Territory marketing is focused on changing the image of the territory, which makes it more attractive and attractive both for individuals and for commercial and non-profit companies in terms of investment.
Historical aspect
The emergence and active development of marketing of regions in the Russian Federation is associated with the reform of local self-government, which began in our state 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 current is a new tool for managing facilities at the macro level for our state, its theoretical and methodological bases have not yet been developed.
Almost all Russian and foreign founders made a proposal to study the region as a product that has its value and usefulness from a marketing standpoint. Hence the concept of territorial marketing. The purpose of this area is the exploration and attraction of customers in the region. The main objectives of such marketing can be: the formation and improvement of the style and image, the prestige of the region, its competitiveness, the increase of significance in various development programs at the local and national levels, the attraction of Russian and foreign investors to the region, the increase of investment attractiveness, the promotion of the consumption of domestic resources in 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.
Territory marketing can be represented as commercial, political, social and other activities, which are based on the principles of marketing, carried out in order to create, maintain or change the attitude of certain individuals and companies to a certain region, changing the style of these places.
The concept of territorial marketing implies a complete improvement of the district on the basis of 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 statement
The main goal of territorial marketing can be called focusing on:
- creation and support of the style, prestige of the region;
- increase the profitability of budgetary funds;
- changing investment climate in the region
- realization of potential;
- attracting intangible resources to the region (labor, mental);
- implementation of local social programs.
The doctrine of marketing of territories can be applied in relation to a geographical region (Ural region), political (country, city) or tourist place within the established boundaries.
Organization Basics
The concept of territorial marketing includes:
- Branding a region.
- Public relations.
- Promotion
- Marketing staff.
- Event marketing.
- Projects of marketing infrastructure facilities.
What does territorial marketing mean? The government, entrepreneurs, non-profit organizations in this case are the object of its influence.
Territorial marketing and branding of the place was first applied by Simon Anholt in 2002.
As an indicator of such marketing, he determined the existence of the attractiveness of the territory, which can be estimated as the ratio of the growth rate of the gross product in this region to the growth rates of the whole country, which includes the district as a territorial, infrastructural, political unit.
Territory marketing focuses on the motives and goals, on the benefits that entrepreneurs and other objects receive in the region if they are active in it in terms of managing, as well as on reducing costs, eliminating obstacles to working in the region.
The target orientation of such marketing is the attractiveness, 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 different measures that provide:
- the formation and improvement of the style of the district, its prestige, business and social competitiveness;
- participation of the territory in the implementation of interstate, national and local programs;
- attraction of municipal and other orders;
- increase the attractiveness of investments.
The territory marketing process consists of the following steps:
- audit of marketing potential;
- substantiation 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 of marketing programs.
Object and subject
The objects of territorial marketing are territorial management and regional competitiveness.
Territory marketing subjects are divided into internal and external. To one degree or another, they are potential users and investors of this region. These main subjects of territorial marketing are able to influence its dynamics and trends, creating attractiveness.
External organizations that are located outside the boundaries of this region have an interest in its development because they want to receive financial benefits (resources, labor, financial assets) without linking them to the welfare of these places. They often do not participate in the formation of their own attractiveness of a given territory and the formation of 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 internal residents living there. They associate their personal benefits with the well-being of their own "little homeland." These domestic investors intensively promote the territory and influence its attractiveness. The leading goal of such advertising companies is the creation, support or change of ideas, goals about the region with the task of attracting investment.
Territorial Marketing Management Basics
The main elements of the territory marketing complex, in accordance with the concept of conventional marketing (4P complex), are cost, product, promotion and distribution.
The main elements of the organization of territorial marketing are as follows:
- product;
- cost of territorial product;
- location and distribution of the product;
- promotion of territory.
The research indicators of consumers in the region, which act as subjects of such marketing, are reflected in the research works 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, a high standard of living is essential; 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 duration of their stay in this territory, by profession, etc. It can be classified by legal status: individual and organization (legal entity).
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 district are quite high:
- ensuring public safety;
- pursuing effective socially oriented policies;
- implementation of relevant and current social programs;
- ensuring environmentally friendly conditions.
Important elements of the image of the region are the leadership's reputation, social responsibility, and also financial and economic characteristics.
For the formation, development and maintenance of a positive image of the territory, the concept of responsibility of local self-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, for its part, depends on the degree of financial development.
Territory Marketing Tools
The main tools of territorial marketing are:
- branding introduction;
- active and effective promotion;
- public relations;
- event marketing;
- marketing staff;
- projects of marketing infrastructure facilities.
The main indicator of the productivity of marketing places is an increase in territorial attractiveness. Such attractiveness can be estimated as the ratio of the local gross product to the gross domestic product of the state.
Directions of stimulating the promotion of a territorial product
Promotion is a set of measures that were aimed at providing information about the benefits of a 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 attractiveness of resources concentrated here. The main goal is to create a positive image of the territory on the basis of historically established positive qualities of the region or on the basis of the characteristic features of this territory. It is important 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 sales that drive demand;
- organization of public opinion;
- direct marketing.
Advertising can use the whole arsenal of well-known means: newspapers, media, television, radio, mailing, transport advertising, etc.
Types of territorial marketing imply the solution of three main tasks:
- obtaining information about the territory and the product and the formation on this basis of the necessary knowledge about the criteria for life and work in the territory;
- the conviction of decision-makers on the acquisition of a territorial product in the preference of the proposed product, in other words, the activation of powerful incentives for users to purchase;
- 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.
The principal means of advertising can be called marketing souvenirs and gifts. They contain official and unofficial signs of the territory.
Personal (personal) sales - this is a personal and two-way communication in order to encourage the client to commit immediate acts. An example is the creation of a representative office of one subject of the Federation in 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 represent and defend the social and commercial projects of their own territories, thereby trying to attract more budget 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 bodies conduct personal sales when preparing an investment site for investors. They themselves are the 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 include increasing, accelerating and enhancing the reaction of buyers of a territorial product through the use of various means of stimulating action. Incentives 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 field exhibitions, fairs;
- support programs for investors (potential buyers of territory resources) in whose work the region is interested;
- holding presentations of settlements ready to receive migrants;
- holding competitions for the development of investment zones of the territory with a winner who receives special conditions for development in the territory and other funds.
The organization of the opinion of the population as one of the parts of the advancement in such marketing can be represented as the activity of creating an appropriate attitude of the general public to the territory and its products, creating a positive style and image of the territory. At the same time, the organization of the opinion of the population 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 clients and partners (available and possible) about their news;
- conducting targeted campaigns for income and benefits.
Direct marketing involves direct continuous communication between the merchant and the buyer using special means of communication. It is focused on receiving a specific answer or making a purchase. Territorial marketing can mainly apply online marketing, which allows you to use the channels of computer networks and conduct advertising through the Internet, email, commercial online channels.
Plan development
Territory marketing allows customers to develop and implement a set of measures with the introduction of a system of major key strategies and their tools. They are aimed at the best implementation of existing resources in the region.
Territorial marketing entities determine their particular characteristics, disseminate data and information on competitive advantages among the most important interested buyers. Thus, improving the development of the territory.
To profitably represent the territorial object, you need to find:
- which individuals and which companies will decide on the choice of region;
- what aspects do they use;
- what patterns, methods, methods and impacts do these people and companies use when making decisions.
Territory marketing tactics further implies the next step is the development of an action plan and measures.
Since entities interested in promoting the territory (these are government agencies, 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 as well.
Classification
Several publications on this type of marketing have different interpretations of the essence of territorial marketing. Hence the inconsistencies in the essential content of this term, and even in its target orientation. For example, some scholars who study territorial problems think that such marketing is local marketing, which reflects and takes into account the specificity and personality of a particular region. The rest note that the marketing of the territory is designed to make its style better, to attract industrialists and investors.
You can distinguish between:
- the object of territorial marketing is the territory as a whole, produced both inside and outside it;
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In this case, it is better to start with simple technologies: to identify competitive advantages and select target customers in the region. As a result, a more interesting complex of infrastructure facilities is uniformly formed. However, there is another option - it is possible to combine the efforts of several regions with different potential and level of development.
An example of marketing the territory of the Arkhangelsk region
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 rich capabilities and resources. But the study of the territory is difficult due to climatic difficulties. But not everyone thinks so. Many are convinced that we just need to find a quality approach to development issues, and the Arctic will submit. That is exactly what the governor of the Arkhangelsk region, Igor Orlov, is a staunch supporter of the development of Arctic horizons within his region.
The governor of the Arkhangelsk region claims that Arkhangelsk is today the best place for Russian and international cooperation on the development of the Arctic. This is due to two points. Firstly, a historical moment. For almost four centuries in a row, the capital of the White Sea has shown itself to be the best side as a reliable platform for negotiations, contacts, dialogs, 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 marketing this territory can be the event "Arctic Territory of Dialogue", which is international in nature. Traditionally, heads of various states and famous representatives of the scientific community take part in it. 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 at the initiative of Russian President V. Putin. The event is the territory of a constructive dialogue on the peaceful application 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. Each time it is a major business event. At the moment, the city and the region are preparing for such an event on April 9-10, 2019.
Conclusion
Thus, territory marketing is an ongoing process involving all stakeholders at various administrative levels. Territory marketing should be focused on financial strengthening of the territory or region. The basis of this strengthening is sustainable economic growth and the local economy.
Globally, territory marketing is an extremely common practice both at the level of some territories and states, at the level of individual countries.