EPRGFRAMEWORK

Depending on the kind and degree of its

involvement in foreign marketing, a firm has to re
orient and reorganise its activities to cope with the
different levels of operational responsibilities
inherent in such involvement. To throw some light
on this issue, some guidelines are available from
what
h is called
ll d the
h EPRG framework
f
k . The
h EPRG
framework attempts to identify four broad types of
orientation off a firm
f
towards
d internationalization
l
off
its operations. These are: Ethnocentrism,
Polycentrism,
l
Regiocentrism and
d Geocentrism
(EPRG).

 EthnocentricOrientation
Theethnocentricorientationofafirmconsidersthat
The ethnocentric orientation of a firm considers that
theproduct,marketingstrategiesandtechniques
applicableinthehomemarketareequallyapplicable
i h
intheoverseasmarketsaswell.Foreignmarketsare
k
ll F i
k
lookeduponmerelyasanextensionofthehome
g
g p
market.Insuchafirmallforeignmarketingoperations
areplannedandcarriedoutfromthehomebase.
withlittleornodifferenceinproductformulationand
specifications pricing strategy distribution and
specifications,pricingstrategy,distributionand
promotionalmeasuresinthehomeandoverseas
markets.Thefirmgenerallydependsonitsforeign
rtimportmerchantsfo
agentsandexpo
t
d
ti
t
h t f rr itsexport
it
t
sales.

Ethnocentric Orientation
D
Domestic
i market
k extension
i concept:
Domestic strategies, techniques, and personnel
are perceived as superior
International customers,, considered secondary
y
International markets regarded as outlets
for surplus domestic production
International marketing plans developed inhouse by international division

PolycentricOrientation
When a firm adopts polycentric approach to overseas
marketing
k i
i attempts to organize
it
i
i international
its
i
i
l
marketing activities on countrybycountry basis. Each
country is treated as a separate market entity and
individual strategies are worked out accordingly. Local
assembly or production facilities and marketing
organizations are created or serving the market needs
in each country.
Polycentrism could be most suitable for firms seriously
committed to international marketing and have the
resources for investing abroad for fuller longterm
penetration into chosen overseas market.

 Multidomestic marketconcept:
Focusesonimportanceanduniquenessofeach
international market
Mayestablishbusinessesineachtargetcountry
y
g
y
FullyDecentralized,minimalcoordinationwith
headquarters
Marketingstrategies=specifictoeachcountry

Result:
l
Noeconomiesofscale,duplicatedfunctions,higher
finalproductcosts

Regiocentric Orientation

Inregiocentric approach,thefirmadoptsa
g
gp y
g g p
regionalmarketingpolicycoveringagroupof
countrieswhichhavecomparablemarket
characteristics.Theoperationalstrategiesare
f
formulatedonthebasisoftheentireregion
l t d
th b i f th
ti
i
ratherthanindividualcountriesandproduction
and distribution facilities are created to serve the
anddistributionfacilitiesarecreatedtoservethe
wholeregionwitheffectiveeconomyof
operationsandclosercontrolandcoordination.

 Globalmarketingconcept:
Worldregionsthatshareeconomic,political,
and/orculturaltraitsareperceivedas
distinctmarkets
Divisionsareorganizedbasedonlocation
Regional office coordinate marketing
Regionalofficecoordinatemarketing
activities

GeocentricOrientation
In geocentric orientation, the firm adopts a worldwide
approach to marketing and its operations become truly
global
l b l in
i character.
h
I a global
In
l b l enterprise,
i
the
h
management establishes manufacturing and processing
p
points around the world in order to
p
activities at specific
serve the various national or regional markets through
a complicated but wellcoordinated system of
productive and distributive network.
network There are close
similarities between regiocentric and geocentric
approaches to international marketing, except perhaps
that
h the
h geocentric
i orientation
i
i calls
ll for
f a much
h greater
scale of operation, coordination and organizational set
p in order to cater to markets of heterogenous
g
up
characteristics which are usually more pronounced in
geocentrism compared with regiocentrism.

 Globalmarketingconcept:

Worldisperceivedasatotalmarketwith
ld
d
l
k
h
identifiable,homogenoussegments
Targetedmarketingstrategiesaimedatmarket
segments ratherthangeographiclocations.
Achievepositionaslowcostmanufacturer&
p
marketerofproductline
ProvidesStandardizedproductorservice
throughout the world
throughouttheworld.