L5 Difference Between International Marketing and Domestic Marketing PDF

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Difference Between International Marketing and Domestic Marketing...

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L5 Difference Between International Marketing and Domestic Marketing Introduction Today, the marketing organizations are not restricted to their national borders. The entire world is open for them. New markets are springing forth in emerging economies like – China, Indonesia, India, Korea, Mexico, Chile, Brazil, Argentina, and many other economies all over the world. In today’s global market opportunities are on a par with the expansion of economies, with the increasing purchasing power, and with the changing consumer taste and preferences. The economic, social, and political changes affect the practise of business worldwide, the business organizations must remain flexible enough to react rapidly to changing global trends to be competitive. The objective of this post is to make you understand the terms International Marketing, Domestic Marketing, Global Marketing, and Foreign Marketing. Also, to make you understand the differences between International Marketing and Domestic Marketing Definition of Domestic Marketing It is concerned with the marketing practises within the researchers or Marketer’s home country (domestic market). Definition of International Marketing According to Cateora and Graham, “international marketing is the performance of business activities designed to plan, price, promote and direct the flow of a company’s goods and services to consumers or users in more than one nation for a profit.” According to Terpstra and Sorathy, “international marketing consists of finding and satisfying global customer needs better than the competition, both domestic and international and of coordinating marketing activities within the constraints of the global environment.” Definition of Global Marketing

According to Kotler, “Global Marketing is concerned with integrating or standardizing marketing actions across a number of geographic markets.” Global Marketing treats the entire world as a single market and standardizes the marketing actions for every geographic location. Mc Donald’s is a well-known example of global marketing. Definition of Foreign Marketing Foreign marketing is the domestic operations within a foreign country (i.e., marketing methods used outside the home market). Difference between International Marketing and Domestic Marketing

Difference between International Marketing and Domestic Marketing Basis Definition

Domestic Marketing “It is concerned with the marketing practises within the researchers or Marketer’s home country (domestic market).”

International Marketing “It is the performance of business activities designed to plan, price, promote and direct the flow of a company’s goods and services to consumers or users in more than one nation for a profit.” Political factors play a vital role.

Role of Politics

Political factors are of minor importance.

Languages & Cultures

One language and culture.

Many languages and differences in cultures.

Financial Climate

Uniform financial climate.

Variety of financial climate.

Risk Involved

Normal risk is involved.

Higher risks of different nature are involved.

Control of Marketing Activities

Control of marketing activities is easy as compared to international activities.

Control of marketing activities is difficult because of different factors like – regional, cultural, political, etc.

Payment

Minimum payment and credit risks.

Considerable payment and credit risks.

Familiarity

Well familiarity with domestic market.

Lack of Familiarity with foreign markets, research becomes essential.

Knowledge Requirement

Management knowledge is required.

Specific management knowledge and competence is required.

Product Mix

Product mix is decided keeping in view the satisfaction and more sales.

Product mix is decided according to foreign market.

Product Planning and Development

Product planning and development according to domestic market.

Product planning and development according to foreign market.

Focus

Focus of interest is on general information.

Focus of interest is on strategic emphasis.

Market Aspect

Market is much more homogeneous and different segments.

Different or diverse markets fragmented in nature....