Domestic marketing and international marketing are the terms used in the context of marketing. Domestic marketing in simple words involves the marketing of goods and services within the boundaries of a country whereas international marketing in simple words refers to the marketing of goods and services to customers in several countries. In order to understand both concepts in a better way one should look at some of the differences between domestic and international marketing –
Domestic Marketing VS International Marketing
Scope of Marketing
Domestic marketing is only concerned with the domestic market, which means it concentrates on promoting goods and services for sale within the nation. The scope of international marketing, on the other hand, goes beyond the home market and operates beyond boundaries, emphasizing the sale of goods and services in several nations. Hence in a way international marketing involves identifying, comprehending, and addressing the cultural, economic, legal, and linguistic distinctions across diverse countries so as to ensure that international marketing is a success.
Market Knowledge
In the case of domestic marketing, the company should have knowledge related to local consumers, competition, regulations, distribution channels, and other factors that can have an influence on the domestic marketing strategy. On the other hand, international marketing requires an extensive understanding of cultural, economic, and legal systems in different countries. Hence in simple words when it comes to international marketing company needs to be more proactive and do extensive research as it involves many countries and hence it is a tedious task in the case of international marketing as compared to domestic marketing.
Target Market
The target market for domestic marketing is usually limited to the local market within the country. Hence all the marketing efforts as well as marketing strategy are focused on reaching and satisfying the needs of consumers within the domestic market. On the other hand, the target market for international marketing includes multiple countries with diverse cultures and languages. Hence all the marketing efforts as well as marketing strategies should be made in keeping in mind the needs and wants of consumers across the globe.
Competition
When it comes to competition domestic marketing has fewer competitors as companies have to compete domestically only, while as far as international marketing is concerned it has intense competition as the company has to compete with both domestic companies as well as foreign companies operating in various countries. In simple words, if you are a movie buff then you will understand this reference as international marketing is like an avenger level threat and hence requires more effort and resources from a company.
Language
In the case of domestic marketing, the company uses a single language because the target customer base is domestic consumers only while international marketing requires the use of multiple languages because international marketing targets customers of many countries and hence requires the use of different languages in order to devise a successful marketing strategy.
Transportation Costs
In the case of domestic marketing, the costs involved with transportation or logistics expenses are lower side as the company can make use of rail and road transport, while international marketing involves higher costs due to longer distances and companies have to use either sea transport or air transport in order to send goods from one country to another.
Currency and Foreign Exchange
In the case of domestic marketing, the company does not have to worry about either currency or foreign exchange because the company is dealing in single currency but when it comes to international marketing the company has to manage currency risk as well as exchange rate risk because in case of international marketing, many currencies are involved and hence in international marketing there are these two additional apart from other risks.
As one can see from the above that both domestic marketing and international marketing are miles apart from each other and that is the reason why any company thinking of doing either domestic marketing or international marketing should carefully read the above points and then only should take the decision whether the company wants to do domestic marketing or international marketing for company’s products.