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
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.