Marketing Mechanism for the Adaptation of Ukrainian Enterprises to Wartime Conditions Amid Geopolitical and Economic Challenges

Abstract

This study examines the development of a marketing mechanism to support the adaptation of Ukrainian enterprises in the face of geopolitical and economic challenges. It is argued that wartime conditions and geopolitical instability significantly affect business operations, particularly in areas such as sales, production, raw material supply, logistics, and other critical processes. The research demonstrates that the formulation of adaptive marketing strategies and mechanisms enables enterprises to maintain competitiveness during crisis periods. Developing and implementing marketing adaptation mechanisms is identified as a key success factor for Ukrainian businesses operating under extreme conditions of war and geopolitical uncertainty.

The study highlights that implementing modern methods of marketing adaptation requires acknowledging that contemporary businesses are subject to constant transformation due to rapid changes in the economic environment. Globalization, technological advancements, shifts in consumer demand and competition, and the need to adapt to wartime realities amid geopolitical and economic upheavals represent only a few of the challenges enterprises face. Accordingly, the study focuses on the rationale for adopting modern marketing adaptation methods. These include market analysis, attracting new customers, retaining and expanding existing customer bases, developing optimal strategies to respond to economic difficulties using marketing approaches, adaptive models that account for rapid changes in consumer behavior and psychological triggers under crisis conditions, building logistics management systems, and identifying key success factors for enterprise adaptation in times of economic distress.

The findings conclude that the war in Ukraine has led to a decline in investment and consumer demand. Manufacturers face limited access to international markets due to export restrictions, disrupted supply chains, and other trade barriers. Security costs for personnel and facilities have increased amid the intensifying conflict, and military actions often result in damage or loss of equipment and infrastructure. Companies located in frontline regions have been especially affected, with many forced to relocate to host communities during the war.

It is argued that an effective marketing-based resource management mechanism is a crucial component of a successful marketing strategy. This mechanism involves the optimal use of a company’s financial, human, and material resources. Therefore, it is recommended that companies take into account market needs, the competitive landscape, and internal capacities and constraints to identify the most strategically important markets for achieving business goals and allocate resources accordingly.

The study explores the methodology of Target Market Analysis (TAM), which offers deeper insights into the market and allows companies to make data-driven decisions aligned with their specific growth objectives. TAM helps businesses understand the total market size, identify opportunities for specific products, and assess how best to capture value within their target segments. A clear understanding of one’s target market is vital for making strategic decisions and setting priorities in a competitive business environment.

A conceptual perspective is proposed on the marketing mechanism for retaining existing customers while acquiring new ones. This dual strategy involves maintaining loyalty among the current customer base through loyalty programs, discounts, and personalized services, while also implementing initiatives to attract new clients. The comprehensive application of these strategies can significantly enhance a company's success by ensuring a steady flow of customers and increasing its profitability. Another key advantage is the improvement of customer loyalty to the brand, especially under conditions of economic instability.

An assessment of commodity markets in Ukraine most affected during the war has made it possible to better understand supply and demand dynamics, and the competitive landscape, and to analyze and develop strategic pathways for enterprises producing products within commodity group 72 – “Iron and Steel.” The application of a marketing adaptation mechanism enabled the formulation of recommendations for Ukrainian enterprises on how to adjust their products under complex and unstable conditions, thereby ensuring competitiveness and resilience in times of military conflict and geopolitical tensions.

Based on the analysis of export dynamics for the metallurgical industry (commodity group 72 – “Iron and Steel”) in Ukraine from 2020 to 2024, it is concluded that the war had a profoundly negative impact on foreign economic activity. While 2021 marked the peak in exports for this commodity group, a sharp decline followed due to the war and other geopolitical and economic disruptions, including logistical breakdowns and the blockade of seaports. However, signs of stabilization emerged in 2024. Ukrainian exports demonstrated notable flexibility: a decrease in exports of iron and steel to certain countries was offset by growth in others, such as Moldova, Slovenia, and Greece.

An evaluation of market convergence was carried out for potential export destinations including China, Mexico, India, South Korea, Belgium, France, Vietnam, Spain, Thailand, and Indonesia. The analysis revealed similarities in business environments, which may be beneficial for Ukrainian industrial enterprises exporting iron and steel products. Among these, Belgium, France, and Spain were identified as the most promising markets due to their relative geographic proximity, high-quality infrastructure, trade openness, and political stability. The study emphasizes the importance of systematically accounting for current logistical constraints and actively seeking alternative export routes, considering the blockade of Black Sea ports and the destruction of transport infrastructure. Logistics flexibility is deemed a key factor for restoring export volumes of commodity group 72 – “Iron and Steel” in 2025.

The findings of this study will support the adaptation of Ukrainian enterprises to wartime conditions amid geopolitical and economic challenges, helping them avoid missing timely opportunities to access new international markets.

Keywords: marketing mechanism, geopolitical challenges, economic challenges, logistics, adaptive marketing strategies, competitiveness, consumer demand, competition, logistics management, international markets, export restrictions, disrupted supply chains, trade barriers, logistics, trade barriers, resource management, allocate resources, Target Market Analysis (TAM), Iron and Steel, marketing adaptation mechanism, foreign economic activity of enterprises, exports, market convergence, trade openness, political stability, logistical constraints, transport infrastructure, Logistics flexibility, logistics potential of enterprises.