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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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