Professional Documents
Culture Documents
Approach
MANAGEMENT ORIENTATIONS
The form and substance of a company's response to
global markets opportunities depend greatly on
management’s assumption and beliefs (both
conscious and unconscious) about the nature of the
world. The worldview of a company’s personnel can
be described as :
ETHNOCENTRIC
POLYCENTRIC
REGIOCENTRIC
GEOCENTRIC
Ethnocentric
Management orientation – Home country orientation
Characteristics –
Overseas operations viewed as secondary & primary
means of disposing the surplus production
Domestic techniques &personnel superior to foreign
& most effective in overseas market
Domestic marketing mix is employed without major
modifications in overseas market
All foreign marketing operations are planned &
carried out from home base & overseas marketing
administered by export department
Merits –
No cost & efforts needed for adaptation/localization
It easy route to internationalization when foreign
market exists with similar domestic characteristics
Demerits –
No full exploitation of IB opportunities worldwide
Main focus on domestic market
Culture-Host country
Demerits –
High cost of national responsive marketing mix for
each country
Delay in localization
Culture-Regional
Merits –
Economies of large scale production
Lower costs advantage of pace
Demerits –
Not successful in many cases
Uniform /standard marketing mix not guarantees for
sure success in every situation