Abstract

The objective of the article. Dynamic global and domestic economic environments, crisis, and transformation phenomena associated with the European integration processes in Ukraine necessitate regular monitoring of the overall economic situation in the country, as well as taking into account characteristics of the product and the media markets in order to improve companies’ marketing communications. The main objective of the paper is to analyze and identify key factors and trends in marketing communications of Ukrainian firms. The results of the analysis. It is proposed to group the factors influencing marketing communications transformation by their origin, such as the environment, the firm and the modern global consumer. Among environmental factors, the following are selected as the most important: 1) macroeconomic situation in the country, 2) development of the product market, 3) state of the media market, 4) features of marketing development. Each factor is profoundly analyzed. Ukrainian economy has been stagnating over the last few years, with a trend of modest growth by the end of 2016. Slowdown of export, restructuring of the banking sector, the military conflict in Eastern Ukraine as well as Russian trade restrictions imposed in 2016 have had the most negative effects on it. Purchasing power of the population decreased dramatically in 2015. Pessimistic forecasts about further deteriorating of the quality of life are well-grounded. During 2014—2016, all the marketing activity in Ukraine was taking place in complicated conditions due to the sharp drop in purchasing power, loss of customers from Crimea in 2014 and increased migration in 2015, and the rise in prices for imported goods and services. Wholesale volume of Ukrainian enterprises in 2015 fell by 12.8% compared to 2014; retail volume by 20.7%. Further development of trade and, therefore, marketing communications in Ukraine depends on many local factors, the main ones being: 1) political conflict resolution; 2) economic recovery; 3) restoration of consumer confidence in bank lending; 4) increase of consumer income. Internet is stated to be one of the most promising channels of retail sales in Ukraine. Media environment in the country is becoming more fragmented along with the escalation of the crisis in Ukraine. Currently, the dominant marketing communication channel is television. In 2014-2016, the main marketing trends in Ukraine were: impact of globalization, shift to a non-market sector, concentration of manufacturing, dependence on the business size, active development of the “B2C” sector as opposed to “B2B”, undervalued and non-systematic marketing, short-term strategies, and limited marketing functions, lack of flexibility and consumer research. The level of marketing communications development in Ukraine, based on the share of spending on communications in GDP and the level of local service agencies efficiency, remains low. In 2015, the volume of advertising media market in Ukraine slightly decreased compared to 2014, while the growth forecast for 2016 is at least 12%, with the market volume expected to reach 10 billion UAH. Spending on Internet advertising increased the most (by 11%). The article outlines recommendations for Ukrainian companies regarding the improvement of their marketing communications tools. They are advised to intensify Internet marketing as the most promising marketing tool and use low-cost communications technologies (viral content, co-marketing and buzz) alongside traditional tools to ensure interaction with wider groups of consumers. Conclusions and directions for further research. Globalization, informatization of society and European integration of Ukrainian enterprises are of particular importance to the effectiveness of marketing communications of the latter. In the conditions of political and economic crises, stagnation of trade and reduced purchasing power in Ukraine there is a clear need for optimization of companies’ marketing communications based on the results of ongoing monitoring of key market environment factors. The main origins of factors influencing marketing communications transformation are the environment (including European integration and globalization processes), the company and the consumer. Such factors include: 1) macroeconomic situation in the country, 2) development of the product market, 3) state of the media market, 4) features of marketing development. As the result of the research, we recommend intensification of application of low-cost technologies and Internet marketing in companies’ marketing communications, which will improve the speed and efficiency of information exchange, provide unconventional approaches and access to effective marketing tools.

Keywords: marketing communications, tools, media environment, media market, media, Internet marketing, factors, formation (initiation) source, enterprise, consumer, transformation, globalization, European integration

JEL Classification: M30, M31, F63.

Cite as: Horbal, N., Dzyubina K. & Motorniuk, U. (2017). Transformation of Marketing Communications of Ukrainian Enterprises in the Conditions of Crisis, Globalization, and European Integration. Marketing and Management of Innovations, 3, 96-110. https://doi.org/10.21272/mmi.2017.3-10

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

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