IBV · Fachoberschule Bayern · Year 13 · NEW LehrplanPLUS

valid from 2028/29approx. 40 lessonsbilingualBritish EnglishUNTERNEHMER AG

All content follows the official LehrplanPLUS Bayern.

Making strategic decisions for an international company

International marketing is not simply about translating an advert. A company must decide how internationally integrated or locally adapted it wants to be, understand customer needs in different markets and turn this orientation into consistent product, pricing and communication decisions. Sustainability claims must also be supported by evidence rather than becoming greenwashing.

Continuous case – UNTERNEHMER AG: The German industrial company plans to expand an energy-efficient modular product system into several international markets. Management must choose an international orientation, research customer needs, adapt the marketing concept where necessary and communicate environmental performance credibly.
Learning logic: EPRG orientation → market research → cultural analysis → marketing concept → sustainability evidence → strategic decision.

Contents

  1. EPRG strategic orientation
  2. Ethnocentric approach
  3. Polycentric approach
  4. Regiocentric approach
  5. Geocentric approach
  6. EPRG comparison
  7. Market research
  8. Customer needs
  9. Hofstede
  10. Critical use of cultural models
  11. Product policy
  12. Product design
  13. Brand name
  14. Number of product lines
  15. Pricing policy
  16. Regional pricing
  17. Payment terms
  18. Communication policy
  19. Advertising
  20. Sustainability
  21. ESRS Environmental
  22. Greenwashing
  23. Authentic sources
  24. Corporate and consumer responsibility
  25. Integrated case
  26. Exam training

1. Strategic starting point: standardise or adapt?

International companies face a fundamental tension: transfer a successful home-market concept abroad or adapt it to local conditions. Standardisation may reduce complexity and strengthen a consistent identity. Adaptation may improve customer fit but increase costs and organisational complexity.

STANDARDISATIONADAPTATIONStrategic choices can lie anywhere between the two poles.

2. Perlmutter’s EPRG model

The EPRG model distinguishes four international orientations: ethnocentric, polycentric, regiocentric and geocentric. It is the strategic frame for the marketing decisions that follow.

EPRGETHNOCENTRIChome-country orientationPOLYCENTRICcountry-by-countryREGIOCENTRICregional orientationGEOCENTRICworldwide orientation

3. Ethnocentric approach

The home market is the central reference point. Products, management ideas and marketing concepts developed at home are transferred abroad with limited adaptation.

Strengths Risks
consistent brand; lower adaptation costs; easier central control; transfer of proven know-how local needs may be underestimated; cultural differences ignored; communication may not fit
UNTERNEHMER AG: Same machine configuration, German brand name and largely the same advertising concept worldwide.

4. Polycentric approach

Each national market is treated as distinct. Local units receive substantial scope to adapt marketing to national customer needs and cultural conditions.

Strengths Risks
strong local fit; local knowledge; customer proximity duplication; higher complexity; fragmented brand identity; fewer synergies
UNTERNEHMER AG: French, Japanese and US teams independently adapt product packages, prices and advertising.

5. Regiocentric approach

Countries are grouped into meaningful regions. Similarities within a region create synergies while differences between regions are respected.

EUROPEregional coreNORTH AMERICAregional coreEAST ASIAregional core

6. Geocentric approach

The world is viewed as an integrated market and the company searches globally for the best solutions. This does not mean “identical everywhere”: a global core may coexist with evidence-based local adaptation.

Key distinction: Geocentric describes a worldwide strategic mindset, not blind standardisation.

7. EPRG comparison

Criterion Ethnocentric Polycentric Regiocentric Geocentric
Reference point home country host country region worldwide system
Adaptation rather low high regional evidence-based mix
Coordination central decentralised regional globally integrated
Risk home-market bias fragmentation regional silos coordination complexity

8. Strategic choice – UNTERNEHMER AG

Market Research signal Implication
EU similar technical standards; strong sustainability expectations regional synergies possible
USA different buying process and payment expectations pricing/communication adaptation
Japan different service and communication expectations local research particularly important
Decision: Select and justify an EPRG orientation, explain a trade-off and derive consequences for product, pricing and communication.

9. International market research

The curriculum explicitly requires market research to analyse customer needs. Research bridges EPRG strategy and concrete marketing decisions.

1 Question2 Collect data3 Analyse4 Compare5 Decide

Evidence may come from surveys, interviews, observations, sales data, complaints, distributors, competitor analysis and reliable secondary sources. The method must fit the decision problem.

Exam trap: Never infer actual customer needs from a country label alone. Cultural models can suggest hypotheses; market research must test them.

10. Analysing customer needs

Need Evidence Marketing consequence
reliability downtime is a major purchase criterion service package and reliability proof
low operating cost customers focus on total cost efficiency-oriented design/message
flexible financing longer payment periods requested adapt terms after risk assessment
environmental performance customers demand emissions/recycling data evidence-based sustainability information

11. Hofstede’s cultural dimensions

LehrplanPLUS requires the incorporation of Hofstede’s cultural dimensions. They can help formulate hypotheses about cultural differences but must not replace market research.

Dimension Marketing question
Power Distance How strongly are hierarchy and status accepted or expected?
Individualism Individual benefit or group belonging?
Masculinity Achievement/competition or care/quality-of-life emphasis?
Uncertainty Avoidance How important are rules, guarantees and risk reduction?
Long-Term Orientation How strongly do long-term benefits matter?
Indulgence How may gratification/restraint tendencies differ?
Power DistanceIndividualismMasculinityUncertainty AvoidanceLong-Term OrientationIndulgenceIllustrative data only – not a real country profile

12. Using cultural models critically

Country-level scores describe broad statistical tendencies, not individuals. A strong analysis combines cultural frameworks with current target-group-specific evidence.

Method: cultural model → hypothesis → market evidence → test → marketing decision.

Didaktischer Hinweis: Hofstede ist verbindlicher Lehrplanstoff, aber kein Werkzeug für stereotype Aussagen über einzelne Menschen.

13. From strategy to marketing concept

The curriculum focuses on product policy, pricing policy and communication policy. All three must fit the EPRG orientation and market evidence.

EPRG ORIENTATIONRESEARCH + CULTUREPRODUCTPRICINGCOMMUNICATION

14. Product policy

The official content explicitly names product design, brand name and number of product lines. The central question is which elements create value through standardisation and which require adaptation.

15. Product design

Element Standardisation argument Adaptation argument
technical core scale economies, quality control different standards/use conditions
interface consistent experience language/local workflow
documentation lower complexity legal/customer requirements
GLOBAL CORElanguagestandardsservice packageinterface

16. Brand name

A brand name may be globally consistent or locally adapted. Companies should research pronunciation, meaning, legal availability and cultural associations before transferring it.

Exam discipline: If no evidence about a name’s local meaning is supplied, state what should be researched instead of inventing a cultural fact.

17. Number of product lines

A narrow global range can reduce complexity; additional local or regional lines can improve market fit. The benefit of differentiation must justify extra development, inventory, training and communication costs.

NARROW RANGEBROADER RANGE

18. Pricing policy

Pricing must fit costs, competition, customer value, positioning and strategy. LehrplanPLUS explicitly names regional pricing and payment terms.

19. Regional pricing

Model: Base product €100,000. Additional regional service cost is €4,000 in Market A and €9,000 in Market B. Competitive intensity also differs. A single global price therefore requires analysis rather than assumption.
Factor Possible effect
competition limits or expands pricing power
willingness to pay influences acceptable price
service/logistics changes cost base
currency exposure changes home-currency revenue risk
positioning supports premium/value logic
Region ARegion BRegion C

20. Payment terms

Longer payment periods may support sales but tie up capital and increase credit risk. Advance payment reduces seller risk but may be less attractive to customers.

Term Customer UNTERNEHMER AG
advance payment high cash burden low receivables risk
30 days moderate benefit moderate tie-up
90 days strong financing benefit higher tie-up/default exposure
Transfer: A polycentric strategy does not mean accepting every local payment custom. Adaptation must remain compatible with liquidity and risk objectives.

21. Communication policy and advertising

International advertising must fit strategy, research and cultural context. A company may preserve a global brand promise while adapting execution, language, examples or channels.

CORE MESSAGEmarket evidencecultural contextADVERTISING
Element Possible global core Possible adaptation
brand promise reliability/efficiency emphasis by researched needs
visual identity logo/layout principles imagery/examples
language core terminology translation/transcreation
evidence verified performance locally relevant proof points

22. Strategic consistency

A marketing concept is weak if its individual decisions contradict one another. A premium product with a low-price message, a globally integrated strategy with unrelated national brands, or a sustainability claim without evidence can undermine the concept.

Consistency test: Does the measure fit (1) EPRG orientation, (2) market research, (3) other marketing decisions, (4) financial logic and (5) sustainability evidence?

23. Sustainability in marketing

The curriculum requires students to discuss the significance of sustainability in marketing using authentic sources. Sustainability can affect product design, brand positioning, purchase decisions and reputation. It also creates a responsibility to communicate accurately.

UNTERNEHMER AG: A new product uses 18% less electricity in operation and contains more recycled material. Marketing proposes “the green solution”. The sustainability team objects: the wording is too broad unless environmental performance and comparison basis are defined.

24. Environmental within ESRS

LehrplanPLUS explicitly names the Environmental dimension within the European Sustainability Reporting Standards, including examples such as emissions of pollutants, recycling rates and use of hazardous substances. Such data can provide evidence for marketing decisions.

Environmental information Marketing relevance Critical question
pollutant emissions environmental performance What exactly is measured and compared?
recycling rate circularity/resource claim Product, packaging or process?
hazardous substances safety/environment positioning Has use actually fallen, and by what metric?
POLLUTANTSRECYCLINGHAZARDOUS SUBSTANCES72%

25. Sustainability versus greenwashing

Greenwashing is the risk that environmental communication creates a misleadingly positive impression not adequately supported by facts. The decisive issue is the gap between claim and evidence.

ENVIRONMENTAL CLAIMSpecific and measurable?Supported by evidence?NO → revise / do not claimYES → communicate precisely
Weak claim Problem Better approach
“100% green” vague and absolute state measured improvement and scope
“eco-friendly packaging” unclear criterion state recycled content/recyclability and basis
“clean production” undefined comparison identify metric, period and baseline

26. Working with authentic sources

Authentic sources may include sustainability reports, ESRS-related disclosures, product documentation, verified environmental data, consumer research, official statistics or reputable market studies. Students should distinguish source, claim, evidence and interpretation.

Source analysis: Who published it? → What is measured? → Which period/unit? → Baseline? → Comparable? → What does it support? → What does it not support?
Critical thinking: A company source can provide useful primary information, but it has an interest in presenting the company favourably. Authentic does not automatically mean independent.

27. Corporate and consumer responsibility

The curriculum connects sustainability marketing with the social responsibility of companies and consumers. Companies are responsible for truthful, comprehensible communication and the consequences of decisions. Consumers influence markets through demand, but informed choice depends on reliable information.

COMPANYevidence · truthful claimsCONSUMERinformed choice · demandMARKET

28. Integrated international launch case

Management receives the following model data:

Evidence Europe North America East Asia
energy cost priority high medium high
local service demand medium high high
acceptance of global brand high high medium
preferred payment period 30 days 60 days 30 days
environmental evidence requested very high medium high
A – EPRG: Recommend and justify an orientation; explain why an alternative is less suitable.
B – Research: Identify missing information and suitable research methods.
C – Hofstede: Use supplied cultural data to formulate hypotheses without stereotyping.
D – Product: Decide what to standardise/adapt, brand strategy and number of product lines.
E – Pricing: Develop regional pricing and payment terms, including financial risk.
F – Communication: Preserve a brand core while reflecting evidence.
G – Sustainability: Assess “the world’s greenest modular system” using ESRS-related evidence and identify greenwashing risk.
H – Final judgement: Present one coherent marketing concept; link every recommendation to strategy and evidence.

29. High-quality decision structure

Seven steps:
1. State strategic objective.
2. Classify EPRG orientation.
3. Use market evidence.
4. Use cultural dimensions carefully.
5. Derive product, pricing and communication decisions.
6. Check sustainability evidence/greenwashing risk.
7. Evaluate trade-offs and justify the concept.

30. Typical exam mistakes

Mistake Better approach
EPRG merely defined derive marketing consequences
“Geocentric = identical worldwide” distinguish integration from blind standardisation
country stereotypes Hofstede as hypothesis + research
marketing measures listed independently check strategic consistency
payment terms ignored include liquidity and credit risk
sustainability claim accepted at face value require specific measurable evidence
ESRS confused with advertising use reporting information as evidence/input

31. Exam training

1. Explain all four EPRG approaches and apply them to scenarios.
2. Compare polycentric and geocentric strategies.
3. Design a market research plan for two target markets.
4. Interpret supplied Hofstede data and derive research hypotheses.
5. Develop product policy: design, brand name, product lines.
6. Evaluate regional pricing and payment terms.
7. Adapt advertising while preserving a global brand core.
8. Analyse pollutant emissions, recycling rates and hazardous-substance data.
9. Distinguish substantiated environmental communication from greenwashing.
10. Develop a complete coherent marketing concept for the UNTERNEHMER AG.

32. Learning area at a glance

Curriculum block Competence
EPRG explain and apply ethnocentric, polycentric, regiocentric and geocentric approaches
Market research analyse customer needs
Culture incorporate Hofstede critically
Product product design, brand name, number of product lines
Pricing regional pricing, payment terms
Communication advertising consistent with strategy/evidence
Sustainability discuss using authentic sources
ESRS Environmental pollutants, recycling rates, hazardous substances
Greenwashing compare claim and evidence
Responsibility companies and consumers

✏️ Practise with the task generator

Generate tasks on EPRG, international market research, Hofstede, product, pricing and communication policy, sustainability, ESRS evidence and greenwashing – aligned with IBV 13.

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