PRESENTATIONON
EPRGBy
Shanmukha Akinapelli pgdm
What is International Marketing
Marketing concepts, processes, and principles are universally applicable all over the world
2
It is an approach of a company with truly global outlook, seeking its profit impartially around the world, on a planned and systematic basis.
International marketing is defined as theperformance of business activities designed to plan,price, promote, and direct the flow of a company’sgoods and services to consumers or users in morethan one nation for a profit.
Domestic v/s InternationalSimilarities
Understanding buyers needs
Building Goodwill Research
Development
Differences • Political Entities• Legal systems• Cultural differences• Different monetary
systems• Marketing infrastructure• Trade Restrictions• Procedures and
documentations• Highly unpredictable
EPRG model, sometimes called also EPG model, is used in the international marketing. It was introduced by Perl mutter (1969).
The original name - EPG. A little later, Wind Douglas
and Perl mutter (1973) extended this model by another factor - regiocentrism. The extended model is known as EPRG model, in short.
EPRG FRAMEWORK
Ethnocentric- Home country
orientation
Polycentrism - Host country
orientation
Regiocentrism - A regional orientation
Geocentrism- A world
orientation
Progression to Global Marketing
Management orientation – Home country orientation
Perception about market – Domestic market is superior..Focuses on similarities between home and foreign market. Considers foreign market secondary to an extension of domestic market. Marketing strategy – Extension of domestic strategy to foreign market.
Ethnocentric
Companies basic objective – Profitability
Culture - Home country
Technology - Mass production
HRM practices – Overseas operations are managed by people from home country Managerial predisposition - Manager/MNC rely n values &interests of parent company in formulating and implementing strategic plan
Merits – No cost & efforts needed for adaptation/localization It easy route to internationalization when foreign market exists with similar domestic characteristics
Demerits – No full exploitation of IB opportunities worldwide Main focus on domestic market Examples Nissan in 1st years exported cars in US markets, sold cars without change then sold car in Japan
Surf – Super washout in JapanUnilever enters Japan Detergent Market
• It releases Surf Super concentrate washing powder in Japan.• Measured sachets for Convenience. • Fresh Smell.
WHAT WENT WRONG??
UN EXPLORED MARKETWashing powder did not dissolve
completely due to weather conditions.Low agitation washing machines were
more popular in Japan, in which the super concentrate surf washing powder did not wash completely.
Fresh smell was not very significant.
POLYCENTRIC
Management orientation – Host country orientation Perception about market –Each national market is distinctive Focuses on differences between home country & foreign country Marketing strategy – Localization / adaptation Companies basic objective – Public acceptance
POLYCENTRIC
Type of governance – Each local unit sets objectives (bottom up)
Culture-Host country Technology - Batch production HRM practices – Local nationals are used in key management positions Managerial predisposition - MNC tailor strategic plan to meet the need of local culture
Characteristics –
Recognize importance of inherent differences in overseas markets
Subsidiaries are established in overseas market & each is independent with own marketing objectives & plans
Local techniques & personnel best suited to deal with local market conditions
International marketing organized on country to country basis with separate marketing strategy for all
Merits –Adaptation to market characteristics help in better understanding of local needs which will lead to better exploitation of market potentials
Demerits – High cost of national responsive marketing mix for each country Delay in localization
Examples Mc D (no beef burgers in India)
Management orientation – Regional orientation Perception about market – Markets can be differentiated on the basis of common regional characteristics
Marketing strategy – Trade- off between standardization & localization
Companies basic objective – Both profitability & public acceptance
REGIOCENTRIC
Type of governance – Mutually negotiated between region & its subsidiaries Culture-Regional
Technology - Flexible manufacturing
HRM practices – Regional people are developed for key managerial positions anywhere in region Managerial predisposition - MNC use a strategy that addresses both local & regional needs
Characteristics – Treat different regions as different market Regions with similarity of marketing characteristics treated as separate market Merits - Advantages of both localization &standardization
Demerits – Lack of attention to inter regional differences
Examples Punjab (paneer products more)Gujarat (sugar more)
Management orientation – Global orientation Perception about market – Entire world is a single market that can be effectively tapped by standardized marketing strategy
Marketing strategy – Global standardization
Companies basic objective – Both profitability & public acceptance
Type of governance – Mutually negotiated at all level of organization
GEOCENTRIC
Culture- Global Technology - Flexible manufacturing HRM practices – Best people anywhere in the world are developed for key managerial positions everywhere in the world
Managerial predisposition - MNC constructs its strategic plan with a global view of operations
Characteristics – Entire world is treated as single market Standardized marketing mix, to give uniform image of product &company for global market Worldwide approach to marketing & its operations
Merits –Economies of large scale production Lower costs advantage of pace
Demerits –
Not successful in many cases Uniform /standard marketing mix not guarantees for sure success in every situation
Examples Microsoft & Nokia standardized products world wide