What is Geocentric Orientation?
A company with a geocentric orientation views the entire world as a potential market. The basic assumption of this approach is that all human beings are alike. A geocentric company develops standardized marketing mix, projecting a uniform image of the company and its products for the global market.
The business of the geocentric company is characterized by sufficiently distinctive national markets that the ethnocentric approach is unworkable, and where the importance of learning curve effects in marketing, production technology and management makes the polycentric philosophy substantially sub-optimal.
Pricing is established on a worldwide basis. Global channels of distribution are established and promotional policy is developed to project a uniform image of the firm, and its products. Since this orientation implies global attitude to the development of marketing policies, it provides for improved coordination and control. This approach is more successful in areas such as production and research than in marketing.
In general, the desirability of a particular international orientation EPRG tends to depend on several factors which are as follows:
- Size of the firm.
- Experience gained in the given market.
- Size of the potential market.
- Type of the product and its cultural dependency.
The EPRG framework provides guidelines for the type of orientation a firm may have towards external marketing. The suitability of EPRG orientation may differ not only from company to company but also from-j one marketing decision area to another within the same firm.