International Marketing vs Domestic Business

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Questions and Answers

What is the primary goal of international marketing beyond a brand's domestic audience?

to increase brand awareness, develop a global audience, and grow business

What is the key difference between domestic marketing and international marketing?

domestic marketing occurs within a single country, whereas international marketing involves marketing products or services beyond a brand's domestic audience

What is the characteristic of a domestic business?

it involves commercial exchanges that are only done within a single country

What is a key difference between domestic business and international business?

international business involves transactions between two or more countries, whereas domestic business is limited to a single country Signup and view all the answers

What is a key benefit of international marketing?

a broader market is available, allowing marketers to target the population of other countries Signup and view all the answers

How do uncontrollable variables differ between domestic and international marketing?

in domestic marketing, marketers interact with only one set of uncontrollable variables, whereas in international marketing, they interact with at least two sets of uncontrollable variables Signup and view all the answers

What are some of the risks and challenges involved in international marketing?

Political risk, cultural differences, changes in fashion and style of foreign customers, sudden war, changes in government rules and regulations, communication challenges due to language and cultural barriers. Signup and view all the answers

Why do governments impose tariffs on imported goods?

To raise revenue, make foreign-produced goods more expensive, protect domestic industries, make domestically produced alternatives seem more attractive, benefit and encourage particular domestic industries, and protect companies and jobs. Signup and view all the answers

What is a consequence of tariffs on domestic consumers?

Higher consumer prices. Signup and view all the answers

What is a potential consequence of tariffs on domestic industries?

Making them less efficient and innovative by reducing competition. Signup and view all the answers

What is a global environmental force that can affect a firm's success in international marketing?

Forces outside the firm's traditional boundaries, such as cultural differences, government regulations, and economic changes. Signup and view all the answers

Why is broader competence required in international marketing?

Because it involves dealing with different cultures, languages, and regulations, and requires special management skills to navigate these complexities. Signup and view all the answers

Study Notes

### International Marketing Goals

Goal of international marketing: To expand a brand's reach beyond domestic audiences to achieve growth, profitability, and market share in global markets.

International Marketing vs. Domestic Marketing

Key difference: International marketing operates across national boundaries, facing diverse markets and environments with unique cultural, economic, legal, and political landscapes.

Domestic Business Characteristics

Operates within a single country's borders.

Domestic vs. International Business

Key difference: International business expands its activities to multiple countries, encountering varied customs, regulations, and consumer behaviors.

Benefits of International Marketing

Access to new markets and customer bases: Expanding a brand's reach to new audiences, increasing potential customers and revenue.

Uncontrollable Variables in Domestic vs. International Marketing

Domestic marketing: Uncontrollable factors are typically confined to a single country's environment.
International marketing: Uncontrollable variables expand significantly, encompassing diverse economic, political, legal, technological, cultural, and competitive factors across multiple countries.

Risks and Challenges of International Marketing

Cultural differences: Adapting marketing strategies to diverse cultures and consumer preferences.
Economic instability: Fluctuations in currency exchange rates, inflation, and economic growth affecting market stability.
Political risks: Unforeseen events influencing business operations, like changes in regulations, trade policies, and political instability.
Legal and regulatory differences: Navigating complex legal systems and differing regulations across countries.
Competition: Entering established international markets with seasoned competitors.

Government Tariffs

Purpose of tariffs: To protect domestic industries from foreign competition, raise revenue for the government, and influence trade balances.

Impact of Tariffs

Domestic consumers: Increase prices of imported goods, reducing purchasing power and affordability.
Domestic industries: Can provide temporary protection from foreign competition, potentially leading to complacency and reduced competitiveness.

Global Environmental Forces

Technological advancements: Affect consumer preferences, product development, and marketing strategies in international markets.

Broader Competence in International Marketing

Requirement: International marketers need a wider range of skills and knowledge to navigate complex global environments, understanding cultural nuances, economic factors, and political considerations.

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Description

Test your knowledge of international marketing, its goals, and how it differs from domestic marketing. Learn about the importance of cultural understanding in global marketing.