International vs Domestic Marketing: Strategies & Barriers

International vs. Domestic Marketing

International Marketing is the process of planning and executing transactions across national borders to create exchanges that satisfy individuals and organizations. It includes exports, imports, licensing, joint ventures, subsidiaries, and management contracts.

Domestic Marketing focuses on the supply and demand of goods and services within a single country. Businesses expand internationally due to limited domestic market size and growth.

Key Differences

International Marketing: Operates products, services, promotions, pricing, and distribution in multiple countries.

Domestic Marketing: Operates products, services, promotions, pricing, and distribution in a single country.

International Marketing Strategic Plan Phases

1. Where are we?
2. Where do we want to go?
3. How are we going to get there?
4. How are we doing so far?

A well-defined international marketing plan helps control internationalization, address threats, and leverage opportunities.

International Environment Elements

Uncontrollable Factors

• Political and legal environment
• Technology
• Competition
• Economy
• Consumers
• Distribution

Controllable Factors

• Product
• Price
• Promotion
• Place (Distribution)

Main Barriers to Internationalization

1. Distance: Physical and Psychological
2. Complexity of adapting to the new environment
3. Operational challenges
4. Sector-specific barriers
5. Barriers from: New market segmentation, costs, and competition
6. Legal barriers
7. Lack of knowledge and information on new markets
8. Not achieving a competitive advantage: Product differentiation or production cost difference

Three Main Exporting Strategies

• Multidomestic
• Global
• Transnational