EPRG FRAMEWORK

ETHNOCENTRIC orientationPOLYCENTRIC orientationREGIOCENTRIC orientationGEOCENTRIC orientation

Ethnocentric Orientation

Domestic market extension concept: Domestic strategies, techniques, and personnel are

perceived as superior International customers, considered secondary International markets regarded as

outlets for surplus domestic production International marketing plans

developed in-house by international division Example: Hero cycles and Atlas cycles

Ethnocentric-DomesticDomestic expansion only

I don’t care Junior. We are staying

at home.

Ethnocentric-InternationalForeign expansion viewed as an appendage to domestic operations; same strategies are utilized in all countries.

HQ

You see…our wayworks best around

the world.

Polycentric Orientation Multidomestic market concept:

Focuses on importance and uniqueness of each international market

May establish businesses in each target country Fully decentralized, minimal coordination with headquarters Marketing strategies = specific to each country Result:

No economies of scale, duplicated functions, higher final product costs

Example: Ford Motors, Toyota, Suzuki, G.M

PolycentrismActivities and functions are planned and managed, often by local nationals, on a country-by-country basis (e.g., HRM is decentralized by country)

HQWould you look

at this? The GMsdo understand the

local markets

Regiocentric Orientation

Global marketing concept: World regions that share

economic, political, and/or cultural traits are perceived as distinct markets

Divisions are organized based on location Regional offices

coordinate marketing activities Example: Pepsi & Coke

RegiocentrismOperations are geared towards a particular continental region with similar economies and cultures

HQ

Alphaland Betaland

Betaminor

Geocentric Orientation

Global marketing concept: world is perceived as a total market

with identifiable, homogenous segments Targeted marketing strategies

aimed at market segments, rather than geographic locations

Achieve position as low-cost manufacturer & marketer of product line

Provides standardized product or service throughout the world

Example: Pizza Hut, McDonalds

GeocentrismProducts are functional, reliable, and standardized low-cost products (e.g., HRM managed on a global basis)

HQ

I can see thewhole worldfrom here.

Eth nocentric Attitude Polycen tric Attitude

Regiocentric Attitude Geocen tric Attitude

H Qs Orientation to ward subsidiaries (source : adapta tion libre de He ena n D.A., Per lmutter H.W. , Multinational Organiza tionDevelopment , Addison Wesley Publish ing , 1979)