Course: MKT633

Mid Term Exam

Name: Atik Mahbub

ID: 2035479660

Question: Why is global marketing more complicated than domestic marketing? Explain your answer
with the help of your knowledge that you have gained from the first chapter and chapters related to
culture.

Answer:

Global marketing is a set very complex activities compared to the domestic marketing activities. In
present world of globalization, more organizations are focusing their business across their local political
border to cater more customers. This situation creates the raising demand for global marketing
activities. These set of activities can be summarized as:

Global Marketing: If an organization focus its business across multiple country markets and wants to
serve them as a singular market, they need to standardize and formulate the marketing activities in an
integrated way. In this case, organizations operate from a global perspective and neglects the market
segmentation based on national borders.

Domestic Marketing: In case of domestic marketing, organizations are generally home grown. They
serve only a single market, and all the marketing activities & communications are designed and targeted
focusing the customer base of that local market. The scope for domestic marketing limits only within the
national border, so they are safer from global incidents. (Like: Famine in a foreign country).

Global marketing is more complicated than Domestic marketing for its nature of scope. We can identify
the major areas of challenges for global marketing compared to domestic marketing as:

Market Size: Global marketing targets more than one local markets. It operates in many countries
whereas domestic marketing only focuses a single market. Due to the market size and their differences,
global marketing needs more sophisticated approach than domestic marketing.

Cultural Differences: As global marketing is targeted for more than one nationality; it is obvious that
these different countries have lots of differences in their culture. Some of the markets under global
marketing may response differently towards a same stimulus than other markets. So, it is very tough to
bridge the gap between these markets and formulate a unique approach to cater them all with standard
approach. Whereas domestic marketing can serve in better way as it caters only a single market. So, the
cultural differences across different markets in global marketing makes it more complicated.

Political Environments: Different countries possess different political ideologies. Some countries are
more welcoming to foreign businesses and belief in free trade. Some countries prefer protectionism and
often creates hurdle for foreign business. As global marketing targets many foreign nations, it needs to
tackle all these differences while formulating the strategy. So, it becomes more complicated than
domestic marketing.

Economic Condition: First world countries are more developed than third world, developing countries.
So, the developed markets posses more purchase power than the reaming less developed world. While
formulating Pricing Strategy under global marketing, it is very complicated to identify a sweet spot
whereas domestic marketing only tackles the local economic situation.

Local Competition: Domestic marketing designs the activities only targeting the competition in the local
market. But global marketing must tackle with all local competitions across all markets it is operating.
So, it becomes a more complicated to tackle the threat from all these competition in a global scale.

These are some major reasons for which global marketing becomes more complicated than domestic
marketing.