Domestic marketing vs International marketing Domestic marketing and International marketing are same when it comes to the fundamental

principle of marketing. Marketing is an integral part of any business that refers to plans and policies adopted by any individual or organization to reach out to its potential customers. A web definition defines marketing as a process of planning and executing the conception, pricing, promotion, and distribution of ideas, goods and services to create exchanges that satisfy individual and organizational goals. With the world shrinking at a fast pace, the boundaries between nations are melting and companies are now progressing from catering to local markets to reach out to customers in different parts of the world. Marketing is a ploy that is used to attract, satisfy and retain customers. Whether done at a local level or at the global level, the fundamental concepts of marketing remain the same. Domestic Marketing The marketing strategies that are employed to attract and influence customers within the political boundaries of a country are known as Domestic marketing. When a company caters only to local markets, even though it may be competing against foreign companies operating within the country, it is said to be involved in domestic marketing. The focus of companies is on the local customer and market only and no thought is given to overseas markets. All the product and services are produced keeping in mind local customers only. International Marketing When there are no boundaries for a company and it targets customers overseas or in another country, it is said to be engaged in international marketing. If we go by the definition of marketing given above, the process becomes multinational in this case. As such, and in a simplified way, it is nothing but application of marketing principles across countries. Here it is interesting to note that the techniques used in international marketing are primarily those of the home country or the country which has the headquarters of the company. In America and Europe, many experts believe international marketing to be similar to exporting. According to another definition, international marketing refers to business activities that direct the flow of goods and services of a company to consumers in more than one country for profit purposes only. Difference between domestic marketing and international marketing As explained earlier, both domestic as well as international marketing refer to the same marketing principles. However, there are glaring dissimilarities between the two. Scope The scope of domestic marketing is limited and will eventually dry up. On the other end, international marketing has endless opportunities and scope. Benefits As is obvious, the benefits in domestic marketing are less than in international marketing. Furthermore, there is an added incentive of foreign currency that is important from the point of view of the home country as well. Sharing of technology Domestic marketing is limited in the use of technology whereas international marketing allows use and sharing of latest technologies. Political relations Domestic marketing has nothing to do with political relations whereas international marketing leads to improvement in political relations between countries and also increased level of cooperation as a result.

Barriers In domestic marketing there are no barriers but in international marketing there are many barriers such as cross cultural differences, language, currency, traditions and customs.

2.Domestic marketing is the marketing practices within a marketer's home country. Foreign marketing is the domestic operations within a foreign country (i.e., marketing methods used outside the home market). Comparative marketing analytically compares two or more countries' marketing systems to identify similarities and differences. International marketing studies the "how" and "why" a product succeeds or fails abroad and how marketing efforts affect the outcome. It provides a micro view of the market at the company level. Multinational, global, and world marketing are all the same thing. Multinational marketing treats all countries as the world market without designating a particular country as domestic or foreign. As such, a company engaging in multinational marketing is a corporate citizen of the world, whereas international marketing implies the presence of a home base. However, the subtle difference between international marketing and multinational marketing is probably insignificant in terms of strategic implications.

Conducting and managing international business operations is more complex than undertaking domestic business. Differences in the nationality of parties involved, relatively less mobility of factors of production, customer heterogeneity across markets, variations in business practices and political systems, varied business regulations and policies, use of different currencies are the key aspects that differentiate international businesses from domestic business. These, moreover, are the factors that make international business much more complex and a difficult activity.

Differences between International Trade and Domestic Trade

Scope: Scope of international business is quite wide. It includes not only merchandise exports, but also trade in services, licensing and franchising as well as foreign investments. Domestic business pertains to a limited territory. Though the firm has many business establishments in different locations all the trading activities are inside a single boundary. Benefits: International business benefits both the nations and firms. Domestic business have lesser benefits when compared to the former.

To the nations: Through international business nations gain by way of earning foreign exchange, more efficient use of domestic resources, greater prospects of growth and creation of employment opportunities. Domestic business as it is conducted locally there would be no much involvement of foreign currency. It can create employment opportunities too and the most

important part is business since carried locally and always dealt with local resources the perfection in utilisation of the same resources would obviously reap the benefits. To the firms: The advantages to the firms carrying business globally include prospects for higher profits, greater utilization of production capacities, way out to intense competition in domestic market and improved business vision. Profits in domestic trade are always lesser when compared to the profits of the firms dealing transactions globally.

Market Fluctuations: Firms conducting trade internationally can withstand these situations and huge losses as their operations are wide spread. Though they face losses in one area they may get profits in other areas, this provides for stabilizing during seasonal market fluctuations. Firms carrying business locally have to face this situation which results in low profits and in some cases losses too.

Modes of entry: A firm desirous of entering into international business has several options available to it. These range from exporting/importing to contract manufacturing abroad, licensing and franchising, joint ventures and setting up wholly owned subsidiaries abroad. Each entry mode has its own advantages and disadvantages which the firm needs to take into account while deciding as to which mode of entry it should prefer. Firms going for domestic trade does have the options but not too many as the former one.

To establish business internationally firms initially have to complete many formalities which obviously is a tedious task. But to start a business locally the process is always an easy task. It doesn't require to process any difficult formalities. Purvey: Providing goods and services as a business within a territory is much easier than doing the same globally. Restrictions such as custom procedures do not bother domestic entities but whereas globally operating firms need to follow complicated customs procedures and trade barriers like tariff etc. Sharing of Technology: International business provides for sharing of the latest technology that is innovated in various firms across the globe which in consequence will improve the mode and quality of their production. Political relations: International business obviously improve the political relations among the nations which gives rise to Cross-national cooperation and agreements. Nations co-operate more on transactional issues

Marketing is the efficient and effective management and utilization of a companys resources to meet the consumers demands and the companys objectives. It involves selling the companys products to satisfy the needs of consumers. It includes planning, conception and execution of ideas, pricing, promotion, and distribution of a companys products with the purpose of obtaining the companys objectives and satisfying the consumers. Marketing can be done within a local or domestic market or across national borders or in the international market. Here are some of the different features of Domestic Marketing and International Marketing: Domestic Marketing Domestic marketing is the selling of a companys products within a local financial market. It deals with only one set of competition and economic issues which make it more convenient to do. There are no language barriers in domestic marketing and obtaining and interpreting data on local marketing trends and consumer demands is easier and faster to do. It helps the company make decisions and develop marketing strategies that are more effective and efficient. The risks are also lesser with domestic marketing and it needs lesser financial resources. Local markets are not as broad as the international market though and most companies are aiming at doing business globally. International Marketing International marketing is the promotion and sale of a companys products to consumers in different countries. It is very complex and requires a huge amount of financial resources. Every country has its own laws on business and a company that aims at entering into business in another country must first know about them. Consumer tastes and preferences may also differ so marketing strategies must be formulated to cater to the needs of different consumers.
International marketing requires more time and effort, not to mention its being very risky too. The international market is very uncertain and a company must always be ready for changes that may suddenly occur. It requires a higher level of commitment to succeed in an international market. Summary 1. Domestic marketing is the production, promotion, distribution, and sale of goods and services in a local market while international market is the production, promotion, distribution, and sale of goods and services in a global market. 2. Domestic marketing is less risky and easier to conduct while international marketing is more risky and more complex. 3. Domestic marketing requires lesser financial resources while international marketing requires huge

financial resources. 4. Domestic marketing deals with only a single market while international marketing deals with several different countries and markets. 5. Although both use all the basic marketing principles, international marketing is more challenging and requires more commitment from the company because of the uncertainty and differences in laws and regulations in the global market while domestic marketing deals only with the laws and regulations of one country. 6. Domestic marketing deals only with one set of consumers while international marketing deals with different types of consumers with different tastes. 7. In domestic marketing, the company can have the same policies and strategies while international marketing requires different strategies in the promotion of their products.

Procter & Gamble Co. Is a Fortune 500 American multinational corporation headquartered in downtown Cincinnati, Ohio that manufactures a wide range of consumer goods. In the 1880s, Procter & Gamble began to market a new product 3. Procter & Gamble began selling the first toothpaste to contain fluoride, known as "Crest". In January 2005 P&G announced an acquisition of Gillette, forming the largest consumer goods company and placing Unilever into second place. 4. Manufacturing operations based in Canada, Mexico, Latin America Europe China (31 Wholly Owned Factories) Other Parts Of Asia Africa, Australia There more than 180 countries where brands of P&G are sold. P&Gs dominance in many categories of consumer products makes its brand management decisions worthy of study. 5. Colgate-Palmolive Company is an American diversified multinational corporation focused on the production, distribution and provision of household, health care and personal products, such as soaps, detergents, and oral hygiene products (including toothpaste and toothbrushes). The companys corporate offices are on Park Avenue in Midtown Manhattan, New York City 6. In 1806, William Colgate, himself a soap and candle maker, opened up a starch, soap and candle factory on Dutch Street in New York as "William Colgate & Company It sold the first toothpaste in a tube the Colgate Ribbon Dental Cream, in 1896. 7. Palmolive-Peet bought the Colgate Company In 1953 "Peet" was dropped from the title, leaving only "Colgate-Palmolive Company In 1890, Madison University in New York State was re-named Colgate University in honor of decades of financial support and involvement. 8. Overseas, the company operates approximately 280 properties of which 76 are owned in over 70 countries. Major overseas facilities used by the Oral, Personal and Home Care segment are located in: Australia, Brazil China Colombia France Guatemala Italy, Mexico, Poland, South Africa, Thailand, Venezuela and elsewhere throughout the world. 9. Colgate-Palmolive has long been in fierce competition with Procter & Gamble, the worlds largest soap and detergent maker After the launch of tide detergent during the world war II many consumers turned from Colgates soaps to a better product Colgate lost its number one place in the toothpaste market when P&G started putting fluoride in its toothpaste. 10. Colgate Palmolive is more older than the P&G and is a known brand in more than 200 hundred countries perhaps these are the only advantages that Colgate is having over P&G. P&G is the

largest consumer good company in the world and is operating in more than 180 countries With a wide range of product lines for different groups all over the world make this giant a great achiever. 11. Both the companies can be judged on different parameters. Like, Colgate will be considered more international as it is operating in more than 200 hundred countries and it is also older than P&G. On the other hand if we highlight the number of products or product lines than Palmolive is the leader.