DIFFERENCES

BETWEEN DOMESTIC MARKETING AND INTERNATIONAL MARKETING

There are various differences between domestic marketing and international marketing. Due to a language barrier it is more difficult to obtain and interpret research data in international marketing. Promotional messages needs to consider numerous cultural differences between different countries. This includes the differences in languages, expressions, habits, gestures, ideologies and more. For example, in the United States the round O sign made with thumb and first finger means "okay" while in Mediterranean countries the same gesture means "zero" or "the worst". In Tunisia it is understood as "I'll kill you" meanwhile for a Japan consumer it implies "money".

INCREASED UNCERTAINTIES ASSOCIATED WITH MARKETING ABROAD

Although firms marketing abroad face many of the same challenges as firms marketing domestically, international environments present added uncertainties which must be accurately interpreted. Like domestic marketing, international marketing requires managers to make decisions that are within the firm's control, such as which product to market, what price it should command, the optimal promotion strategy, and the best distribution channels. Furthermore, like firms marketing domestically, firms marketing internationally must be prepared to react to factors in the home country which might affect their ability to do business. Examples include domestic politics, competition, and economic conditions. International marketers face a host of issues that are out of their direct control, both at home and abroad. For instance, although domestic policies on foreign trade cannot be controlled by individual businesses, firms marketing abroad must be aware of how domestic policies help or hinder foreign trade

activities. Firms marketing abroad must also be prepared for uncertainties presented solely by the business environment in the host country as well. Four very important issues to note in a host country are its laws, politics, economy, and competition. Other issues are the host country's geography, infrastructure, currency, distribution channels, state of technological development, and cultural differences. The legal and political environments of the host countries are two of the most important variables faced by international marketers. First, companies operating abroad are bound by both the laws of host and home countries; moreover, legal systems around the world vary in content and interpretation. These laws can affect many elements of marketing strategies, particularly when they are in the form of product restrictions or specifications. Also, politics can be a huge concern for companies operating abroad and is, perhaps, the most volatile aspect of international marketing. Unstable political situations can expose businesses to numerous risks that they would rarely face at home. When governments change regulations, there are usually new opportunities for both profits and losses, and firms must usually make modifications to existing marketing strategies in response. For instance, the opening of Central and Eastern Europe presented both high political risks and huge potential market opportunities for companies willing to take the risks. Economic conditions, per capita gross national product (GNP), and levels of economic development vary widely around the world. Before entering a market, firms marketing abroad must be aware of the economic situation there; the economynot to mention individual standards of livinghas a huge impact on the size and affluence of a particular target market. Furthermore, marketers must educate themselves on any trade agreements existing between countries as well as on local and regional economic conditions. Being aware of economic conditions and the likely direction that those conditions will take can help marketers better understand the profitability of potential markets. For example, many companies had to reevaluate international marketing strategies as international financial crises affected the economies of Southeast Asia, Russia, and Latin America in 1997-98.

Competition overseas can come from a variety of sources as well. Further, it has the potential to be much fiercer than competition at home. Often, if a market is ready to accept foreign goods, numerous manufacturersboth indigenous and foreign basedwill be willing to risk entry into that market. Making the situation more intense, the governments of many other countries may subsidize manufacturers to help them enter a particular market. Obviously, the more foreign markets in which a firm enters, the more of these uncontrollable events the firm must consider. To make the situation more interesting, the solutions to problems occurring in one country are often inapplicable to problems occurring in a second country because of differences in the political climates, economies, and cultures. The uncertainty of different foreign business environments creates the need to closely study the environment within each new market entered. Companies that are truly global competitors employ a long-term international marketing strategy to overcome the uncertainties associated with conducting business abroad. Their long-term strategies enable them to weather short-term economic or political crises, such as the peso devaluation in Mexico. Such companies are prepared to make increased investments during downturns, and as a result they are better prepared when economic conditions improve.

INDIA MARKETING SCENARIO

Currently in India, the national economy and marketplace are undergoing rapid changes and transformation. A large number of reasons could be attributed to these changes. One of the reasons in these changes in the Indian Market Scenario is Globalization, and the subsequent and resulting explosive growth of global trade and the international competition.

The other reason for these changes in the Indian Market Scenario is the technological change. This is an important factor because the technological competitiveness is making, not only the Indian market, but also the global marketplace cutthroat. In the Indian Marketing Scenario, the market success goes to those companies that are best matched to the current environmental imperatives. Those companies that can deliver what the people want and can delight the Indian customers are the market leaders. Today the companies are operating in such a marketplace where survival of the fittest is the law. In order to win, the companies are coming out with various new and evolving strategies because the Indian market is also changing very fast. It is to capture the Indian market, that the Indian and the Multi National Companies are using all of their resources. The Indian market is no longer a sellers market. The winner is the one who provides value for money. A large number of companies have huge idle capacities, as they have wrongly calculated the market size and installed huge capacities. This has further contributed to converting the Indian market into a buyers market. The Indian Marketing Scenario is one of the biggest consumer markets and that is precisely the reason why India has attracted several MNCs. These large Multi National Companies have realized that to succeed in the Indian market-place they need to hire Indian representative who are much more aware of the Indian economic, political, legal and social realities. In the Indian Marketing Scenario, it is the MADE FOR INDIA marketing strategies that work

SEPARATING CULTURAL VALUES

Culture is a very important aspect of international marketing because the elements that compose it affect the way consumers think. The language a population speaks, the average level of education, the prevailing religion, and other social conditions affect the priorities the inhabitants have and the way they react to different events.

With this in mind, it is easy to see that managers of firms operating only in the domestic market are often able to react to many market uncertainties correctly and automatically because they intuitively understand the culture and the impact of changing conditions. In foreign markets, however, this is not the case. Because they were not raised in the country in which they are trying establish a market, managers abroad often do not fully understand the culture and lack the proper frame of reference. Thus, decisions that they would make automatically at home could be dramatically incorrect when operating abroad. Unless special efforts are made to understand the cultural meanings for activities in each foreign market, managers will likely misinterpret the events taking place and risk making the wrong decisions. This problem is so real that some authorities in international marketing believe that unconscious references to a firm's domestic cultural values contribute to most international business problems. To overcome these potential disastrous decisions, firms must understand the cultural factors existing in both their domestic country and the host country. Business problems and goals must be defined in terms of the host country's culture. Being able to separate home-country norms from those in the host country can be a very challenging task. Often, the influence of one's own culture is underrated. American multinational corporations have been in the forefront of developing international brands that cut across local cultural differences. Companies such as Coca-Cola, IBM, and McDonald's have created international brands to sell their products to large market segments worldwide. Other American examples of global icons include Intel, MTV, CNN, and Disney. The advertising and marketing campaigns that built these international brands took a universalist approach, building on the American tradition of assimilation. However, as culturally diverse emerging markets become more important to international marketing, campaigns targeted to specific cultures will appear more frequently.

CONCLUSION

International marketing occurs when a business directs its products and services toward consumers in more than one country. While the overall concept of marketing is the same worldwide, the environment within which the marketing plan is implemented can be drastically different. Common marketing concerns such as input costs, price, advertising, and distributionare likely to differ dramatically in the countries in which a firm elects to market. Furthermore, many elements outside the control of managers, both at home and abroad, are likely to have a large impact on business decisions. The key to successful international marketing is the ability to adapt, manage, and coordinate a marketing plan in an unfamiliar and often unstable foreign environment. Businesses choose to explore foreign markets for a host of sound reasons. Commonly, firms initially explore foreign markets in response to unsolicited orders from consumers in those markets. In the absence of these orders, companies often begin to export to: establish a business that will absorb overhead costs at home; seek new markets when the domestic market is saturated; and to make quick profits. Marketing abroad can also spread corporate risk and minimize the impact of undesirable domestic situations, such as recessions. While companies choosing to market internationally do not share an overall profile, they seem to have two specific characteristics in common. First, the products that they market abroad, usually patented, have high earnings potential in foreign markets; in other words, the international sale of these products should eventually generate a substantial percentage of the products' total revenue. Also, these products usually have a price or cost advantage over similar products or have some other attribute making them novel and more desirable to end users abroad. Second, the