Page 45 - International Marketing

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BRILLIANT'S Introduction to International Marketing 47

This kind of approach is most suitable for firms seriously committed to
international marketing and have the resources for investing abroad for
fuller and long term penetration into chosen overseas markets.
Polycentric approach is highest market oriented. The marketing mix
decision as well as product development strategies, pricing strategies
etc. involve local exports and are different for different countries. The
decentralization of market activities is highest in polycentric orientation.
Although, polycentric approach is highly market oriented, it generally
needs more corporate resources. A drawback of polycentricity is that it
often results in duplication of effort among overseas subsidiaries. Similarities
among countries might well permit the development of efficient and uniform
strategies.
3. Regiocentric Orientation and Geocentric Orientation
In a company with a regiocentric orientation, management views
regions as unique and seeks to develop an integrated regional strategy.
The operational strategies are formulated on the basis of the entire
region rather than individual countries & production and distribution facilities
are created to serve the whole region with effective economy of operations
and closer control and coordination. For example, a U.S. company that
focuses on the countries included in the North American Free Trade
Agreement (NAFTA) the U.S., Canada and Mexico has regiocentric
orientation. On the other hand a company with a geocertric orientation
views the entire world as a potential market and strives to develop integrated
world market strategies. It is sometimes also known as a global or
transnational company. It adopts a worldwide approach to marketing and
its operations become truly global in character.

Polycentric
Each host
country is unique;
Ethocentric sees differences
Home country in foreign
is superior; countries
sees similarities
in foreign countries

Regioncentric
Sees similarities Geocentric
and differences World view;
in a world region; sees similarities
is ethnocentric or polycentric and differences in
in its view of home and host countries
the rest of the world
Fig.: Orientation of Management Companies