Page 44 - International Marketing

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46 International Marketing BRILLIANT'S

means that opportunities outside the home country are ignored. Such
companies are sometimes called domestic companies. In the ethnocentric
international company, foreign operations are viewed as being secondary
or subordinate to domestic ones. It believes that "tried and true"
headquarters knowledge and organizational capabilities can be applied in
other parts of the world. Although, this can sometimes work to a company's
advantage, valuable managerial knowledge and experience in local market
may go unnoticed. For a manufacturing firm Ethno-centrism means foreign
markets are viewed as a means of disposing of surplus domestic
production. Plan for overseas markets are developed utilizing policies and
procedures identical to those employed at home. No systematic marketing
research is conducted outside the home country and no major modifications
are made to products. The consumer needs and wants in international
markets are ignored.
Ethnocentric orientation may be of the following types:
(a) The firm becomes so accustomed to certain cause and effect
relationships in import activities that certain cultural factors in
overseas markets are overlooked. Managers need to analyze
the cultural variables so as to consider all the major factors be-
fore taking a decision. For instance, most Indian handicraft ex-
porters, which are primarily from the small and medium-size-
enterprises sector, hardly appreciate the market difference and
need for adaptation of marketing strategy.
(b) The environmental differences are recognized by the management
but marketing strategy focuses on achieving home country objec-
tives rather than international or worldwide objectives. It leads to a
decline in the long-term competitiveness of the firm as the firm
fails to compete effectively against its competitors and show any
resistance to its overseas-marketing practices. The large size of
the Indian market provides little motivation to firms to venture into
the overseas market or even if overseas marketing is undertaken
by them, the company tries to find the market for similar products
and consumers with similar tastes and preferences.
2. Polycentric Orientation
The polycentric orientation is the opposite to ethnocentrism. The term
polycentric describes management's often unconscious belief or
assumption that each country in which a company does business is
unique. The polycentric international country attempt to organize its
international marketing activities on a country to country basis. Each
country is treated as separate entity and individual strategies are worked
accordingly. Local assembling or production facilities and marketing
organizations are created for serving the market needs in each country.