Question

Questions1:

Discuss, in detail, the difference(s) between the concepts of international marketing and domestic marketing. Explain, briefly, why and how would multinationals firms adapt their products to foreign markets. Support your answer with related example

[LO1] [ [15 Marks]

Answer 1

Answer: International marketing: This type of marketing happens all over the globe in order to satisfy the varied needs and wants of different people residing across the domestic borders. international marketing happens in more than one country. it can open doors for future business opportunities for the company. it also enhances market share and customer base to connect with new retailers, vendors, etc. It is done in order to achieve world peace by building trade relations with different nations.

Domestic marketing: This refers to the supply and demand of goods and services within the country's own domestic boundary. This is the first place where companies seek to market their goods and services. As companies know about its domestic market consumer's taste, need, geography, culture, demographics, and distribution and transportation methods. we can say company can easily apply 4P's - promotion, price, place, and product within domestic boundaries.

Difference between international and domestic marketing:

International marketing	Domestic marketing
In international market production, promotion, pricing, and sale of products and services complete in the global market.	While domestic market production, promotion, and sale of goods and services are done in local markets.
It serves as a global area.	It serves as a small are limited to the domestic market.
Deep research is done in order to penetrate in order to expand the market globally.	here also market knowledge is required but to a limited extent.

Here the risk factor is very high as its product may work in foreign market or not	Here the risk is low as products and services are moving among the country's citizens.
the need for highly upgraded technology	Limited technology is required.
The govt. interference is high in the form of various licenses etc,	here govt. interference is less.

Reasons and ways through which multinational firms adapt their products to foreign markets.:

• As communication and technology is a powerful source through which corporations have been able to expand into multiple countries and expand their business.
• Companies can select special economic zone locations in order to free-market orientation and flexible national laws.
• we can take the example of Mcdonald which operated in more than 100 countries by maintaining its standard quality.
• Companies via foreign direct investment can easily locate themselves to other foreign countries by either expanding their operations in other countries or by purchasing the shares of existing companies in the host country.
• International markets are playing a vital role in the developing economies
• MNCs would go to developing countries as they know they will get low labor cost, weak environmental and social protection laws
• A global strategy in which the organization has developed a target growth to beyond its borders to make more profit.
• we can also take the example of Kellog's it is a global company they come to India and failed in its first product as not understand Indian taste but once they understand their breakfast they start making product from original wheat and rice and became brand in India.
• Netflix also operates in mostly every country by focusing on adding more languages, optimizing its personalization algorithm for a global library of content, etc