Marketing problems of innovative entrepreneurship in Russia and the ways to overcome them



The article is devoted to the problem of using marketing tools in the activity of innovative business in Russia. The author analyzes the innovative activity of enterprises in Russia. Ways are proposed to increase marketing activity of innovative enterprises and justify the reasons for their effectiveness.

Key words: marketing, brand, startup, innovation

Economic growth is one of the prioritized goals of any country of the world. This goal can be reached by the production of larger and better quality of goods and services. As a result, these factors will lead to a higher standard of living of the inhabitants. Economic growth is the result of the successful work of enterprises in all sectors of the national economy and depends mostly on the innovative activities of enterprises.

Innovation activity is a process aimed at implementing the results of conducted research or any scientific and technological achievements in a new or improved product, which is sold on the market, in a new or improved technological process, used in practical activities, as well as related additional research and development [1, p.3].

Modern Russian economy is experiencing difficulties with the development of innovation. Russia takes only 46^th place out of 129 countries in terms of innovation development, according to the analytical salary presented at a press conference in New Delhi. There is a steady improvement in the situation on the sub-index of innovation resources (+11 lines), but the country's position is noticeably reduced in terms of the impact of the results of scientific, technical and innovative activities on the economy and society (-10) [2]. The low efficiency of innovation and related institutions determines Russia's lag behind the leading countries.

There is no doubt that in Russia there is a change in the priorities of the government, private business and society in favor for the development of innovative activities, increasing the role of science. Firstly, the presence in the domestic market of imported products significantly changed the standards of both consumer and investment demand, brought them closer to the level of developed countries.

Secondly, the involvement of Russia in the processes of globalization, does not leave domestic companies hopes for existing outside of international competition. It makes the business intensify the search for innovative solutions to provide specific competitive advantages within global competition. Thirdly, the strengthening of a new business elite that does not have access to raw materials, mixed forecasts of the development of raw materials sectors Russian economy in the general context of the global economy stimulate increased interest and the influx of financial and managerial resources in high-tech industries.

Transition of the Russian economy to innovative development outlined the role of marketing as a tool of market competition that allows entrepreneurs in conditions of instability transform innovation priorities, respond fast to changes in the environment and desire of consumers. Activities of successful small and medium enterprises innovation has already proven effective use of marketing tools in solving problems, aimed at increasing competitiveness and shaping attractive image of the enterprise and its products, investment and innovation appeal, creating added value of innovative products for target markets.

Features of the development of marketing in Russia include:

1. The lack of institutional capacity in the country for modern marketing. This happens due to the insufficient development of the legal regime in relation to economic relations, especially in matters of competition and monopoly with informal norms and norms of behavior of Russian entrepreneurs and corruption in government bodies.
2. Underdeveloped market mentality. Many world markets are not market categories but production ones.
3. The use of marketing in Russia, as a rule, is a separate element of marketing.

The directions of innovative activity should be determined, first of all, not by the opportunities and tasks of improving production, but by the results of studying consumers' preferences regarding the characteristics of new products. During the production of new products, more attention should be paid to market testing and not to laboratory testing of these products.

From the above data it follows that the main success factor is the conformity of the product to market requirements. This is the core competency of innovative marketing.

Innovative marketing is a concept of classic marketing. It suggests that enterprises should constantly improve their products, methods and forms of promotion of goods. Innovative marketing involves two areas: firstly, the marketing of a new product itself, and secondly, the improvement of existing products [3, p.4]. This marketing concept is effective especially in the initial stages of product sales, because the company turns into a monopolist of this product thanks to innovations based on market research.

Among the reasons that prevent development of marketing activities of innovative enterprises are:

− Misunderstanding of the importance of applying marketing principles for the successful development of the company by its leadership. Leaders of these enterprises usually rely on their experience and knowledge, which is unjustified in modern conditions of competition.

− Lack of funds for conducting a marketing research. Government funds, which are provided for the development of an innovative project, are not accounted for bringing an innovative product to the market.

− Lack of funds for marketing in-house research.

− Lack of specialists in the staff of enterprises, who are competent in marketing.

There should be added that today there is enough number of quite economy marketing technologies and instruments for small enterprises with limited marketing staff and budget. Thus, a shortage of funds cannot be a marketing constraint, whereas ignorance or misunderstanding by the leaders of all marketing opportunities can damage a successful market development.

Consequently, as the main ways to overcome problems are related to an inadequate use of marketing technologies in small and medium innovative entrepreneurship, the following points can be suggested:

1. Development of low-cost marketing mix technology. Marketing spending should be adequate to current market situation and not necessary for the daily functioning of the firm.
2. To implement the marketing functions of the enterprise qualified professionals are needed. It’s enough to have on the staff a marketer and one specialist in analytics.
3. Complex marketing research of the enterprise should include systematic work with consumers.

The need to use marketing instruments will be considered on the case of a Russian startup called “AQ. Lifecare” and advertising agency «Free. Creative», it will be also explained why a systematic approach for brand building is important for startups and what can happen when you think that “a logo is just a picture”. “AQ. Lifecare” is a new service for Russia: the company provides services of injection with vitamin coctails [4]. Before starting the visual component and launching the brand on the market, a lot of research and analytical work needs to be done.

1^st step is a marketing research of potential audience. The company starts to understand the needs of its potential buyers. Thanks to the study, “AQ. Lifecare” learnt that from the first acquaintance to the purchase, 13 contacts of a potential buyer with the brand should happen.

The 2^nd step is developing the core values and characteristics of the brand. Even when the identity is ready and agreed upon, work on the brand does not end. Next important stage begins: the introduction of the developed guides and principles into the work. On this stage the start-up understands that some of the hypotheses are confirmed, and some are not.

Innovation is both the strength of the product or service and its vulnerability. Whether it will become a success largely depends on startup communications, their accuracy and relevance of the target audience. Before revealing the innovation to the audience it is necessary to gain trust and this is a rather lengthy process that is difficult to accelerate even due to high-budget advertising campaigns. Therefore, this case is not only a good example of the right approach of building a brand, but also an illustration of how branding helps a startup to find the right path to customers.

There is a prejudice that large-scale analytical work is needed for brands that are launched on a highly competitive market, whereas for a startup, it is essential to quickly conquer the market. That is what the founders and investors of AQ.Lifecare thought in the beginning. At first, they wanted to open several clinics and then quickly expand to a large network. It is more convenient to promote this belief because marketing does not work on one point, but immediately on everything, which makes lower the cost of attracting a consumer. It is assumed that this way the market can be quickly conquered and the investment recouped. The study, which was conducted by the agency while working on the strategy and brand platform, showed that the product is complex even for the population of large cities. Potential consumers need to go a long way in 13 touches in order to evaluate its advantages, try it out and fall in love.

According to agency’s rough estimates, tactics of a quick capturing the market would require investments of tens of millions of rubles. Judging by the conclusions from the study, this strategy would not work, as the target audience firstly must be prepared. Only with the help of a thoughtful communication of the start-up, success on the market can be reached. Creating a brand for a start-up is not only about making a beautiful packaging for it, but also developing a more reliable, market-based, fact-based and factual strategy.

Summarizing all of the above, it is obvious that it is necessary to develop marketing thinking of enterprise innovative managers, to take on specialists in marketing and to cooperate with advertising agencies. This will be possible if managers understand that investments in marketing should not be considered as costs but as investments in the future success of innovative product.

References:

1. Shopenko, O. Y. Innovative marketing / O. Y. Shopenko. — SPb: SPbGTURP, 2015. — 79 p.
2. Vlasova, V. V. Global Innovation / V. V. Vlasova. — Moscow: Science. Technologies. Innovations HSE, 2019–2 p.
3. Dolgova, I. V. Marketing problems of innovative small and medium enterprises / I. V. Dolgova. — Moscow: Economics, entrepreneurship and law. — 2015. — No. 1. — p. 39–50.
4. How to bring future brands to the market: a case study of an innovative vitamin cocktail clinic. — URL: https://www.sostav.ru/publication/kak-vyvodit-na-rynok-brendy-budushchego-kejs-innovatsionnoj-kliniki-vitaminnykh-koktejlej-41591.html (accessed March 23, 2020)