DOMESTIC VS.

INTERNATIONAL MARKETING
SIMILARITIES
1. CUSTOMER ORIENTED
Both in domestic as well as in international marketing success depends upon
satisfying the basic requirements of the consumers. It involves finding out what
consumers want and then meeting their demands accordingly. In both the marketing
customer is the king means enjoys the dominant position & to survive the marketer
has to constantly work on satisfying the needs of the kings of the markets both
domestic & international.
2. GOODWILL IS NECESSARY
Today in both the domestic as well as international it is necessary for the marketer to
build the goodwill. Gone are the days of caveat emptor- “let the buyer beware” when
marketer used to sell whatever is comfortable to them and consumers have to buy
whatever is offered to them by the marketer. But today the situation is completely
different; the basic principle now is caveat vendor- “let the seller beware”. Today if
the marketer wants to survive in both the domestic as well as in international market; it
must have a good image in the market & to have a good image it has to offer products
according to the needs of the consumers. To win over customers, many services and
benefits may have to be provided on an intensive scale.
3. IMPROVEMENT
Research & development for product improvement and adaptation is necessary for both
international as well as for international marketing. Customer want new & improved
products and marketers have to provide the same to survive.

DISSIMILARITIES
Besides the above-explained similarities the international marketing is different from
domestic because of the following characteristics:
1. SOVEREGIN POLITICAL ENTITIES
Each country is a separate legal entity and in case of international marketing
products has to move across national boundaries. While crossing the national
boundaries they may have to face certain hurdles or restrictions like:
 Tariff barriers
It includes monetary restrictions like custom duties etc.
 Non Tariff barriers
It includes non-monetary restrictions like Quota, lengthy procedures etc.
 Foreign Exchange Control
As each country’s currency‘s exchange value is different from other and
keeps on fluctuating.
 Local taxes
These are imposed to make foreign products costlier than domestic
products.
2. DIFFERENT LEGAL SYSYTEM
Each country has its own legal system usually different from other countries. This
makes the task of international marketer more difficult as they are not sure as to
which particular system will apply to their transactions.
3. DIFFERENT MONETARY SYSTEM

A monetary system secures the proper functioning of money by regulating

economic agents, transaction types, and money supply. Monetary systems are
formed by the policy decisions of individual governments and administrated as a
domestic economic issue.

Each country like its own legal system has its own different monetary system &
exchange value of each country’s currency is different from that of the other.
Different alternatives monetary systems include Free Float, Managed Float,
Fixed Rate System & Hybrid System etc.
4. LOWER MOBILTIY OF FACTORS OF PRODUCTION
Man, Machine, Money, Material are the factors of production which are there in
each economy. In some countries these are in abundance while in others there is
a shortage of these resources.
So there is a need to mobilize these factors of production from the place they are
in abundance to the place where they in shortage. Labour is highly mobile factor
of production as there I s a general tendency to move from low wage countries to
high wage countries. Money also tends to flow from low to high return to capital
countries rest of the factors of production are less mobile between nations than
within a country as it involves transportation cost that usually is very high.
5. DIFFERENCES IN MARKET CHARATERISITICS
Each country is a separate market having its own demand pattern, distribution
channels and methods of promotion.
6. GREATER DEGREE OF RISK
In international marketing there is greater degree of risk involved than in
domestic marketing due to:
 Less knowledge about the parties involved, their reputation & credibility;
 Longer time involved in transit and payment
7. CULTURAL DIMENSIONS
Each country has its own unique culture that has a great impact on the
preferences of the customers regarding various products or service. Moreover
their attitude towards various promotion campaigns is also affected by the
culture.

8. DIFFERENT PROCEDURES & DOCUMENTATIONS

Each country has its own procedures and documentary requirements & traders
have to comply with these regulations if they want to indulge in the international
trade.

So, it would be incorrect to say that domestic & international marketing are
similar in nature but not in scope. International marketing is more than the task of
shipping products overseas (i.e. the place), product, promotion; price must also
be considered & may have to be modified according to the environment.
Marketing principles may be fixed but marketing mix is not.