Page 43 - International Marketing

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BRILLIANT'S Introduction to International Marketing 45

There is another reason too, a country's capacity to import depends
upon its capacity to export because ultimately imports have to be paid for
exports. When a country's capacity to export is limited, it will tend to
concentrate its attention on import substitution. In an attempt towards
this direction, ever those industries might be developed domestically for
which the country does not possess any special advantage and as such
would never be able to stand competition. 
EPRG FRAMEWORK
Q.8. Discuss the “EPRG” concept of International Marketing.
[MBA 2012]
OR
The EPRG framework has implications for the strategy
formulation process. Explain with the help of examples.
OR [MBA(FT) 2007]
Explain the concept of EPRG model in the evolution of global
marketing with the help of suitable examples.
EPRG Model
The form and substance of a company's response to global market
opportunities depend greatly on managements or beliefs-both conscious
and unconscious-about the nature of the world. Depending on the kind and
degree of its involvement in foreign marketing, a firm has to re-orient and
recognize its activities to cope with the different levels of operational
responsibilities inherent in such involvement. To throw some light on this
issue, some guidelines are available from what is called the EPRG orientation.
Keegan has provided EPRG model/framework, which attempts to identify
four broad types of orientations of firm towards internationalization of its
operations, i.e. - Ethnocentric, polycentric, Regioncentric and Geocentric.
The orientation of a company's personnel affects the ability of a
company to adapt any foreign marketing environment. The behavioral
attributes of a firm's management are casual export to global markets
which can be described under the EPRG approach. A key assumption
underlying the EPRG framework is that the degree of internationalization
to which the management is committed or willing to move affects the
specific international strategies and decision rules of the firm.
1. Ethnocentric Orientation
The ethnocentric orientation means company personnel see only
similarities in markets and assume the products and practices that succeed
in the home country will, due to their demonstrated superiority, be
successful anywhere. At some companies, the ethnocentric orientation