Developing Products for International Markets
- Ethnocentric Approach
- Polycentric Approach
- Regiocentric Approach
- Geocentric 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.
- 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.
- 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.
- 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.