The reason is that the pharmaceutical companies are familiar with the fact that there are deep-rooted national differences in how people think about health, diseases and their cure. . Have you changed the way that you go out in public if youre an American because of the myriad of stories that involve gun violence in recent years? The overall aims, objectives and strategy of a firm has a great impact on international marketing decisions e.g, whether to enter new uncertain markets and how maximum would be risk that the firm is ready to take or the level of control required over international operations. Disadvantages of Geocentric Approach. In particular, the recent advent of Internet paves the way for a new and easier path for marketing messages to cross. One of the advantages is lower labor cost and also it demonstrates trust in local specialists which decrease tension. List of the Advantages of Ethnocentrism 1. Every colonization attempting for the past 500 years has been an effort to develop new resources in foreign locations because of the belief that ones home country is better than the colony itself. This situation is fairly apparent in many U. S. based companies marketing to non-western cultures. After the 2016 presidential election in the United States, there were couples filing for divorce because of the candidate whom they chose on their ballot. 8. The disadvantages of the ethnocentric What are the advantages and disadvantages of the polycentric approach? April 9, 2022 by Fahad Usmani. Furthermore, he illustrates that the U. S. is the center of the world having one of the most highly advanced communications technological capacities, the advantage of a free society and its own international initiatives in business travel and commerce (Fisher 1987, p. 12). The culture of the parent company can be easily transferred to the subsidiary company, thereby infusing beliefs and practices into the foreign country. This approach puts localized decisions in the hands of people directly connected to the company's central headquarters, Decisions on the ground are made by employees familiar with the parent company's culture but not necessarily the native one. Ethnocentrism can be a way to improve the world. What are the main advantages and disadvantages of the ethnocentric, polycentric, region-centric, and geocentric approaches to staffing policy? the term multinational company is often used to describe such structure. There are some moral absolutes which exist throughout almost every human society in history. Despite its many flaws, ethnocentrism can make this possible. Ethnocentric Approach Advantages and Disadvantages Advantages: Disadvantages: Building a common corporate culture Easy organizational control and coordination Longer time for expatriate managers to adapt to host countries Limits the promotion opportunities of HCNs Huge differences in the compensation package between PCN's . The advantages of Polycentric Staffing Policy are: i. The obvious advantage of ethnocentric staffing is the alignment of the interests and perspectives . Parents can become divided over how they decide to discipline their children. For the most part, employees in the host nation are hired to oversee, the subsidiary business, and this supports the HCNs' ongoing career progression. Because of its pluralistic society, Lee and Sirgy (1999, p. 80) conceive that the U. S. is likely to have comparatively lower ethnocentric tendencies. Ethnocentrism drives people away from what they love. Transcribed image text: What are the main advantages and . In fact, ethnocentrism is deeply rooted in most inter-group, interracial and cross-cultural relations that it becomes a universal phenomenon. Local managers can help run the firm more smoothly and efficiently than expatriates since . Course Hero is not sponsored or endorsed by any college or university. The general population will not start thinking about different political philosophies or structures because they become loyal through ethnocentrism to what currently exists. Geocentric staffing approach is adopted when companies implement a transnational orientation. It is more than a lack of empathy; it is a complete disregard of the understanding needed to see through a different set of circumstances. 2. Whereas Herbig (1998) noted the long history of failed attempts of the United States at marketing to other cultures, some oppose the claim that the U. S. is a predominantly ethnocentric society. Each person, even within a similar culture or ethnicity, leads an independent life. c. What international marketing contexts (geographic regions as well as subjects such as distribution or consumer behaviour) have been researched using them? A particular example is the Got Milk? It is in these specific categories or aspects where we can define the unique cultural identity of each ethnicity. Ethnocentrism can have deadly results. that is useful for customers to make financial decisions. (Lewis & Housden 1998, p. 15). to help you write a unique paper. How Does Enterprise Computing Support BusinessOrganizations? Cars with the number 8 in the license plate can command a premium in China, while the number 4 does just the opposite In the field of international marketing, it is indeed not enough to simply translate an advertisement or brand name into another language, as previously discussed, as it may sometimes becomes a disadvantage to any marketing campaign. The geocentric approach is the best way to hire talent. This article has attempted to create better understanding of the concept of ethnocentrism as a socio-psychological issue with relation to international marketing. All rights reserved. Some say that globalization promotes convergence. Culture is defined as a specific society with all of its tools, possessions and characteristic ways and conceptions of life (Kalyan Sen Gupta 1998). 6. Ethnocentrism created the world as we know it today. However, issues concerning ethnocentrism also exist during this process of cross-cultural marketing. Ethnocentrism is the belief of superiority is one's personal ethnic group, but it can also develop from racial or religious differences. Disadvantages of Ethnocentrism. and unfortunately wasnt received well. As a matter of fact, several hundreds of actual examples of inappropriate design and brand names have failed because of not addressing ethnocentric thinking. Local employees are usually more familiar with the local culture and language and may have access to . Ethnocentrism strengthens the conservative forces. campaign of one of the U. S. companies. It protects society's norms, values and traditions. This process can occur on a societal level or involve specific behaviors or actions in the areas of religion, language, behavior, or customs. The recruitment approach of Hilton hotel indicates something that reveals the shortages of the other two approaches. Correct writing styles (it is advised to use correct citations) Ethnocentrism gives us an opportunity to show future generations what is possible through the implementation of continuous best practices based on historical knowledge. The rationale behind the Geocentric Approach is that the world is a pool of talented staff and the most eligible candidate, who is efficient in his field . One of the advantages that it brings about is that it is unlikely to experience internal conflicts. It creates an attitude of independence. Even in a free-market economy where people are free to choose whatever they want, the judgment of someone buying foreign instead of domestic sets the foundation for all of the other disadvantages listed here. Conclusion Much of the above discussions clarify the intentions of this article. The diversity that we have in humanity demands that we have a willingness to except the experiences that everyone else contributes because that is how we all become better at the individual level. This loyalty is not possible unless there is an effort to maintain ethnocentric views from the top down. This belief system requires us to close off our minds to different perspectives and opinions. For example, ESSO, that is the brand name of gasoline was a successful name in the united states and apparently it would be considered less harmful enough for other foreign countries but if we see in Japan, the name phonetically means stalled car which is strange and is considered as undesirable image of petrol. If people are made to understand that democracy is zone of the best political system for our country. Ethnocentrism can be defined as the nations that ones own culture or company knows best how to do things. This is because it would seek to implement strategies purely on the basis of individual foreign markets and omit any valuable knowledge from another market. match. Advantages of Ethnocentric Approach Better coordination between the host and the parent company. Self reference criteria is defined as an unconscious reference to ones own cultural values, experiences and knowledge as a basis for decisions. us: [emailprotected]. Ethnocentrism can enhance solidarity in society. 6. The FASB and IASB began a work to revise their financial, accounting idea framework into a collective conceptual framework that would provide, standard, uniformity, and foundation for the development of new accounting standards and, renewal of current ones. Communication is easier and companies run smoother due to the fact the employees are all related in their geographic location. Shusterman added that cultural awareness is vital to appreciating ones own culture aside from getting to appreciate another culture. The problem in international marketing is the failure of the managers and market research in acknowledging the impact of ethnocentrism in their theories, conceptual frameworks and practice. Where and by whom has the theory/framework been developed? There is boredom when you are around the same people all of the time with limited sources of entertainment. assume youre on board with our, Urban Outfitters Continuing Case Study: Marketing a Business, https://graduateway.com/international-marketing-and-ethnocentrism/. 3. Global Competitiveness - Competitive advantage 4.2.5. U. S. companies and the U. S. opulation as well, are unaware of the fact that sometimes when English words are translated into another language, they might become offensive and actually provoke the opposite reaction from what was intended. There should be clear awareness among the marketers that not every activity within a marketing program is different from one country to another county and most probably are more similar than differences. It enables in achieving effective control by company's head branch over all its subsidiaries operating in distinct countries worldwide. Expatriates are employees who work abroad on a temporary basis to achieve organizational goals (Olsen and Martins, 2002). Benefits and downsides of polycentric approach, It is vital to consider the polycentric approach after having discussed the advantages and risks, of the ethnocentric method. Generally, ethnocentrism is thought of as the feeling that ones own culture is better than all others. Ethnocentric product is product that is made to be the center of attention of a particular group of people (Sumner, 1906). The ethnocentric approach of the EPRG Framework has benefits but also downsides. This approach can be advantageous in certain circumstances because it creates opportunities for people to find common ground.
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