CC BY
53USE OF INTERNATIONAL MARKETING STRATEGIES IN THE DEVELOPMENT OF FREE ECONOMIC ZONES
Kholmamatov Diyor Haqberdievich
Independent Researcher of SamIES, PhD e-mail: xolmamatov_d@mail .ru
Muhiddinov Mumin Shavkiddinovich
Master of SamIES
Abstract: In recent years, the Republic of Uzbekistan pays great attention to the establishment and development of free economic zones. In particular, the issue of increasing the share of free economic zones in the diversification of industrial production is important. This article presents the results of research on the use of international marketing strategies in the development of industrial production in free economic zones.
Keywords: Free economic zones, international marketing, international trade, marketing strategies, international marketing strategies, "commodity market" strategies, diversification.
Introduction
In our country, special attention is paid to the further development of industrial production, integrated socio-economic development of the regions. Decree of the President of the Republic of Uzbekistan dated January 28, 2022 PF-60 "On the new development strategy of Uzbekistan for 2022-2026" was approved. This Decree sets the task of increasing the volume of industrial production by 1.4 times, continuing the industrial policy aimed at ensuring the stability of the national economy and increasing the share of industry in GDP in accordance with the goals set in the new Development Strategy of Uzbekistan for 2022-2026.
Also, the Presidential Decree No. PP-99 of January 24, 2022 "On measures to create an effective system for the development of production and expansion of industrial cooperation in the country" focusing on creating a competitive environment for content expansion.
The role and importance of free economic zones in creating a competitive environment for the integrated socio-economic development of the regions, increasing the volume of industrial production, expanding the content of local products in the implementation of investment projects is incomparable.
The use of international marketing strategies, the implementation of international marketing activities, the orientation of regional products to the international market are among the pressing issues in the further development of free economic zones (FEZ) in Uzbekistan. Therefore, this article discusses the use of international marketing strategies in the development of free economic zones.
Review of literature on the subject
Since the middle of the twentieth century, the issues of organizing the activities of FEZ, which have become the backbone of the economy, increasing investment attractiveness, developing foreign trade, increasing the export potential of FEZ have been studied by foreign and domestic experts. Among the researches, first of all, the theory and practice of FEZ occupy an important place. In this regard, M. Guangwen conducted extensive research on the theory and practice of FEZ, the organization of such areas, the specifics of the region [8]. Ya.S.Druzik based his research on the activity of free economic zones, its role in the economy, ensuring economic growth [6].
T.Farole and F.Dobrogonov, emphasizing the practicality of these regions, said, "These structures will create opportunities for developing countries to occupy additional consumer markets and increase the export potential of countries. At the same time, he argues that these economic structures also serve as a means of strengthening regional economic integration processes [11].
There is also research on the geographical location of the FEZ, in which regions the FEZ is formed. According to V.G.Ignatov, V.I.Butov, FEZs are limited areas, which consist of seaports, air borders. They create a favorable business environment for national and foreign entrepreneurs in foreign trade, general economy and other areas [9].
R.J.McCalla has shown in his research that the geographical location of the FEZ is different from other regions, in particular, it is a convenient port for transport, airport, railway, highway, which allows the organization of logistics services [7].
Russian economist V.D. Adrianov describes: "Free economic zones are part of the national territory and provide ample opportunities for solving economic problems" [4].
The activity of free economic zones in the international economy, its role in the world economy, as well as the introduction of international investment are also reflected in the research of experts. In particular, in the scientific work of N.V. Chernenko conducted research on the activities of free economic zones in the international economy [12].
The use of international marketing strategies in free economic zones has accelerated mainly since the end of the last century. In general, along with international marketing, the activities of free economic zones have accelerated. On the introduction of international marketing as a scientific category, Russian scholars O.V.Fedotova and O.A.Tabekina wrote that "the first information about international marketing appeared in the 1960s with the rapid development of international trade and its becoming a leading form of international economic relations" [14 ].
Given that international marketing is a theory and method of further developing export and import efficiency based on the further development of international trade, its activities, adaptation to changes in world markets, the introduction of new services, international marketing strategies play an important role in developing exports of free economic zones.
Research methodology
At present, the use of international marketing strategies in the establishment and development of free economic zones in Uzbekistan, which are an important and fundamental point of economic growth, is becoming increasingly important. Monographic observation, abstract-logical thinking, scientific observation, synthesis, induction and deduction methods were used to highlight the use of international marketing strategies in the development of free economic zones.
Analysis and results
Currently, there are 21 free economic zones (FEZ) in the Republic of Uzbekistan, of which 19 specialize in industry, 1 in agriculture and 1 in tourism.
In the period from 2008 to 2021, a total of 448 projects worth $ 2.4 billion were implemented in the free economic zones [15]. Of the total amount, $ 764.6 million is foreign direct investment. The projects have created about 34,000 new jobs. The largest of these projects are Angren Free Economic Zone (73 projects worth $ 730.7 million), Urgut Free Economic Zone (55 projects worth $ 312.9 million), Navoi Free Economic Zone (53 projects worth $ 282.8 million) and Bukhara. -Agro "(112 projects worth $ 325.1 million).
Extensive work has been done to improve the regulatory framework governing the development of free economic zones. In particular, the Law of the Republic of Uzbekistan "On Special Economic Zones" was adopted. The document defines the procedure for creating FEZs, extending and terminating their operation, changing their boundaries, as well as the system of their management, the principles of selection of investment projects for placement on its territory, as well as the procedure for registration of FEZ participants.
It is important to use international marketing strategies to further develop industrial production and increase export potential in the free economic zones established in Uzbekistan. Because it is known from world experience that it is through the use of international marketing strategies that the production activity of any company, enterprise and region expands and exports increase.
The concept of international marketing is different from international economic activity. International economic activity includes the management of joint production, services, exports and imports. International marketing, on the other hand, is seen as a philosophy and a means to achieve high efficiency in these processes.
In other words, international marketing consists of the principles of developing strategies and tactics to achieve the goals of foreign economic activity of the enterprise and the state (profit, social efficiency) and guidelines for their implementation. In other words, if foreign economic activity is a form, international marketing is a theory and means of achieving its content, essence and ultimate goal. Hence, the evolution of international marketing is also closely linked to the stages of development of the world economy and the world market, the changes in them. Therefore, international marketing is based on the relations of internationalization and globalization in the world economy, national business networks of foreign countries, the requirements of international trade development and the concept of penetration into international markets.
Given that the main factor in the development of international marketing is the process of globalization in the current context, the use of strategies to improve and develop all areas of human activity: economics, politics, social sphere, science, culture, education, environment and security, is effective. The following socioeconomic factors contribute to the development of globalization:
• finding ways to reduce international business costs;
• increased competition in world markets;
• development of economic relations between the countries;
• increase in the number of global companies;
• scientific and technical:
• creation of a new communication system and materials;
• globalization of information channels and means of communication;
• new high-speed transport system;
• political:
• intensification of international relations and political negotiations, international meetings and conferences;
• strengthening political cooperation between the countries;
• legal;
• Reduction of tariffs and other international trade restrictions by GATT;
• Commencement of the World Trade Organization;
• socio-cultural;
• standardization of consumer tastes and desires;
• development of human and cultural ties;
• development of relations in education and science;
• tourism development;
• the importance and effectiveness of globalization means an increase in direct investment;
• use of high-tech innovations;
• it can be said that the rapid growth of sales of services is affected.
A look at the tools used suggests that there is no difference between domestic (national) and international marketing, but international marketing is characterized by the need for more information on the characteristics of the international external environment and the difficulty of collecting them, the greater the risk for doing business abroad.
In defining the goals of international marketing, the analysis of the important factors that motivate the national enterprise to participate in the international division of labor requires finding specific answers to the following questions. Need to enter the international market? What are the goals (expansion of sales, acquisition of new resources, diversification of supply sources)? What are the prospects for the company and what are the risks? What country will enter the market? what strategies (brand movement, pricing, communication, sales and promotion) are introduced ?, enter the market independently as an importer or exporter, or with the help of an experienced
partner? In order to have a small international marketing concept in a selected market, an enterprise must find answers to these questions based on prior marketing research.
Current scientific and technological progress requires the specialization of world markets, the standardization of goods and services offered in them, as well as the creation of opportunities for the widespread use of information technology and telecommunications in the sales process. As a result, most markets are global in nature, with national countries not only confined to their territories, but also becoming segments of world markets with partners. Sales agents are no longer just sellers or buyers or intermediaries, but perform universal functions. This means that every business must make sure that it is an important task to use its own international marketing concept when entering the global market.
International marketing research depends on the demands, needs and decisions of international business entrepreneurs. This is because in a very complex competitive environment in the world market, it is impossible to start an international business without a thorough analysis of the conditions, without conducting research in the right direction and studying the results.
International marketing research consists of the stages of problem statement, defining the method of marketing research, collecting indicators, analyzing and evaluating information, summarizing the results, and preparing a report.
Such a deep understanding of the global structure of demand in the world market, the ability to sense changes in it and shape them in the right direction is the key to achieving high-level market success in the world.
Factors influencing the entry of companies from developed countries into foreign markets are: the speed of entry into the market; straight and curved costs; Possibility to apply the legislation in foreign markets; level of business risk; payback period of the investment; obligations to its partners (agents, distributors), etc.
The main normative indicators for entering the selected target market are: the size of the international business of the company, the geography of market capture, the volume of sales of goods and assets in the market, the nature of the goods (industrial goods, consumer goods, valuable or cheap, etc.) and is the level of competition.
In international markets, firms use the following strategies.
As a result of the expansion of activities in the field of international marketing, including the diversity of strategies for entering the international market, the competitive environment is growing globally. In this regard, many companies, including free economic zones, are using international marketing strategies.
International marketing strategies in free economic zones are based on the following approaches:
• market segmentation;
• selection of target markets;
• finding ways for the firm to enter the market;
• selection and application of marketing tools and methods;
• determine the time of entry into the market.
Based on market segmentation, each element of the international market is identified from buyers, regions and countries with different product groups, behaviors and requirements.
The following strategies are also used to strengthen the position of free economic zones in the international market:
1. "Old market - old product" (deep penetration strategy). Firms operating in free economic zones are able to increase their market share, reduce production and transaction costs, intensify advertising, change goals, as well as expand the use of manufactured products.
It outlines 5 key conditions for the successful implementation of a deep market penetration strategy.
Table 1
Cone litions for effective use of the strategy
Circumstances of strategy implementation Contents
Situation 1 When existing products in a free economic zone do not reach the level of market coverage - the source of growth is distribution and target audience coverage.
Situation 2 It is possible to increase the share of existing consumers in the free economic zone.
Situation 3 Due to the competitiveness of the products of the free economic zone, it is possible to obtain market share from other sources.
Situation 4 The existing economic scale of the free economic zone
Situation 5 The free economic zone has a high level of investment
2. "New market - old product" (strategy to expand the boundaries of the market). The strategy envisages intensification of entrepreneurial activity through the acquisition of new international markets. In addition to new geographical markets, new market segments are constantly being sought, i.e. the expansion and deepening of consumer groups of this commodity.
To implement this strategy, highlight the following situations:
Table 2
Conditions for effective use of the strategy
Circumstances of strategy implementation Contents
Situation 1 Firms operating in free economic zones are able to enter new markets through successful experience in existing activities: when a free economic zone has a unique product, unique technology, unique
construction and business, and so on.
Situation 2 New markets are unsaturated, barriers to entry are low, and there is unmet demand in the new market in an area where the enterprise has succeeded.
Situation 3 New markets have high growth rates.
Situation 4 The company has additional capital to develop and strengthen the free economic zone in new markets.
3. "Old market - new product" (strategy for the production of new goods) - the development, development, expansion of the range of qualitatively new goods for this market, modification of goods and introduction of new goods on the market, reduction of prices, sale of better quality goods at the same price , additional guarantee to the customer, consumer credit, additional free services and other methods of sales promotion, using direct and covert forms of competition.
The product development strategy is to expand the novelty associated with the current product as a result of deepening the maximum current range. If the new product can completely replace the existing product, ensuring sales growth and profitability, then the profitability of new product production will be high.
Table 3
Conditions for effective use of the strategy
Circumstances of strategy implementation Contents
Situation 1 If the success of the free economic zone industry depends on innovation and constant supply of new products.
Situation 2 If the existing commodity in the free economic zone is in the maturity stage of its life cycle.
Situation 3 In the fierce competition of competitors in the free economic zone
Situation 4 When a free economic zone starts a new type of activity related to a new commodity.
4. "New product - a new market" (diversification strategy). It is the most common marketing strategy, with active mobilization from the management and staff of the free economic zone, as well as large investments. The search for new products in new regions, their types and models, new markets where there is a demand for a new range of goods, as well as the search for new segments in which there is a demand for new goods in the old market.
Such a strategy is implemented by firms rich in production resources that are sufficient to produce a new product and sell it in a market that is not occupied by competitive free economic zones. If a free economic zone intends to gain leadership in a segment of the international market, such a strategy is called single-segment
centralization. If a free economic zone wants to succeed in multiple segments of the international market, such a strategy is called multi-segment centralization.
Conclusion
Based on the results of our research, the following main conclusions were drawn:
1. International marketing strategies are to use the opportunities and resources of free economic zones in the most optimal way, taking into account the situation on the international market. International marketing strategies are based on the goals of free economic zones, the fulfillment of the tasks set by the manufacturers on a separate international market and for each product. International marketing strategies are formed in order to carry out production and commercial activities in full compliance with the international market situation and the capabilities of the enterprise.
2. Most free economic zone strategies pursue growth goals: growth in trade volume, market share, income or size of the free economic zone. Growth is a factor that influences the activities of the free economic zone, stimulates its initiative and strengthens the motivation of the community and the leadership of the free economic zone.
Growth goals are expressed at three different levels:
growth relative to the main market; we call this intensive growth;
Growth in the production chain, "forward" or "backward" integration in relation to the main activity, is integrative growth.
Growth based on opportunities outside the normal area of activity: growth through diversification.
3. The "Product-Market" strategy is aimed at the entry of the free economic zone into new markets and the development of new products. This strategy is formed depending on the capabilities of the free economic zone, products, markets, competitive situation, consumers and the direction of activity. The main thing is that the free economic zone develops international marketing strategies on its resources and emerging industries.
This strategy involves the development of a strategy in response to market and brand renewal. The starting point is the difference between the real and planned development of a free economic zone. This means that the goal of a free economic zone cannot be achieved using the previous strategy. The goal is either necessary to fix it or to find a new strategic path.
4. Expansion of the production portfolio of the free economic zone in the framework of the "Product-Market" strategy, in particular, the production of new industrial products.
References
1. Decree of the President of the Republic of Uzbekistan No. PF-60 of January 28, 2022 "On the development strategy of the new Uzbekistan for 2022-2026" // www.lex.uz
2. Resolution of the President of the Republic of Uzbekistan No. PP-99 of January 24, 2022 "On measures to create an effective system for the development of production and expansion of industrial cooperation in the Republic" // www.lex.uz
3. Avdokushin E.F. Free (special) economic zones. M. 1993.S-124.
4. Adrianov V.D. Special economic zones. ECO magazine, 1997, (No.3)
5. Baraga H.C. Prospects for Free Zones Under FTAA // Paper presented at the Integration in the Americas Conference, Latin American and Iberian Institute, University of New Mexico, 02 April 2006.
6. Druzik Ya.S. Free economic zones. M.: FUAinform, 1999.
7. McCalla R.J. The Geographical Spread of Free Zones Associated with Ports //Geoforum 21 (1) (1990): 123-128.
8. Guangwen M. The Theory and Practice of Free Economic Zones: A Case Study of Tianjin, People's Republic of China // Doctoral Thesis, Ruprecht-Karls University of Heidelberg, Germany, 2003.
9. Ignatov V.G., Butov V.I. Free economic zones. - M.:Os-89, 1997.
10. Kuznetsov Yu.I. Free zones and national economy. Moscow: Bustard, 1998
11. Dobrogonov F., Farole T. An economic integration zone for the East African community: exploiting regional potential and addressing commitment challenges. World bank policy research working paper 5967. Washington, DC: World Bank.
12. Chernenko N.V. Free economic zones in the world economy // Vestnik BSEU, 1998.
13. Chernenko N.V. Free economic zones in the world economy.//Vestnik Bel.GEU. - 1998.
14. Fedotova O.V. and Tabekina O.A., International Marketing. Textbook, NGASU, 2012, p. 6
15. https://mift.uz
