Domestic vs International Marketing

International Marketing v/s Domestic Marketing: International marketing (IM) or global marketing refers to marketing carried out by companies overseas or across national borderlines. This strategy uses an extension of the techniques used in the home country of a firm. It refers to the firm-level marketing practices across the border including market identification and targeting, entry mode selection, marketing mix, and strategic decisions to compete in international markets. According to the American Marketing Association (AMA) "international marketing is the multinational process of planning and executing the concept ion, pri ci ng, pro mot ion and di stri buti on of ideas, goods , and ser vi ces to create exchanges that satisfy individual and organizational objectives”. International Marketing is the performance of business activities that direct the flow of a company's goods and services to consumers or users in more than one nation for a profit. Mode of engagement in foreign markets After the decision to invest has been made, the exact mode of operation has to be determined. The risks concerning operating in foreign markets is often dependent on the level of control a firm has, coup led wit h the level of capital expe ndi tur e out pla yed . The pri nci pal modes of engagement are listed below: • Exporting (which is further divided into direct and indirect exporting) • Joint ventures • Direct investment (split into assembly and manufacturing) Exporting Direct exporting involves firm shipping goods directly to a foreign market. A firm employing indir ect export ing would utilize a channel /inte rmedi ary, who in turn would diss emina te the product in the foreign market. From a company's standpoint, exporting consists of the least risk. This is so since no capital expenditure, or outlay of company finances on new non-current assets, has necessarily taken place. Thus, the likelihood of sunk costs, or general barriers to exit, is slim.

Domestic vs International Marketing

Documents

Transcript of Domestic vs International Marketing