What is eprg

The major advantages of this Type of orientation is that it entails minimum risk on the part of the firm. Type of the product and its cultural dependency. Polycentric Orientation. Since this orientation implies global attitude to the development of marketing policies, it provides for improved coordination and control. Not only is global trade is growing at healthy rate, but techniques of overseas marketing is also becoming more diversified and sophisticated. Thus, ensuring efficient use of human resources by building strong culture and informal management channels. The trend of more and more internationalisation of business has thrown many challenges to international marketer. Regiocentric A regiocentric organization sees similarities and differences in a world region, and designs strategies around this. However, this approach is not suitable for companies which are planning to extend their international operations in a big way. See all related question in M. It is generally viewed as economical and manageable. For example, European or Asian offices.

The benefit of this mind set is that it overcomes the shortage of qualified managers in the anchoring nations by migrating them from home countries. Regiocentric Orientation.

Briefly explain the eprg model with examples

Even if consumer needs or wants in international markets differ from those in the home country, those differences are ignored at headquarters. It does not require much investment. Today in the era of globalization, this approach is not popular. They view the whole world as their market and seek to identify global needs and wants and create products and services. Geocentric Geocentric companies, as truly global players, view the world as a potential market, and seek to serve this effectively. Ethnocentric companies that do conduct business outside the home country can be described as international companies, they adhere to the notion that the products that succeed in the home country are superior and, therefore, can be sold everywhere without adaptation. See all related question in international marketing management.

Such companies are sometimes called domestic companies. A person who assumes his or her home country is superior compared to the rest of the world is said to have an ethnocentric orientation. Often there are major differences between countries in a region.

A regiocentric orientation views different regions as different markets.

eprg framework advantages and disadvantages

Regiocentrism: where countries that share economic, cultural or political similarities are grouped in regions, and the company adopts an approach specific to those regions.

The major advantage of this type of orientation is that it will be the most effective way of motivating the management, since the management in each country is given a free hand in framing policies and implementing them.

Eprg model of nestle

The framework looks at how an organisations orientation towards internationalisation can influence strategy. This usually results in the maximum degree of geographic decentralization as local managers are recognized as being psychologically close to markets, environments and customers. Ethnocentric companies that do conduct business outside the home country can be described as international companies, they adhere to the notion that the products that succeed in the home country are superior and, therefore, can be sold everywhere without adaptation. The basic assumption of this approach is that all human beings are alike. Marketing personnel are recruited from that region, regional channels of distribution are developed and policies in respect of other areas such as product, price and promotion have a regional orientation. Ethnocentric orientation is the approach whereby an organisation believes that the practices of the organisation within their domestic market should drive their international strategy. Geocentric firms adopt an approach whereby they have a global mindset. Geocentric orientation.

The polycentric orientation is the opposite of ethnocentrism. They view the whole world as their market and seek to identify global needs and wants and create products and services.

polycentric approach in international marketing

A good example of a company using this approach to their advantage is Harley Davidson. In the ethnocentric international company, foreign operations are viewed as being secondary or subordinate to domestic ones.

Eprg meaning

Finally, it tries to balance both global integration and local responsiveness. He states that businesses and their staff tend to operate in one of four ways: Ethnocentric These people or companies believe that the home country is superior. Size of the potential market. For example, European or Asian offices. Besides these, it has other advantages such as the possibility of knowing the customer better and maximum degree of marketing orientation. This does not equate superiority with nationality. Ethnocentric companies that do conduct business outside the home country can be described as international companies, they adhere to the notion that the products that succeed in the home country are superior and, therefore, can be sold everywhere without adaptation.

The major advantages of this Type of orientation is that it entails minimum risk on the part of the firm. This does not equate superiority with nationality.

ethnocentric orientation
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What is an EPRG Framework in International Marketing?