PLACES MARKETING AS A TOOL OF TERRITORIAL DEVELOPMENT AND ITS APPLICATION IN THE LIPTOV REGION IN SLOVAK REPUBLIC
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1 Matej Bel University Faculty of Economics Department of Public Economics and Regional Development PLACES MARKETING AS A TOOL OF TERRITORIAL DEVELOPMENT AND ITS APPLICATION IN THE LIPTOV REGION IN SLOVAK REPUBLIC Ing. Katarína PETRÍKOVÁ, PhD. katarina.petrikova@umb.sk Doc. Ing. Anna Vaňová, PhD.
2 Outline of the presentation 1. Places marketing 2. Tools of places marketing 3. Example of places marketing in region Liptov. 4. Conclusions
3 What is marketing? What is its aim? The tools of marketing? What is the subject of marketing?
4 Places marketing and its tools regional marketing, comunal marketing, city-marketing (Holland, Berg, Buurisink, Germany), marketing of territory (Slovakia), marketing places (Ashworth, Voogd), marketing cities (Czech Republic, Janečková, Vaštíková, USA, Kotler, Armstrong)...
5 Development of marketing theories Beginning of 20. century 60 s 70 s 80 s Development of marketing theories in USA Development of marketing theories in Central and East Europe Development of specific marketing theories: - Services marketing - Marketing of social organization - Marketing of non-profit organizations - Marketing of public sector P L A C E S M A R K E T I N G
6 Places marketing a continuous social process that provides the possibility to influence the sustainable development of the territory more effective by building a sustainable competitive advantage, creating conformity between demand and supply of the territory at the market using of the specific marketing methods and tools. the process aims to minimize the risks of the territory associated with its entering to the market and maximize its social benefit in accepting its social role (Vaňová, 2006)
7 Role of marketing in the territory The needs of market The needs of territory The needs of society
8 Marketing approach to the territorial development market oriented approach demand orientation orientation on specific competitive advantages aimed at the needs and expectation of customers new methods, tools and approaches to the management setting the aims of development collectively Marketing analysis based on the research Segmentation Marketing mix Participation of stakeholders STRATEGIC MARKETING PLANNING
9 Determinants of territorial development Labor Technology Financial resources Legislation Accessibility Nature...
10 Marketing factors of territorial development Marketing environment Demand on the market Competition/competitors Quality of the territorial management
11 Who can realize the places marketing activities? Local stakeholders Public sector Private sector Regional National International
12 Marketing mix = set of controllable marketing variables that help to realize successfully the marketing strategy and put the territory across the target markets. product, price, promotion, accessibility, people.
13 Product something, what can be offered in a market, for keeping or consumption and have an ability to satisfy will or need, for example consumer goods, services, people, areas, organizations and reflections (Kotler, Armstrong, 1992, p. 191).
14 Potential of the territory Natural a geographical Sociodemographical POTENTIAL Socioeconomic Innovative TERRITORY
15 Product specific features of territory One complex product, Partial/individual products Homogeneity Heterogeneity
16 Product specific features of territory changing in time stability and non-flexibility sale of territory name/brand of the territory different importance of individual products for market segments
17 Product of the territory tourists, citizens
18 Product for the entrepreneurs
19 Price a relative price, which evaluate attributes (individual products) of a territory. price of properties, price of labour, price of living costs, local, regional taxes,...
20 Price
21 Factors which influence the decision about the price strategic aims; character of a product and final segment; image of territory, cost for producing and implementing product; market position of product; price of sub products; price of competitive territories; influence of external environment.
22 Promotion advertising, public relations, sales promotion, personal communication, direct mail, events
23
24
25 Accessibility a location of territory character of admission to the territory and availability of partial products in territory information availability.
26 Accessibility
27 People (human factor) implementation of territorial marketing co-author of general product and partial products of territory actor organized in some structures implementation of sale promotion and provider of information
28 People
29 Example of places marketing in region Liptov
30 Where is Liptov in Slovakia? LIPTOV
31 Why Liptov? beautiful nature, good accessibility, lot of attractions for summer and also for winter first tourism cluster of stakeholders in Slovakia
32 Example of places marketing in region Liptov Product: region Liptov (possibilities to skiing, accommodation, restaurants, nature, historical memories, museums,...) Price: regional card
33 Example of places marketing in region Liptov Accessibility: public transport, transfer and connections from the cities in surroundings to the region. Special buses during the winter season. Human factor: cooperation between municipalities, with entrepreneurs, Slovak tourism agency, sport shops, Ministry of Education and so on.
34 Promotion logo, Facebook, web site, conferences and exhibitions.
35 Conclusions Places marketing Tools of marketing mix: product, price, promotion, accessibility, people. Strategic marketing planning
36 Questions Do you know about some interesting examples of places marketing activities in Reims? Describe this example. Which kind of tool is it? Its strengths and weaknesses.
37 Thank You for Your attention! If You have any question, please do not hesitate to ask.
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