Q # 1. What is international marketing? How it is different from domestic marketing?
International marketing involves recognizing that people all over the world have different needs. Companies like Gillette, Coca-Cola, BIC, and Cadbury Schweppes have brands that are recognized across the globe. While many of the products that these businesses sell are targeted at a global audience using a consistent marketing mix, it is also necessary to understand regional differences, hence the importance of international marketing. Organizations must accept that differences in values, customs, languages and currencies will mean that some products will only suit certain countries and that as well as there being global markets e.g. for BIC and Gillette razors, and for Coca-Cola drinks, there are important regional differences - for example advertising in China and India need to focus on local languages. Just as the marketing environment has to be assessed at home, the overseas potential of markets has to be carefully scrutinized. Finding relevant information takes longer because of the unfamiliarity of some locations. The potential market size, degree and type of competition, price, promotional differences, product differences as well as barriers to trade have to be analyzed alongside the cost-effectiveness of various types of transport. The organization then has to assess the scale of the investment and consider both short- and long-term targets for an adequate return. Every country has its own laws on business and a company that aims at entering into business in another country must first know about them. Consumer tastes and preferences may also differ so marketing strategies must be formulated to cater to the needs of different consumers. International marketing requires more time and effort, not to mention its being very risky too. The international market is very uncertain and a company must always be ready for changes that may suddenly occur. It requires a higher level of commitment to succeed in an international market.
Difference between international marketing & domestic marketing:
International market is the production, promotion, distribution, and sale of goods and services in a global market.
Domestic marketing is the production, promotion, distribution, and sale of goods and services in a local market
International marketing is more risky and more complex.
Domestic marketing is less risky and easier to conduct
International marketing requires huge financial resources.
Domestic marketing requires lesser financial resources
International marketing deals with several different countries and markets.
Domestic marketing deals with only a single market
International marketing is more challenging and requires more commitment from the company because of the uncertainty and differences in laws and regulations in the global market
Domestic marketing deals only with the laws and regulations of one country.
International marketing deals with different types of consumers with different tastes.
Domestic marketing deals only with one set of consumers
International marketing requires different strategies in the promotion of their products.
In domestic marketing, the company can have the same policies and strategies Question #02
Q #02. Explain how non-tariff barriers affect trade?
Non-Tariff Barriers (NTBs) refer to restrictions that result from prohibitions, conditions, or specific market requirements that make importation or exportation of products difficult and/or costly. NTBs also include unjustified and/or improper application of Non-Tariff Measures (NTMs) such as sanitary and phytosanitary (SPS) measures and other technical barriers to Trade (TBT). NTBs arise from different measures taken by governments and authorities in the form of government laws,...
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