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Approaches
The document discusses four approaches to international business: ethnocentric, polycentric, regiocentric, and geocentric. The ethnocentric approach relies on exporting domestic products overseas without adaptation. The polycentric approach treats each foreign market uniquely and establishes local subsidiaries. The regiocentric approach views regions as unified markets and implements strategies at a regional level. Finally, the geocentric approach views the entire world as a single market and uses standardized global marketing strategies.
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Approaches
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- 3. ETHNOCENTRIC APPROACH • Ameans of disposing of surplus domestic production. • Foreign operations are conducted from a homecountry base-strong reliance on export agents. • Domestic product-mix without major modifications for the overseas markets. • Cultural factors in foreign markets are overlooked for instance most Indian handicrafts exporters hardly appreciated the market difference and need for adaptation of marketing strategy.
- 4. • A numberof Indian products sold abroad such as dresses like salwar – kurta, Saries and food items such as dosa mix, idli mix vada mix sambhar mix, gulab jamoon mix, papad and Indian sweets are primarily targeted at Indian population abroad • Home country marketing practices will succeed elsewhere without adaptation; however, international marketing is viewed as secondary to domestic operations
- 5. POLYCENTRIC APPROACH • Polycentricapproach is highly market oriented • Each market is considered unique in terms of its market environment. • Local marketing techniques are best suited to deal with local market conditions. • Subsidies are established in foreign markets. • Environment of each market is considered while formulating marketing strategy.
- 6. REGIOCENTRIC APPROACH • RegiocentricCompany views different regions as different markets. • A particular region with certain important common marketing characteristics is regarded as a single market. • Economies of scale. Strategy integration, organizational approach and product policy tend to be implemented at regional level. • Depending the convergence of market behavior on the basis of geographical regions, a similar marketing strategy is used.
- 7. GEOCENTRIC APPROACH • Ageocentric company views the entire world as a single market and develops standardized marketing mix, projecting a uniform image of the company and its products for the global market. • Geocentric orientation provides improved coordination and control. • Regiocentric and Geocentric are synonymous with a Global Marketing Orientation where a uniform, standardized marketing strategy is used for several countries, countries in a region, or the entire world