INTERNATIONAL MARKET ORIENTATION

By Aakriti Rohatgi Roll no: 117004

International Marketing

According to the American Marketing Association (AMA) international marketing is the multinational process of planning and executing the conception, pricing, promotion and distribution of ideas, goods, and services to create exchanges that satisfy individual and organizational objectives.

International Market Orientation

The form and substance of a companys response to global market opportunities depend greatly on management assumptions or belief . The world View of a companys personnel can be described as Ethnocentric Polycentric Regiocentric Geocentric The orientation collectively called as EPRG Framework.

Ethnocentric Orientation

A person who assumes his or her home country is superior to the rest of the world is said to have an ethnocentric orientation. The ethnocentric orientation means company personnel see only similarity in the markets and assume the products and practices that succeed in the home country will, due to their demonstrated superiority, be successful anywhere. Domestic companies

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International companies In ethnocentric companies, foreign operations are viewed as being secondary or subordinate to domestic ones. Ethnocentric company works on tried and true headquarters knowledge. The advantage of this orientation is that the valuable knowledge of local market experience may not go unnoticed. Manufacturing industry

In Ethnocentric Orientation
No system of market research is carried. No major modification are made in the product . Even if the consumer demands or need or wants are different, the company completely ignores this.

Example
Nissans ethnocentric orientation was quite apparent during its first few years of exporting cars and truly to United States The cars were designed for mild Japan winters, these vehicles were difficult to start in many parts of the states during cold winters. In Northern Japan , many users kept their hoods of the car covered by

Polycentric Orientation

Polycentric orientation is the opposite of ethnocentric. The term polycentric describes managements often unconscious belief or assumption that each country in which a company does business is unique. This assumption lays the ground work for each subsidiary to develop its own unique business and marketing strategies in order to succeed; the term multinational company is often used to describe such structures.

Regiocentric Orientation
In a company with a regiocentric orientation, management views regions as unique and seeks to develop an integrated regional strategy. A US company that focuses on countries included in North American Free Trade Agreement(NAFTA)- US, Canada and Mexico- has a regiocentric orientation. Similarly a European company focuses

Geocentric Orientation
A company with a geocentric orientation views the entire world as a potential market and strives to develop integrated world market strategies. A company whose management has a regiocentric or geocentric orientation is sometimes known as GLOBAL or TRANSNATIONAL company. Geocentric orientation represents a synthesis of ethnocentric and

Orientation Of Management And Company

Polycentr ic
Ethnocentri c

Regiocentri c

Geocentric

Example
Philips And Matsushita: How Global Companies Win

Until recently, Philips Electronics, headquarters in Eindhoven, The Netherlands, was a classical example of POLYCENTRIC orientation. Philips relied on autonomous national organization in each country. With national organizations developing its own strategy. The approach worked quite well until Philips faced competition from Matsushita(Panasonic) and other companies dealing in electronic which has a GEOCENTRIC orientation.

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