EPRG framework in international marketing

In 1969 he bundled his insights by publishing the PEG model. Perimeter’s PEG model states that senior management at an international organization holds one of three primary orientations when building and expanding its multinational capabilities: 1 . THEOCRATIC (home country orientation) The general attitude of a firm’s senior management team Is that nationals from the organization’s home country are more capable to drive International satellites forward than non-native employees working at its headquarters or subsidiaries.

The practices and policies of headquarters and of the operating company in the home country become the default standard to which all subsidiaries need to comply. This mind set has as advantages that it overcomes a potential shortage of qualified managers in host nations by expatriating managers from the home country, creates a unified corporate culture and helps transfer core competences more easily by deploying nationals throughout the organization. The main disadvantages are that an ethnocentric mindset can lead to cultural short-sightedness and to not promoting the best and brightest in a firm. 2.

POLYTECHNIC (host country intention) This world view has as dominant assumption that host country cultures are different est. for their operation and should b given maximum freedom to run their affairs as they see fit. This view alleviates the chance of cultural myopia and is often less expensive to implement than ethnocentric because it needs less expatriate managers to be send out and centralized policies to be maintained. The drawbacks of this attitude are that it can limit career mobility for both local and foreign nationals, isolate headquarters from foreign subsidiaries and reduces opportunities to achieve synergy. . GEOCENTRIC (world orientation) This orientation does not equate superiority with nationality. Within legal and political limits, executives try to seek the best men, regardless of nationality, to solve the company’s problems wherever in the world they occur. This attitude uses human resources efficiently and furthermore helps to build a strong culture and informal management networks. Drawbacks are that national immigration policies may put limits to its implementation and it might be a bit expensive compared to polytechnics.

It attempts to balance both global integration and local responsiveness. Perimeter’s observation was that most Macs start out with an ethnocentric view, lowly evolve to polytechnics and finally adopt geocentricism as the organization familiarizes itself more and more with conducting business on a global playing field. In 1979 Perimeter and his colleague David A. Henna added a fourth orientation to create the PEER model: the R stands for a recognition approach falling in between a polytechnic and geocentric orientation.

Recognition or regional orientation is defined as a functional rationalization on a more-than-one country basis. Subsidiaries get grouped into larger regional entities. Regions are consistent with some natural boundaries, such as the Europe, America and Asia-Pacific. Both polytechnic and recognition approaches allow for more local responsiveness, with less corporate integration. Local Marketing – also referred to as local store marketing or neighborhood marketing -?specifically targets the community around a physical store or restaurant.

Promotional messages are directed to the local population, rather than the mass market (See also Community Marketing). In practice, local marketing can take several forms. Many local businesses directly contact consumers through mail, in-town events, local team sponsorships, or advertisements in the town paper. Hoping to not only attract new customers but to drive repeat business, a successful local marketing push allows a store to stake out a significant presence in local consumers’ mental maps of their communities. Also known as “neighborhood marketing”, is a marketing term that refers to the application of different variables in a business’s marketing mix dependent on localized specifications including the consumer, competition, and store characteristics. Than one country. However, there is a crossover between what is commonly expressed as international marketing and global marketing, which is a similar term. Also defined geographically as a market outside the international borders of a company’s country of citizenship.