Transcript international orientations

International Orientation
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INTERNATIONAL ORIENTATIONS
The degree of involvement in international
business-EPRG approach
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Enthocentrism (home country orientation)
Polycentrism (host country orientation)
Regiocentrism (regional orientation)
Geocentrism (world orientation)
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Ethnocentric Orientation
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Overseas operations are viewed as secondary to domestic
operations.
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A means of disposing of surplus domestic production.
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Overseas operations are conducted from a homecountry base-strong reliance on export agents.
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Domestic product-mix without major modifications for
the overseas markets.
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International marketing characterized by Extension
strategy.
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Cultural factors in overseas markets are overlooked for
instance most Indian handicrafts exporters hardly
appreciated the market difference and need for adaptation
of marketing strategy
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A number of Indian products sold abroad such as dresses
like salwar – kurta, Saries and food items such as dosa mix, idli
mix vada mix sambhar mix, gulab jamoon mix, papad and
Indian sweets are primarily
abroad
targeted at Indian population
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Polycentric Orientation
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Polycentric approach is highly market oriented
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Each market is considered unique in terms of its market
environment.
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Local marketing techniques are best suited to deal with
local market conditions.
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Subsidies are established in overseas markets.
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Environment of each market is considered while
formulating marketing strategy.
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Emphasis is put on local laws, custom and culture and
great care is taken to understand the local way of doing
business.
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Marketing is characterized by Adaptation strategy.
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Decentralization of marketing activities is highest in
polycentric orientation
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Regiocentric Orientation
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Regiocentric Company views different regions as
different markets.
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A particular region with certain important
common marketing characteristics is regarded as
single market.
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Economies of scale.
Strategy integration,
organizational approach and product policy tend to
be implemented at regional level.
Depending the convergience of market behaviour on
the basis of geographical regions, a similar
marketing strategy is used. Eg. McDonald’s strategy
not to serve fork and to slaughter animals through
the halal process is followed only in the middle east
or muslims dominated countries and can be termed
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as regiocentric
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Geocentric Orientation
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A geocentric company views the entire world as a single
market and develops standardized marketing mix,
projecting a uniform image of the company and its
products for the global market.
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Geocentric orientation provides improved coordination
and control. Geocentric position may be more
advantageous for production, research and development.
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In general, the desirability of a particular international
orientation-E,P,R or G-tends to depend of several
factors, such as the size of the firm, the experience
gained in a given market, the size of the potential
market, and the type of the product and its cultural
dependency.
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