Domestic Vs. International business 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.
BASIS FOR COMPARISON
|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.|
|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|
|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.|
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.