Ethnocentric, polycentric, and geocentric are three different approaches to international marketing that companies can use when expanding into new markets.
Ethnocentric approach is when a company treats its home country as the center of the world and assumes that its products, marketing strategies, and management practices are superior to those of other countries. This approach is often used by companies that are dominant in their home market and want to replicate their success in other countries. While this approach can be effective in certain situations, it can also lead to cultural insensitivity and a lack of understanding of local markets.
Polycentric approach is when a company tailors its products, marketing strategies, and management practices to each individual country in which it operates. This approach is based on the belief that each country is unique and requires a customized approach in order to be successful. While this approach is more sensitive to local markets and cultural differences, it can also be expensive and time-consuming to implement.
Geocentric approach is when a company takes a global perspective and tries to find the best practices and strategies from around the world to use in each of its markets. This approach is based on the belief that the best practices and strategies are not necessarily limited to a particular country or region, and that a company can learn from and adapt to different cultures and markets. While this approach can lead to more global efficiencies and a more unified brand image, it can also be difficult to implement due to the need to coordinate and integrate practices and strategies from different regions.
Ultimately, the best approach for a company will depend on its goals, resources, and market conditions. Some companies may find that a combination of these approaches is the most effective way to expand into new markets.
