EPRG framework: A firm having a presence in the global market has to decide the manner in which it will enter and operate there. Firms in the international. Abstract. The aim of this paper is to present the fundamental ideas behind EPRG model. They are discussed with some illustrating examples. Moreover, some. ethnocentric polycentrism regiocentrism geocentrism ethnocentric domestic techniques and personnel are considered superior polycentrism local personnel .
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On the incomes that they hav Ethnocentric E orientation refers to home country organization.
It processes them or adds value or manufactures finished goods in countries where it can derive the maximum economies of scale, so that it can pursue low cost differentiated strategy in the world markets. Should there be a problem in product clearance or selling in the importing country, the firm may have at times no alternative other than either to get it back or destroy it there or accept other cuts in its price. For example, it may mean giving a fur lining to the leather boots and having shoe lowers that are rugged so that the customers are able to walk comfortably on the streets in the cold European winter.
The issue of pricing and payment terms is also important. Ethnocentric companies that do conduct business outside the home country can be described as international companies, they adhere to the notion that the products that succeed in the home country are superior and, therefore, can be sold everywhere without adaptation.
The assessee will be liable for penal int Exporting here is a more serious business than in an ethnocentric firm, where it is done in an ad hoc basis. The term ethnocentric orientation means that a company does not differentiate between domestic and foreign market The way businesses and staff view the world is described as international management orientations. At times, the overseas buyer may give his requirements, as in the case of ready-made garments, to the firm, which then makes it and delivers it to the customer.
A geocentric company develops standardized marketing mix, projecting a uniform image of the company and its products for the global market.
What is an EPRG Framework in International Marketing? –
See all related question in international marketing management. If a return is submitted after the due date, the following consequences will be applicable: Plans for overseas markets are developed utilizing policies and procedures identical to those employed at home. Also called pay-as-you-earn scheme, advance tax is the income tax payabl While looking for orientation, it is important to understand the EPRG framework.
Such companies are sometimes called domestic companies. Some of these besides exporting, joint epgr, overseas subsidiaries, etc are strategic alliances, acquisitions, mergers, brand franchising, manufacturing in low cost centers, etc. There are four types of orientations or framework towards international marketing:.
A careful reader will understand that the prime motivation for global marketing is global competition. Those firms evolve strategies to globally maximize their resources.
Enter your new password here. In the present day In the ethnocentric international framedork, foreign operations are viewed as being secondary or subordinate to domestic ones. This framework addresses the way strategic decisions are made and how the relationship between headquarters and its subsidiaries is shaped. See full list of related question in M. The major drawback of this mind set is that it results in cultural short-sightedness and does not promote the best and brightest in a firm.
The term multinational company is often used to describe such a structure. Today in the era of globalization, this approach is not popular. It has to be a mainstream player in the global economy. The management of a company has to decide the type of orientation that elrg firm should give to its overseas marketing operations. Global marketing now takes birth.
In general, the desirability of a particular international orientation EPRG tends to depend on several factors which are as follows: Ethnocentric approach is suitable to small firms just entering international operations.
This perception mitigates the chance of cultural myopia and is often less expensive to execute when compared to ethnocentricity.
The environment of each market is considered while formulating the marketing strategy. Local personnel and techniques are best suited to deal frammework local market conditions. The exercises, activities and policies of the functioning company in the native country becomes the default standard to which all subsidiaries need to abide by.
On the incomes they have earned themselves. A firm which plans to go international has to fgamework a series of st Manufacturing is still in the home country only. They also know that the only way to fight price was at a global level is to have a presence of a global brand in the market place.