What is the Ethnocentric, Polycentric, Regiocentric and Geocentric model of Economics?

1. Presenters:
07 – Francis D’mello
08 – Bernice D’souza
09 – Gale D’souza
11 – Sonal D’souza
12 – Yohan D’souza

2. Introduction To EPRG Model
• EPRG model, sometimes called also as
EPG model, is used in the International
Business.
• Introduced by Perlmutter in 1969
• The strategy of the organization is
characterized by three factors:
Ethnocentrism, Polycentrism and
Geocentrism. Hence, the original name -
EPG.
• Wind, Douglas and Perlmutter in 1973
extended this model by another factor -
Regiocentrism.

3. • This model aims to identify the orientation of
the organization. The strategy can be differently
oriented, indeed. As a result, costs and profits are
generated in slightly different ways, depending on
the mentioned kind of orientation
• It is important that different activities of the
organization are consistent with each other at
various stages
• For an organization to operate efficiently in
the market is important that the culture of
organization, its marketing strategy, etc are
consistent
Introduction To EPRG Model

4. • What is Ethnocentrism?
Ethnocentrism is an act of judging another culture based on preconceptions that
are found in values and standards of ones own culture.
These people or companies believe that the home country is superior.
• Merits:
No cost & effort needed for adaption
It is an easy route to become international
• Demerits:
Main focus on domestic markets
Ethnocentric

5. • Marketing Strategies: Extension of domestic strategy to foreign market
• Company Objective: Profitability
• Technology: Mass production
• HRM practices: Overseas operations are managed by people from Home
country
• Example:
Ethnocentric

6. Polycentric
• Develop specialized marketing strategies for individual host countries
• Take into consideration: Marketing strategy, consumer preferences,
expectation, aspirations and cultural diversity
• Use local methods to solve local problems
• Maintain a proper balance of authority
• Total freedom shouldn’t be given to the host country branches: Lack of
coordination
• Don’t be too rigid and make all the decisions: Reluctant of implement
decisions

7. Polycentric
• Example:

8. • Firm accepts regional marketing policy covering group of countries
• Operational strategies are formulated on the basis of entire region
• The organization views the similarities and differences between regions
• Similarities may exist on economic, political or social background
Regiocentric

9. • Examples:
Regiocentric

10. • When organization treats all foreign
markets as one
• Global market is understood as a single
market
• It is socially and economically uniform
• It is a uniform approach
• It leads to improvement of quality and
efficiency in using resources
• On the other hand there is also high costs
due to need of training, efficient
communication channels, transportation
costs etc
Geocentric

11. Conclusion
• Rise of globalisation: Know your market
• Cross cultural marketing: Modifying strategies to suit different cultures
• Many brands have failed due to implementation of strategies with proper
research of the local environment: Lead to failed brands, loss of customer
base and revenue
• Strategies will have to evolve overtime
• Competition

12. THANK YOU