Page 29 - International Marketing

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BRILLIANT'S Introduction to International Marketing 31

certain technical attributes. There are three basic points of similarities
between domestic marketing and international marketing:
(i) Both kinds of marketing depends upon satisfying the needs of
the customers.
(ii) It is necessary to build goodwill both in the domestic market as
well as in international market to survive.
(iii) Research and development for product improvement and
adaptation is necessary both for international marketing and
domestic marketing.
However, there are some salient features of difference between
international and domestic marketing.
Difference between Domestic Marketing and International
Marketing
1. Immobility of Factors: The degree of immobility of factors like
labour and capital is generally greater between countries than within a
country. Immigration laws, citizenship requirement, etc. often restrict the
international mobility of labour. International capital flows are prohibited or
severely limited by different governments. Consequently, the economic
significance of such mobility of factors tends to equality within but not
between countries. For instance, wages may be equal in Mumbai and
Pune but not in Mumbai and London. To the extent that there are differences
in factor mobility and equality of factor returns,
costs and price of goods produced and Difference between
exchanged between countries as compared to Domestic Marketing
those within a single country, international trade and International
Marketing
will follow different laws.
2. Heterogeneous Markets: In the 1. Immobility of Factors
international marketing, world markets lack 2. Heterogeneous Ma-
rkets
homogeneity on account of differences in 3. Different National
language, preferences, customs, weights and Groups
measures, etc. The behaviour of international 4. Different Political
buyers in each case would, therefore, be Units
different. For example, the Indians have right 5. Different National
hand driven cars while Americans have left Policies and Gove-
hand driven cars. Hence, the markets for rnment Intervention
automobiles are effectively separated. 6. Different Currencies