Regional Marketing
Regional Marketing (RM) can be used to increase the competitiveness and investment attractiveness of a region.
What is the definition of Regional Marketing?
RM is an umbrella term for the geographic segmentation / marketing effort and processes in which various (marketing) instruments are used to strengthen the economy, image, and identity of some defined region.
RM is subject to the involvement of the stakeholders of a region. Integration is typically a substantial part of most RM programs. Thus, RM programs should not be viewed as a process carried by local government institutions, but also by private interest groups and/or public-private partnerships.
Potential Participants in Regional Marketing
- Representatives of the local administration and government
- Representatives of the chamber of commerce
- Regional planners
- Representatives of financial institutions
- Representatives of regional associations
- Representatives of educational institutions
- Representatives of citizens' action committees
- External consultants
Because it requires at all its planning stages direct involvement of citizens, business groups and external parties, RM can be an effective mechanism for the development and implementation of regional socio-economic programs and for ensuring the coordination of the interests of market subjects.
Elements of RM
• The formation of innovative and investment attractiveness of the region;
• The formation of a positive external and internal image of the region;
• Setting attractive incentives for the current and potential investors;
• Promoting the region's values and images so that potential users are fully aware of the region's distinctive advantages;
• Designing the right mix of community features and services;
• Delivering a region's “products” and services in an efficient and accessible way.
Principles of RM Programs
- Promotion of the region as a place for various projects, based on knowledge and forecasting of the needs of the economy, the current situation and opportunities of the region;
- An effective solution to the problems of the region’s economy;
- Focus on long-term sustainable development;
- Influence on the formation of needs and behavior of subjects on the investment market.
4 Areas of Regional Marketing are: image marketing, attractiveness marketing, infrastructure marketing and marketing of the population and personnel.
- The main purpose of image marketing is the formation, development, and promotion of a positive image of the region. This type of marketing is the most inexpensive, in terms of costs of various resources. Strategies and programs that are being developed as part of image marketing are not aimed at changing the infrastructure of the region, rather, they concentrate on improving the communication aspects, highlighting and promoting the existing advantages of the region.
- Attractiveness marketing includes strategies and programs that increase the attractiveness of the region for consumers. Events in the framework of attractiveness marketing are aimed at the development of special features of the region that create competitive advantages for it among other regions. For example, public events such as festivals are aimed at preserving, reviving and disseminating information about historical and architectural objects.
- Infrastructure marketing is the most important and, in the long run, the most stabilizing element of marketing in the region since the infrastructure is the foundation of its attractiveness. Often, this means reliable energy supply, developed communications, good transport connections, the availability of modern airports, hotels, roads and security in the streets of cities.
- Marketing of the population, personnel for the development of the region, each region can choose its own strategy, which is responsive to its features. So, areas with low employment and cheap labor can put this circumstance to attract investors in order to create new jobs.
References:
1. Yuliia Shapoval (2017), "The marketing role in improving the competitiveness of the region", Baltic Journal of Economic Studies. Vol. 3, No. 4, pp. 289-293.
2. Starostina, A.O., Martov, S.E. (2004), "Regional Marketing: Content and Features in Ukraine", Vol. 3, pp. 55–57
