International Journal - VALLIS AUREA • Volume 1 • Number 1 • Croatia, June 2015
UDK 339.146.4:332(497.2-21); DOI 10.2507.IJVA.1.1.11.11
Category: review paper
Tonkova Evgeniya
1
M
ARKETING
A
CTIVITIES FOR
D
EVELOPING THE
L
OCAL
P
OTENTIAL OF
M
UNICIPALITIES
Abstract:
Competitiveness of municipalities is a significant
factor for their future development. Financing
projects that concern the development of local
potential for improving their competitiveness
attract experts’ attention to effective use of local
resources, involvement of population and
business, as well as the innovative approaches in
managing the municipalities. Highly technological
marketing in the public sphere therefore, needs to
be viewed as a tool aimed not only at
communication and realization of municipal
services for population and business, but also as
an opportunity for generating ideas, stating
consumer interest in coming projects, registering
volunteering and implementing donation.
Local potential is a dynamic multi-dimensional
category which presupposes disaggregating and
further development in various sections. The
priorities of municipalities, their comparative
advantages, available resources and the support
from citizens and businesses are an important
landmark in developing local potential. Municipal
projects have to be publicly announced in order to
receive the support of the population and
business. The comparative advantages on the
territory of municipalities have to be used actively
and developed with the aim at designing a unique
identity for better market positioning. Available
resources are subject to registering and respective
use for achieving favorable direct and transfer
socio-economic effect.
Keywords:
regional marketing, local potential maps, local resources, innovative decisions
Author´s data:
1
Tonkova Evgeniya, Associate prof., Ph.D., Varna University of Economics, Faculty of Management, Marketing
Department, Varna, Bulgaria, evge@mbox.digsys.bg
International Journal - VALLIS AUREA • Volume 1 • Number 1 • Croatia, June 2015
UDK 339.146.4:332(497.2-21); DOI 10.2507.IJVA.1.1.11.11
120
Introduction
The development of territories nowadays is of
crucial importance for the market positioning of
regions and countries. The competitiveness of
settlements based on strategic and comparative
advantages is a key factor for the social and
economic development of the regions. The
economic, technological and political changes in
recent years have provoked the interest of
municipalities in developing local potential. The
efficient use of the resources on the territory of a
country, and, the other hand, the aggressive
marketing of locally produced products and
services, are a prerequisite for the generation and
promotion of the strategic advantages of the
territories.
For local development, single marketing at
company level does not have the potential of the
integrated marketing. Therefore, an important
task of municipalities is to develop a concept for
integrated marketing at local level and to create
conditions for its successful implementation.
Authors point at four important aspects of
territorial marketing strategies – image
marketing, locality’s attraction marketing,
infrastructure marketing and human marketing
[1]. A number of authors [2] have focused on the
importance of public marketing over the past
decade. The focus on public marketing includes,
first of all, marketing of administrative products
and services, and second, administration of
integrated marketing on the territory of a
municipality. Both aspects are of utmost
importance for the identification of local potential
and its determination and development. Research
in EU countries shows that new technology-based
companies [3] contribute to the growth potential
in the region. The experience of high-tech
companies, therefore, should be transferred to the
municipalities which administer projects of
exceptional importance to the population, the
business, tourists and other key audiences.
Local potential attracts research in different
disciplines. The study of the interdisciplinary
approach to its definition has the following
advantages:
•
Outlining of specific spheres of
development;
•
Identification of various metrics of
dimensioning;
•
Outlining of connections that are
essential to its use;
•
Possibility of looking for analogies within
the local market and the potential to generate
regional growth.
The importance of the issue about the role of
marketing for developing the potential of
municipalities presupposes more research
interest on behalf of marketing specialists for
creating innovative approaches and directing them
to solving current issues of municipalities and
increasing their competitiveness.
The aim of this article is to clarify the role of
marketing in managing municipalities and
presenting an innovative approach in developing
local potential with the opportunity for active
involvement of the population.
The role of marketing in the
governance of municipalities
The implementation of the marketing approach in
municipalities is an important step to achieve a
successful regional development. The various
aspects of using marketing towards the
development of the local potential determine its
consideration as a set of components, tools and
features designed to improve the conventional
indicators for municipal development. Despite the
connection that authors make between marketing
in the public sphere and political marketing [4]
the last decade has seen its development into
International Journal - VALLIS AUREA • Volume 1 • Number 1 • Croatia, June 2015
UDK 339.146.4:332(497.2-21); DOI 10.2507.IJVA.1.1.11.11
121
specific applications, formulated as public
marketing, region marketing [5], city marketing,
place marketing [6], territory marketing, social
marketing and other specific applications, e.g.
territory of origin marketing [7], etc.
The analyses that make part of the municipal
development plans should be marketing oriented,
and should include components of the macro and
micro marketing environment and those of the
respective municipality’s marketing mix. The
municipalities’ resources cannot be fully utilized
without a clear marketing orientation of their
management. It is therefore necessary to
highlight in the analytical part of the plans
strategic resources subject to marketing
development, key problems to be solved and future
development opportunities.
The marketing approach should be applied
also in the goal-setting of the municipal
development plans. The targeted positioning of the
municipality on a national or international level
could result to a great extent from marketing
activities. Setting goals on different component
indicators is a prerequisite for their change in a
more favourable direction. The development of
marketing strategies on the municipal level is an
important step in the utilization of the possibility
to generate additional revenue on and from the
territory and to achieve financial independence.
The integrated marketing strategies in partnership
with other actors are a prerequisite for increasing
the effectiveness of their implementation and the
dissemination of good practices of marketing
interaction. Integrated area marketing can be
used in any municipality that has been active in
benefiting from new market opportunities. Using a
variety of marketing tools for the development of
municipalities is a prerequisite for improving the
economic and social status. Particular emphasis
should be placed on low-cost marketing, whose
active application generates a positive effect on
the attractiveness of the municipality among
various target audiences. The marketing inclusion
of individuals and business entities on the
territory of the municipality contributes to
increasing activity, creativity and commitment in
the development of local potential. The high-tech
marketing, as a set of tools and channels allows
for the involvement of a wide range of individuals
who can contribute with ideas, support,
volunteering, sponsorship, etc., towards the
successful development of municipalities.
Unconventional marketing means are also of
interest in terms of their application in
municipalities.
Marketing programs developed at the
municipality level could be a significant factor for
the successful management of municipalities. For
example, the overall marketing program for
municipal development will enable the integration
of the various activities, their scheduling in time,
their co-ordination as well as the monitoring of the
direct and transfer impact. Integrated marketing
programs [8] such as programs to attract
investors in the municipality are a prerequisite for
the implementation of municipal plans affecting
the social and economic development in the short
and long term.Organization of marketing activities
in the municipalities is expected to be a priority in
modifying their organizational structures over the
next 10 years. The establishment of separate
marketing departments will greatly contribute to
carrying out marketing on a high professional
level, in coordination with other activities of the
municipalities.
Resources and local potential
Every region has its own resources that are directly
related to the local potential. The efficient use of
local resources depends on the intensity and
balance of their use, the resource policies and the
adequate management of capacities.
International Journal - VALLIS AUREA • Volume 1 • Number 1 • Croatia, June 2015
UDK 339.146.4:332(497.2-21); DOI 10.2507.IJVA.1.1.11.11
122
Resources
Specifics
Relation to local potential
Human resources
Population residing in the region.
Population originating from the region
but currently residing elsewhere.
Temporary residents on the territory.
Socio-economic inclusion in various activities
and formats.
Natural resources
Topography, climate, soils, minerals,
water resources, flora and fauna,
forests, places of special natural
interest, protected sites, etc.
Precondition for development of specific
business activities and activities of social
importance.
Financial resources
Financial resources and tools needed
to administer the territory and invest
in development.
Factor for development of local potential and
the outcome of that development.
Material resources
Material resources of the territory
subject to registration and efficient
use.
Precondition for design and development of
local potential.
Cultural and historical
resources
Resources subject to registration and
marketing and efficient management.
Resourcing, shaping the tourist profile and
potential of a region.
Information resources The provision of information is an
important prerequisite for the socio-
economic development of a region.
Factor for design and development of local
potential.
Infrastructure
Implies balancing with the other
resources.
Precondition for development of the region
and local potential.
Table 1.: Local resources and relation to local potential
Maps of local potential
Every region needs clarity for the development of
local potential. Step-by-step development (figure
1) is an advantage which predetermines the
accuracy, interconnectedness and priority of
activities. The economic geographic models [9]
used in science should be widely applied to the
development of territorial potential.
The first map should contain the comparative
advantages of the location outlining the major
existing fields of activity. These should include
local crafts, local production, natural,
educational, cultural and historical resources,
etc. Different approaches can be applied for the
purpose of identifying the key comparative
advantages. The registration of the most important
fields of activity can be based on both secondary
data available to municipalities and to conduct
market research among residents and visitors of
the municipality. Expertise can also be used at this
stage, but it should be subjected to further
analysis to confirm the arguments in favor of
developing a particular activity.
The second map presents the local resources
generating potential for the future development of
a region. In practice, all resources related to the
future development of a territory which are
currently underused should be pinpointed. They
generate the priorities for development. It is
appropriate to apply unconventional approaches
to gathering information and generating ideas for
the development of the second map of municipal
resources, which is especially important for the
promotion of local potential. The variety of
resources is not treated unambiguously by the
International Journal - VALLIS AUREA • Volume 1 • Number 1 • Croatia, June 2015
UDK 339.146.4:332(497.2-21); DOI 10.2507.IJVA.1.1.11.11
123
administration, businesses, residents, etc. It is
necessary to consider the available resources as
an integrated system, whose development will
contribute to the sustainable development of the
municipalities in the interest of all target
audiences. The coordination in the development of
local resources will overcome the existing
problems of the municipalities, including
unemployment, migration, depopulation, poverty
and others.
The third map presents new or renewable
aspects of business and social activity by strategic
priorities. The new areas of business and social
activity should correspond to the available
resources and their readiness and potential for
usage. The development of the third map is directly
related to investor interest, entrepreneurship and
municipal activity to the benefit of businesses on
the territory. Highlighting the renewable business
directions is based on a study of strong industries
that can be originally agricultural, industrial,
handicraft, etc., based on the strategic
advantages of the location. Their resumption in the
new socio-economic conditions can be useful for
the establishment of the identity of the
municipality and towns.
The fourth map interlinks the information in the
first three maps and presents the balance of
current and future activities with the resources
available on a territory. The fifth map aims to
present the specific transfer effects and an
assessment of their impact on the development of
local potential. The maps may be developed at
different levels – town, municipality, district,
region, country, etc. The purpose of the balanced
map is to achieve coordination and
synchronization of the processes related to the
development of the territory, to reduce risks and
avoid conflicts related to the upcoming activities.
Additionally, the contents of the balanced map can
be beneficial for the feasibility study and
justification of major municipal projects. The
maps for the development of local potential should
not be regarded as static. The information
contained therein must be periodically updated to
reassess priorities and to constantly monitor the
activities on the territory and its results. The
experimental introduction of an innovative and
balanced marketing approach in developing the
potential of a municipality encouraging the
involvement of residents and businesses in the
territory and registration of success means that
the model has to be extended to other
municipalities.
Figure 1.: Five step mapping of local potential
Initiatives for development of local
potential
An essential part of the initiatives related to the
development of local potential may be suggested
by the residents of the territory. Municipalities
have experience with participation in different
world and European competitions by relying on
initiatives suggested by the citizens who follow the
competitions’ rules (for example the Bloomberg
Philanthropies challenge) [10].
International Journal - VALLIS AUREA • Volume 1 • Number 1 • Croatia, June 2015
UDK 339.146.4:332(497.2-21); DOI 10.2507.IJVA.1.1.11.11
124
The participation of people with initiatives for
the development of local potential has the
following advantages:
1.
The collection of diverse ideas some of
which are very original;
2.
The low cost of the administration of the
process;
3.
People pointing at various problems and
opportunities;
4.
Encouragement of personal commitment
and inclusion of residents (contribution by work,
finances, etc.);
5.
Collection of information which is subject
to content analysis and drawing of important
conclusions, etc.
To achieve high efficiency, however, one should not
rely only on campaigns attracting participation.
The municipalities should administer the
proactiveness of the citizens by developing special
platforms (figure 2) to register the initiatives of the
residents on the territory. Thus, a number of the
advantages of low cost and self-made marketing in
the management of municipalities may be used.
Figure 2.: Six platforms in municipal marketing
management
Note: The presented platforms are under
author’s development within a scientific project.
Future tests in focus groups will be provided.
In order to test the readiness to involve
citizens of the municipality in developing the local
potential, after the project the platforms will be
open for discussion in focus groups. The results
from these discussions will contribute for
improving the platforms and their preparation to
be tested in reality.
Innovation in the development of
local potential
Giving the population opportunities to participate
with ideas and to apply their creativity to the
benefit of the EU development [11] is a priority in
the sphere of social innovations. The innovation in
the attraction of ideas for development of a
territory is an essential precondition for the
development of local potential. Individual
creativity [12] is defined by a number of authors as
a factor for regional development. The approaches
to the generation of ideas as well as the channels
and tools for their encouragement may be diverse.
The integrated marketing of territories relies on
the active participation of people in the socio-
economic life. The platforms for regional
development are considered by some authors in
conjunction with the innovative regional systems
[13].
Putting into practice the innovative approach
of communication with the residents requires that
a platform is developed within the system of
integrated marketing to register, classify and rate
the ideas for regional development provided by
people who will contribute to the identification of
problems and possibilities for future
development. The advantages of the introduction
of such a platform consist of the following:
International Journal - VALLIS AUREA • Volume 1 • Number 1 • Croatia, June 2015
UDK 339.146.4:332(497.2-21); DOI 10.2507.IJVA.1.1.11.11
125
•
The possibility to demonstrate a proactive
civilian opinion;
•
Then diversity of ideas which even experts
are unable to suggest;
•
Some ideas may imply a low cost in terms
of implementation;
•
Multi aspect view of idea development
argumentation;
•
The involvement of people with various
educational backgrounds;
•
Making use of the potential of students
and teachers in the region;
•
The active involvement of people in the
implementation of ideas initiated by themselves;
•
Activating snowball communication
effect;
•
The possibility to archive the information
and use it in the management of the region;
•
Creating a sphere for discussions
between the local authorities and citizens, etc.
Another innovative instrument which can be
used for the purposes of design and development
of local potential is the platform for expression of
consumer interest in forthcoming projects in a
specific region. The platform will be used to
announce pending projects of municipalities with
a detailed description of the activities and the
financing while residents in the region will be able
to register their consumer interest in projects they
have genuine interest in. Some of the advantages
of such a platform are:
•
The evaluation of the consumer interest in
the project;
•
The evaluation of the market potential of
the project through the registered consumer
interest;
•
The justification of significant
infrastructural projects in the region;
•
The precondition for efficient spending of
funds on projects financed by local, national or
European budgets;
•
Registration of future intentions of
citizens;
•
Balance between interests of target
groups;
•
Proper planning options.
The experience may be transferred to the
communication with companies and potential
investors manifesting interest in their own
development in the region. Developing such
platforms as part of the general platform for
integrated marketing is crucial for the balancing
of activities in the area, ensuring support from the
target audiences and encouraging their creativity
in the development of the local potential on the
territory. All these advantages contribute to the
favourable market positioning of the area and
factor into its identity in the search for competitive
advantages.
Conclusion
The identification and development of local
potential nowadays is of crucial importance for the
market positioning of municipalities. The
competitiveness of settlements based on strategic
and comparative advantages is a key factor for the
social and economic development of the regions.
The development of local potential is the
responsibility of local authorities. The possibilities
to apply innovative, flexible and low cost marketing
tools have not been sufficiently studied and
presented in the sphere of public administration.
Applying integrated marketing of the territory in
contemporary conditions of competition is an
essential prerequisite for the favorable socio-
economic development of towns and regions. The
marketing and innovation experience of high-tech
business companies needs to be transferred to the
public sphere in order to provide local activities
with resources, ideas and consumer involvement
in the interest of the population, the business,
International Journal - VALLIS AUREA • Volume 1 • Number 1 • Croatia, June 2015
UDK 339.146.4:332(497.2-21); DOI 10.2507.IJVA.1.1.11.11
126
visitors and the other target groups. The possibility
to include research laboratories of universities in
the region in the identification and development of
local potential is also worth considering. Setting
up marketing departments in the municipalities is
a prerequisite for the elaboration of marketing
strategies for the development of regional
potential on a professional basis and overcoming
the weaknesses of campaign marketing aimed
mainly at resolving current issues.
References
[1] Azena,L. & Keiss S. Specifics of Territorial
Marketing Strategy Planning, European Integration
Studies, No 3, 2009, p.165.
[2] Kaplan, A. & Haenlein, M. The Increasing
Importance of Public Marketing. Explanations,
Applications and Limits of marketing within Public
Administration. European Management Journal,
No. 27, 2009, pp. 197-212.
[3] Donckels, R. & Pierre Segers, J. New Technology
Based Firms and the Creation of Regional Growth
Potential. Theoretical Considerations and
Empirical Evidence for Belgium, Small Business
Economics , No2, 1990, pp.33-44.
[4] See in detail: McMahon, L., J. Phillimore. State
and Territory Government Strategic Plans:
Exercises in Managing, Monitoring and Marketing.
Australian Journal of Public Administration. Vol.
72, No.4, pp.414—415.
[5] See the specific focus of the research: Ferencz,
A. and M. Notary, The Connection of the Rural
Development and the region Marketing in Hungary.
Lucrari Stintifice, Seria I, Vol.XII (2).
[6] Different aspects are presented: Voznuka, J.,
Place Marketing Strategy of Latgale Region
Development.
Regional
Formation
and
Development Studies, No 1, pp.171-182.
[7] See in detail: Mateo, C., G. Seisdedos. Different
Branding Strategies from to use of the territory of
Origin by Commercial Brands: The Brand Territory
Matrix. Journal of Town & City management. Vol.1,2,
pp.175-185.
[8] See a specific model for promoting a region for
international investment: Schuster, C. and C.
Samli, Promoting a Region for International
Investment: An Integrated Marketing Program.
JPP&M Vol.8, 1989, pp. 252-264.
[9] Pires, A. Market Potential and Welfare:
Evidence from the Iberian Peninsula, Port. Econ. J.,
No 4, 2005, pp. 107-127.
[10] http://mayorschallenge.bloomberg.org
[11] Empowering people, driving change. Social
Innovation in the European Union, BEPA, 2011
[12] Drejerska, N. Looking for Further Determinants
of Regional Development. ACTA Oeconomia 11(1),
2012, p.39
[13] Harmaakorpi, V. Regional Development
Platform Method (RDPM) as a Tool for Regional
Innovation Policy, European Planning Studies Vol.
14, No 8, 2006, p.1085-1104.
Dostları ilə paylaş: |