GLOBALIZATION

INTERNATIONAL MARKETING
EPRG MODEL
 Globalization

• Globalization is the system of interaction among

the countries of the world in order to develop the
global economy.
• Globalization refers to the integration of
economics and societies all over the world.
• Globalization involves technological,
economic, political, and cultural exchanges
made possible largely by advances in
communication, transportation, and
infrastructure.
Drivers of Globalization
 Drivers of globalization include:

• Advances in technology:
– Improved shipping capabilities
– Improved communication technologies
– Globally available Internet stores.
 Cont…
• The difference in countries governing laws:
can also create reasons for companies to
globalize.
– Lower environmental standards
– Absence of minimum wage laws and
– Lower working age regulations create advantages
for companies that do business in other nations.
 Cont…
• 3.Another important driver of globalization is
the need for depleting natural resources.
Countries without a sufficient oil supply must
trade to sustain a high quality of life. Precious
stones and metals are also examples of natural
resources that may be hard to attain without
global trade opportunities.
 Globalization- forces
• Political forces
– Reduction of barriers to trade and foreign investment by
governments
– Privatization of former communist nations

• Technological forces
– Advances in computers and communications technology
– Internet and network computing
 Globalization- forces
• Market forces
– Globalizing companies become global customers

• Cost forces
– Goal for economies of scale to reduce unit costs

• Competitive forces
– Increase in intensity due to explosive growth in
international business
 Explosive growth
• Foreign Direct Investment and Exporting
– FDI - Direct investment in equipment, structures,
and organizations in a foreign country
• level sufficient to obtain significant management control
(Table 1.2)
– Exporting – transportation of any domestic
good/service to a destination outside a country or
region
 Factors: increased cross national
cooperation
• Increased cooperation between governments
through treaties, agreements and consultations:
– To gain reciprocal advantages
– To attach problems jointly that one country acting
alone cannot solve
– To deal with areas of concern that lie outside the
territory of any nation
 Factors: increased cross
national cooperation
• Number of International Companies
– UNCTAD - United Nations agency in charge of all
matters relating to FDI and international
corporations.
• 1995 – 45,000 parent companies with 280,000 foreign
affiliates ($7 trillion in sales)
• 2004 – 70,000 parent companies with 690,000 foreign
affiliates ($19 trillion in sales)
 Factors: Technology
• Larger proportion of population involved in
R&D
• Escalating pace of new product development
Factors: communication, transportation

• Steep fall in communication costs

• Increase in speed of transport and reduction in
costs
• These also help a manager to oversee and
manage foreign operations more effectively
 Factors: Liberalization of cross border
trade and resource movements
Earlier restrictions to protect local industry-
causing uncertainty in international business
Liberalization for
 More variety of goods and services at lower prices
 Producing competition in order to make local
producers more efficient
 Hoping for reciprocal action from other countries
 Factors: services facilitating
international business
• Services such as bank credit arrangements,
clearing arrangements, insurance covering
risks of damage en-route and non payment
• Services such as international postal union
permitting payment in local currency locally,
others include international telephone calls, air
travel facilitators etc
 Factors: Growing consumer
pressures
• Consumer awareness of foreign products
• Consumer affluence
• Rapid growth of certain markets – BRIC
• Search process facilitated by technology
• Global search for innovations
 Factors: Increased global
competition
• Means of responding to competition for
markets and resources
• Nowadays, more ‘born-global’ companies
• Firms often ‘have to become global’ to
compete
Factors: Changing political situations

• End of the cold war

• Perceptions of increased benefits of trade
• Government role perceived in creating
infrastructure for trade
• Many governments actively promoting
international business
 DIMENSIONS OF
GLOBALIZATION
• UTILIZATION OF ASSETS
» Effective utilization of resources
» Education and Skills
» Technical Standards uplifted
• TRAVEL & TOURISM
» Information and Communicate Revolution
• INTERNATIONAL TRADE
» Global Trade
» Effective Global Markets
» Availability of goods
» Westernization
• FOREIGN EXCHANGE
» Increased Income
» World Financial Markets
» FDI
» Capital Flows
Implications of Globalization

1. Improvement of International Trade.

2. Technological Progress
3. Increasing Influence of Multinational
Companies
4. Power of the WTO, IMF, and WB
5. Greater Mobility of Human Resources across
Countries
6. Greater Outsourcing of Business Processes to
Other Countries
7. Civil Society
 Components of Globalization
• Globalization of Market
• Globalization of Production
• Globalization of Investment
• Globalization of Technology
 GLOBALIZATION OF
MARKETS PRODUCTION
• Marketing globalization is a • Globalization of
synergistic term combining production refers to the
the promotion and selling of "sourcing of goods and
goods and services with an
services from locations
increasingly interdependent
around the globe to take
and integrated global
economy. It makes advantage of national
companies stateless, without differences in the cost and
walls, with the Internet an quality of factors
integral marketing and of production like land,
cultural tool. labor, and capital"
 Globalization of Markets:

• Globalization of markets refers to the process

of integrating and merging of the distinct
world markets into a single market.
• This process involves the identification of
some common norm, value, taste, preference
and convenience and slowly enables the
cultural shift towards the use of common
product or service.
 Features of Globalization of markets
• The size of the company need not to be large
to create a global market. Even small
companies can create a global market .
• The distinction of global market are still
prevailing even after the globalization of
market. These distinction require the
companies to formulate different strategies for
each market.
• Most of the foreign markets are the markets for
non consumer goods like machinery,
equipments, raw material, software etc.
• The global business firms compete with each
other frequently in different national markets
including their home markets.
 Reasons for Globalization of
Market
• Large scale industrialization enabled mass
production .
• Company in order to reduce the risk diversify
the portfolio of countries
• To cater to the demand for their product in
foreign market .
• Companies globalize markets in order to
increase their profits and achieve company
goals.
 DIFFICULTIES -Globalization of
markets
• Significant differences still exist in national
markets (Differences in purchase of Rural and
Urban population)
• Country specific marketing strategies –
cultural diversity, climatic conditions and
perceptions
• Varied Product Mix – Mc Donald Menu may
vary for American, Chinese and Indian Market
 GLOBAL STRATEGY- Globalisation of Markets
• International strategy: the organisation’s objectives relate primarily to the home
market. For example, APPLE & the luxury goods company Gucchi sells essentially
the same products in every country.
• Multinational strategy: the organisation is involved in a number of markets
beyond its home country.
• Distinctive strategies
• Customer demands and, perhaps competition, are different in each country.
• Competitive advantage is determined separately for each country.
• For example, a car company might have one strategy for the USA –
specialist cars, higher prices – with another for European markets –
smaller cars, fuel efficient – and yet another for developing countries –
simple, low priced cars.
• For example, the highly successful multinational company PepsiCo
dominates savoury snack products around the world. However, it still has
local brands like Walkers Crisps in the UK. It does not use its Lays brand
name in the UK, but employs Lays in much of the rest of the world.
• Global strategy: the organisation treats the world as largely one market and one
source of supply with little local variation. Importantly, competitive advantage is
developed largely on a global basis. Eg: In South Korea the global brands
like Coke and Sprite are mixed with the local brands like Pocara Sweat
 Globalization of Production:

• Factors influencing the location of

manufacturing facilities vary from country to
country.

• They may be more favorable in foreign

countries rather than in home country.
 Reasons for globalization of production:

• Imposition of restrictions on imports by the foreign

countries forces the MNC’s to establish
manufacturing facilities in other countries.
• Availability of high quality raw materials.
• Availability of inputs at low cost in foreign countries.
• To reduce the cost of transportation and easy logistic
management.
EXAMPLE
 Globalization of Investment
• Globalization of investment refers to
investment of capital by a global company in
any part of the world. Global company
conducts the financial feasibility of the new
projects in different countries of the world and
invest the capital in that country where it is
relatively more profitable
• Globalization of investment is also known as
Foreign direct investment.
 Reasons of Globalization of
investment
• There has been a rapid increase in
globalization of trade.

• Many countries provided more congenial

environment for attracting direct investment.

• Limitations of exporting and licensing force

the domestic companies to enter foreign
markets through FDI.
 FDI
• Foreign direct investment (FDI) is an
investment made by a company or individual
in one country in business interests in another
country, in the form of either establishing
business operations or acquiring business
assets in the other country, such as ownership
or controlling interest in a foreign company.
 WHY FDI
• Economic development
• Employment and skills levels
• Technology diffusion and knowledge transfer
• Location advantages
• Developing countries and resource gap
– DCs are low saving, low capital formation and low investment
– Offsetting the capital deficiency
– Promoting Exports
– Acquiring advanced technology
– Gaining production know-how
 REASONS FOR LOW INFLOW
OF FDI IN INDIA
• Rigid Labour Policies
• Poor Infrastructure
• Tight Bureaucrat Controls
• Legal Delays
• Poor Institutional and Financial Framework
• Corruption
 World Investment Report 2017
• Published by United Nations Conference of Trade and Development
(UNCTAD)
• UNCTAD is the principal organ of the United Nations General
Assembly dealing with trade, investment, and development issues.
• GOALS OF UNCTAD:
– Maximize the trade, investment and development opportunities
of developing countries and
– Assist DCs in their efforts to integrate into the world economy
on an equitable basis.
• Global Flows of FDI fell by about 2% due to weak economic growth
and significant policy risks, as perceived by multinational
enterprises (MNEs).
• Investment in developing countries declined even more, by 14
percent.
India continues to be among the top ten countries in terms
of foreign direct investment (FDI) inflows globally and the
fourth in developing Asia, as per the World Investment
Report 2016 by the United Nations Conference for Trade
and Development (UNCTAD).
 MODES OF GLOBALIZATION
OF INVESTMENT
• Acquisition of Foreign Companies
• Joint Ventures
• Long Term Loans
• Issuing Equity shares, debentures and bonds
• Global Depository Receipts
 Globalization of Technology
Methods of Globalization technology
• Companies with the latest technology acquire
distinctive competencies and gain the
advantages of producing high quality products
at low cost.
• Companies may have technological
collaboration with the foreign companies
through technology which spreads from
country to country.
 Cont….
• The foreign companies allow the companies of
various other countries adopt their technology
on royalty payment basis or on outright
purchase basis.
• Company also globalize the technology
through the modes of joint ventures and
mergers.
Whats App- The best Facebook
Purchase- Pays $19.6 billion
 How technology fastens the
process of globalization?
• Microprocessors and telecommunication
• The Internet and world wide web
• On-line globalization
• Transportation technology
The Globalization Debate-
arguments for and against
 Pros of Globalization
• 1. Productivity grows in countries that open up their
markets and integrate with outside economies, as they
gain access to wealthy economies where they can
sell their goods and services.
• 2 .Lesser Developed Nations benefit from the
increase in investment from foreign countries both
financially and through jobs.
 Cont…
• 3 .Global competition and cheap imports help
to keep inflation down.
• 4. Open economies help to spur innovation
and new ideas on a global level, creating an
effective ‘globalization of ideas’.
• 5. Through globalization, countries can
specialize more in what they produce and
what they do best.
 Cons of Globalization
• Wages and working conditions everywhere are
pushed downwards as companies gravitate towards
countries where the wages are the lowest and the
workers’ rights are the worst.
• The environment suffers, as production moves to
places where they have less strict rules and
regulations about controlling pollution and
deforestation etc.
 Cont…
• Many jobs are outsourced from more developed
nations, like the USA, to lower wages economies,
such as those in Indian and China, resulting in high
unemployment in the Western countries.
• Globalization means that economic problems in one
part of the world can spread easily and create a
worldwide recession.
• Blow to domestic industry and players
 Cont…

• 5. Many of the deals made by more economically developed

nations with lesser developed countries are unfairly weighted in
favor of the more developed nations. For instance, subsidies to
agricultural production by the more developed nations are often
kept, making the competition unfair.

• 6. Globalization undermines national sovereignties and

national governments, as individual countries become
increasingly at the mercy of international markets, and
multinational corporations grow more powerful and influential.
 GCR & GCI
• GCR is a yearly report published by the World
Economic Forum.
• WEF is Swiss nonprofit organization
headquartered in Cologny, established in 1971
and committed to improving the state of the world
• Since 2004, the GCR ranks countries based on the
Global Competitiveness index (GCI)
• GCI integrates the macroeconomic and the
micro/business aspects of competitiveness into a
single index.
 GCR & GCI
• GCR assesses the ability of countries to provide
high levels of prosperity to their citizens.
• This in turn depends on how productively a
country uses available resources.
• Therefore, GCI is defined by the World Economic
Forum, is a set of institutions, policies, and factors
that determine the level of productivity of a
country, conditions of public institutions and
technical conditions.
 GCI
• Data used in GCI
Rating uses public accessible (statistic) data (WB, IMF,
etc.) and results of findings made by World Economic
Forum. These findings are made annually with the support
of partner institutions (research institutions and business
centers)
• What GCI Report contains
▫ GCI analysis the factors that play significant role in creating
favorable business-climate environment in the country and are
important for competitiveness and manufacture point of view.
▫ It considers strength and weaknesses of a country, identifies
priorities for the facilitation of political reforms implementation
 GCI
• The GCI separates countries into three specific
stages:
– Factor-driven
– Efficiency-driven
– Innovation-driven

Each implying a growing degree of complexity

in the operation of the economy.
 Pillars of Competitiveness
• Institutions
• Appropriate infrastructure
• A stable macroeconomic framework
• Good health and primary education
• Higher education and training
• Efficient goods markets
• Efficient labor markets
• Developed financial markets
• The ability to harness the benefits of existing technologies
• And its market size, both domestic and international
• By producing new and different goods using the most
sophisticated production processes
• Innovation
 • Factor-driven stage
• Competitiveness driven by pillars 1 -4
• Countries compete on the basis of their factor endowments,
Stage 1 primarily unskilled labor and natural resources.

• Efficiency-driven stage
• Competitiveness becomes increasingly driven by pillars 5-10
• Countries must begin to develop more efficient production
Stage 2 processes and increase product quality

• Innovation Driven Stage

• At this stage, companies must compete by producing new and
different goods using the most sophisticated production
Stage 3 processes (pillar 11) and through innovation (pillar 12)..
 2016-2017 Rankings - GCI
• WEF lists 138 countries on the GCI
• India has jumped 16 ranks to settle at the 39th spot on
the global competitiveness index from 55th place.
• India is also the second most competitive country
among BRICS nations. “China, on 28, remains top
among the BRICS
• With both Russia and South Africa moving up two
places to 43 and 47, respectively, only Brazil is
declining, falling six places to 81,” WEF said in its
report.
• Top 5 countries – Switzerland, Singapore, United
States, Netherlands, Germany
India improves in GCI (2016-2017)
Globality & International
Marketing
 Measuring Globality of a Nation - 4 –dimensional
construct by A.T. Kearney

• Political Engagement– participation in international

organizations and govt. monetary transfers, treaties and
peacemaking
• Technological – Internet Connectivity - the numbers of
internet users, internet hosts & secure servers
• Personal – international travel and tourism,
international telephone traffic and personal transfer of
funds internationally
• Economic – International trade and investment, FDI
and income from investment
 A.T. Kearney/Foreign Policy
Globalization Index
• It ranks around 62 nations across 4 dimensions.
• In the recent years, the index has ranked SINGAPORE &
SWITZERLAND as the most globalized countries
• These countries display more equitable patterns of income distribution,
lower levels of corruption, and higher levels of political freedom
compared to countries that are less global.
• India & Iran as the least ones.
• The United States ranks as the world's 12th most global nation.
 A.T. Kearney/Foreign Policy
Globalization Index
Country Economic Personal Technological Political

Singapore 1 3 12 29

Switzerland 9 1 7 23

USA 58 40 1 41

Ireland 4 2 14 7

Denmark 8 8 5 6

India 59 51 57 60

Iran 57 62 48 61
 The 2016 A.T. Kearney FDI Confidence Index –
GAINS & DECLINES
• Singapore is the largest gainer in this year’s index. Investors from the Asia Pacific
region and in the IT industry are the most interested in investing in Singapore.
• Switzerland’s sustained moderate economic growth, high consumer spending, and
extremely competitive business environment helps the country rise three positions
above.
• The United States is the top-ranked FDI destination for the fourth year in a row.
• China holds second place for the fourth consecutive year and attracts broad-based
investor interest.
• Canada rises one spot to rank third in this year’s Index
• Germany, the top-ranked European country, holds its highest position in 14 years.
• India - India’s rise demonstrates the country’s increasing attractiveness to foreign
investors. Reforms such as the “Make in India” initiative underline the government’s
commitment to attract FDI.
 The 2016 A.T. Kearney FDI Confidence Index –
GAINS & DECLINES
• An economic recession, ongoing corruption scandals, and record-low
consumer confidence are among the factors that likely knocked Brazil
out of the top 10 in the Index—for the first time in more than five
years.
• Japan rises one spot this year to sixth place—its highest ranking ever.
The government is committed to raising its FDI stock from 17.8 trillion
yen in 2015 to 35 trillion yen by 2020.
• France maintains its eighth position in the FDI Confidence Index. The
“Creative France” campaign targets investors from 10 key countries,
including the UK, Germany, Japan, Singapore, and the UAE.
 Global Cities Index - A.T. Kearney’s Index

Global Cities 2015 comprises two indices

Global Cities Index (GCI): an examination of
a city’s current performance based on five
dimensions: business activity, human capital,
information exchange, cultural experience, and
political engagement.
 Global Cities Outlook (GCO): a projection
of a city’s future potential based on four
dimensions: rate of change in personal well-
being, economics, innovation, and governance.
Global Elite
Global Elite
TOP GLOBAL BRANDS 2017
“Forbes’ 2017 Global 2000 list

Three years into the Narendra Modi-led

government’s rule and the number of Indian
companies to feature in the Forbes 15th annual
‘Global 2000’ list for 2017 has risen to 58
• Reliance Industries Ltd (RIL), ranked 106 (No. 121 last year) is the
highest ranked Indian company in the list.
• Market capitalisation of $71.2 Billion
• Surge in investor confidence at the stock markets, after the
launch of its telecom arm, Reliance Jio late last year.
• Reliance Industries is followed by State Bank of India, the country’s
largest lender, ranked 244 this year (No. 149 last year) and state-run oil
explorer ONGC, ranked No. 246 (220 last year).
• Four other Indian banks (PRIVATE LENDERS) – HDFC
Bank (No. 258), ICICI Bank (No. 310), Axis Bank (No. 463)
and Kotak Mahindra Bank (No. 744)
• Tata Motors, the automobile arm of the salt-to-software Tata
Group, has retained its position of sixth amongst Indian
companies, but fell in terms of ranking to No. 290 (No.278 last
year).
 Chapter Learning Objectives
1. The Distinction between Domestic and Global
Marketing

2. The scope of the Global marketing task

3.The increasing importance of global awareness

4. The progression of becoming a global marketer

5. Major Concerns of International Marketers

 What is International Marketing
International marketing is defined as the
performance of business activities designed to plan,
price, promote, and direct the flow of a company’s
goods and services to consumers or users in more
than one nation for a profit
Marketing
concepts,
It is an approach of a company processes, and
with truly global outlook, seeking principles are
its profit impartially around the universally
world, on a planned and applicable all
systematic basis. over the world
IM - OVERVIEW
 Red Bull
Austrian company
• One of its most successful tactics is to host
extreme sports events all over the world.
• From the Red Bull Indianapolis Grand Prix to
the Red Bull Air Race in the United Kingdom
to the Red Bull Soapbox Race in Jordan, the
brand's powerful event marketing strategy
takes them here, there, and everywhere.
• Aside from events, Red Bull's packaging also
plays a part in its global appeal.
 Airbnb
American Company
• Airbnb, a community marketplace for people to list and book
accommodations around the world, was founded in 2008 out
of San Francisco, California.
• In January 2015, Airbnb launched a social media campaign
around the hashtag #OneLessStranger. The company referred
to the campaign as a "global, social experiment," in which
Airbnb asked the community to perform random acts of
hospitality for strangers, and then take a video or photo with
the person and share it using the hashtag.
• Just three weeks after the launch of the campaign, over
3,000,000 people worldwide engaged, created content, or were
talking about the campaign.
 Dunkin Donuts
American Company
• Dunkin Donuts China was serving up a fresh batch
of dry pork and seaweed donuts.
• With over 3,100 stores in 30 countries outside of
the U.S., Dunkin Donuts has evolved its menu to
satisfy the sweet tooth of its global customers.
• From Korea's Grapefruit Coolata to
Lebanon's Mango Chocolate Donut to
Russia's Dunclairs, it's clear that Dunkin Donuts
isn't afraid to celebrate cultural differences in an
effort to strengthen its international presence.
 Mc Donald’s
American Company
• While keeping its overarching branding consistent,
McDonald's practices 'glocal' marketing efforts.
• McDonald's brings a local flavor, literally, to
different countries with region-specific menu items.
In 2003, McDonald's introduced the McArabia, a
flatbread sandwich, to its restaurants in the Middle
East.
• McDonald's has also introduced macaroons to
its French menu and added McSpaghetti to its menu
in the Philippines:
 Why go International?

Domestic Market
Profit Motive
constraint

Government Policies Spin off benefits

Monopoly Power Competition

Factors Influencing Global
Business

• North American free

Rapid growth of world trade area
trade organization
• European Union
Trend towards acceptance
of free market system • Asia
among developing • Europe
countries

Impact of Internet, Mobile • Global channels

phones and other global
media • Global customers

Bindumadhavi P 80
 Factors affecting International
Marketing

Trade
Facilities Distance
practices

Culture Economy Law

 Domestic v/s International
Similarities Differences
• Political Entities
• Legal systems
• Understanding buyers • Cultural differences
needs • Different monetary systems
• Building Goodwill • Marketing infrastructure
• Research Development • Trade Restrictions
• Procedures and
documentations
• Highly unpredictable
 PROCESS OF INTERNATIONALIZATION/STAGES OF
INTERNATIONAL MARKETING

DOMESTIC MARKETING COMPANY

Focusing solely on domestic consumers and economy

EXPORTING MARKETING COMPANY

begins with unsolicited orders from abroad
tend to engage in indirect exporting
Eg:Birla Tyres

INTERNATIONAL /MULTINATIONAL MARKETING COMPANY

Focus on consumer needs and requirements in more than one country and
accordingly devises product, price and promotion strategies
Eg: Samsung, LG Electronics

GLOBAL /WORLDWIDE MARKETING COMPANY

Global product with local variations
Eg: Ranbaxy
 Strategic Orientations
EPRG Schema Orientation

Ethnocentric Domestic Marketing

Extension

Multidomestic
Polycentric
Marketing

Global Marketing
Regio/Geocentric
 EPRG Model - Characteristics
Ethnocentric Polycentric Geocentric
Approach International Each country is The world is one
operations are relatively common market
secondary independent
Vision Centered on the Each market is Global vision of
domestic market unique the world

Priority Searching for Taking into Unifying

identical consideration differences in the
segments in differences in world market
foreign markets foreign markets
Planning center National Subsidiary in World
headquarters each country headquarters
Structure International Division for Matrix structure
division each zone
 EPRG Model - Characteristics
Ethnocentric Polycentric Geocentric

Staff Citizens from the Citizens from each Most qualified

domestic market market

Marketing strategy Extension Adaptation Extension, Adaptation,

Creation

Management style Centralized Decentralized Integrated and

interactive

Production Domestic Local Low-cost sources of

supply

Partnerships Agent, licensing Joint-ventures Strategic alliances

Performance Domestic market share Local market share World market share
measures
 Progression to Global Marketing

EPRG FRAMEWORK
Ethnocentric
Polycentrism Regiocentrism Geocentrism
- Home
- Host country - A regional - A world
country
orientation orientation orientation
orientation
EPRG FRAMEWORK
Ethnocentric Domestic techniques and
Personnel are considered
- Self superior
Reference
Criterion
 Ethnocentric
• Overseas operations are viewed as secondary to
domestic operations
• Considered as a means to dispose off surplus
domestic production
• Plans for overseas market are developed in the
home office, utilizing policies and procedures
identical to those employed in the domestic
market
• Overseas marketing is looked after by home
country nationals
 Ethnocentric continued
• No systematic research is conducted overseas
• No major modifications are made to products sold
in overseas markets
• Prices are calculated on the same basis as in the
home market with the addition of overseas
distribution costs
• Promotion and distribution strategies are similar
to that employed in the home country
• Strong reliance on export agents
 Surf – Super washout in Japan
Unilever enters Japan Detergent Market

• It releases Surf Super concentrate washing powder in

Japan
• Measured sachets for Convenience
• Fresh Smell

WHAT WENT WRONG??

Un explored market
• Washing powder did not dissolve completely
due to weather conditions
• Low agitation washing machines were more
popular in Japan, in which the super
concentrate surf washing powder did not wash
completely
• Fresh smell was not very significant
EPRG FRAMEWORK
Polycentrism Local Personnel and
Techniques are best
- Host
country suited to deal with local
orientation market conditions
 Polycentric orientation
• Subsidiaries are established in overseas market
• Each subsidiary operates independently with its own
marketing objectives and plans
• Marketing activities are organized on country by
country basis
• Marketing research is conducted independently in each
country
• Separate product lines are developed in each country
• Home country products are modified to meet local
needs.
 Polycentric continued
• Each subsidiary will have its own pricing and
promotion policy
• Sales personnel from those countries
• Traditional channels of distribution of those
countries
Eg. McDonalds – Veg
burgers in India

McDonald’s does not use multiple 4’s in

advertising prices in China; four sounds like the
word death.
EPRG FRAMEWORK
Recognizes
regional
Regiocentrism commonalities
- A regional and leads to
orientation the design of
regional
strategies
EPRG FRAMEWORK
Best man for
the job Geocentrism
irrespective
- A world
of national orientation
origin
 Regiocentric and
Geocentric
• Region or entire world as potential market
• Firm develops policies and organizes activities
on a regional or worldwide basis
• Marketing personnel from the region or from
any country
• Standardized product lines for regional or
worldwide markets
• Regional or Global channels of distribution are
also developed
MAJOR DECISIONS IN IM
LOOK AT
GLOBAL
ENVIRONMENT

GLOBAL
DECIDE – TO
MARKETING IN
GO OR NOT
ORIENTATION

GLOBAL WHICH
MARKETING MARKETS TO
PROGRAM? ENTER FIRST
 Conclusion
The globalisation of Markets has necessitated
all managers to pay attention to International
marketing.
Other than Environmental factors, self
reference criterion are considered obstacles to
International Marketing.
Global awareness and sensitivity are the best
solutions challenges faced in International
marketing
THANKYOU