Posted: February 16th, 2022
In adopting a marketing approach at home, the domestic strategy is an appropriate method for conducting business. In a domestic market the company creates the product in such a way that it attracts the customers in a local market. The research conducted is limited to the local market and the tastes and preferences of the local consumers. It is more cost effective but the scope of growth is limited.
In a transnational approach there is deeper penetration in local markets and includes global standardization that is more cost effective. The global market strategy has a tough time in entering the local markets and thus the compression for them is stronger. Similarly in terms of cross-cultural approach it is easier to enter the foreign markets because of the partnership with a local firm. There is a di difference in the customer behaviour across different nations that influences the appropriate strategy (Nam et al. 2019).
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