The growth of the country’s competitiveness directly depends on the innovation of the business environment. The significant indicator of it can be considered through the ability of entrepreneurs to use innovative technologies to promote products and services, primarily to foreign markets. Therefore, the article takes forward a hypothesis about the existence of a positive influence of innovative marketing on the country’s competitiveness. Using of innovative technologies for marketing research of the world market, the identification of new potential markets for exports, the diversification of the product line and services in foreign markets, the promotion of innovative developments of national producers to global markets other forms of displaying of innovative marketing – all this creates additional opportunities for more effective resource use of the country’s competitiveness resource potential. Economic transformations both in Armenia and in Ukraine during the periods of post-crisis stabilization confirmed the effectiveness of innovative marketing technologies that were used in carrying out political, financial and infrastructural reforms. The article analyzes the current level of Armenia’s competitiveness. It was found that a low level of ability to innovations is one of the main problems of Armenia’s business environment; therefore the level of innovation in marketing is also low. The ways of implementation of innovative marketing tools are defined. It can contribute both to the growth of the country’s competitiveness as a whole and to the solution of several problems: diversification of price strategies in foreign markets, the forming and promotion of the country’s brand, enhancing the country’s competitiveness potential through social media; promotion of products of national companies in world markets, encouragement of cooperation and collaboration between international partnerships, search for new spheres and technologies for export, changing the design of existing products with high potential of competitiveness in the foreign market, the development of new products and etc. The article proves by using the statistical methods of analysis that Armenia needs to diversify its exports both by countries and by products. The indicator Enabling Trade Index (ETI-index) was studied as a characteristic of the country’s foreign trade environment. The Holt method was used to get its prognostic data, which allowed to build exponentially-smoothed data series and to determine the trend values and to generate forecasts using the MS Excel package. The statistical base for this research was the retrospective data of the World Economic Forum on trade turnover for 2012-2016. The results showed that the ETI-index for Ukraine is lower than for Armenia, the trend towards the growth of ETI-index for Armenia was also revealed, while “market access” tends to decrease. This confirms the advisability of applying innovative marketing technologies to increase access to the domestic market, assistance for movement of goods, removing barriers to economic development and international integration.
Keywords: innovation, marketing, competitiveness of the country, innovation development, economic growth, price, design, Armenia, Ukraine
JEL Classification: D41, M31, O11.
Cite as: Isahakyan, S., & Shkarupa, O. (2018). Innovation marketing to enhance competitiveness: case of Armenia and Ukraine. Marketing and Management of Innovations, 3, 162-173. https://doi.org/10.21272/mmi.2018.3-14
This work is licensed under a Creative Commons Attribution 4.0 International License