Differences between International Marketing and Domestic Marketing
Question – Define International Marketing, Domestic Marketing, Global Marketing, and Foreign Marketing. How international marketing is different from domestic marketing?
Answer
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 have to 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 Marketers 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 with in 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
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Basis
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Domestic
Marketing
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International Marketing
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Definition
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“It is concerned with the marketing practises within the researchers
or Marketers home country (domestic market).”
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“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.”
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Role of Politics
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Political factors are of minor importance.
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Political factors play a vital role.
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Languages & Cultures
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One language and culture.
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Many languages and differences in
cultures.
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Financial Climate
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Uniform financial climate.
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Variety of financial climate.
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Risk Involved
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Normal risk is involved.
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Higher risks of different nature are
involved.
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Control of Marketing Activities
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Control of marketing activities is easy as compared to international
activities.
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Control of marketing activities is
difficult because of different factors like – regional, cultural, political,
etc.
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Payment
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Minimum payment and credit risks.
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Considerable payment and credit risks.
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Familiarity
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Well familiarity with domestic market.
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Lack of Familiarity with foreign
markets, research becomes essential.
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Knowledge Requirement
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Management knowledge is required.
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Specific management knowledge and
competence is required.
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Product Mix
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Product mix is decided keeping in view the satisfaction and more
sales.
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Product mix is decided according to
foreign market.
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Product Planning and Development
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Product planning and development according to domestic market.
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Product planning and development
according to foreign market.
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Focus
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Focus of interest is on general information.
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Focus of interest is on strategic
emphasis.
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Market Aspect
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Market is much more homogeneous and different segments.
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Different or diverse markets
fragmented in nature.
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