The conceptual framework for the development of international service marketing
Elena Yurievna Nikolskaya1*, Svetlana Valentinovna Zolotova1, Elena Vadimovna Zaharova1, Natalia Iosifovna Kovaleva2, Elena Borisovna Tretyak3, Veronika Olegovna Kozhina4
1 Plekhanov Russian University of Economics, 36 Stremyanny Lane, Moscow, 117997, Russia. 2 Moscow State Institute for Physical Culture, Sports and Tourism, 43A Kronstadt Boulevard, Moscow, 125499, Russia. 3 Moscow Polytechnic University, 38 Bolshaya Semеnovskaya Street, Moscow, 107023, Russia. 4 Moscow International University, 17 Leningradsky Prospekt, Moscow, 125040, Russia.
ABSTRACT
The article is devoted to the development of a conceptual framework for the development of international service marketing. The main sources of the development of international service marketing are activation of objective factors of the development of service activities, deepening of the international division of labor, intensive development of the communication sphere of the world economy, and information integration of the world economy. The globalization of the world economy, regionalism, and global integration processes are serious challenges for international service marketing. At the same time, regionalism is one of the components of the new paradigm of international economic relations. It is impossible to take a worthy place in the world economy without a tolerant attitude towards international service marketing and regionalism and without taking these trends into account when developing measures to stimulate economic growth of the economy and increase its rating at the world level.
Keywords: international marketing, services, rating, world economy, integration, globalization, collaboration, cooperation.
Introduction
International service marketing is one of the most important areas in which the science and practice of marketing are developing, gaining relative independence. To a large extent, it is legitimate to say that international service marketing is a higher school of marketing. This was facilitated by the intensification of international cooperation between economic entities and the strengthening of the influence of marketing management.
All this made it necessary to determine the political and economic context of international marketing and its role in improving the efficiency of business activities in the context of increasing competitive tension in the international business environment and ensuring the multifaceted economic interests of market participants [1, 2]. As an element of service relations of various economic systems, international marketing acquires specific features and shades in managerial manifestations, which contributes to the more complete satisfaction of the economic interests of business participants in the context of integration [3].
The problems of international marketing development were considered in detail in the works of O.A. Bakumenko [4], I.D. Bekmurzaev [5], A.M. Vorotnikov [6], L.R. Magamedova [7], V. Perskaya [8], Yu.P. Ten [9], and others. However, scientific publications do not fully disclose the conceptual basis for the development of international service marketing.
Methods
The theoretical and methodological basis of the research was: an abstract-logical method, methods of induction, deduction, analysis, synthesis, and systematization – to substantiate approaches to the development of international service marketing; graphic method – to study the level and trends in the parameters of international marketing services.
The information base of the article was the data of state bodies, legislative and regulatory documents regulating the development of international service marketing, and results of scientific research [10-12].
During the study, it was planned to develop perspectives of international marketing services to empower further solid development in this direction. The importance of international service marketing is determined by the fact that the modern service economy is characterized by the rapid integration of all processes, becoming an independent force with a pronounced growth trend, which confirms the need for its detailed study.
Results
The practice had shown that international service marketing involves the improvement of economic interaction of subjects of market integration on the level of "supply-demand" considering the dynamic changes in the market environment and the harmonization of quality of the supply with the motivational priorities of consumers in different markets. At the same time, understanding the conceptual foundations of the current state of international marketing involves considering such important aspects as variability, which manifests itself through the possibility of combining tools and measures of international marketing activities, the compliance of the quality of services, and the ability to establish close international relations (Figure 1).
The implementation of conceptual models of international marketing involves the integration of marketing functions with related areas and procedures of international business. Thus, international service marketing should be perceived as an integrated management function, the methodological basis of which is the fundamental provisions of the international economy and the auxiliary tools for which are applied areas of implementation of forms of international activity.
Figure 1. The concept of international service marketing
From variation and dynamic development, international service marketing can be applied in any economic system, and, therefore, a deep study of the potential of its use in conditions of active socio-economic transformations is of practical interest. As a managerial attribute of the market economy, international service marketing also provides for the selection and adaptation of marketing support tools for integration entrepreneurship in the competitive environment of world markets.
Under these conditions, the modern development of the Russian economy requires the formation of a new type of management behavior of business entities that would qualitatively meet the requirements and trends of world-class management and functionally protect the interests of economic entities in integration and competitive market environment.
All this requires balanced management activities and reasonable use of the functions of international service marketing to create a system of management priorities in the implementation of the three-pronged task of international marketing – ensuring market advantages and realizing their competitive potential in the integration economic space. In this case, from implementing management measures, international service marketing can be defined as a function of ensuring the process of planning and implementing business activities in the context of market integration to create conditions that are most favorable for the integration business.
When entering foreign markets, some specifics cannot be controlled by a service company, but require mandatory accounting. Thus, the specifics of marketing in the external economic activity of an enterprise include: considering the influence of national governments through the use of various (both economic and administrative) tools to influence a foreign element on its territory; the variety of market conditions and organization and dynamics of markets; the variety of socio-cultural context of consumer preferences [13].
One of the most important elements of successful business conduct in global markets is a specific functional manifestation of international marketing activities to the needs of the modern conceptual foundations of international service marketing. This causes the use of fundamental provisions of the general marketing concept in the process of implementing individual management activities for the international service marketing, in particular: a comprehensive study of the world market situation, primarily changes in the field of social needs; use of market information to develop new types of services that can meet the dynamically changing needs of the global market; substantiation of the optimal exit methods and organizational forms of a company's presence abroad and the creation of business alliances for the effective expansion of foreign service markets.
The study shows that the intensification of international marketing activities occurs depending on the circumstances that affect the business behavior of the subject in the conditions of the integration market. Criteria for the level of application of international service marketing can include stages of expansion of the foreign market, forms of presence in international markets, the intensity of interaction with foreign partners, regularity of foreign economic operations, and features of corporate management fundamentals.
International service marketing as a tool for entering foreign markets is possible only if all levels of management are aware of the need to implement it. In this case, the problem of implementing marketing activities is a wrong understanding of the needs of the organization of the marketing department. It should be organically integrated into the company's service process and created at the time of the company's foundation.
Therefore, in the process of developing a strategy for entering a foreign market, an enterprise examines the tastes and preferences of consumers of services, market capacity, risks, and the political and economic situation in the country where it is going to enter the market. All this contributes to the establishment of relations and deepening of cooperation. In this case, the service company can establish itself as a reliable partner and create a positive business image of its country when carrying out joint business activities.
Every company providing international services accelerates integration into the global economy. Even when a company provides services focused on the domestic market, it has to take into account the trends in the global market for such services to protect itself from foreign competitors. The company must also conduct a very flexible foreign policy, which is not inherent in the Russian market.
In this case, international service marketing requires the integration of the service company into the external environment, its detailed research, and the creation of modified strategies developed for each foreign market separately. Also, each service company, creating an international marketing strategy, pursues several goals: expanding the sales market, obtaining new, previously unavailable resources, and the opportunity to further explore the world market in more depth. All this is the main prerequisite for the integration of the business unit into the world economy.
Since international service marketing is a compromise between the use of solutions tested on the domestic market and the necessary level of adaptation to new markets, Russian enterprises need to pay more attention to the study of the domestic market. It is much easier and cheaper to analyze markets within the country, despite considering the process of international service marketing, as well as the reaction to changes in the course of events (Figure 2).
Figure 2. The process of international service marketing
Also, the experience gained in the domestic market will guide the company's specialists in the process of developing an international marketing strategy. In this case, the first necessary condition for optimizing international marketing activities at service enterprises is the introduction of marketing ideology in the management decision-making processes. The next important step is to select the key components of a marketing strategy.
Service companies also need to learn how to collect the most important and least-known information and turn it into a competitive advantage. Russian companies currently lack a clear organizational structure for conducting international marketing activities. Therefore, the national system of international marketing is formed as a result of improving and adapting the world experience of marketing management of business activities in the process of its integration, as well as the intensification of international cooperation between Russian companies and foreign partners.
The activation of foreign economic activity leads to a gradual complication of marketing functions. It is important and relevant for Russian service companies to determine the necessary and sufficient marketing efforts and appropriate conditions for the development of market relations of management measures aimed at improving the forms of international business.
Analyzing the active modern processes taking place in the world market, it is possible to determine the following prospects for the development of international marketing of services: coordination and integration of various activities across the global economy; the increasing importance of the service sector, which is growing fast and covers almost all the stages of foreign trade transactions; a plurality of commodity forms leads to a multiplicity of prices; strengthening of the protective function of international marketing, which is to deter the traditional services.
International marketing is an independent branch of a company's activity when entering foreign markets, which is a necessary condition for each business entity to successfully compete and meet its own goals on the world market. The tasks of marketing have changed significantly with the development of integration processes, and its use in competitive and unstable markets allows firms to significantly increase the economic efficiency of their activities. The transition from simple manifestations of international cooperation to complex, intensive forms of interaction between economic entities is associated with the complication of their presence and functioning in world markets.
All this requires a reinterpretation of the essence and role of the marketing component in management activities, as well as the use of a complex system of interrelated elements of the marketing complex to create competitive advantages in the international business environment. To do this, it is necessary to create a relevant marketing strategy with its permanent modification. At present, the development of international marketing continues and its further intensive development will provide even more opportunities for integrating service companies into the global economy.
Therefore, with the beginning of the formation of globalization processes in the world economic system, service enterprises began to form a need for authentic, reliable, and timely information about the markets of other national economies and the world market in general (their structure, traditions, development trends, features of market relations, features of marketing and marketing tools, criteria necessary for creating an effective marketing system in each target market of each country), which in turn formed the requirements for a new marketing system for the international functioning of service enterprises in the macro-environment.
The main factors of international service marketing are the independence of states in the international community; the development of globalization and integration into the world economy; a significant excess of supply over demand in domestic markets for services; the existence of national monetary systems; developed competition among producers of services; developed market infrastructure; the growth of living standards of the population of several countries, which led to an increase in the demand for services; the desire of service enterprises to expand foreign sales markets; differences in consumer behavior in different countries.
In its development, international service marketing has passed several successive stages: the stage of comparative marketing, which provides a maximum focus on studying the features of all elements of the foreign business space; the stage of trial export (empirically-intuitive stage), in which the service company tries to use the successful experience of its operation in certain foreign markets while conquering the markets of other countries without considering their characteristics; the stage of extensive export, when the service company focuses its activities on covering a limited number of foreign markets without segmenting them.
Discussion
The reliability of the presented approaches is confirmed by the fact that international service marketing is a marketing direction related to ensuring the implementation of services outside the country. At the same time, service companies, using the principles of international marketing, try to use their own experience in foreign markets with minimal changes without due consideration of the conditions and features of each foreign market [14-16].
However, it is not enough for a service company to use the usual marketing tools, techniques, and approaches that were effective in the domestic market in the process of entering the world market. Therefore, international marketing becomes ineffective (it is effective only when functioning at the international level is not the main goal of the service company, but is one of the means of increasing its profitability in cases of saturation of the domestic market or is one of the directions of ensuring the sales diversification of a service enterprise).
The attitude to international marketing of services as a philosophy and tools of international entrepreneurship allows forming its essence as a whole as a marketing philosophy and an international concept in particular (the formation of relationships between international firms in the process of exchanging services). However, the development of international service marketing helps to reduce risks in the international business environment and, accordingly, contributes to ensuring the security of international business, as well as an increase to a certain extent the stability and economic growth of the world economy in general and individual countries in particular.
The current development of the world economy is characterized as very complex, which takes place at a fairly high pace. This is accompanied, on the one hand, by a deep economic crisis as a result of which there is a high risk of the functioning of business entities not only in the domestic markets but also in the international business space. On the other hand, integration processes are activated at the global level, which is associated with cardinal changes in the world economic system, forming new forms of international trade.
Research shows that the movement of capital, the development of international service marketing significantly affects the change in the development conditions of both national and international businesses, as well as the integration process. The main prerequisites for the emergence and development of integration processes in international marketing are the strengthening of relationships and interdependence of national economies of the world, which has been intensified by international cooperation, the intensive development of foreign trade, the international division of labor, and the intensification of international economic relations between countries.
The internationalization of economic activity is a strengthening of the interconnection and interdependence of the economies of individual countries, the influence of international economic relations on the international service marketing, and the participation of countries in the world economy. At the same time, international economic integration represents a fairly high, effective, and promising level of development of the world economy, a qualitatively new and more complex stage of internationalization of economic relations, where not only national economies are brought closer together, but also joint solutions to economic problems are provided.
However, international service marketing is expressed by the coordination of economic policies of countries participating in marketing processes, cooperation between national economies of different countries and their full or partial unification, the elimination of barriers and restrictions in the mobility of goods, services, capital, and labor between countries, the convergence of markets of each of the individual countries to form a single market, the erasure of differences between economic entities belonging to different states, the interpenetration, and intertwining of service processes of individual national economies, the formation of the technological unit of the service process within the region, the wide development of international specialization and cooperation in service activities, science, and technology based on the most progressive and profound forms.
The objective content of international service marketing is ultimately the interweaving of service processes that take place in the form of partial integration. In this case, the service process covers individual parts of the whole system: market circulation (due to trade liberalization and increased flows of factors of production), including the circulation of services, money supply; in-house production of services; decision-making (at the level of firms, business unions, national governments, international intergovernmental and national organizations).
Conclusion
In conclusion, the main sources of the development of international service marketing are to increase: the objective factors of the development of service activities, which include the development of scientific and technical progress, deepening international division of labor, intensive development of the communication sector of the world economy, information integration of the world economy; the courses of trade liberalization, which limit the policy of protectionism and make world trade in services freer, contributing to the strengthening of the movement of capital in the world economy; development of international financial markets (currency, stock, credit); transnationalization of the world economy, within which a certain share of production and consumption of services depends on the decisions of international centers.
However, it has been proved that the globalization of the world economy, regionalism, and global integration processes is a serious challenge for international service marketing. At the same time, regionalism is one of the components of the new paradigm of international economic relations. The situation is developing in such a way that it is impossible to take a worthy place in the world economy or solve problems of an internal economic nature without a tolerant attitude towards international service marketing and regionalism and without considering these trends when developing measures to stimulate economic growth of the economy, as well as manage the level of national competitiveness without a reasonable and effective policy of adaptation to the prevailing conditions.
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