explain the EPRG Concept from Howard Perlmutter.
The EPRG concept is very important in an international marketing concept. The orientations are E-Ethnocentric, P-Polycentric, R-Regiocentric, and G-Geocentric.
An ethnocentric orientation fully relies on the experience they have in the home country. They do not change any specification or quality of their products that are manufactured to export. They give little to no importance to the possibility of customizing a product in different countries as per the geographic peculiarities or purchasing capability of people. The headquarters in the native country will be controlling everything and they believe in the superiority of their country. Staff from subsidiary countries are considered secondary and only the main management from the native country has the authority to make decisions.
As per this work culture, all the subsidiaries are considered equally important as the main country. The market strategies for every country will be different and unique products will be manufactured for various countries based on the demand and market potential. head office in native country have little control over things and each management in respective countries have the authority in making suitable decisions regarding manufacturing strategy, product placement, and the pricing.
In this orientation companies focus on countries that are having a similar cultural and socio-economic background. So the products are being targeted for a group of counties with a similar pattern, this scenario is mostly applicable for neighboring countries or a group of counties on a particular region.
Geocentric management considers and identifies the needs of each country, They identifies both similar and unique needs of other countries. Geocentric companies promote the global standards for products and if there is a separate need for some of the markets they are willing to customize the products for a particular country. This is similar to the concept of think global act local. It is the most effective and well-balanced model of marketing products globally.
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