Difference between Domestic Marketing and International Marketing


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Marketing  is  the  process  of  focusing  the  resources  and  objectives  of  an  organization  on environmental  opportunities  and  needs.  It is  a  universal  discipline.  However, markets and customers are different and hence the practice of marketing should be fine tuned and adjusted to the local conditions of a given country. The marketing man must understand that each person is different and so also each country which means that both experience and techniques obtained and successful in one country or  countries. Every country has a different set of customers and even within a country there are different sub‐sets of customers, distribution channels and media are different. If that is so, for each country there must be a unique marketing plan. For instance, nestle tried to transfer its successful four – flavour coffee from Europe to the united states lost a 1% market share in the us. It is important in international marketing to recognize the extent to which marketing plans and programmes can be extended to the world and the extent to which marketing plans must be adapted. Prof.Theodore Levitt thought that the global village or the world as  a  whole was a homogeneous entity from the marketing point of view. He advocated organisation to develop standardized high quality word products and market them around the world using standardized advertising, pricing and distribution. The companies who followed Prof. Levitt’s prescription had to fail and a notable failure amongst them was Parker pen. Carl Spiel Vogel, Chairman and CEO of the Backer Spiel Vogel Bates worldwide advertising agency expressed his view that Levitt’s idea of a homogeneous world is non – sensible and the global success of Coca Cola  proved that  Prof.  Levitt  was  wrong.  The  success of  Coca  Cola  was  not  based  on  total standardization of marketing mix. According to Kenichi Ohmae, Coke succeeded in Japan because the company spent a huge amount of time and money in Japan to become an insider. Coca Cola build  a  complete  local  infrastructure  with  its  sales  force  and  vending  machine  operations. According to Ohmae, Coke’s success in Japan was due to  the ability of the company to achieve global localisation or ‘Glocalisation’ i.e. the ability to be an insider or a local company and still reap the benefits of global operations. Think global and act local is the meaning of Glocalisation and to be successful in international marketing, companies must have the ability to think global and act local.   International   marketing   requires   managers   to   behave   both   globally   and    locally simultaneously   by   responding   to   similarities   and   dissimilarities  in   international   markets. Glocalisation can be a source of competitive advantage. By adapting sales promotion, distribution and customer service to local needs, Coke capture 78% of soft drink market share in Japan. Apart from the flagship brand Coca Cola, the company produces 200 other non‐ alcoholic beverages to suit local  beverages. There are other companies who have created strong international brands through international marketing. For instance, Philip Morris has made Marlboro the number one cigarette brand in  the world. In automobiles, Daimler Chrysler gained global recognition for its Mercedes brand like his  competitor Bayerische. Mc Donald’s has designed a restaurant system that can be set up anywhere in the world. Mc Donald’s customizes its menu in accordance with local eating habits.

 

 


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