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2/27/2015

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 organisations 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 organisations 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 standardising marketing actions across a number of geographic markets.”

Global Marketing treats the entire world as a single market and standardises 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
Domestic Marketing
International Marketing
Definition
“It is concerned with the marketing practises within the researchers or Marketers home country (domestic market).”

“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.”
Role of Politics
Political factors are of minor importance.
Political factors play a vital role.
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

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