The main difference between Domestic Marketing and International Marketing is that Domestic marketing relates with only a single market while International Marketing relates to several different countries and markets.
Domestic Marketing vs. International Marketing
Domestic marketing is the creation or production, promotion, distribution, and sale of products and services in a local market whereas the international market is the creation or production, promotion, distribution, and sale of products and services in a global market. Domestic marketing is less insecure and easier to conduct although international marketing is riskier and more complex. Domestic marketing needs lesser financial resources while international marketing requires huge financial resources. Domestic marketing relates to only a single market while international marketing deals with several different countries and markets. Although both use all the basic marketing morals, domestic marketing deals only with the laws and regulations of one country. while international marketing is more challenging and needs more commitment from the company because of the ambiguity and differences in laws and regulations in the global market.
Domestic marketing transactions only with one set of user consumers while international marketing transactions with different types of consumers with different tastes. In domestic marketing, the company can have similar policies and strategies while international marketing needs different strategies in the promotion of their products. The scope of domestic marketing is limited and will eventually dry up. On the other end, international marketing has endless opportunities and scope. In domestic marketing, there are no barriers, but in international marketing, there are many barriers such as cross-cultural differences, language, currency, traditions, and customs.
What is Domestic Marketing?
The domestic market, also familiar as the internal market or home market, is where products and services are bought and sold inside the borders of a country. It is a significantly smaller market than the international, external, abroad or global markets. In a domestic market, all the companies meet the same set of economic, social, competitive, market and technological challenges. Some businesses elect to concentrate just on the domestic market, while others choose to expand into other countries. In certain cases, the domestic market is the only access to a specific product. The number of customers who purchase or may purchase products and services provided by companies within their own country. Some types of companies must expand the foreign country and cannot depend entirely on their domestic markets, because the client base in that country is far too small.
What is International Marketing?
International Marketing is to take on marketing activities in more than one nation. It often called as Global Marketing, i.e., cunning the marketing mix (viz. Product, price, place, promotion) worldwide and adjusting it according to the priorities of different nation people. The leading decision that any company has to make is whether to go international or not; the company may not intend to globalize because of its huge market share in the domestic market. And do not want to find out the new laws and rules of the international market.
Inventories of International Marketing
- Expended Economies of Scale
- High-profit possibilities in the international market than the domestic market
- Enormous Market Share
- Prolonged life of the product
- Untapped International Market
- Exports: The simplest way to enter the market is through exports that can be indirect or direct.
- Global Web Strategy: Companies can very well create perceptions among customers worldwide through electronic
- Licensing and Franchising: Domestic company issues the license to the foreign company to use the manufacturing process trademark.
- Joint Ventures: The companies drive to international by rejoining hands with other country based companies to monetizing their existing relationships with the local customers.
- Direct Investment: Ultimately, the firms can settle their business facilities or own a part of the local company to assist the sale of goods and services.
- The actions of creation or production, promotion, advertising, distribution, selling and customer satisfaction within one’s own country is known as Domestic marketing. International marketing is when marketing activities are undertaken at the international level.
- In domestic marketing, there is less authority influence as compared to international marketing because the company has to contend with rules and regulations of numerous countries.
- A small survey will demonstrate helpful to know the market conditions, whereas international marketing probes deep examine on the foreign market due to lack of knowledge, which is just the opposite in the case of domestic marketing.
- In domestic marketing, business activities made in one country only whereas in international marketing, the business activities conducted in multiple countries.
- The element of danger and challenges are comparatively less in the case of domestic marketing. The risk involved and difficulties in case of international marketing are very high due to some causes like sociology-cultural differences, exchange rates, setting an international price for the product and so on.
- In domestic marketing, the executive’s faceless problem while dealing with the people because of a similar nature. However, concerning international marketing, it is quite difficult to deal with customers of different tastes, habits, preferences, segments, etc.
Then excavating the differences in the two subjects, we terminate that the world itself is a market, the fundamental cause of the difference between domestic and international marketing is the area of its implication and the market conditions.