Developing Products for International Markets
  • Ethnocentric Approach
  • Polycentric Approach
  • Regiocentric Approach
  • Geocentric Approach
Ethnocentric Approach
  • This Approach is based on the assumption that consumer needs and market conditions are more or less homogeneous in international markets as a result of globalization
  • A firm markets its products developed for the home market with little adaptation.
Polycentric Approach
  • An international firm is aware of the fact that each country market is significantly different from the other. It, therefore, adopts separate approaches for different markets
  • In a polycentric approach, products are developed separately for different markets to suit local marketing conditions.
Regeocentric Approach
  • Once an international firm establishes itself in various markets the world over, it attempts to consolidate its gains and tries to ascertain product similarity within market clusters
  • Generally, such market clusters are based on geographical and psychic proximity.
  • The firm accepts a regional marketing policy covering a group of countries which have comparable market characteristics.
  • Operational strategies are formulated on the basis of the entire region rather than individual countries.
Geocentric Approach
  • Instead of extending the domestic products into international markets, a firm tries to identify similarities in consumption patterns that can be targeted with a standard product around the world.