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Domestic marketing is the production, promotion, distribution, and sale of goods and services in a local market while international marketing is the production, promotion, distribution, and sale of goods and services in a global market.
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.
The premium difference is the home comfort in domestic market, the culture is familiar, the competitive moves are easily identified hence the responses are quick for product adaptation, price changes and ATL & BTL activity can be changed much faster.
International marketing is like an advanced version, one needs to understand foreign culture and respective necessities, mapping the existing market players and their price points, testing the product and finding the impact of marketing is a challenging task and requires great expertise and diligence. The customs regulations and entry barriers play big role. It is much rewarding yet at the same time risky.
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Agreed to all
Basic and Most Important Difference is Culture. then PEST i.e. Political , Economic Social and Tech
International Marketing
Domestic Marketing
1. Meaning
[IM] It refers to those activities which results into transfers of goods and services from one country to another.
[DM] It refers to those activities which results into transfers of goods and services inside the country itself.
2. Barriers
[IM] International trade is characteristics by tariff and non tariff barriers.
[DM] Domestic marketing has no such restrictions.
3. Currencies
[IM] It involves exchange on the basis of different currencies.
[DM] It involves exchange in the basis of same currencies.
4.Government Interference
[IM] Exchange takes place under government rules and regulations. There is high degree of government interference.
[DM] Government in interference is zero or minimum only in case of essential commodities.
5. Culture
[IM] Trade should be done taking diverse into consideration. Even things like colour combination can be affect the trade.
[DM] Culture does not affect in domestic marketing.
6.Mode of Payment
[IM] Letter of credit is normally as mode of payment.
[DM] Cash, Cheques, DD’s are the most common.
7.Mobility of Factors of Production
[IM] Factors of Production are relatively immobile as compared to domestic marketing.
[DM] Domestic Trade enjoys greater mobility in factors of production.
8. Competition
[IM] International Trade is subject to intense competition.
[DM] Competition is not as intense as it is in international marketing.
9. Documentation
[IM] International Marketing is subject to complex documentation
[DM] Domestic trade does not involve much of documentation.
10. Risk
[IM] International Marketing is subject to high risk. Political, foreign exchange risk, bad debt risk are few of them.
[DM] Domestic Marketing is also subject to risk but not as high as international marketing.
Domestic marketing and International marketing are same when it comes to the fundamental principle of marketing. Marketing is an integral part of any business that refers to plans and policies adopted by any individual or organization to reach out to its potential customers. A web definition defines marketing as a process of planning and executing the conception, pricing, promotion, and distribution of ideas, goods and services to create exchanges that satisfy individual and organizational goals. With the world shrinking at a fast pace, the boundaries between nations are melting and companies are now progressing from catering to local markets to reach out to customers in different parts of the world. Marketing is a ploy that is used to attract, satisfy and retain customers. Whether done at a local level or at the global level, the fundamental concepts of marketing remain the same.
Domestic Marketing
The marketing strategies that are employed to attract and influence customers within the political boundaries of a country are known as Domestic marketing. When a company caters only to local markets, even though it may be competing against foreign companies operating within the country, it is said to be involved in domestic marketing. The focus of companies is on the local customer and market only and no thought is given to overseas markets. All the product and services are produced keeping in mind local customers only.
International Marketing
When there are no boundaries for a company and it targets customers overseas or in another country, it is said to be engaged in international marketing. If we go by the definition of marketing given above, the process becomes multinational in this case. As such, and in a simplified way, it is nothing but application of marketing principles across countries. Here it is interesting to note that the techniques used in international marketing are primarily those of the home country or the country which has the headquarters of the company. In America and Europe, many experts believe international marketing to be similar to exporting. According to another definition, international marketing refers to business activities that direct the flow of goods and services of a company to consumers in more than one country for profit purposes only.
Difference between domestic marketing and international marketing
As explained earlier, both domestic as well as international marketing refer to the same marketing principles. However, there are glaring dissimilarities between the two.
Scope – The scope of domestic marketing is limited and will eventually dry up. On the other end, international marketing has endless opportunities and scope.
Benefits – As is obvious, the benefits in domestic marketing are less than in international marketing. Furthermore, there is an added incentive of foreign currency that is important from the point of view of the home country as well.
Sharing of technology – Domestic marketing is limited in the use of technology whereas international marketing allows use and sharing of latest technologies.
Political relations – Domestic marketing has nothing to do with political relations whereas international marketing leads to improvement in political relations between countries and also increased level of cooperation as a result.
Barriers – 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.
