INTERNATIONAL MARKETING MANAGEMENT

UNIT 1
Domestic Marketing:
Domestic marketing refers to carrying out marketing activities within the national boundaries means it
refers to doing marketing in local market and it’s scope is limited. It requires less investment as
compared to international marketing. There is one nation, same language and one culture. In domestic
marketing only one currency is used. In domestic marketing companies can have the same policies and
strategies.

Advantages of Domestic Marketing:

Understanding of Local Market: Domestic marketers have a better understanding of the local market
and its needs, which makes it easier for them to develop effective marketing strategies.

Lower Costs: Domestic marketing often involves lower costs because companies do not have to deal
with the complexities of international trade, such as tariffs and shipping costs.

Familiarity with Culture and Language: Domestic marketers are familiar with the language and culture of
their target market, which helps them communicate effectively with their customers.

Disadvantages of Domestic Marketing:

Limited Growth Opportunities: Domestic markets are often limited in size, which can restrict a
company’s growth potential.

Increased Competition: Domestic markets can be highly competitive, with many companies vying for
market share.

Vulnerability to Economic Conditions: Domestic markets are vulnerable to economic conditions within
the country, such as recession or inflation.

International Marketing:
International marketing refers to carrying out marketing activities outside the national boundaries also
and it refers to doing marketing in global market and it’s scope is wide. It requires more investment as
compared to domestic marketing. There are many nations, many languages, and cultures. In
international marketing different currencies are used. In international marketing companies needs
different types of policies in the promotion of their product.

Advantages of International Marketing:

Increased Growth Opportunities: International marketing provides companies with access to new and
larger markets, which can lead to increased growth opportunities.

Diversification: International marketing allows companies to diversify their revenue streams and reduce
their reliance on any one market.
Higher Profit Potential: International marketing can lead to higher profit potential, as companies can
take advantage of price differences in different markets.

Disadvantages of International Marketing:

Cultural Differences: International marketing requires an understanding of different cultures and

customs, which can be challenging.

Legal and Regulatory Challenges: International marketing involves navigating different legal and
regulatory environments, which can be complex and time-consuming.

Higher Costs: International marketing often involves higher costs, such as tariffs and shipping fees, which
can impact a company’s profitability.
DIFFERENCE BETWEEN DOMESTIC AND INTERNATIONAL MARKETING:

S.
No. DOMESTIC MARKETING INTERNATIONAL MARKETING

Domestic marketing refers to carrying International marketing refers to carrying out

out marketing activities within the marketing activities outside the national
01. national boundaries. boundaries also.

It refers to doing marketing in local It refers to doing marketing in global market

02. market and it’s scope is limited. and it’s scope is wide.

There is one nation, same language and There are many nations, many languages and
03. one culture. culture.

In domestic marketing only one In international marketing different

04. currency is used. currencies are used.

Controlling domestic marketing

activities is easy as compared to Controlling international marketing is difficult
05. international marketing. as compared to domestic marketing.

Well familiarity with domestic or local Lack of familiarity with global or foreign
06. market. market.

Low risk factors are associated with Where as more risk factors are associated
07. domestic marketing. with international marketing.

Domestic marketing requires less International marketing requires more

investment as compared to investment as compared to domestic
08. international marketing. marketing.

Mostly there is stable business Mostly there is unstable business

09. environment. environment.

It relatively deals with homogeneous

10. market. It relatively deals with diverse market.

In domestic marketing competitors In international marketing competitors

11. behavior is easy to predict. behavior is difficult to predict.

12. It has less capital requirement. It has huge capital requirement.

Research is required, but not to a great High level of research is required because of
13. extent. the involved overseas markets.
 Limited opportunities for growth Several opportunities are available because of
14. because of local scope. vast scope.

Government intervention is to a greater

extent because of the laws and policies vary
15. Less government intervention. from country to country.

The same policies and tactics can be The company requires different tactics and
opted by the company in domestic policies for advertising the products to their
16. marketing. customers.

Greater control over domestic Less control over international marketing

17. marketing operations. operations.