The importance of global marketing

Branislav Djordjevic, Gruja A. Kostadinovic, Vuk Miletic

Abstract


The most significant single market in the world regarding national income is the United States, representing roughly 25 percent of the total world market for all products and services. U.S. companies that wish to achieve maximum growth potential must “go global” because 75 percent of world market potential is outside their home country. Management at Coca-Cola understands this: about 75 percent of the company’s operating income and two-thirds of its operating revenue are generated outside North America. Non-U.S. companies have an even higher motivation to seek market opportunities beyond their borders; their opportunities include the 300 million people in the United States. For example, even though the dollar value of the home market for Japanese companies is the second largest in the world (after the U.S), the market outside Japan is 85 percent of the world potential for Japanese companies. For European countries, the picture is even more dramatic. Even though Germany is the most significant single country market in Europe, 94 percent of the world market potential for German companies is outside Germany.

References


Ball, D. (2005). Too Many Cooks: Despite Revamp, Unilever Falls Behind Rivals. The Wall Street Journal, January 3.

Blumenstein, R. (1997). Global Strategy: GM Is Building Plants in Developing Nations to Woo New Markets. The Wall Street Journal, August 4.

Brinkley, D. (2006). Hoosier Honda. The Wall Street Journal, July 18.

Cetron, M. J., and Davies, O. (2006). The Dragon vs. the Tiger. The Futurist, July-August.

DiMasi, J. A., Hansen, R. W., and Grabowski, H. (2003). The Price of Innovation: New Estimate of Drug Development Cost. Journal of Health Economics, 22(2): 151-185.

Djordjevic, B. (2010). The Third Dimension of Management. Beograd: University “Union-Nikola Tesla”.

Fackler, M. (2005). A Second Chance for Japanese Cell Phone Markers. The New York Times, November 17.

Friedman, T. I. (2000). The Lexus and the Olive Tree. New York: Anchor Book.

Hansell, S. (1994). Uniting the Feudal Lords at Citicop. The New York Times, January 16.

Hawkins Jr., L. (2004). New Driver: Reversing 80 Years of History, GM Is in Global Fiefs. The Wall Street Journals, October 6.

Ip, F. (2002). Mind Over Mattet-Disapperaing Acts: The Rapid Rise and Fall of the Intangible Asset. The Wall Street Journal, April 4.

Kirk, D., and Green, P. S. (2002). Renault Rolls the Dice on Two Auto Projects Abroad. The New York Times, August 29.

Malnight, T. W. (1995). Globalization of an Ethnocentric Firm: An Evolutionary Perspective. Strategic Management Journal, 16(2): 119-141.

Millman, J. (2008). The Fallen: Lorenzo Zambrano; Hard Times for Cement Man. The Wall Street Journal, December 11.

Mondavi, R. (1998). Harvets of Joy: My Possion for Excellence. New York: Harcourt Brace & Company.

Rohter, L. (2003). Bolivia’s Poor Proclaim Abiding Distrust of Globalization. The New York Times, October 17.

Schmedel, S. R. (2006). Making a difference. The Wall Stret Journal, August 21.

Shirouzu, N. (2001). Tailoring World’s Cars to U.S. Tastes. The Wall Street Journal, January 1.

Tagliabue, J. (2000). Renault Pins Its Survival on a Global Gamble. The New York Times, July 2.

Taylor, W. C, and Webber, A. M. (1996). Going Global: Entrepreneurs Map the New Marketplace. New York: Penguin.

Wright, R., and McManus, D. (1991). Flashpoints: Promise and Peril in New World. New York: Alfred A. Knopf.

Yergin, D., and Stanislav, J. (1998). The Commanding Heights. New York: Simon.

Zamiska, N. (2006). Novartis to Establish Drug Center in China. The Wall Street Journal, November 11.


Refbacks

  • There are currently no refbacks.


Creative Commons License
This work is licensed under a Creative Commons Attribution 4.0 International License.
Page Views Page Views

Unique Visitor Unique Visitor