EPRG Framework

An Overview
ETHNOCENTRIC orientation
POLYCENTRIC orientation
REGIOCENTRIC orientation
GEOCENTRIC orientation

Ethnocentric Orientation
Domestic market extension concept:
Domestic strategies, techniques, and personnel are
perceived as superior
International customers, considered secondary
International markets regarded as
outlets for surplus domestic production
International marketing plans
developed in-house by international division
Example: Hero cycles and Atlas cycles


Ethnocentric-Domestic
Domestic expansion only
I dont care Junior.
We are staying
at home.
Ethnocentric-International
Foreign expansion viewed as an appendage to domestic
operations; same strategies are utilized in all countries.
HQ
You seeour way
works best around
the world.
Polycentric Orientation
Multidomestic market concept:

Focuses on importance and uniqueness of each international
market
May establish businesses in each target country
Fully decentralized, minimal coordination with headquarters
Marketing strategies = specific to each country
Result:
No economies of scale,
duplicated functions,
higher final product costs

Example: Ford Motors, Toyota, Suzuki, G.M

Polycentrism
Activities and functions are planned and managed, often by
local nationals, on a country-by-country basis (e.g., HRM is
decentralized by country)
HQ
Would you look
at this? The GMs
do understand the
local markets
Regiocentric Orientation
Global marketing concept:
World regions that share
economic, political, and/or cultural traits
are perceived as distinct markets
Divisions are organized based on location
Regional offices
coordinate marketing activities
Example: Pepsi & Coke

Regiocentrism
Operations are geared towards a particular continental region
with similar economies and cultures
HQ
Alphaland
Betaland
Betaminor
Geocentric Orientation
Global marketing concept:
world is perceived as a total market
with identifiable, homogenous segments
Targeted marketing strategies
aimed at market segments,
rather than geographic locations
Achieve position
as low-cost manufacturer & marketer of product line
Provides standardized product or service
throughout the world

Example: Pizza Hut, McDonalds
Geocentrism
Products are functional, reliable, and standardized low-cost
products (e.g., HRM managed on a global basis)
HQ
I can see the
whole world
from here.
Ethnocentric Attitude Polycentric Attitude
Regiocentric Attitude Geocentric Attitude
HQs Orientation toward subsidiaries
(source : adapta ti on li bre de He ena n D. A., Per lmutt er H.W. , Multinati onal Organizati on
Development , Addison Wesl ey Publ ishing, 1979)