Marketing of territories is focused on changing the image of the territory, which makes it more attractive and attractive both for individuals and for commercial and non-commercial companies in terms of investment.
Historical aspect
The emergence and active development of regional marketing in the Russian Federation is associated with the reform of local self-government, which began in our state back in 1993, from the moment the Constitution of Russia was adopted. In Russian practice, there are only a few areas for the development of territorial marketing. This is due to the fact that this trend is a new tool for managing objects at the macro level for our state, its theoretical and methodological bases have not yet been developed.
The proposal to study the region as a product that has its own value and usefulness was made by almost all Russian and foreign founders from the position of marketing. This is where the concept of territory marketing came from. The aim of this direction isexploration and attraction of buyers to the region. The main objectives of such marketing can be: the formation and improvement of the style and image, the prestige of the area, its competitiveness, increasing the importance in various development programs at the local and national levels, attracting Russian and foreign investors to the region, increasing investment attractiveness, encouraging the consumption of internal resources in the country and beyond.
Concept and purpose
The concept of territorial marketing implies a special type of managerial work, marketing work in the interests of the region.
Marketing of territories can be represented as a commercial, political, social and other activity based on the principles of marketing, carried out in order to create, maintain or change the attitude of certain individuals and companies towards a certain region, changing the style of these places.
The concept of territorial marketing involves the full improvement of the area based on three main purposes:
- territory as a place of residence;
- region as a recreation area (natural environment);
- district as a place of management (investment, production, mining and processing).
Goal setting
The main goal of territorial marketing can be called orientation to:
- creation and support of style, prestige of the region;
- increasing the profitability of budgetary funds;
- Changing the investment climate in the region
- realization of potential;
- attracting non-material resources to the region (labor, mental);
- implementation of social local programs.
The territory marketing doctrine can be applied to a geographical region (Ural region), political (country, city) or tourist place within the established boundaries.
Basic organization
The Territorial Marketing Concept Includes:
- Branding the region.
- Public Relations.
- Promotion.
- Personnel marketing.
- Event Marketing.
- Marketing infrastructure projects.
What does territorial marketing imply? The government, entrepreneurs, non-profit organizations in this case are the object of its influence.
Local marketing and place branding was pioneered by Simon Anholt in 2002.
As an indicator of such marketing, he defined the existence of the attractiveness of the territory, which can be assessed as the ratio of the growth rate of the gross product in this region to the growth rate of the country as a whole, which includes the region as a territorial, infrastructural, political unit.
Marketing of a territory focuses on motives and goals, on the benefits that entrepreneurs and other objects receive in the region if they are active in it in terms of management, as well as on reducing costs, eliminating obstacles to working in the region.
The target orientation of such marketing isattractiveness, prestige of the territory in general, living conditions and economic activity, the attractiveness of natural, material, technical, monetary, labor, organizational, social and other resources concentrated in the region, as well as the possibility of implementing and using such resources.
In order to fulfill its own target orientation, this marketing forms complexes of various measures that provide:
- shaping and improving the style of the district, its prestige, business and social competitiveness;
- participation of the territory in the implementation of interstate, national and local programs;
- attract municipal and other orders;
- increase investment attractiveness.
The territory marketing process consists of the following steps:
- audit of marketing potential;
- justification and formulation of marketing tactics;
- assessment of the current style and selection of tools for its promotion;
- development of multifunctional advertising and marketing strategies;
- work with the target audience;
- tactics for implementing marketing programs.
Object and subject
Objects of Territorial Marketing - Territory Management and Regional Competitiveness.
The subjects of territory marketing are divided into internal and external. They are, to one degree or another, potential users and investors of this region. These main actorsterritorial marketing are able to influence its dynamics and trends, creating attractiveness.
External organizations that are outside the boundaries of this area have an interest in its development because they want to receive financial benefits (resources, labor, monetary assets), without linking them to the well-being of these places. They often do not take part in shaping their own attractiveness of a given territory and shaping its image. Their functioning in the selected area is determined by the factors that attract them, allowing them to embody their investment interests.
The subjects of territorial marketing are the internal inhabitants living there. They associate their personal benefits with the well-being of their own “little homeland”. These domestic investors actively promote the territory and influence its attractiveness. The leading goal of such advertising campaigns is to create, support or change ideas, goals about the region with the aim of attracting investment.
Basics of Territorial Marketing Management
The main elements of the territory marketing mix, in accordance with the concept of conventional marketing (4P mix), are cost, product, promotion and distribution.
The main elements of the territorial marketing organization are as follows:
- product;
- cost of the territorial product;
- product location and distribution;
- stimulating the promotion of the territory.
Indicators of the region's consumer research, whichact as subjects of such marketing, are reflected in the research work of modern foreign and Russian scientists. More generally, users are divided into groups such as:
- residents and non-residents;
- individuals and organizations;
- residents, business partners and guests.
For residents it is important to have a high standard of living; for non-residents, the conditions of nature and climate, the state of flora and fauna, as well as the development of industry, leisure and entertainment are of primary importance.
At the same time, non-residents can be classified by the length of stay in this territory, by profession, etc. Can be classified by legal status: individuals and organizations (legal entities).
The most significant indicator of the development of territorial marketing is social responsibility - an important part of the reputation of the region.
In society, the expectations of social contribution to the area are quite high:
- ensure public safety;
- pursuing an effective socially oriented policy;
- implementation of relevant and existing social programs;
- ensure environmentally friendly conditions.
Important elements of the image of the region are the reputation of the leadership, social responsibility, as well as financial and economic characteristics.
To form, develop and maintain a positive image of the territory, the concept of responsibility of local government is mainly used, which is directly responsible for the development of the municipality as a whole. At the same time, the social development of the territory, despite the fact that it has relative autonomy, is determined in almost everything by the resource potential, which, in turn, depends on the degree of financial development.
Territory Marketing Tools
The main tools of territorial marketing are:
- branding implementation;
- active and effective promotion;
- public relations;
- event marketing;
- marketing staff;
- projects of marketing infrastructure facilities.
The main indicator of the productivity of place marketing is the increase in territorial attractiveness. Such attractiveness can be assessed as the ratio of the growth rate of the local gross domestic product to the gross domestic product of the state.
Directions for stimulating the promotion of the territorial product
Promotion is a set of measures that have been aimed at providing information about the benefits of the product to potential users and encouraging them to purchase.
Promotion of a territorial product provides opportunities for increasing awareness of the territory, creates its attractiveness and the attractiveness of the resources concentrated here. The main goal is to form a positive image of the territory based on the historically established positive qualities of the region or on the basis of the characteristic features of this territory. It is fundamental to achieve a significant effect of communications, in other words, changes in the knowledge, attitude and behavior of the recipient of information.
The main communication tools are:
- advertising;
- personal implementations that drive demand;
- organization of public opinion;
- direct marketing.
Advertising can use the entire arsenal of known media: newspapers, media, television, radio, mailing, transport advertising, etc.
Types of territorial marketing involve solving three main tasks:
- obtaining information about the territory and the product and forming on this basis the necessary knowledge about the criteria for living and working in the territory;
- persuading decision makers to purchase a territory product to prefer the product offered, in other words, activating powerful incentives for users to buy;
- reminding customers about the territorial product, maintaining awareness of the territory and positive impressions, including for those who have already preferred this territory, for example, before visiting it as a tourist.
In the process of conducting a marketing campaign, you need to create a suitable style (image) or make the attitude to the territory better, in other words, conduct advertising aimed at displaying the entire territory as a whole.
Marketing souvenirs and gifts can be called the principal means of advertising. They contain official and unofficial signs of the territory.
Personal (personal) selling is personal andtwo-way communication to encourage the client to take immediate action. An example is the creation of a representative office of one subject of the Federation on the territory of another, whose employees personally provide information to interested parties about the possibilities and criteria for interaction between regions.
Personal implementations of the territorial product are carried out by parliamentarians when they present and defend social and commercial projects of their own territories, thereby trying to attract more budgetary and other resources to their territory. A deputy, a politician is trying to ensure the success of the development of the territory on his own.
Employees of executive authorities conduct personal sales while preparing an investment platform for investors. They themselves act as initiators of business meetings, ready to adapt their offer, respond to the wishes of a potential investor. The work in this case is based on the principles of relationship marketing, when the main task is to solve the issues and problems of the client-investor.
Promotion activities involve increasing, accelerating and intensifying the reaction of buyers of a territorial product through the use of various means of stimulating action. Incentive methods in such marketing can be used to solve various problems: attracting new customers, increasing the number of repeat purchases, increasing the intensity of product use, bringing new characteristics of the territory to the market.
The following tools can be used:
- conducting fieldexhibitions, fairs;
- programs to support investors (possible buyers of the territory's resources) in which the region is interested;
- holding presentations of settlements ready to receive migrants;
- holding competitions for the development of investment zones of the territory with the winner, who receives special conditions for development in the territory and other funds.
Organization of the opinion of the population as one of the parts of promotion in such marketing can be presented as an activity to create an appropriate attitude of the general public towards the territory and its products, the formation of a positive style and image of the territory. At the same time, the organization of public opinion contains three elements:
- organization of public relations and public relations;
- activities to promote and create the success of the territory and its territorial product with the publication of reviews in the press on a non-commercial basis;
- informing own customers and partners (existing and potential) about their news;
- carrying out targeted campaigning for income and benefits.
Direct marketing involves a direct continuous communication between the merchant and the buyer through special means of communication. It is focused on getting a specific response or making a purchase. Territory marketing can mainly apply online marketing, which allows you to use computer network channels and carry out advertising activities through the Internet, email, online commercial channels.
Developing a plan
Marketing of territories allows clients to develop and implement a set of activities with the introduction of a system of main strategies and their tools. They aim to make the best use of the region's existing resources.
Territory marketers define their own special characteristics, disseminate data and information about competitive advantages to the most important interested buyers. Thus, the improvement of the development paths of the territory is ensured.
To present a territorial object advantageously, you need to find:
- which individuals and companies will decide on the choice of region;
- what aspects do they use;
- what patterns, methods, ways and influences these people and companies use when making decisions.
The territory marketing tactic further implies the development of an action plan and activities as the next step.
Since the entities interested in promoting the territory (these are power structures, development agencies, sports centers, travel companies, trading houses and other organizations) have different requirements for potential consumers, the development and implementation of the plan should be comprehensive. This plan should not only include benefits for investors, but for other parties too.
Classification
In several publications on this type of marketing there are different interpretations of the essence of territorial marketing. Hence the inconsistencies in the essential content of thisterm, and even in its target orientation. For example, some scientists who study territorial issues think that such marketing is marketing at the local level, which reflects and takes into account the specifics and individuality of a certain region. The rest note that the marketing of the territory is designed to improve its style, attract industrialists, investors.
Distinguishable:
- the object of territorial marketing is the territory as a whole, produced both inside and outside it;
- marketing in the territory, the object of which is the relationship regarding certain goods, services that are produced in this territory.
Shaping strategies
There are several effective location marketing strategies to highlight, including:
- Image marketing. This strategy is focused on creating a positive style of the area and its public recognition and dissemination. In this case, it is necessary to organize communication activities that will help demonstrate the merits of the territory to external subjects, as well as show that a certain territory is open to new contacts. The dissemination of information and competent propaganda will contribute to the formation of a positive style.
- Attraction marketing. To increase the attractiveness of the territory, it is necessary to make different accents, including climatic features and geographical location, financial development,architecture and landmarks, as well as history, medicine, tourism, leisure and recreation. The development of appropriate features of the territory will increase the competitiveness of the region.
- Infrastructural marketing. This strategy allows you to increase the attractiveness of the business. In this case, you need to focus on the highest level of market relations, as well as focus on entrepreneurs. The individuality of marketing work will depend on the type of business, including financial, scientific, construction, information, agricultural, etc.
- Marketing staff and residents. The strategy is focused on increasing the attractiveness of the place for personnel of a certain qualification, specialization and profile, as well as for different categories of people. This should encourage education, personal security, employment potential, improved living conditions, and more.
With the help of such marketing, in a short period of time, you can increase the prestige of a certain territory, as well as the attractiveness of various resources: natural, monetary, social, material and technical, and others.
Efficiency of marketing activities in the territory
Is it possible to find a strategy and stick to it for a long period of time in relation to the territory? This is hardly appropriate in Russia today.
Marketing of the attractiveness of the territory is carried out in a complex and sequential manner, taking into account not only the present potential of attractiveness, but also the available financial, social and other opportunities in the future.
Ifthe complex of infrastructure facilities is strong, then a comprehensive program for the development of the local territory is being developed, competitive qualities and characteristics of the territory appear, and social satisfaction of residents is ensured.
However, if the complex of infrastructure facilities of the territory is weak and not financially presentable for investors and entrepreneurs, then this will entail a lack of financial resources to improve and develop the local entity and achieve success.
In this case, it is better to start with simple technologies: identify competitive advantages and select target buyers in the region. As a result, a more interesting complex of infrastructural objects is gradually formed. However, there is another option - you can combine the efforts of several regions with different potential and level of development.
An example of marketing the territory of the Arkhangelsk region
Let's consider territorial marketing and an example of its formation in the Arkhangelsk region.
Recently, a lot of questions have been raised on the development of the Arctic as a little-studied space with the richest opportunities and resources. But the study of the territory is difficult due to the complexities of the climatic nature. But not everyone thinks so. Many are convinced that it is just necessary to find a qualitative approach to development issues, and the Arctic will submit. This is exactly what Igor Orlov, the governor of the Arkhangelsk region, is a staunch supporter of the development of the Arctic horizons within his region.
Governor of the Arkhangelsk regionargues that Arkhangelsk today is the best place for Russian and international cooperation on the development of the Arctic. This is related to two things. First, a historical moment. For almost four centuries in a row, the capital of the White Sea region has shown its best side as a reliable platform for negotiations, contacts, dialogues, projects at the internal and external (international) levels. Secondly, today the city of Arkhangelsk has a developed, active business environment. This is where the Arctic begins. This is the source.
An example of the marketing of this territory can be the event "The Arctic - Territory of Dialogue", which is of an international nature. It is traditionally attended by the heads of different states and well-known representatives of the scientific community. The governor is trying to convey to them the idea of the role of the city in the development of the Arctic. This forum has been held in our country since 2010 on the initiative of the President of the Russian Federation V. Putin. The event is a territory for constructive dialogue on the peaceful use of the resource and economic potential of the Arctic. And since 2017, by order of the Government of the Russian Federation, such an event will be held in Arkhangelsk once every two years. Every time it is the biggest business event. At the moment, the city and the region are preparing to hold such an event on April 9-10, 2019.
Conclusion
Thus, territory marketing is an ongoing process involving all stakeholders at various administrative levels. Marketingterritory should be focused on the financial strengthening of the territory or region. The basis of this strengthening is sustainable economic growth and the local economy.
On a global scale, territory marketing is an extremely widespread practice both at the level of certain territories and states, at the level of individual countries.
