International

Marketing Domestic Marketing

1. Meaning
It refers to those activities which
results into transfers of goods and
services from one country to
another.
It refers to those activities which
results into transfers of goods
and services inside the country
itself.
2. Barriers
International trade is characteristics
by tariff and non tariff barriers.
Domestic marketing has no such
restrictions.
3. Currencies
It involves exchange on the basis of
different currencies.
It involves exchange in the basis
of same currencies.
4.Government
Interference
Exchange takes place under
government rules and regulations.
There is high degree of government
interference.
Government in interference is
zero or minimum only incase of
essential commodities.
5. Culture
Trade should be done taking
diverse into consideration. Even
things like colour combination can
be affect the trade.
Culture does not affect in
domestic marketing.
6.Mode of Payment
Letter of credit is normally as mode
of payment.
Cash, Cheques, DDs are the
most common.
7.Mobility of
Factors of
Production
Factors of Production are relatively
immobile as compared to domestic
marketing.
Domestic Trade enjoys greater
mobility in factors of production.
8. Competition
International Trade is subject to
intense competition.
Competition is not as intense as
it is in international marketing.
9. Documentation
International Marketing is subject to
complex documentation
Domestic trade does not involve
much of documentation.
10. Risk
International Marketing is subject to
high risk. Political, foreign exchange
risk, bad debt risk are few of them.
Domestic Marketing is also
subject to risk but not as high as
international marketing.




Domestic marketing vs 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.