Posted in Marketing and Strategy Terms, Total Reads: 530
Definition: Regiocentric Orientation
Regiocentric Orientation is an 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; i.e., the market characteristics of these countries would be more or less similar.
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.
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.