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.
A domestic market , also referred to as an internal market or domestic trading, is the supply and demand of goods, services, and securities within a single country. The main reasons why a business would decide to expand abroad are limited market size and limited growth within the domestic market .
domestic brands are based on the actual ownership of these products among consumers. For nondurable goods that are purchased more frequently, consumers may purchase different brands over a specific period.
It is erroneous to state that domestic marketing and international marketing are similar in nature but not in scope . Whereas domestic marketing involves one set of uncontrollable variables, international marketing has at least two sets which interact with each other.
|Basis for Comparison||Domestic Marketing||International Marketing|
|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 .|
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.
For example, a computer maker markets its products in several countries but the locally assembled computers are sold at half the prices forcing the multinational to retreat to a domestic focus . A sudden change in technology in foreign markets compels firms to retreat to a domestic focus .
Reasons For Domestic Expansion Domestic expansion consist of an organization expanding in its local nation. Reasons For Domestic Expansion Familiarization of cost assessment, risk, and demand increases success when an organization decides to expand domestically.
Another new item specifics option – Non – Domestic Product Non – Domestic Product which according to ebay means “ Indicate if the product is designed for use in a region other than where it’s listed. For example, if selling a UK hairdryer in the US (different voltage and outlet connection”.
Provides Economical Goods: Internal trade provides goods at cheaper cost to peoples within the country. Goods produced domestically are free from any exchange duties and several taxes which bring down its overall cost . Less Competition: It restrict the entry of any foreign player in domestic market.
Made in India: 13 Indian brands that are truly timeless Boroline. Bata India. Arvind Limited. Asian Paints . Mahindra & Mahindra . Mysore Sandal Soap. Amul Butter. Old Monk .
What makes a good marketing plan ? Successful plans need focus, specifics and flexibility. A brilliant marketing plan that is not executed is worth much less than a mediocre marketing plan that’s carried out. The plan’s value is in the success of the business.
Top 9 Problems Faced by International Marketing Tariff Barriers: Tariff barriers indicate taxes and duties imposed on imports. Administrative Policies: ADVERTISEMENTS: Considerable Diversities: Political Instability or Environment : Place Constraints (Diverse Geography): Variations in Exchange Rates: Norms and Ethics Challenges: Terrorism and Racism:
Reasons for entering international markets large market size. stability through diversification. profit potential. unsolicited orders. proximity of market . excess capacity. offer by foreign distributor. increasing growth rate.