Notes On International Marketing Vs Domestic Marketing:

Meaning of International Marketing:

Defined by Hiss and Eateara:

       In the words of Hiss and Eateara, "International marketing is the performance of business activities that directs the flow of goods and services to the customers or users in more than one nation."

       These business activities relates to around three aspects:

  1. Identifying the demand actual and potential
  2. Demand simulation through advertising and sales promotion
  3. Satisfying the consumers demand through distributions.

Defined by Prof. Subhas C. Jain:

       In the opinion of Prof. Subhas C. Jain, "International business suggests a comprehensive approach to operation of both large and small firms engaged in business overseas."

Difference Between International and Domestic Marketing:

       The concept of marketing management are common in case of international and domestic marketing. However, there are some basic differences between the two:

1. Diversity:

       International Marketing is more diverse because many nations are involved with different languages, cultures, currencies, etc.

       While in case of domestic marketing, we have one nation with the same culture, weights and measure and one currency.

2. Patriotism:

       In case of international marketing it is the patriotism that acts as a barrier to go beyond national boundaries.

       But, in case of domestic marketing, patriotism acts as a stimulating force.

3. Varied Economic Climate:

       The economic climate in international marketing is varied particularly in monetary and fiscal aspect.

       But in case of domestic marketing, one nation has only one monetary and financial climate which stands common for the geographical boundaries of the nation.

4. Role of Politics:

       In case of international marketing, international policy and diplomacy plays a major role. While in case of domestic politics, national politics has a minor role to play

5. Government Intervention:

       In case of international marketing, there is normally too much of government intervention.

       But in case of domestic marketing, it is least affected by government interventions.

6. Transport Cost:

       In case of international marketing, transportation cost plays a decisive role where quality and quantity is of prime importance.

       But, in case of domestic market, transport plays a minor role as the output may be absorbed by local market.

7. Business Risk:

       In case of international marketing, it is full of risks both financial and non-financial. It is the financial commitment and the uncertainty of international situations that makes the business more risky.

       In case of internal marketing, the financial commitment and the risk involved is much less.

8. Remittances:

       In case of international marketing, the system of remittance of money takes time and is more expensive.

       But in case of internal trade, it is just the opposite.

9. Heterogeneity:

       International markets are more diverse and fragmented because of individual difference in their needs and requirements.

       While, domestic markets represent a homogeneous block with one culture and more common needs.

10. Multiple Chain of Intermediaries:

       In international marketing, countless intermediaries are there in between the producers and the sellers and the final consumers or the buyers.

       But, in case of domestic marketing, the number of intermediaries is less or limited comparatively.