Posted in Marketing and Strategy Terms, Total Reads: 12302
Definition: Domestic Market
Domestic Market is a market within a country’s own borders and trading is aimed at single market. In such markets, firms face similar set of competitive, political, economic, social, market and technological issues. Domestic Market encompasses only one set of customers and firms deal with the same.
Companies in Domestic Markets are generally provided with tax credits for employment generation and government of the country tries its level best to let domestic companies make trade agreements with foreign companies by removing barriers (regulations).
Domestic marketing is affected by both controllable and uncontrollable factors
Trading in domestic market is done in two ways:
Wholesale Trade - Purchasing goods from manufacturers in bulk and selling them to intermediaries or end customers.
Retail Trade-Purchasing goods from wholesalers and selling them to consumers in small quantities.
Advantages of Domestic Market
Firm can easily predict consumer preferences and can understand its own market niche
Can be cautious by predicting economic downturns of the domestic economy
Easy communication between workers due to same culture and language
Low taxes to be paid compared to foreign investing companies
Disadvantages of Domestic Market
Limited target market size
Limited availability of resources
Priya pickles which is famous for its various tasty pickles maybe successful in India as it is domestic market and pickle is very close with the culture and tradition of Indian people(importantly South Indians). But in case of international market, it would be difficult for Priyabrand to withstand and have more profits because culture of foreign people is quite different.