Chapter 2 EPRG FRAMEWORK

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Introduction
EPRG Model Ethnocentric: everything is centered on the domestic market. Polycentric: several important foreign markets exist. Regiocentric: the market is composed of several large economic regions. Geocentric: the world is one large global market.

Management Orientations
Polycentric: Each host country Is Unique, sees differences In foreign countries

Ethnocentric: Home country is Superior, sees Similarities in foreign Countries

Regiocentric: Sees similarities and differences in a world Region; is ethnocentric or polycentric in its view of the rest of the world

Geocentric: World view, sees Similarities and Differences in home And host countries

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The EPRG framework

Ethnocentrism
Company strategies consistent with the belief that domestic strategies, techniques, and personnel are superior to foreign ones and therefore provide the most effective framework for the companys overseas involvement Associated with national arrogance & home country superiority and Assumes what succeeds in the home country will also succeed in other countries Domestic and international companies Standardized approach to marketing Foreign markets are secondary to the domestic market
E.g. Nissan in 60s, Coke in the late 80s/early 90s
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The EPRG framework

Polycentrism
Opposite of ethnocentrism each country market is unique Highly localized / adapted approach to marketing Multinational companies Local kingdoms Company strategy predicated on the assumption that each countrys market is unique and should be addressed individually, with a country-specific marketing mix.
E.g. Citicorp in the 90s. E.g. Ford (separate product lines to meet the individual markets) Ford Escort 2005 Prentice Hall

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The EPRG framework

Regiocentrism
Treat a world region as one homogeneous market (e.g. NAFTA region; the EU, etc.) Localization / adaptation for the region; ethnocentric or polycentric view of the rest of the world Company strategies that view world regions as distinct markets that share economic, political and/or cultural traits that will respond to a regionwide marketing approach. E.g. PepsiCo Panamerican trade market or European Union, etc

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The EPRG framework

Geocentrism
World view focused on standardizing programs but will adapt if indicated by research Global / transnational company / a blurring of national identity E.g. Toyota

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EPRG Model - Characteristics

Ethnocentric Polycentric Geocentric

Approach

International operations are secondary

Centered on the domestic market Searching for identical segments in foreign markets

Each country is relatively independent

Each market is unique Taking into consideration differences in foreign markets Subsidiary in each country Division for each zone

The world is one common market

Global vision of the world Unifying differences in the world market World headquarters Matrix structure

Vision Priority

Planning center National headquarters Structure International division

EPRG Model - Characteristics

Ethnocentric
Staff Marketing strategy

Polycentric

Geocentric
Most qualified Extension, Adaptation, Creation

Citizens from the Citizens from domestic market each market Extension Adaptation

Management style
Production

Centralized
Domestic

Decentralized
Local

Integrated and interactive

Low-cost sources of supply Strategic alliances World market share

Partnerships Performance measures

Agent, licensing

Joint-ventures

Domestic market Local market share share

Forces Affecting Global Integration and Global Marketing

Driving Forces
Regional economic agreements Converging market needs and wants Media & Internet Transportation and communication improvements Product development costs World economic trends Leverage

Restraining Forces
Management myopia Organizational culture National controls Nationalism antiglobalization protests

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Leverage
An advantage by virtue of the companys experience in several countries
Experience transfers Scale economies Resource utilization Global strategy

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