Regiocentric Orientation
This article covers meaning, importance & example of Regiocentric Orientation from marketing perspective.
What is Regiocentric Orientation?
Regiocentric orientation is a marketing approach adopted by a firm wherein it adopts a marketing strategy across a group of countries, which have been grouped on the basis of their market characteristics. In regiocentric orientation, the market characteristics of these countries would be more or less similar. This strategy allows the company to serve customers of that region with similar business economics.
Importance of Regiocentric Orientation
The similarities on the basis of economic, cultural and political characteristics are taken into account while grouping these countries to form regions. Here, the basic assumption is that the needs of the potential customers in these countries would be similar. So, while developing the operations and marketing strategies, these would be similar across the regions, and it is done based on the analysis of the entire region, and not only by concentrating on individual countries. Regiocentric approach may also be used as a transition approach, between a polycentric approach and a geocentric approach.
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Example of Regiocentric Orientation
A few examples are as follows:
1. For example, companies such as Coca Cola have been using this kind of regiocentric orientation approach. For marketing purposes, countries such as India, Pakistan and Bangladesh have been grouped together due to their similarities, and a similar marketing strategy is used across these countries.
2. Similarly, European car companies like Volkswagen, BMW etc. have a different regiocentric orientation strategy which caters to North America as compared to Asia. On the other hand, Asian car companies like Hyundai & Honda approach different global regions like America & Europe with different strategies as compared to each other but similar within the region.
Hence, this concludes the definition of Regiocentric Orientation along with its overview.
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