EPRG FRAMEWORK

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 Betaminor

HQ

Alphaland

Betaland

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)

I can see the whole world from here.

HQ

Eth nocentric A ttitude

Polycen tric A ttitude

Regiocentric A ttitude H Qs Orientation to wa rd subsidiaries

G eocen tric A ttitude

(so urce : adapta tion libre d e He ena n D.A ., Per lmutter H .W . , M ultinational O rga niza tion D evelop m ent , Addison W esley Publish ing , 1979 )