Difference between Domestic and International Marketing
Marketing is defined as the set of activities which are undertaken
by the companies to provide satisfaction to the customers through value
addition and making good relations with them, to increase their brand value. It
identifies and converts needs into products and services, so as to satisfy
their wants. There are two types of marketing namely, domestic and
international marketing. Domestic marketing is when
commercialization of goods and services are limited to the home country only.
On the other hand, International
marketing, as the name suggests, is the type of marketing which is
stretched across several countries in the world, i.e. the marketing of products
and services is done globally. In this article excerpt you can find the
difference between domestic and international marketing in detail.
BASIS FOR COMPARISON
|
DOMESTIC MARKETING
|
INTERNATIONAL MARKETING
|
Meaning
|
Domestic marketing refers to
marketing within the geographical boundaries of the nation.
|
International marketing means the
activities of production, promotion, distribution, advertisement and selling
are extend over the geographical limits of the country.
|
Area served
|
Small
|
Large
|
Government interference
|
Less
|
Comparatively high
|
Business operation
|
In a single country
|
More than one country
|
Use of technology
|
Limited
|
Sharing and use of latest
technology.
|
Risk factor
|
Low
|
Very high
|
Capital requirement
|
Less
|
Huge
|
Nature of customers
|
Almost same
|
Variation in customer tastes and
preferences.
|
Research
|
Required but not to a very high
level.
|
Deep research of the market is
required because of less knowledge about the foreign markets.
|
Definition of Domestic Marketing
Domestic Marketing refers to the marketing activities employed on
a national scale. Marketing strategies were undertaken to cater customers of a
small area, generally within the local limits of a country. It serves and
influences the customers of a specific country only.
Domestic Marketing enjoys a number of privileges like easy to
access data, fewer communication barriers, deep knowledge about consumer
demand, preferences and taste, knowledge about market trends, less competition,
one set of economic, social & political issues, etc. However, due to the
limited market size, the growth is also limited.
Definition of International Marketing
International Marketing is when the marketing practices are
adopted to cater the global market. Normally, the companies start their
business in the home country, after achieving the success they proceed their
business to another level and become a transnational company, where they seek
to enter in the market of several countries. So, the company must be known
about the rules and regulations of that country.
International marketing enjoys no boundaries, keeping the focus on
the worldwide customers. However, some disadvantages are also associated with
it, like the challenges it faces on the path of expansion and globalisation.
Some of which are socio-cultural differences, changes in foreign
currency, language barriers, differences in buying habits of customers,
setting and international price for the product and so on.
Key Differences between Domestic and
International Marketing
The significant differences
between domestic and international marketing are explained below:
- The
activities of production, promotion, advertising, distribution, selling
and customer satisfaction within one’s own country is known as Domestic
marketing. International marketing is when the marketing activities are
undertaken at the international level.
- Domestic
marketing caters a small area, whereas International marketing covers a
large area.
- In
domestic marketing, there is less government influence as compared to the
international marketing because the company has to deal with rules and
regulations of numerous countries.
- In
domestic marketing, business operations are done in one country only. On
the other hand, in international marketing, the business operations
conducted in multiple countries.
- In
international marketing, there is an advantage that the business
organisation can have access to the latest technology of several countries
which is absent in case domestic countries.
- The
risk involved and challenges in case of international marketing are very
high due to some factors like socio-cultural differences,
exchange rates, setting an international price for the product and so
on. The risk factor and challenges are comparatively less in the case of
domestic marketing.
- International
marketing requires huge capital investment, but domestic marketing
requires less investment for acquiring resources.
- In
domestic marketing, the executives face less problem while dealing with
the people because of similar nature. However, in the case of
international marketing, it is quite difficult to deal with customers
of different tastes, habits, preferences, segments, etc.
- International
marketing seeks deep research on the foreign market due to lack of
familiarity, which is just opposite in the case of domestic marketing,
where a small survey will prove helpful to know the market conditions.
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ReplyDeleteNice Information about marketing. Worth reading post on domestic and international marketing.
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