What Are the 4 Ps of Marketing?
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- What is the EPRG Framework
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- EPRG Framework approaches Ethnocentric
| 4. Diversification Strategy
A diversification strategy involves taking new products into new markets. This is really the creation of a completely new business. This is the riskiest of strategies and the strategy likely to require the most patience in waiting for a return on investment. EPRG of Marketing What is the EPRG Framework? EPRG stand for Ethnocentric, Polycentric, Regiocentric, and Geocentric. It is a framework created by Howard V Perlmuter and Wind and Douglas in 1969. It is designed to be used in an internationalization process of businesses and mainly addresses how companies view international management orientations. According to the EPRG Framework (or the EPRG Model), there are four management approaches that an organization can take to get more involved in international business substantially. Do you want unlimited and ad-free access? FIND OUT MORE The EPRG Framework suggests that companies must decide which approach is most suitable for achieving successful results in countries abroad. For this reason, the EPRG Framework can be a useful tool to utilize if a company does not know yet how to manage business activities between companies in the local country and a host country. The EPRG Framework is additionally useful for making strategic decisions. In the following section of this article, the four approaches of the EPRG Framework (Ethnocentric, Polycentric, Regiocentric, and Geocentric) are described more in detail. EPRG Framework approaches Ethnocentric In this approach of the EPRG Framework, the company in a local country that wants to do business overseas does not put in much effort to do research abroad about the host country’s market. Instead, most of the market research is executed in the headquarters in the local country. With this approach, the company seeks for markets abroad that share the same characteristics as the local market so that the marketing strategy does not have to be adapted. More specifically, the ethnocentric approach uses the same marketing strategies that are created by local personnel and further utilized multiple countries. It is many times possible that companies that utilize this approach believe that local products should not be adapted to the local need of countries abroad because the products are already of high quality. Another reason could be that a specific product is sold in large volume in the local market, and for this reason, it is believed it will do the same in other markets abroad. The ethnocentric approach of the EPRG Framework has benefits but also downsides. At first, the company saves a lot of operational costs that can be invested elsewhere. But the downside is that the company does not build up new knowledge about the market abroad, which could substantially increase sales volume if products and strategies would be adopted to the needs of the host country. Download 74.89 Kb. Share with your friends:
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