Unit- 3: Lecture -3(International Marketing Orientations)

1. Branch - MBA
International Business Management
DR. APJ ABDUL KALAM TECHNICAL UNIVERSITY
By
Dr. B. B.Tiwari
Professor
Department of Management
Shri Ramswaroop Memorial Group of Professional Colleges, Lucknow, U.P.(India)
Unit-3: Lecture – 3
International Marketing Orientations

2. What is Marketing ?
• Marketing : The management process through which goods and services
move from producer or seller to the customer. It includes the coordination of four
elements called the 4 P's of marketing:
• (1) identification, selection and development of a product,
• (2) determination of its price,
• (3) selection of a distribution channel to reach the customer's place, and
• (4) development and implementation of a promotional strategy.

3. International Marketing: Introduction
• International marketing is the marketing across the national frontiers. It refers to the
strategy, process, and implementation of the marketing activities in the international
arena.
• International marketing may be defined as an activity related to the sale of goods and
services of one country in the other, subject to the rules and regulations framed by the
countries concerned.
• “Global marketing is concerned with integrating and standardizing marketing actions
across a number of geographic markets.” Kotler
• “International marketing is the performance of business activities that direct the flow of
goods and services to consumers and users in more than one nation.”
Cateora

4. Global Marketing ?
• “Global marketing refers to marketing activities coordinated and integrated across
multiple country markets in order to meet global objectives".
 Global marketing focuses on global market opportunities and threats.
– the main difference between the regular marketing and global marketing is the
scope of activities because global marketing occurs in markets outside the
organization’s home country.

5. 1-5
Reasons for Global Marketing
• Growth
 Access to new markets
 Access to resources
• Survival
 Against competitors with lower costs (due to increased access to resources).
• Create value for customers:
 Improve the product
 Find new distribution channels
 Create better communication

6. Examples of Global Marketers
• Coca-Cola
• Philip Morris
• McDonald’s
• Toyota
• Ford
• Unilever
• Gillette
• IBM
• USA
• USA
• USA
• Japan
• USA
• UK/ Netherlands
• USA
• USA

7. • It is the process of extending the organization's local marketing strategies through the
identification of target markets and implementing positioning strategies to get success in
the international markets.
• Different attitudes towards company’s involvement with international marketing process
are called international marketing orientations.
• It is also known as EPRG framework.
EPRG stand for-
• Ethnocentric
• Polycentric
• Regiocentric
• Geocentric
International Marketing Orientations

8. • It is a framework created by Howard V Perlmuter and Wind and Douglas in 1969. It is
designed to be used in an internationalization process of businesses and mainly
addresses how companies view international management orientations.
• According to the EPRG Framework (or the EPRG Model), there are four management
approaches that an organization can take to get more involved in international business
substantially.
• The EPRG Framework suggests that companies must decide which approach is most
suitable for achieving successful results in countries abroad. For this reason, the EPRG
Framework can be a useful tool to utilize if a company does not know yet how to manage
business activities between companies in the local country and a host country.
• The EPRG Framework is additionally useful for making strategic decisions.
Cont….
.

9. International Marketing Orientations
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
Polycentric:
Each host country Is
Unique, sees differences
In foreign countries

10. 1. Ethnocentric Orientation
– Home country is superior to others
– Sees only similarities in other countries
– Assumes products and practices that succeed at home will be successful
everywhere.
– Management focus is to do in host countries what is done in the home country
– Sometimes called an international company.
– Leads to a standardized approach.

11. • In this approach of the EPRG Framework, the company in a local country that wants to
do business overseas does not put in much effort to do research abroad about the host
country’s market.
• Instead, most of the market research is executed in the headquarters in the local
country.
• With this approach, the company seeks for markets abroad that share the same
characteristics as the local market so that the marketing strategy does not have to be
adapted.
• More specifically, the ethnocentric approach uses the same marketing strategies that
are created by local personnel and further utilized multiple countries.
Cont….
.

12. 2 . Polycentric Orientation
– Each country is unique.
– Leads to a localized or adaptation approach that assumes products must be
adapted to local market conditions.
– Company operates differently in each host country based on that situation.
– Sometimes called a multinational company.

13. • In the polycentric approach of the EPRG Framework is the opposite of the ethnocentric
approach.
• A company that utilizes this approach carefully consider different markets abroad to identify
host countries that could potentially offer the most benefits.
• It means that if a company has a local headquarter and a separate office overseas in a host
country that manages the operations in that or more countries, the marketing strategies are
locally created and implemented based on the local needs.
• Businesses that utilize the polycentric approach of the EPRG Framework strongly believe
that every market has its differences. For this reason, these types of companies implement
different marketing strategies for each market.
• It is therefore easier to make strategic decisions based on current cultural differences and
political differences.
Cont….
.

14. 3. Regiocentric Orientation
– Region becomes the relevant geographic unit (rather than by country)
• Ex: The NAFTA or European Union market.
– Some companies serve markets on a regional basis.
– European Union
– NAFTA
– Gulf Cooperation Council (GCC)

15. • In a regiocentric approach of the EPRG Framework, businesses create and implement internationalization
strategies for specific regions.
• Companies that utilize this type of approach use this for the area in which the local business is operated. It
can also be that an organization utilizes two kinds of approaches.
• An organization can use a regiocentric approach for the business in the region in which it operates. And
the same organization can use a polycentric or ethnocentric approach to do business in countries outside
the region.
• for example; some companies use this approach for NAFTA countries, which include the United States,
Canada, and Mexico. All countries are in the same region but still have some different characteristics.
• The same implies for the Benelux, which include Belgium, Netherlands, and Luxembourg. The
countries are in the same region, but Belgium has different market characteristic than the Netherlands and
Luxembourg.
Cont….
.

16. 4. Geocentric Orientation
– Entire world is a potential market
– Also known as a global company
– Retains an relationship with the headquarters country
– Leads to a combination of extension and adaptation elements.

17. • A geocentric approach of the EPRG Framework means that a business strongly believes that it is
possible to utilize one type of strategy for all countries, regardless of the cultural differences.
• A geocentric company is one where the management looks at opportunities on a global scale.
• However, companies that use this approach attempt to create products or offer services in a way
that best suit national and international customers. This means that instead of believing that their
product or service is excellent and that it will sell in other markets, like in the ethnocentric approach,
these organization proactively adapt their products and services that best meet the global needs.
• for instance KFC has “a vegetarian thali (a mixed meal with rice and cooked vegetables) and Chana
Snacker (burger with chickpeas) to cater to vegetarians in India” and Viacom’s MTV channels are
“branded accordingly as MTV India, MTV Korea, MTV China and MTV Japan and use more local
employees with use of local language”.
Cont….
.

18. THANK YOU