eprg framework
TRANSCRIPT
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)