domestic vs international marketing strategies and managing international marketing functions for BBA

1. INTERNATIONAL
BUSINESS
UNIT 5.

2. DOMESTIC MARKET
A domestic market, also referred to as an internal
market or domestic trading, is the supply and
demand of goods, services, and securities within a
single country.
In domestic trading, a firm faces only one set of
customers, although the company may have
several segments in a market.

3. DOMESTIC MARKETING
 Domestic marketing refers to the marketing
activities employed on a national scale.
 Marketing strategies were undertaken to cater
customers of a small area, generally within the local
limits of a country.
 It serves and influences the customers of a specific
country only.

4. DOMESTIC MARKETING STRATEGIES
 Your unique selling proposition: On any given city
street, you may find two or more running the same type
of business that your running, they are your competitors.
So why should a consumer buy a product from you? What
makes you different?
The way you stand out from the pack, is by developing a
‘unique selling proposition’.
1.Develop a unique selling proposition.
2.Make sure your consumers see it clearly.

5.  Endorsement: When you advertise, even when
you have an excellent ad, people are on guard.
They know that most businesses will say anything
in an ad to get people to come in to buy. So most
people read ads with an automatic ‘ad filter’ in their
mind. That filter says, ‘don’t believe everything you
read!’
When you get another customer or a celebrity to
endorse your product for nothing, it’s like getting a
great advertisement that won’t trigger the mind of
the audience.

6.  Social media : In today’s world, social media has
been a great platform for marketing products online.
Not only we target the youth, but also other people
of different category. Marketing activities through
social media attract a large audience.
 Offers and discounts: Consumers tend to buy
products that have great deals to them. Such as
offers and discounts, coupons, freebies, etc.
 Payment system: Your customer has no money?
No problem. You can offer them different payment
methods that includes EMI and other options like
credit card payment.

7.  Trend : Marketing of a product on right time is an
important action that the marketing team has to
undertake. Trend, taste, preference, consumption
pattern, etc of a consumer changes from time to
time. Hence, marketing of product at right time on
right place is very important.
 Advertisements: Advertisements in newspapers,
TV, radio, hoardings, social media and many more
platform are must for booming the sale of product
or service that is been marketed in the
environment.

8.  Customers comes first: Many businessman focus
on sales, sales, and sales only. But you would
stand out if you will give your consumer priority. As
it is said, ‘consumer is the king!’. Keep in mind what
hey want and then cater their needs to satisfy them,
in return business gets awarded by earning more
profit.
 Online business: Even though it’s a local business
you can open your store online, so that you can
serve to whole nation in which you are carrying
your business out.

9. OBSTACLES TO DOMESTIC MARKETING
 It has small area to serve.
 Deals with only one set of customers.
 Limited growth in local market.
 Recognition only in one’s own country.
 Government interference in the activities.
Due to the above reasons, domestic business try to
expand globally.

10. Awareness
Familiarity
Consideration
Loyalty
Domestic
market

11. GLOBAL MARKET
 Meaning : Offering services and goods to the whole
world by international businesses on a global
platform is known as global market.

12. GLOBAL MARKETING
 DEFINITION: Global marketing involves planning,
producing, placing, and promoting a business
products or services in the worldwide market.

13. GLOBAL MARKETING STRATEGIES
 One size doesn’t fit all, add local flavour : When
it comes to consumer tastes, preferences and
interests, there is nothing universal about it. They
differ from country to country, climatic zones, GDP
levels, customs and traditions.
Example: The food industry has successfully used
local flavouring strategy with good
success.(McDonald’s, Domino’s, etc.)

14.  Understand the culture differences: When going
for branding across different countries, it is better to
do some global marketing research on the word or
words mean in hat country. An improper brand
name in particular culture can cause huge damage
to the company and its marketing efforts may go
down.
Example: In Spain, Chevrolet’s Nova failed
miserably not because it was a bad product but No-
Va means ‘no-go’ in Spanish

15.  Tie-up with a local partner who understands the
local market: In many countries, it is not mass
media campaign, money pumped into marketing
and distribution that will bring results. A good
understanding of the local market is required for
success and the best way ensure is through a joint
venture global marketing partnerships or marketing
tie-ups with local partner in the same business. This
will enable the global firm to attain market at
supremacy at a much rapid pace.

16. o Production, marketing, logistics: Until a few
years ago, it was not easy to have multi-location
operations to deliver a product. With advances in
technology, better logistics and economic scale, it is
possible for he parent company to design a product
in their headquarters or in an emerging market, get
them fabricated in a different country, do the
manufacturing there and export it to other countries.
Example: HP, Acer, Toshiba follow the strategy of
manufacturing in China, Taiwan, Thailand or some
other nation where it is cheaper to manufacture.

17.  Plan the global campaign: Once the product is
launched the global campaign has to begin. It has
to be a global marketing agency. They have take
care of creative, media, planning, hoardings and
other mass publicity campaign in association with
the marketing team in global marketing company.
 Utilise the power of social media: On a global
scale none is more powerful than social media to
reach a wide audience. For campaigns with picture,
video and lesser text, FaceBook would be the
appropriate medium.

18.  Events and promotions: Sports and entertainment
events are the best avenues for promoting brands.
Many companies have used it to boost their brand
value.
Example: Coco-Cola, Pepsi, Sony, Samsung, etc.
 Pricing and packaging: Prices are very sensitive
in emerging markets while it may not be so in
developed markets. Normally shampoos are sold in
bottles of 250ml or 500ml, but in China, India,
Korea and Philippines it may be is better to have
smaller sachet packs of 50ml to cater the lower
income segment.

19. LIMITATIONS TO GLOBAL MARKETING
It can be difficult to
determine if there
is an available
market.
There will always
be risk.
There may be
different laws and
standard which
needs to meet.
It can create
numerous barriers
to entry.
International
politics and market
conditions can
eliminate profits.
It creates a need
for international
project delivery.

20. COMPARISON DOMESTIC GLOBAL
Meaning Domestic marketing
refers to marketing within
boundaries of a nation.
International marketing
means the activities
extend over the
boundaries of a country.
Area served Small Large
Government interference Less Comparatively high
Business operation In a single country More than one country
Risk factor Low High
Capital Less Huge
Nature of customers Almost same Variation in customer
tastes and preference

21. MARKETING FUNCTIONS
 International marketing is a multinational process of
planning and executing the conception, pricing,
promotion and distribution of ideas, goods and
services to create exchange that satisfy individual
and organizational objectives.

22. INTERNATIONAL
MARKETING
FUNCTIONS
SALES AND
DISTRIBUTION
ANALYSIS AND
EVALUATION
PRODUCTION
CONTROL

23. INTERNATIONAL MARKETING FUNCTIONS
 ANALYTICAL :
 Analysis of the causes entry into foreign markets.
 Environmental analysis of international marketing.
 Analysis of factors of international marketing
strategy.

24. CONTD…
o RESEARCH :
 Study of factors affecting on methods of penetration
to foreign markets.
 Research and evaluation of strategies for entry into
foreign markets.
 Research of level of standardization and adaptation
of marketing solutions to the external market.

25.  PRODUCTION :
 Organization of production of goods in accordance
with the requirements of foreign market.
o CONTROL :
 Control refers to the effectiveness with which a
marketing plan is implemented. It involves the
determination of standards, evaluation of actual
performance, adoption of corrective measures.

26.  ADMINISTRATIVE :
 Develop the concept of internationalization of the
company on a foreign market.
 Management of enterprises on foreign markets.

27.  SALES OR DISTRIBUTION :
 Organizations of international distribution channels.

28. THANK YOU!!!