MID-1

Course- Global Marketing

Course Code- MKT633

Name: Md. Shahriaz Siraj

NSU ID: 2115350660

Q. 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 complicated than Domestic Marketing.

International marketing
International marketing is the kind of marketing that focuses on a wider customer base, one that
extends the national boundaries. Customers from all over the world are targeted in international
marketing. This kind of marketing is quite complicated and requires significant financial
investments.

Domestic marketing
Domestic marketing comprises of the marketing strategies used by a company to attract
customers and compel them to purchase a product or service within a local market. The
marketing activities in domestic marketing are restricted to the local boundaries, and a limited
number of customers are served.
There are couple of reasons why Global Marketing is more complicated than Domestic
Marketing:

1. Government intervention
There is less intervention from the government in domestic marketing in comparison to
international marketing. This is because in international marketing, the company has to consider
the laws and regulations of various countries.

2. Growth opportunities
Domestic marketing has a limited scope and offers little opportunities for growth, whereas the
scope of international marketing is vast, offering numerous growth opportunities.

3. Area covered
Domestic marketing covers a limited area within a single country, whereas in international
marketing, an extensive area is covered, spanning across several countries.

4. Risks involved
Lower risks are involved in domestic marketing, and fewer challenges are experienced because
of the limited scope of this form of marketing. On the other hand, high risks and challenge are
involved in international marketing because of issues like socio-cultural differences, exchange
rates, uncertainty of entering a foreign market, and so on.

5. Technology use
In domestic marketing, there is limited use of technology. International marketing, in contrast,
can take advantage of the latest technologies being used in different countries.

6. Research required
A company involved in domestic marketing does not have to carry out a lot of research because
they cover a limited area. In addition, since they are catering to only the local market, they are
already aware of conditions prevailing in the market. On the other hand, foreign markets need
to be studied extensively because the company is not aware of the conditions prevailing in those
markets.

7. Customer characteristics
Domestic marketing deals with a single type of consumers that have similar characteristics. On
the other hand, international marketing caters to different kinds of customers that have distinct
characteristics, tastes and preferences.

8. Financial resources
Domestic marketing requires fewer financial resources and capital investment, whereas
significant investments are needed to carry out international marketing.

9. Limitations
Not many limitations are experienced in domestic marketing. However, international marketing
faces several limitations, including language barriers, cross-cultural differences, differences in
customs and norms of different societies, exchange rate fluctuations, and so on. Companies
typically start their operations at the domestic level. This is because they are already familiar with
the market conditions, laws, policies and customer preferences and so they find it easier to
function in a domestic setting. In addition, domestic marketing requires limited funds, which
makes it less challenging for companies to work in the local market. However, the scope of the
domestic market is limited, and the growth of the companies soon becomes stagnant because of
which they wish to expand their operations to the international market as it offers significant
opportunities for growth and considerably higher returns. However, international marketing is
quite risky, and to be successful, the companies need to exhibit a high degree of commitment.
They need to put in a lot of time and effort to research about the new market and develop plans
so that they can deal with the various challenges that they come across in the foreign market.

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