Marketing is a very important part of any organization. It is essentially the process of production, promotion, pricing and distribution of products and services, with the aim of fulfilling the needs of customers, while also attaining the objectives of the organization.
There are two kinds of marketing that will be discussed in this article, i.e. domestic marketing and international marketing. Domestic marketing refers to the marketing activities carried out by a company within its national borders. International marketing extends to different countries across the world, i.e. the marketing activities are carried out at a global level. The world is rapidly shrinking and the borders between countries are slowly diminishing, which is why most companies are not only concentrating on the local market, but are also trying to cater to customers from all over the world. This is why it is important to comprehend both domestic marketing and international marketing. The two terms will be described in this article and the main differences between them will be highlighted.
Domestic marketing is the selling of a company’s products within a local financial market. It deals with only one set of competition and economic issues which make it more convenient to do.
There are no language barriers in domestic marketing and obtaining and interpreting data on local marketing trends and consumer demands is easier and faster to do. It helps the company make decisions and develop marketing strategies that are more effective and efficient. The risks are also lesser with domestic marketing and it needs lesser financial resources.
Local markets are not as broad as the international market though and most companies are aiming at doing business globally.
International marketing is the promotion and sale of a company’s products to consumers in different countries. It is very complex and requires a huge amount of financial resources.
Every country has its own laws on business and a company that aims at entering into business in another country must first know about them. Consumer tastes and preferences may also differ so marketing strategies must be formulated to cater to the needs of different consumers.
International marketing requires more time and effort, not to mention its being very risky too. The international market is very uncertain and a company must always be ready for changes that may suddenly occur. It requires a higher level of commitment to succeed in an international market.
- Domestic marketing is the production, promotion, distribution, and sale of goods and services in a local market while international market is the production, promotion, distribution, and sale of goods and services in a global market.
- Domestic marketing is less risky and easier to conduct while international marketing is more risky and more complex.
- Domestic marketing requires lesser financial resources while international marketing requires huge financial resources.
- Domestic marketing deals with only a single market while international marketing deals with several different countries and markets.
- Although both use all the basic marketing principles, international marketing is more challenging and requires more commitment from the company because of the uncertainty and differences in laws and regulations in the global market while domestic marketing deals only with the laws and regulations of one country.
- Domestic marketing deals only with one set of consumers while international marketing deals with different types of consumers with different tastes.
- In domestic marketing, the company can have the same policies and strategies while international marketing requires different strategies in the promotion of their products.
After digging the differences in the two subjects, we came to the conclusion that the world itself is a market, and that is why the guiding principles are versatile. It does not make any change that where the principles are applied i.e. in a local or a global market. The basic cause of the difference between domestic and international marketing is the area of its implication and the market conditions.
|Domestic Marketing||International Marketing|
|Meaning||Company is involved in the production, promotion, distribution and sale of products and services within its own country.||International marketing, these activities extend beyond the boundaries of the company’s own country to offer goods and services to various countries across the globe.|
|Government interference||Less||Comparatively high|
|Scope Business operation||In a single country||More than one country|
|Technology advancement||Limited||Sharing and use of latest technology.|
|Risk associated||Comparatively Low||Comparatively Very high|
|Capital requirement for Business||Less||Very Large|
|Nature of customers||Almost same||Variation in customer tastes and preferences.|
|Research Required||Required but not to a very high level.||Deep research of the market is required because of less knowledge about the foreign markets.|