Difference Between Domestic and International Marketing (with Comparison Chart)

January 2022 · 4 minute read

Domestic Vs International businessMarketing is defined as the set of activities which are undertaken by the companies to provide satisfaction to the customers through value addition and making good relations with them, to increase their brand value. It identifies and converts needs into products and services, so as to satisfy their wants. There are two types of marketing namely, domestic and international marketing. Domestic marketing is when commercialization of goods and services are limited to the home country only.

On the other hand, International marketing, as the name suggests, is the type of marketing which is stretched across several countries in the world, i.e. the marketing of products and services is done globally. In this article excerpt you can find the difference between domestic and international marketing in detail.

Content: Domestic Marketing Vs International Marketing

  • Comparison Chart
  • Definition
  • Key Differences
  • Conclusion
  • Comparison Chart

    Basis for ComparisonDomestic MarketingInternational Marketing
    MeaningDomestic marketing refers to marketing within the geographical boundaries of the nation.International marketing means the activities of production, promotion, distribution, advertisement and selling are extend over the geographical limits of the country.
    Area servedSmallLarge
    Government interferenceLessComparatively high
    Business operationIn a single countryMore than one country
    Use of technologyLimitedSharing and use of latest technology.
    Risk factorLowVery high
    Capital requirementLessHuge
    Nature of customersAlmost sameVariation in customer tastes and preferences.
    ResearchRequired but not to a very high level.Deep research of the market is required because of less knowledge about the foreign markets.

    Definition of Domestic Marketing

    Domestic Marketing refers to the marketing activities employed on a national scale. Marketing strategies were undertaken to cater customers of a small area, generally within the local limits of a country. It serves and influences the customers of a specific country only.

    Domestic Marketing enjoys a number of privileges like easy to access data, fewer communication barriers, deep knowledge about consumer demand, preferences and taste, knowledge about market trends, less competition, one set of economic, social & political issues, etc. However, due to the limited market size, the growth is also limited.

    Definition of International Marketing

    International Marketing is when the marketing practices are adopted to cater the global market. Normally, the companies start their business in the home country, after achieving the success they proceed their business to another level and become a transnational company, where they seek to enter in the market of several countries. So, the company must be known about the rules and regulations of that country.

    International marketing enjoys no boundaries, keeping the focus on the worldwide customers. However, some disadvantages are also associated with it, like the challenges it faces on the path of expansion and globalisation. Some of which are socio-cultural differences, changes in foreign currency, language barriers, differences in buying habits of customers, setting and international price for the product and so on.

    Key Differences Between Domestic and International Marketing

    The significant differences between domestic and international marketing are explained below:

  • The activities of production, promotion, advertising, distribution, selling and customer satisfaction within one’s own country is known as Domestic marketing. International marketing is when the marketing activities are undertaken at the international level.
  • Domestic marketing caters a small area, whereas International marketing covers a large area.
  • In domestic marketing, there is less government influence as compared to the international marketing because the company has to deal with rules and regulations of numerous countries.
  • In domestic marketing, business operations are done in one country only. On the other hand, in international marketing, the business operations conducted in multiple countries.
  • In international marketing, there is an advantage that the business organisation can have access to the latest technology of several countries which is absent in case domestic countries.
  • The risk involved and challenges in case of international marketing are very high due to some factors like socio-cultural differences, exchange rates, setting an international price for the product and so on. The risk factor and challenges are comparatively less in the case of domestic marketing.
  • International marketing requires huge capital investment, but domestic marketing requires less investment for acquiring resources.
  • In domestic marketing, the executives face less problem while dealing with the people because of similar nature. However, in the case of international marketing, it is quite difficult to deal with customers of different tastes, habits, preferences, segments, etc.
  • International marketing seeks deep research on the foreign market due to lack of familiarity, which is just opposite in the case of domestic marketing, where a small survey will prove helpful to know the market conditions.
  • Conclusion

    After digging the differences in the two subjects, we came to the conclusion that the world itself is a market, and that is why the guiding principles are versatile. It does not make any change that where the principles are applied i.e. in a local or a global market. The basic cause of the difference between domestic and international marketing is the area of its implication and the market conditions.

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