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EPRG Framework: Global Marketing Orientations

This document outlines four orientations that multinational companies can take when expanding internationally: 1) Ethnocentric orientation focuses on using the home country's strategies and considering international markets secondary. 2) Polycentric orientation tailors strategies to individual countries and decentralizes operations. 3) Regiocentric orientation groups regions with similar cultures and economies together and coordinates them regionally. 4) Geocentric orientation views the world as a single, homogenous market and aims for standardized global products.

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365 views14 pages

EPRG Framework: Global Marketing Orientations

This document outlines four orientations that multinational companies can take when expanding internationally: 1) Ethnocentric orientation focuses on using the home country's strategies and considering international markets secondary. 2) Polycentric orientation tailors strategies to individual countries and decentralizes operations. 3) Regiocentric orientation groups regions with similar cultures and economies together and coordinates them regionally. 4) Geocentric orientation views the world as a single, homogenous market and aims for standardized global products.

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vedika382
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EPRG Framework

An Overview
ETHNOCENTRIC orientation
POLYCENTRIC orientation
REGIOCENTRIC orientation
GEOCENTRIC 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-Domestic
Domestic expansion only
I dont care Junior.
We are staying
at home.
Ethnocentric-International
Foreign expansion viewed as an appendage to domestic
operations; same strategies are utilized in all countries.
HQ
You seeour way
works 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

Polycentrism
Activities and functions are planned and managed, often by
local nationals, on a country-by-country basis (e.g., HRM is
decentralized by country)
HQ
Would you look
at this? The GMs
do 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

Regiocentrism
Operations 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
Geocentrism
Products are functional, reliable, and standardized low-cost
products (e.g., HRM managed on a global basis)
HQ
I can see the
whole world
from here.
Ethnocentric Attitude Polycentric Attitude
Regiocentric Attitude Geocentric Attitude
HQs Orientation toward subsidiaries
(source : adapta ti on li bre de He ena n D. A., Per lmutt er H.W. , Multinati onal Organizati on
Development , Addison Wesl ey Publ ishing, 1979)

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