EPRG – INTERNATIONAL MARKETING ORIENTATION

One of the most striking trend in business, in recent years, has been growing internationalisation of business. In today’s world, growing number of companies involving themselves in international marketing. Many of the companies involving themselves in exporting and importing of various commodities. Not only is global trade is growing at healthy rate, but techniques of overseas marketing is also becoming more diversified and sophisticated. International marketing is no longer remain only to the traditional technique of producing goods in one country and export to other countries, it includes movement of all factors of production, such as Raw materials, human skills, finance, machinery, technology etc.

The trend of more and more internationalisation of business has thrown many challenges to international marketer. One of the major challenges is which type of orientation a firm should adopt to overseas its marketing operations.

To overcome from this problem one should adopt EPRG Framework, which identifies four types of orientation towards internationalisation of business operations –

  • Ethnocentrism
  • Polycentrism
  • Regiocentrism
  • Geocentrism.

These orientations reflect the objectives of a company towards international operations and to lead to different management strategies and planning procedures.

EPRG ORIENTTION

ETHNOCENTRIC ORIENTATION: Orientation towards international operations by a company, which consider export market has no difference with domestic market and hence applies domestic market techniques with overseas market.

GEOCENTRIC ORIENTATION: Orientation towards international operations by a company, which consider the whole world as one market and hence develops global strategies which are applied in domestic market also.

POLYCENTRIC ORIENTATION: Orientation towards international operations by a company, which consider each market differ from other and hence applies different technique in different market.

REGIOCENTRIC ORIENTATION: Orientation towards international operations by a company, which recognises the common features in countries belonging to a particular geographical region and hence applies the same strategy in all the countries in a particular region.

Circumstance under which EPRG should be employed

ETHNOCENTRIC ORIENTATION: Ethnocentric approach will better suit small firms just entering international operations. When company is small and is not in position to invest heavily in overseas operations, it is better for it to identify countries which have characteristic similar those of home country and export to them.

This approach appears most appropriate when overseas sales volume is insignificant in comparison to the total sales of the firm.

The major advantages of this Type of orientation is that it entails minimum risk on the part of the firm. Since not much investment is made in overseas operations so if loss may occur then firm can absorb shock without much difficulty

POLYCENTRIC ORIENTATION: Polycentric will prove idle for firms seriously committed to international marketing and have capacity to invest to the desired extent towards achieving their objectives. 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. Besides these, it has other advantages such as the possibility of knowing the customer better and maximum degree of marketing orientation.

REGIOCENTRIC AND GEOCENTRIC ORIENTATIONS: Since these orientations imply regional or global attitude to the development of marketing policies. They provide for improved coordination and control. These policies entail high cost. Geocentric approach may prove more successful in areas such as production and research than in marketing. Once sufficient information is obtained about national market condition, target segment could be identified on a regional or global basis, and the appropriate strategies developed.