Global and Domestic Distribution Essay Example | Topics and Well Written Essays - 1500 words

Global and Domestic Distribution - Essay Example Comparison of Domestic and Global Market. There are unique similarities and differences between domestic and global markets. While the similarities or potentialities are the raison d'etre for a planned expansion into global domain, the differences lead to challenges to be overcome while entering into an unknown foreign domain. Some of the difficulties which are sure to be overcome in a multi-national market distribution are appended in succeeding paragraphs. National Policies. A main hindrance in global distribution is often the national policies which in many developing countries discourage foreign players and support domestic ones. Further, changes in successive democratic governments can lead to frequently changing priorities/policies, unreasonable tax structure against foreign players thereby making penetration and distribution difficult. There have been many instances where huge investments have been made by certain global players in anticipation of growth in a particular field and with a change in the government, the whole process received a setback to an extent that the global player had to actually wind up and leave. Further, pioneers and domestic players also make all possible moves to deter entry by being on the right side of governmental public policies (First-mover advantages: Retrospective and Link with the Resource-based View MB Lieberman, DB Montgomery - Strategic Management Journal, 1998) Individualised Goods. While distributing a product in own country, the marketing manager is aware of prevailing situation, needs, growth pattern and other variables persisting in the market as well as the customer. This allows him to market the product to meet specific individual needs of the customer to a large extent. Any product meeting specific requirements of a customer will lead to better customer satisfaction, reputation and thereby automatic favourable advertisement of the product. However, in case of a foreign market, this adaptability is not available. The conditions prevailing in each and every country are different and products need to be manufactured in a country specific manner to suit requirements of customers as well as infrastructure, likely development pattern and economy of that country. A good research before huge investments are made will ensure requisite success when marketing a product in a new country. Getting the product or service to the customer. Buyer behaviour and characteristics directly affect overall objectives of a business. This aspect is critical to successful distribution in a global market. If the product needs to be made available to a large section of population of developing countries living in non-urban areas with limited resources, the task becomes even more difficult due to limited communication networks, distribution channels, lower advertising potential due to limited reach of media and lack of awareness of people about new products from a different country. Further, reaching out to individual customers and assuring him of product's worth is a near impossible task in countries where people have a very