It would beg the question to say that life and death are similar in nature, except in degree. As it would be just as in correct to say that domestic and international marketing are similar in nature but not in scope, meaning that international marketing is nothing but domestic marketing in larger scale.
International marketing is much more complex because a marketer faces two or more sets of uncontrollable variables originating from various countries. The marketer must cope up with different cultural, legal, political and monetary systems. The company is subject to risk associated with doing business globally. The risks include security concerns, health concern, natural disasters, inefficient and limited infrastructure and disrupting and labor issues.
In addition, fluctuations in exchange rates, including those caused by currency controls, could negatively impact our business operating results and financial condition by resulting in lower revenue or increased expenses.
The significant differences between domestic and international marketing are explained below:
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.
International marketing takes place when a business directs its products and services toward consumers in a country other than the one in which it is located. While the overall concept of marketing is the same worldwide, the environment within which the marketing plan is implemented can be dramatically different from region to region. Common marketing concerns—such as input costs, price, advertising, and distribution—are likely to differ dramatically in the countries in which a firm elects to market its goods or services. Business consultants thus contend that the key to successful international marketing for any business—whether a multinational corporation or a small entrepreneurial venture—is the ability to adapt, manage, and coordinate an intelligent plan in an unfamiliar (and sometimes unstable) foreign environment.
Provides a higher standard of living: International marketing ensures high standard life style & wealth to citizens of nations participating in international marketing. Goods that cannot be produced in home country due to certain geographical restrictions prevailing in the country are produced by countries which have the abundance of raw material required for the production.
Ensures rational & optimum utilization of resources: Logical allocation of resource & ensuring their best use at the international level is one of the major advantages of international marketing. For example, raw material, crude oil, consumer goods & even machinery & services.
Rapid industrial growth: Demand for new goods is created through international market. Industrial development of a nation is guided by international marketing. For example, new job opportunities, complete utilization of natural resources, etc.
Benefits of comparative cost: International marketing ensures comparative cost benefits to all the participating countries. These countries avail the benefits of division of labor & specialization at the international level through international marketing.
International cooperation and world peace: Trade relations established through international marketing brings all the nations closer to one another and gives them the chance to sort out their differences through mutual understanding. This also encourages countries to work collaboratively with one another.
Facilitates cultural exchange: International marketing makes social & cultural exchange possible between different countries of the world. Along with the goods, the current trends and fashion followed in one nation pass to another, thereby developing cultural relationships among nations. Thus, cultural integration is achieved at global level.
Better utilization of surplus production: Goods produced in surplus in one country are shipped to other countries that have the need for the goods in international marketing. The major advantages of international marketing include effective utilization of surplus domestic production, introduction of new varieties of goods, improvement in the quality of production & promotion of mutual cooperation among countries.
Availability of foreign exchange: International marketing eases the availability of foreign exchange required for importing capital goods, modern technology & much more. Essential imports of items can be sponsored by the foreign exchange earned due to exports.
Special benefits at times of emergency: Whenever a country faces natural calamities like floods & famines, it is supported by other countries in the international market. The international market provides emergency supply of goods and services to meet urgent requirements of the country facing the calamity.
What and how you market internationally may be different than what and how you market in your home country. In short, the opportunity for your products and services may be different overseas, requiring an entirely different go-to-market strategy.
While it's not always necessary to have a local presence to build a successful B2B business in a foreign market, in many cases, it is. Whether you set up a local subsidiary or forge a relationship with a local partner, being able to show that you're invested in a country can boost your credibility substantially, making it far easier to market effectively to potential customers.
Don't assume that the channels you currently focus on are the channels you should focus on in other markets. In some parts of the world, for instance, it may be sensible to invest more in mobile marketing channels than you do at home. In others, offline channels, such as print and events, may need to be a more prominent part of your marketing mix, particularly when you're starting out.
Entering foreign markets can be extremely difficult. In most countries, it's not what you know, but who you know, but that's doubly true in many parts of the world. With this in mind, think about building relationships with potential customers and partners in new markets before you officially launch in them and begin marketing formally. In many cases, visits early and often are a prerequisite to success.
When a company wants to take that first step, it shouldn’t be rushed. Simply popping your website into Google translate is not enough to ensure success in a new region.They have literally been lost in translation.
Gone are the days when global campaigns and strategies were applied in a blanket fashion across international regions – it simply doesn’t work. Understanding the local culture, sense of humor and how people search for content will ensure that you reach the local audience.
The gains from international trade refer to net benefits or increases in goods that a country obtains by trading with other countries. It also means the increase in the consumption of a country resulting from exchange of goods and specialisation in production through international trade. Economist usually distinguish between potential and actual gain from international trade.
According to the classical theory, specialisation based on the principle of comparative costs advantage is the major source of gain from international trade. An additional source is the possibility of exploiting economies of scale when the size of the market is extended through the free foreign trade of a country.
Adam Smith's dictum is "Division of Labour is limited by the size of markets." Obviously, when the size of the market expands as a result of international trade, the scope for large scale production and thus for complex division of labour and specialisation, increases.
Under economics of large scale, when specialisation occurs, the output per unit of input may rise so that, costs per units of output fall. This is a further source of gain from international trade which makes goods cheaply available.
Thus, specialisation based on comparative costs advantage clearly represents a gain to the trading countries in so far as it enables more of each variety of goods to be produced cheaply by utilising the abundant factors fully in the country concerned and to obtain relatively cheaper goods through mutual international exchange.