Ethocentric, Geocentric, Polycentric, regiocentric Approach. (EPRG) International Business. How to see these parameters to diversify the companies and products and policies. The Characteristics, HRM practices, culture, Policies etc.

1. PRESENTATION
ON
EPRG
Dinker Vaid
UNDER
INTERNATIONAL BUSINESS
By

2. What is International Marketing
Marketing
concepts,
processes, and
principles are
universally
applicable all
over the world
2
It is an approach of a company
with truly global outlook, seeking
its profit impartially around the
world, on a planned and
systematic basis.
International marketing is defined as the
performance of business activities designed to plan,
price, promote, and direct the flow of a company’s
goods and services to consumers or users in more
than one nation for a profit.

3. Domestic v/s International
Similarities
 Understanding buyers
needs
 Building Goodwill
 Research Development
Differences
• Political Entities
• Legal systems
• Cultural differences
• Different monetary
systems
• Marketing infrastructure
• Trade Restrictions
• Procedures and
documentations
• Highly unpredictable

4. Factors Influencing Global
Business
Rapid growth of world
trade organization
Trend towards
acceptance of free
market system among
developing countries
Impact of Internet,
Mobile phones and
other global media
• North American
free trade area
• European Union
• Asia
• Europe
• Global channels
• Global customers
Reff: International Marketing by Cateora and Graham

5. EPRG FRAMEWORK
Ethnocentric
- Home
country
orientation
Polycentrism
- Host country
orientation
Regiocentrism
- A regional
orientation
Geocentrism
- A world
orientation

6. Management orientation – Home country orientation
Perception about market –
Domestic market is superior..
Focuses on similarities between home and
foreign market.
 Considers foreign market secondary to an
extension of domestic market.
Marketing strategy – Extension of domestic strategy to
foreign market.
Ethnocentric

7. Companies basic objective – Profitability
Culture - Home country
Technology - Mass production
HRM practices – Overseas operations are managed by
people from home country
Managerial predisposition - Manager/MNC rely n values
&interests of parent company in formulating and
implementing strategic plan

8. Merits –
No cost & efforts needed for adaptation/localization
It easy route to internationalization when foreign
market exists with similar domestic characteristics
Demerits –
 No full exploitation of IB opportunities worldwide
Main focus on domestic market
Examples Nissan in 1st years exported cars in US
markets, sold cars without change then sold car in
Japan

10. Surf – Super washout in Japan
Unilever enters Japan Detergent Market
• It releases Surf Super concentrate
washing powder in Japan.
• Measured sachets for Convenience.
• Fresh Smell.
WHAT WENT WRONG??

11.  Washing powder did not dissolve completely
due to weather conditions.
 Low agitation washing machines were more
popular in Japan, in which the super
concentrate surf washing powder did not wash
completely.
 Fresh smell was not very significant.

12. POLYCENTRIC

13. Management orientation – Host country
orientation
Perception about market –
Each national market is distinctive
Focuses on differences between home country
& foreign country
Marketing strategy – Localization / adaptation
Companies basic objective – Public acceptance
POLYCENTRIC

14. Type of governance – Each local unit sets objectives
(bottom up)
Culture-Host country
Technology - Batch production
HRM practices – Local nationals are used in key
management positions
Managerial predisposition - MNC tailor strategic plan to
meet the need of local culture

15. Characteristics –
Recognize importance of inherent differences in
overseas markets
Subsidiaries are established in overseas market &
each is independent with own marketing objectives
& plans
 Local techniques & personnel best suited to deal
with local market conditions
International marketing organized on country to
country basis with separate marketing strategy for
all

16. Merits –
Adaptation to market characteristics help in
better understanding of local needs which will
lead to better exploitation of market potentials
Demerits –
High cost of national responsive marketing mix
for each country
Delay in localization
Examples McD (no beef burgers in India)

17. EPRG FRAMEWORK
Regiocentrism
- A regional
orientation
17
Recognizes
regional
commonaliti
es and leads
to the design
of regional
strategies

19. Management orientation – Regional orientation
Perception about market – Markets can be
differentiated on the basis of common regional
characteristics
Marketing strategy – Trade- off between
standardization & localization
Companies basic objective – Both profitability &
public acceptance

20. Type of governance – Mutually negotiated between
region & its subsidiaries
Culture-Regional
Technology - Flexible manufacturing
HRM practices – Regional people are developed for
key managerial positions anywhere in region
Managerial predisposition - MNC use a strategy that
addresses both local & regional needs

21. Characteristics –
Treat different regions as different market
Regions with similarity of marketing characteristics
treated as separate market
Merits - Advantages of both localization
&standardization
Demerits – Lack of attention to inter regional
differences
Examples Punjab (paneer products more)
Gujarat (sugar more)

22. Management orientation – Global orientation
Perception about market – Entire world is a single
market that can be effectively tapped by
standardized marketing strategy
Marketing strategy – Global standardization
Companies basic objective – Both profitability &
public acceptance
Type of governance – Mutually negotiated at all level
of organization

23. Culture- Global
Technology - Flexible manufacturing
HRM practices – Best people anywhere in the
world are developed for key managerial
positions everywhere in the world
Managerial predisposition - MNC constructs its
strategic plan with a global view of operations

24. Characteristics –
Entire world is treated as single market
Standardized marketing mix, to give uniform image
of product &company for global market
Worldwide approach to marketing & its operations
Merits –
Economies of large scale production
Lower costs advantage of pace

25. Demerits –
Not successful in many cases
Uniform /standard marketing mix not
guarantees for sure success in every situation
Examples Microsoft & Nokia standardized
products world wide