Difference between Comparative Advantage And Product Lifecycle Theories of international marketing practices.
Introduction: Internationally marketing is often more complicated than the domestic marketer because the in the international market, the marketer needs to deal with the two levels of situation that may exist in the market(Barker & Chitty,2009) The situations over here are more complex, uncontrollable and uncertain. The international market comprises of the domestic environment, a foreign environment that is often uncontrollable to moniker (Bayne, 2009). However, there are also certain controllable entities like the marketing strategies of an organization such as price, product, promotion and the distribution channels.
Difference between Comparative Advantage And Product Lifecycle Theories Of Foreign Marketing
Theory of comparative advantage
According to this theory, trade occurs due to the difference in prices .the supply differs among the countries due to the technological issues and factors according to Ricardo’s theory of comparative advantage. This model was based on the theory of opportunity cost and the product possibility frontier (refer to appendix)
Theory of product lifecycle stages
According to this theory, the product lifecycle stages consist of the various stages consisting of the introduction, growth, maturity, and decline. During the introduction stage, if the sale of the product increases, then the life cycle enters into the growth stage and after a certain period of time, the product market enters into the maturity stage of the product lifecycle, where it gets saturates (Lambertini, L. & Mantovani, 2010).
Conclusion: There are certain differences in the two theories of the international marketing. In the theory of the comparative advantage, the theory is all about the competitive and the technological factors governing the situation of the international market. But the theory of the product life cycle depends on the various stages of the growth of the product sale in the market.
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