EPRG MODEL – THE MARKETER’S GUIDE ON STRATEGIC within the geographic region of the business Lack of International Experience. EPRG Approach Aakash Kumar Gaurav Kataria Rahul without major modifications in overseas market All foreign marketing operations conditions International marketing organized on country to country basis. EPRG framework in international marketingDr. Howard V. Perlmutter is a world authority on globalisation and pioneer on the internati.

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They provide for improved coordination and control. Individuals have to pay tax on the following incomes: Local personnel and techniques are best suited to deal with local market conditions. While there are many obstacles that will hinder a company’s ability to busihess geocentric, there are also a handful of forces which will drive them towards this. See full list of related question in international marketing management. In these companies, opportunities outside the home country are ignored.

Steps Involved in the International Marketing Process. Geocentric approach encourages global marketing. Username or Email Password. The main difference modek geocentrism compared to ethno- and polycentrism [ disambiguation needed ] is that it does not show modfl bias to either home or host country preferences but rather spotlights the significance of doing whatever it takes to better serve the organization.

Using the centralized approach can cause inefficient staffing problems in the organization, this is because the employed staff will incur high financial costs to the global business as they have to pay for the transfer costs of the staff coming from the home country to overseas. Home standards busines applied to the evaluation and control of the organization.

EPRG Framework

The third and last aspect of the EPG model is the geocentric portion, this notion focuses on a more world-orientated approach to multinational management. On the incomes that they hav There is no international firm today whose executives will say that ethnocentrism is absent in their organization.

Similarly, if a company focuses its attention on the Europe, company follows regiocentric approach. Firms Go International due to following reasons: Polycentrism [ disambiguation needed ] is one of the three legs in the EPG framework that “identifies one of the attitudes or orientations toward internationalization that is associated with successive stages in the evolution of international operations” [7].


The first step is to calculate the taxable income from each source under A third force causing this movement is the abundance of growing world markets, occurring in areas such as income earning age population, rising GDP’s, and escalating disposable income in areas such as China and Korea.

Enter your new password here. One of the major challenges is which type of orientation a firm should adopt to overseas its marketing operations. Therefore, the majority of control bhsiness the host countries practices is lost, and the company is forced to manage its operations from the outside.

These orientations reflect the objectives of a company towards international operations and to lead to different management strategies and planning procedures.

The ethnocentric orientation means company personnel see only similarities in markets and assume the products that succeed in the home country will, due to their demonstrated superiority, be successful anywhere. These people or companies believe that the home country is superior. A company with a geocentric orientation views the entire world as a potential market.


A particular region with certain important common marketing characteristics is regarded as a single market, ignoring national boundaries. When they look to new markets they rely on what they know and seek similarities with their own country. Thus, ensuring efficient use of human resources by building strong culture and informal management channels.

It does not require much investment. There are many costs that ethnocentrism can incur on an international organization. The benefit of this mind set is that it overcomes the shortage of qualified managers in the anchoring nations by migrating them from home countries. internatoonal

The most effective way to enforce geocentrism is with a formal reward system that encourages both subsidiary and headquarters managers to work for global goals rather than just defending home country values. Since not much investment is made in overseas operations so if loss jnternational occur then firm can absorb shock without much difficulty. Sign up here or sign in with. Subsidiaries are established in overseas markets and each subsidiary is given a free hand in framing policies and implementing them.


International Marketing EPRG Framework

The sole goal of geocentrism is to globally unite both headquarters and subsidiaries. With that said, geocentrism is an ideology that must be accepted by any corporation operating globally in order for any sort of success and long term stability to be attained.

These policies entail high cost. See full list of related question in M. Columbia Journal of World Business 1: On the incomes they have busineess themselves. In this approach a company finds economic, cultural or political similarities among regions in order to satisfy the similar needs of potential consumers. Plans for overseas markets are developed utilizing policies and procedures identical to those employed at home.

Ethnocentric approach is suitable to small firms just entering international operations. In performing an EPG analysis, a firm may discover that they are oriented in a direction that is not beneficial to the firm or misaligned with the firm’s corporate culture eprb generic strategy.

Besides these, it has other advantages such as the possibility of knowing the customer better and maximum degree of marketing orientation. It is a natural tendency for people to act ethnocentrically because it is what they feel comfortable with.


Busineds EPG model is a framework for a firm to better pinpoint its strategic profile in terms of international business strategy. The environment of each market is considered while formulating the marketing strategy. No systematic marketing research is conducted outside the home country, and no major modifications are made to products.