marketing activity differs from the basic principle and should be rather complex compared to the researching of domestic markets. The marketing solution conccrning the formation of the product, prices, distribution channels, advertising etc., making the concerns not very familia#kvith the (economical, sociological and cultural sense) market environment.
There are also diffйrences between markets in accessibility and efficiency of marketing infrastructure (transport capabilities, distributive network, mass media etc.). Frequently this leads to necessity of more vast researches. Well-conducted research promotes definition of market operating coordination capability in the separate foreign markets for achievement of synergy effect, originating from applying standardizing of international marketing.
The initial investigation phase is the analysis of the export-marketing environment. The attractiveness of the foreign market is valued through several factors. Some of the factors includc the economic structure, nature of income distribution throughout the country, political and legal environment (stability of political power, political climate, national sovereignty, safety, condition of activity and properly), welfare situation (language, religion, educational level of the population and formation in country, public infrastructure, laws), and geographical features.
Scales of realization and the depth of international marketing researches depend on branch, scales of business. and the nature of coming operations in the foreign market. For example, Allianz AG of Germany (Founded in 1890 in Germany, Allianz is now one of the world's leading insurance groups. Today, more than half of the Allianz provides its 60 million clicnts in over 70 countries with a broad range of scrviccs. This is achieved through an international network of subsidiaries, which generally command a strong position in their respective home markets. Allianz Group's premium incomc is earned up's premium income is earned outside of Germany) usually thoroughly looks over possible new markets for several years before executives make a decision on creation of new business in a country. This is due to fact that insurance is a long-term business and takes years to develop a profitable business base. A schematically realization of marketing research for the given company is shown in Fig. 1.
As seen from the scheme, the initial and primary basic stage is the estimation of attractiveness of the economical and political environment as the main indemnity of business safety. Which parameters of country development are taking into consideration? The answer to this question will be interesting not only to marketing specialists, and managers of domestic firms intending to develop an external market, but also to persons interested in international capital flows. Basic indicators are: a nominal and real gross domestic product (GDP), GDP per capita level of the national debt, rate of inflation, exchange rate of national currency, level of real wage, rate of unemployment etc. in Table 1, Ihe example of standard indexes for Ukraine is introduced.
Dependence of a national economy from other countries economies, prices for main export products (e.g., for oil lor such countries, as Russia, Azerbaijan, Norway ctc.), loyalty of international organizations (IMF. EBRD), regional and non-govcmmcntal to the country, main trade associates arc analyzed. In a regional aspect the demographic parameters (number of the inhabitants in regions, share of agricultural and urhan population) are esteemed.
The political stability is the relevant factor, such events as often government changes, coming to power parties of miscellaneous ideological directions, and corruption displays a negative image of the country.
The condition of a financial infrastructure is determined by a level of development of stock and investment markets, and a banking sphere: the size of bank assets, sum of the giving credits, rating of local banks under the international standards (e.g., Agency Moodys).
The branch analysis reflects the market structure, government regulatory policy in a branch, basic goods and kinds of services in them, capacity of the market, tendency of development and specific indicators for the given sphere. For example, insurance major indexes arc: a gross volume of the insurance premium (GPW), insurance density - relation of a volume of the insurance premium to a population and insurance penetration - relation of GPW/GDP. According to these parameters, it is possible to compare and estimate a condition of the branch. For instance, the insurance market in Ukraine lags behind many countries, in Central and East Europe under these data. The situation can be illustrated by data in a Fig. 2, where Ukraine takes one of lower places.
The market of a foreign country is attractive at growing demand population and organizations. Investments and perspective development of other branches that will require the goods and services of the market, interesting to the company, positively effect for a potential of the market. Al analysis of competitors it is worth to pay attention to the main shareholders and founders, areas of activity, market share, experience in branch, size of the capital.
On the basis of the
