasiado lugar en el periodismo y en la literatura. Ensangrientan cada página y perpetúan en el pueblo la concepción byroniana de la sublimidad del crimen y la elegancia de la desesperación. Se debería también mostrar la virtud, dejarla ver como es, de una belleza superior. Las ideas de Osmont, me seducen más, lo confieso, que las originalidades estéticas y las desviaciones de la sensibilidad. El erudito Tomás de Quincey, «que á los quince años componía odas en griego y á los veinte había leído todos los libros antiguos», me parece que no andaba muy bien de la cabeza, con perdón de las opiniones de Baudelaire—otro que tal—y de mi amigo Carrillo. No me meteré con los nietzscheanos; pero sí me referiré á los que, como M. Colah, en la cuestión opinan que á la palabra héroe se le puede dar un obscuro reverso. Ciertamente, dice dicho señor, desde el punto de vista filosófico y moral el crimen es indigno de admiración; pero la imaginación, ante el éxito de ciertas hazañas malas, cae en un estado que no es otro que la admiración. Admiráis un héroe cualquiera por su audacia, la habilidad que ha empleado para franquear lo infranqueable, el desprecio del peligro que ha mostrado en el cumplimiento de un acto de abnegación patriótica ó social. Es porque el asesino obra antimoralmente, que el valor evidente, las mañas increíbles, la insensata audacia, la terrible temeridad, las mil dificultades que deben, en fin, componer un «bello crimen» y que se ha llegado á dominar, ¿no son, por su asombroso éxito, dignas de un héroe? ¡Es un héroe de la mala causa, pero un héroe! Lo que admiráis no es el desenlance, la escena final, sino las complicaciones casi borradas, los peligros casi apartados, que preceden. Pues un «bello crimen» debe ser seguramente trabajado, combinado, reflexionado, sabiamente premeditado, y, sin embargo, trae después combinaciones cuyo
  • 45.
    triunfo es másó menos aleatorio. Un drama de la miseria, el triste fin de un idilio amoroso, el resultado trágico de una escena de celos, no pueden dar lugar á un «bello crimen», atendido que puede ser cometido bajo la presión y la ceguedad de la desesperación, de la cólera ó de la pasión. Antes que M. Colah, J. J. Weiss, en el tercer tomo de sus Annales de Théatre, ha escrito á propósito del viejo melodrama Fualdes: «Para el bello crimen, es necesario que el personaje criminal obre por temperamento y no por impulso fortuito y singular. Es necesario además que los detalles innobles que acompañan casi siempre un asesinato, sean excusados de algún modo de su ignominia, porque la casualidad los ha disputado de manera tal, que parecen un esfuerzo del arte y como un contraste creado y arreglado por una retórica misteriosa de las cosas. Es preciso que la culpabilidad sea demostrada hasta la evidencia y que, sin embargo, se cierna sobre los motivos y sobre la ejecución del crimen un resto de misterio que se querrá siempre penetrar y que no se logrará nunca. Es necesario que los indiferentes hayan sido mezclados á la historia de ese crimen, que no les toca de ninguna manera, por algún incidente trivial, por algún juego cruel de la suerte que inquietará la existencia, á ellos mismos, por un tiempo, ó por toda la vida. Es preciso, si es posible, que toda una ciudad, ó toda una clase de la sociedad sea conmovida y turbada. Es preciso ... sería cuento de nunca acabar». El buen sentido de aquel crítico teatral que tenía mucho talento, salta á la vista. No, no hay crímenes bellos, sino ante la filosofía de la crueldad y ante las razones del egoísmo, por más estéticos que sean. No hay crímenes bellos, como no hay enfermedades bellas. Solamente los médicos encuentran «hermosas llagas» y «lindos casos». Hay artistas criminales, como Benvenuto, y enfermos, como
  • 46.
    el autor delas Flores del Mal, que dan razón á las nuevas teorías de los filósofos del delito. En cuanto á la delincuencia bufa y á los crímenes cómicos, son indiscutibles. Los criminales de la estofa de la señora Humbert y del canónigo Rosenberg aguardan el libreto del vaudeville y son puestos en solfa. Son tipos que hacen resaltar los lados grotescos y malignamente burlones de la criatura humana. Su obra gira alrededor de las concupiscencias y de las avaricias. Cierto es que muchos inocentes caen en sus garras; pero en la piel de cada cordero inocente hay con mucha frecuencia, en el mundo de los negocios, el alma de un pícaro lobo. París, como Nueva York, como Londres, como Buenos Aires, dan albergue y vasto campo á los Carlo Lanza, á los Arton, á los Boulain, á los Humbert-D’Aurignac. La última obra del antiguo jefe de Policía Macé, es rica en enseñanzas á este respecto. En el crimen cómico suele haber sangre, como consecuencia; pero lo que más hay, es oro; el oro de los engañados, evaporado en las cajas de los engañadores. Luego, la mayoría aplaude, ríe, está casi de parte de los hábiles burladores ... «¡Ah!—decían algunos— ¡Mme. Humbert es la mujer más grande que la Francia ha producido, Juana de Arco comprendida! ¡Habría que elevarle una estatua!» Y hay más que lástima, sonrisas para los embaucados. Y es que se cultiva, más ó menos, el arte de engañar. He oído contar lo siguiente: «Hace poco, unos muebles Imperio, puestos en depósito en un hotel célebre, por un tapicero de mala fe, han sido vendidos para América por una fuerte suma.—¡El mobilier de la emperatriz Josefina—decía una réclame—, histórico, herencia de familia», etc.! El mobilier de la emperatriz venía de la calle de la Pépinière. Un marqués ha cobrado una buena comisión, y un periodista otra. Esas son prácticas corrientes. Se sonríe con
  • 47.
    indulgencia ... Desgraciadamente,el «americano» se hace raro ... Comienza á desconfiar.
  • 49.
    BAMBINI DE SUFRIMIENTO Quisieradedicar estas líneas á los niños italianos del Río de la Plata; pero diré en ellas algunas cosas que sus inocentes espíritus no podrían comprender y que sus frescos corazones no deben saber. A los corazones de sus padres hablaré, á los espíritus de sus padres me dirigiré. Hace ya mucho frío, á la entrada de este invierno, que se anuncia el más fuerte y cruel, dicen los sabios, que desde hace cincuenta años haya habido. Una noche de éstas, en que el aire sopla, flagelando, por el puente del Louvre, sobre el Sena, que refleja el oro y sangre de las luces amarillas y rojas, fantasmales á través de la neblina, sentí que corría tras de mí una vocecilla tímida: Mosiú, mosiú! ... Se acercó un pequeño punto blanco, que tenía en los brazos otros bultitos blancos. La luz del próximo farol me hizo ver que el bulto era un pobre niño y los bultitos estatuítas y figuras de yeso. Su francés, sus ojos, su cara, su vivacidad, su mercancía, decían de dónde era el infantil vendedor que iba desabrigado, en la bruma y el frío, en busca de unos cuantos céntimos. Era una de tantas víctimas de la trata de niños, más horrible que la trata de mujeres; era uno de esos infelices de los rebaños de exportación en que Italia ha tenido desde antaño triste privilegio. Ya le habían enseñado á mentir.—Combien?—Si fran. Le di unos sous y le dejé perderse en la noche parisiense. He visto más; he visto lo que creía que ya no existía sino en los viejos cuadros, en los viejos grabados: he visto en ciertos barrios de París el antiguo pifferraro y el organillo y la mona vestida de colorines, y la linda italianica, ya casi púber, que danza al són del violín y recoge después en un plato las limosnas de los curiosos. Y existen aún, aunque en menor escala que antes, los saboyanitos de
  • 50.
    los melodramas yde las romanzas. Y el horrible mercado de la prostitución pueril, la importación de niñas, por inicuos proxenetas de ambos sexos, que no temen exhibir su especialidad en pleno bulevar. Pero no trato de este tópico, en que actualmente la Policía se ocupa, y los miembros de la liga—¡quizá inútil!—de la moral urbana. Eso pertenece á la «trata de blancas», denominación que un japonés amigo mío encuentra, con justicia, exclusiva, «pues de mi país y de la China se ha exportado mucha carne amarilla á los Estados Unidos y á otras partes». Me circunscribo, pues, únicamente, á la explotación de niños italianos que aquí se hace, y contra la cual, felizmente, acaba de formarse una asociación que ojalá encuentre apoyo en todas partes en donde se encuentre unun alma italiana, ó que abrigue simpatía por Italia. Por esto, si estas líneas mías lograsen producir algún buen movimiento entre vosotros —¡así fuese el de mis lectores!—quedaría más satisfecho de ellas, que de un bello poema ó una hermosa página literaria. No hay nada más horrible que la esclavitud de estos bambini; no hay nada más lastimoso que la existencia de martirios que les hacen padecer los hombres viles que les tratan como á bestias productoras. ¿Qué digo? Peor que á los perros. Esta infamia habría continuado sin ser advertida por la generalidad, si el Sr. Paulucci di Calboli, secretario de la Embajada italiana de París, no hubiese llamado la atención en artículos publicados en importantes revistas. A él, pues, y á otros hombres de corazón y buena voluntad, se debe que ahora se trate de favorecer la suerte de esos niños, florida carne itálica, flores de sangre latina que, si escapan de una muerte casi segura, es para caer en poco tiempo en la degradación de todos los vicios y en la posibilidad de todos los crímenes. Después se dice: El asesino Tal, italiano; el asesino Cual, italiano. ¡Es claro! Los mercaderes de sangre y carne humana van á las pobres aldeas lombardas, á todos los lugares de la Romaña, á todas las provincias del Mediodía, en busca del productivo gibier. Les visten de
  • 51.
    harapos, los acuestansobre la paja, como animales, con abrigo insuficiente, y les dan de comer bazofias inmundas compradas por nada, ó simplemente patatas cocidas, ó fritas en grasas innominables, atroces polentas, ó pan solo á veces, duro é incomible. Luego los mandan á vender las estatuítas, y les señalan una cantidad «que irremisiblemente deben traer» por la noche, so pena de recibir azotes y bofetadas. La escena es igual á la que en su novela Sin Familia pinta Héctor Malot. Donde dice musiquitos, poned vendedores, y es lo mismo. Es en un desván de la calle Lourcine, alrededor de una parrilla en que hierve una olla, cerrada con un candado para que los niños no puedan intentar calmar su hambre. Los musiquitos entran, depositan arpas, violines y flautas. Garofoli, el padrone, los hace ponerse en fila delante de él: «Ahora, á arreglar cuentas, angelitos—dice, y á una seña, un niño se acerca—. Tú me debes un sou de ayer, y me has prometido dármelo hoy: ¿Cuánto me traes?» El niño vacila largo tiempo antes de responder; se pone rojo. «Me falta un sou.» «¡Ah!, te falta un sou, ¿y me lo dices tan tranquilo?» «No es el sou de ayer, es uno para hoy.» «Entonces son dos sous. ¿Sabes que no he visto otro como tú?» «No tengo culpa.» «Dejémonos de tonterías, bien conoces la regla: quítate la blusita: dos golpes por ayer y dos por hoy, y además nada de patatas, por tu audacia. Ricardo, toma el azote ...» Y Ricardo toma su azote de cabo corto, que termina en correas de cuero con gruesos nudos. Tal es la escena que se desarrolla, más ó menos dura, en París, en innumerables, sórdidos habitáculos, en que los alojan esos comerciantes en figuritas; abominables yeseros, más ruines que los comprachicos, puesto que desfiguran y mutilan también el alma de tantos desventurados italianitos. Y todavía hay excelentes burgueses, rubicundos ciudadanos patriotas, que al verse importunados, cuando toman su ajenjo en una terraza, por uno de esos niños de hermosos ojos, «se sublevan contra esos «extranjeros», que vienen á comerse el pan de los franceses», como dice un periodista.
  • 52.
    En un yaviejo keepsake, oloroso al alcanfor del mueble en que ha estado por tantos años, y que habría ilustrado con su delicioso arte la adorable Kate Greeneway, he encontrado las impresiones de una sentimental y culta señora, Mme. Louis Janet, sobre los pobrecitos pifferari. Dice que le interesaban profundamente esos niños y niñas que iban por las calles, no por su arte rudo y su pintoresco atractivo, sino «desde el punto de vista de la humanidad». «Vedlos en cualquier tiempo que haga, recorriendo las calles más frecuentadas, los bulevares ó los grandes paseos de la capital: su rostro hace una mueca, bajo el canto que su boca entona y la miseria traspasa los pliegues de sus escasos vestidos, así como se ve sobre los rasgos ya marchitos, ó casi, por las fatigas de su oficio penoso». ¿No es penoso, en efecto, el cantar á toda hora, cantar siempre, cantar á pesar de todo? ¡Eso hacen esos pequeños desgraciados! Y eso con un aire tan profundamente forzado, con un sentimiento de obediencia tan grande, que se adivina en seguida que en medio de la muchedumbre que les rodea, muchedumbre compuesta de curiosos en apariencia, hay ojos de Argos que velan sobre ellos, y brazos listos para golpearles, «si no desplegan todos sus medios» ó no usan todas las gracias y habilidades de su edad para obtener la ligera ofrenda de los asistentes. En efecto: la mayor parte de esos niños que os parecen abandonados á sí mismos sobre la vía pública, van acompañados de sus padres, que calculan las ganancias del día y preparan las del siguiente. Y cuando digo acompañados debería decir seguidos, pues los padres, en ese caso, afectan no conocerlos. Les siguen de lejos, como indiferentes, se detienen cuando los niños se detienen, y algunas veces hasta dejan caer unos céntimos en el plato de la cantadorcita ó del joven artista, para que esa munificencia sea imitada por el público, que por naturaleza es un poco mouton de Panurge. Hoy, más que á los padres, encontraría Mme. Janet á los empresarios. Empresarios de vendedorcitas, de pifferari, y de deshollinadores de chimenea, los ramoneurs, que también tuvieron su tiempo en las leyendas y en los cuentos. En cuanto á las núbiles cantadorcitas ó modelos, tienen otro fin, en la corrupción cosmopolita y gastada de la vasta capital.
  • 53.
    El romanticismo doróla vida de esta mísera infancia esclavizada. Ya es el bonito pifferaro solo, con su sombrero puntiagudo, sus negras pupilas, su sano rostro de niño de país solar, y su indumentaria convencional, sentado sobre una roca del camino, como un pastor, soplando en su flauta; ya es el grupo errante de tez morena, una niña, como de catorce años, toca la pandereta; otra, más pequeña, el violín, y un niño semejante á un San Juan de retablo, tiende su sombrero con ambas manos, en demanda del óbolo de los transeuntes. O ya en el cuadro de Haquette, canta el viejo ciego, y el niño, un amor que sopla convencido, le acompaña en su flauta, ante unos marineros y una vieja que escuchan serios, conmovidos, atentos. Todos esos niños románticos, tienen frescas caras de flores y de frutos, parece que un deus artístico más que otra cosa les animase; cuando más, es una miseria de convención y llena de cierto encanto, la que representan. Se diría que están para aparecer en una escena del Chatelet, ó que posan ante un pintor. ¡Cuán lejos de la realidad! Casi no hay pobrecito de estos que venden yesos que no revele en su rostro, en sus harapos, la negra vida que pasan. Los ojos de Italia brillan en sus ojos, la luz de la divina península; sonríen á veces y ríen, en la inconsciencia de la infancia; pero sus rasgos están atajados, más ó menos, según el tiempo de martirio que lleven; se podría también calcular ese tiempo por lo que dicen sus tristes cuerpos delgados, á través de los andrajos, y á menudo la chispa del sol italiano en sus miradas, se confunde con la llama de la tisis. Los niños menores, los pequeñitos, son los que dan más lástima. Los crecidos, los hombrecitos, los que han pasado, vencedores de la tuberculosis, quizás no reciben ya golpes ... Los hay que dicen en sus gestos y en sus palabras la independencia próxima, la fuga al trabajo libre ó al crimen. ¡Ah!, ¡si la liga que hoy se funda pudiera remediar en alguna manera la perra suerte de estos sin ventura! ¡Si en Italia, en Buenos Aires, en Nueva York, en Chile, en la República Oriental, en todas parte donde los italianos y los amigos de Italia pueden hacer algo, se ayudase á la liga para lograr la libertad de estos niños, para
  • 54.
    encaminarlos á unavida de trabajo y de energía, para arrancar de la muerte ó del presidio de mañana á estos tiernos seres! Sería una obra de bien. El Gobierno francés, estoy seguro que ayudaría con leyes y disposiciones oportunas, y el siglo xx quitaría del mundo una enorme infamia del pasado.