International Market Orientation

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INTERNATIONALMARKET ORIENTATIONBy Aakriti Rohatgi

Roll no: 117004


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International Marketing

According to the American MarketingAssociation (AMA)

international marketing is the multinational

process of planning and executing theconception, pricing, promotion and distributionof ideas, goods, and services to create

exchanges that satisfy individual andorganizational objectives.


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International Market Orientation

The form and substance of a companys responseto global market opportunities depend greatly onmanagement assumptions or belief .

The world View of a companys personnel can bedescribed as

Ethnocentric

Polycentric

Regiocentric Geocentric

The orientation collectively called as EPRGFramework.


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Ethnocentric Orientation

A person who assumes his or her homecountry is superior to the rest of the world

is said to have an ethnocentric orientation. The ethnocentric orientation means

company personnel see only similarity inthe markets and assume the products and

practices that succeed in the home countrywill, due to their demonstrated superiority,be successful anywhere.

Domestic companies


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Continued

International companies

In ethnocentric companies, foreignoperations 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 thevaluable knowledge of local marketexperience may not go unnoticed.

Manufacturing industry


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In Ethnocentric Orientation

No system of market research iscarried.

No major modification are made inthe product .

Even if the consumer demands or

need or wants are different, thecompany completely ignores this.


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Example

Nissans ethnocentric orientation wasquite apparent during its first few yearsof exporting cars and truly to United

States

The cars were designed for mild Japanwinters, these vehicles were difficult to

start in many parts of the states duringcold winters.

In Northern Japan , many users kept

their hoods of the car covered by


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Polycentric Orientation

Polycentric orientation is the opposite ofethnocentric.

The term polycentric describes

managements often unconscious belief orassumption that each country in which acompany does business is unique.

This assumption lays the ground work foreach subsidiary to develop its own uniquebusiness and marketing strategies in orderto succeed; the term multinational company

is often used to describe such structures.


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Regiocentric Orientation

In a company with a regiocentricorientation, management views regionsas unique and seeks to develop an

integrated regional strategy.

A US company that focuses oncountries included in North American

Free Trade Agreement(NAFTA)- US,Canada and Mexico- has a regiocentricorientation.

Similarly a European company focuses


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Geocentric Orientation

A company with a geocentricorientation views the entire world as apotential market and strives to develop

integrated world market strategies.

A company whose management has aregiocentric or geocentric orientation

is sometimes known as GLOBAL orTRANSNATIONAL company.

Geocentric orientation represents a

synthesis of ethnocentric and


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Orientation Of Management And

Company

Ethnocentric

Regiocentric

Polycentric

Geocentric


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Example

Philips And Matsushita: How GlobalCompanies Win

Until recently, Philips Electronics, headquartersin Eindhoven, The Netherlands, was a classicalexample of POLYCENTRIC orientation.

Philips relied on autonomous nationalorganization in each country. With nationalorganizations developing its own strategy.

The approach worked quite well until Philipsfaced competition from Matsushita(Panasonic)and other companies dealing in electronic whichhas a GEOCENTRIC orientation.


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THANKYOU

Documents

International Market Orientation