Territorial branding as a factor of socio-economic development of the region

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TERRITORIAL BRANDING AS A FACTOR OF SOCIO-ECONOMIC DEVELOPMENT OF THE REGION

V.A. Sych, DrSc (Geography), Docent, V.V. Yavorska, DrSc (Geography), Prof. 'Odesa I. I. Mechnikov National University,

The article deals with the issues of territorial branding as a tool for the strategic development of cities and regions. In the context of global globalization processes there is a rigid competition between territories for resources: human, financial flows, tourist flows. Understanding this issue by territorial communities, authorities in Ukraine led to the development and approval of marketing strategies of individual Ukrainian cities. The creation and widespread distribution of Ukrainian territorial brands will enable domestic cities, both large and small, rural areas and regions, followed by a chosen strategy, solve their social and economic tasks. The purpose of the article is to analyze the basic methodological principles that are used in the Ukrainian practice of territorial branding and its impact on socio-economic development. It is determined that the geographical position and global geopolitical role of the territory, natural resource potential of the territory, national-cultural features of the country and its regions, current visual policies and symbols of the territory are affected. Investigated that in today Ukraine there are clearly formed brands of territories that already make their positive contribution to the socio-economic development of cities, rural areas and regions in general.

Key words: territorial branding, socio-economic development, region, globalization processes.

Резюме

Територіальний брендинг як фактор соціально-економічного розвитку регіону

В.А. Сич, доктор геогр. наук, доцент, В.В. Яворська, доктор геогр. наук, профессор, Одеський національний університет імені І. І. Мечникова

У статті розглянуто особливості територіального брендингу як інструменту стратегічного розвитку міст та регіонів. В умовах світових глобалізаційних процесів відбувається жорстка конкуренція між територіями за ресурси: людські, фінансові потоки, туристичні потоки. Розуміння цього питання територіальними громадами, органами влади в Україні призвело до розробки та затвердження маркетингових стратегій окремих українських міст. Створення та широке розповсюдження українських територіальних брендів дасть можливість вітчизняним містам, як великим, так і малим, сільській місцевості і регіонам, додержуючись вибраної стратегії, вирішити свої соціальні та економічні завдання. Мета статті полягає в аналізі основних методологічних принципів, які використовуються в українській практиці територіального брендингу та його впливу на соціально-економічний розвиток. Визначено, що на формування бренду території впливають географічне положення та глобальна геополітична роль території, природний ресурсний потенціал території, національно-культурні особливості країни та її регіонів, поточна візуальна політика та символіка території. Досліджено, що в на сьогоднішній день Україні є чітко сформовані бренди територій, які вже роблять свій позитивний внесок в соціально-економічний розвиток міст, сільських територій та регіонів загалом.

Ключові слова: територіальний брендинг, соціально-економічний розвиток, регіон, глобалізаційні процеси.

Резюме

Территориальный брендинг как фактор социально-экономического развития региона

В.А. Сыч, доктор. геогр. наук, доцент, В.В. Яворская, доктор геогр. наук, профессор, Е.В. Коломиец, канд. геогр. наук, доцент

В статье рассматриваются особенности территориального брендинга в качестве инструмента для стратегического развития городов и регионов. В контексте глобальных процессов глобализации существует жесткая конкуренция между территориями для ресурсов: человеческие, финансовые потоки, туристические потоки. Понимая этот вопрос территориальными общинами, власти в Украине привели к разработке и утверждению маркетинговых стратегий отдельных украинских городов. Создание и широко распространенное распространение украинских территориальных брендов позволит отечественным городам, как крупным, так и небольшим, сельским районам и регионам, а затем выбранную стратегию, решаю их социально-экономические задачи. Целью статьи является проанализировать основные методологические принципы, которые используются в украинской практике территориального брендинга и его влияния на социально-экономическое развитие. Определено, что географическое положение и глобальная геополитическая роль территории, природный ресурсный потенциал территории, национально-культурные особенности страны и ее регионов, текущих визуальных политик и символов территории. Исследован, что в сегодня у Украины явно формируются бренды территорий, которые уже дают положительный вклад в социально-экономическое развитие городов, сельских районов и регионов в целом.

Ключевые слова: территориальный брендинг, социально-экономическое развитие, регион, глобализационные процессы.

Introduction

In conditions of globalization, freedom of choice of people is increasing for life and work. The mobility of the population is growing, with high-paying and in demand in the market; specialists themselves choose where to live. Cities and even regions are forced to compete with each other for attracting highly skilled inhabitants and for companies, primarily improving the quality of the urban environment, as well as consciously, carefully and regularly engaged in its image, part of which is a brand. The promotion of tourist products and services of the territory plays a huge importance in the development of tourism. In recent years, interest in creating a complex of measures to improve the competitiveness of the regions of our country in tourism has been increasing. The desire to conquer the place in the Ukrainian and international tourist markets forces the regional authorities to pay special attention to the creation of an individual image of the regions and cities through the use, primarily marketing technologies.

In the modern world creating a brand of territory and its integration into the internal and external environment is one of the key topics when discussing well-being territories and opportunities to attract various target groups (investors, tourists, residents, and employees). This is a long process that must consider many factors. Obviously, the more the issues becomes the topic, the greater the attention it attracts among stakeholders, therefore the degree of study and discussion branding territories grows with each day and affects many countries, regions and cities of the modern world.

For the first time the concept of “place branding” was used by Simon Ancholt in 2002 year (Anholt, 2006). Also a great contribution to the study of the development of the territory and processes of its branding and marketing was added by P. Kotler, together with his colleagues, he wrote a guidebook «Marketing places. Attracting investments, enterprises, residents and tourists in the city, communes, regions and countries of Europe» (Kotler et al., 1999). Also, an important book on this topic is Kate Dini «Branding Territories. The best world practices» (Dinnie, 2011). It describes many different approaches and disassembled successful and unsuccessful attempts to branding cities.

Brand of territory are technologically consistent activities of the administration, public, business and all interested groups of persons in the formation of a positive recognizable image in order to increase its competitiveness. Branding territories has specifics and is somewhat different from the classic product branding. Residents of the city or region have greater importance to form a brand of territory than other target audiences. A successful brand of the city is the one that is actively and with pleasure is used by different categories of the city's population, and as a result - becomes recognizable outside the city and the country. In Ukraine, not many cities can boast of successful brands. Holders of successful brands are Kiev, Odessa, Chernigov, Lviv, Ivano-Frankivsk, a number of cities brands claim to become successful. Given the national traditions, the complex history of our country, the peculiarities of buying behavior are needed by its own concept of a regional brand of Ukrainian regions. Thus, the purpose of the article is to analyze the basic methodological principles that are used in the Ukrainian practice of territorial branding and its impact on socioeconomic development of the regions.

Data and methods

Among scientists involved in theoretical and practical aspects of the study of the region brand we note the following: F. Kotler, K. Asplundand, D. Hider (Kotler et al. 1999), Merrilees, B. (Merrilees, Miller, & Herington, 2013). The conceptual apparatus of city branding, marketing places and tourist images of the territories are reflected in the works of N. Papadopoulos (Papadopoulos, 2004), M. Kavaratzis (Kavaratzis, 2004), D. Bogusch. O. Soskina (Soskina, 2011), V. Yermachenko, N. Dekhtyar, T Nagornyak, L. Panasenko, T Boyko (Boyko, 2013). Scientific research of such domestic scientists as O. Vdovichena, N. Shuprudko, G. (Vdovichena, Shuprudko, & Vovk, 2020), S. Studinska, V Bilyavsky, D. Vizgalov (Visgalov, 2011), N. Karachyna, T Vakar, I. Moroz (Karachyna, Vakar & Moroz, 2019). are dedicated to the analysis of the development of regional brands in modern conditions within the framework of globalization processes, for accelerating socio-economic development of the territory, raising the level and quality of life of the population that affect the genesis and formation of the regions of the country. The following methods were also used in the article: comparison, analysis, generalization, description. These methods helped to analyze and compare the information received, summarize, systematize and describe all the data obtained.

Research results and discussion

The modern realities of the development of society and countries make it not only about competition of product brands, but also about the competition of territories. The zone of territorial competition is, first of all, the investment market, tourism, and even the market of people who are ready to live in this area. Independent cities, regions and countries can be subject to territorial competition. It is not necessary to say that in a modern competitive environment it is necessary to create a brand area. The formation of the recognizable brand is not a tribute to fashion, but a regular stage of development of any successful territorial integrity. Positive image of the region provides an influx of various resources, including financial ones. In addition, the creation of a brand is reflected on the inner life of the territory, on its citizens. It is the brand territory that forms that cognitive foundation that allows people to distinguish one territory from another.

Typically, when building a brand territory using the principles of construction brands in the business, the essence of the brand territory lies in the fact that it should provide its identity both inside and outside, and to identify in a favorable light. Brand territory should be a reflection of the best features of the territory, reputation and capacity, mentality and traditions of the people, to fulfill an ideological function, bringing together people to perform common tasks. The identification function (communicative function) allows you to read information about the object in a short period of time, simplifying the selection procedure. Brand target audience facilitates the perception of information about the positive and negative sides of it.

The difference of the identity of the product brand from the territorial brand is fundamental. Urban identity, as opposed to a product, can not be created because it already exists regardless of branding plans. And most interestingly, it does not exist in a casket in the mayor's office safe, but in the head is absolutely every inhabitant of the city. It is the versatility of the identity of the city and the complexity of its description makes the process of development of the brand of the city so amusing and unpredictable. City, unlike goods, can not come up with the character and brand identity. “The identity of the city - it's a sense of social community” (D. Vizgalov).

According to the geographical basis, the brands of territories are divided into international (brands of countries), regional, local (cities brands). Brands of territories can be divided into the form of genesis on traditional and modern. Traditional - historically established brands that have formed a spontaneously based on unique geographical, cultural and historical or products proposals (for example, Japan - brand of world-class watches manufacturer). Modern brands - brands simulated and built by specially created organizations, according to all branding laws, with the help of developed plans and tools (for instance, the young resort “Bukovel” is positioned as “the heart of the Carpathians”, this is an epicenter of events, the point of entrance to the Carpathians, the center of gravity, a place to pulsify life, business and tourism of the whole Carpathian region.

Today, two groups of factors affect the promotion of the territory in the tourist market: controlled and uncontrollable. The group of uncontrolled can be classified as media, socio-cultural features of the territory, religious persons, well-known products and films, tourist reviews, etc. To another category of factors - controlled - can be attributed to marketing strategies, including the development of the tourist product of the territory, slogan, designer style, visual image, logotype. By themselves, they are not a brand of territory, but they necessarily bear his imprint.

The strategy of socio-economic development of the city or region is a framework for brand structure and should help to create a brand. The task of local authorities is to enters and develop those directions that are agreed at the regional level, distributing the roles and spheres of influence even within the same industry, creating a variety of territorial products, goods and services. At the level of individual cities and settlements, the leading role is given to the civil community, since it is it forms the environment, a network of social relationships, a socio-cultural and economic climate in a particular accommodation, stay or business entrepreneurial activity. It is the people who have developed traditions, the norms of culture and business consideration, codified and unlawful determine the comfort of staying on the territory and residents, and tourists, and investors.

In the modern world, any territorial formation is inevitably tied by a variety of ways with other territories - transport, communication, energy, water, finance and much more. Sources of the survival of territorial education are now in the outside. And the more modern territory is able to raise resources from the outside, the more effective today its life activity today. In the context of competition for attracting external resources, one of the most effective tools becomes the brand of the region or city.

The socio-political, cultural and historical, investment attractiveness of the regions does not arise from scratch, but is a consequence of the formed and updated image. The image is one of the determining factors of the perception of regions and the formation of a friendly social environment around them (Kolomiyets, Yavorska, Sych, 2017). We should pay attention to the double nature of the image; on the one hand, the image is a thing quite objective, as it is based on specific individual features of the territory (geographical location, natural and climatic, cultural, historical, etc.). On the other - important role in creating an image play and subjective factors, and, above all, associated with the psychological characteristics of the individual and the target audience, to which image appeals (system of needs, interests and ideals; emotional properties of personality, outlook, life experience and others).

The main task of any brand is to trust and build relationships based on trust. If the territory has its own brand, the name that attracts the attention to which is trusted, it means that such an area will attract investments in the broad sense of the word. If it does not possess a brand, then it will “boil in our own juice” and at best we can be used as a certain raw material base.

The brand of the region allows administration and business community to interact most effectively with various target groups: investors, interregional and export markets, population, tourists. It translates the strategic advantages of the territory into language, understandable to these groups, and repeatedly strengthens the significance of these advantages.

Since the territory brand is associated with the framework of geography, then its mission should reflect the global geopolitical mission of the territory (for large places and cities) or the national geographical mission of the territory (for medium and small cities). Thus, it is necessary to note the following specific factors affecting the formation of a territory brand: geographical position and global geopolitical role of the territory, the natural resource potential of the territory, the national-cultural features of the country, the current visual policy and symbolism of the territory.

The structure of the territory brand is based on the territorial subbrends: the structure of heraldic symbols of the territory, investment brands (brands of free economic and innovative zones, sciences, techno parks); brands of historical personalities; brands of cultural and architecture monuments; corporate and product brands; brands of social organizations (universities, theaters, libraries); show brands (parks, cinema, restaurants, shopping centers); brands of events (exhibitions, seminars, conferences, salons, summits, Olympiads, competitions, championships).

The creation and promotion of cities and regions brands is young tendency. Nevertheless, in this area there are already certain techniques. Any characters, names, attractions associated with this region and causing positive emotions can be used as brands. In order to assess the effectiveness of the territory implemented by the brand project, the following structure of the system of indicators, which consists of five groups of indicators:

The group of indicators of the strategic efficiency of the place branding actually consists of formalized goals that the territorial administration wants to achieve due to the implementation of the target program in which branding is used as a tool for achieving goals. Strategic goals can be expressed not only by economic indicators, but also non-economic (for example, attracting 3 million tourists to the region).

Indicators of communicative efficiency of the city branding include the dynamics of the city brand awareness, the ratio of target consumers to the city brand, the storage of the brand, the knowledge of the competitive advantages of the city, etc. (Herezniak, M., Florek, M., Augustyn, A., 2018).

Indicators of the current economic efficiency of the place branding: the cost of branding, revenues from the implementation of the target program. Other comprehensive models of city branding such as the Anholt-Global Marketing Institute (GMI), the City Brands Index developed from interviews in 50 cities (Anholt, 2006), and the City Branding Index proposed by Merrilees and Miller (Merrilees, Miller, Herington, 2013).

To obtain indicators of the dynamics of the symbolic brand capital of the city, which characterizes the strength of the city brand on a global scale, it is necessary to include the city in the list of cities that are subject to such an assessment - for an example, Global Power City Index, Global Financial Centres Index GFCI (Global Power, 2021; Global Financial, 2021).

Each year, starting in 2008, taking into account global competition between cities, the Global Cities Index (GPCI-Global Power City Index) evaluates and classifies large cities in the world according to their “magnetism”, or their comprehensive power to attract people, capital and enterprises with all over the world. This occurs by measuring 6 functional components - economics (has 13 indicators, including nominal GDP, GDP per capita, employment, salaries, taxes, etc.), research and development (8 indicators - number of scientists, the most famous universities, the number of foreign students, the number of patents, the environment for startups), cultural interaction (16 indicators, including the number of international conferences, cultural events, tourist attractions, museums, theaters, stadiums, hotels, foreign residents and visitors) suitability for life (14 indicators, among which the unemployment rate, rent for housing, living standards, life expectancy, social freedom and equality, number of crimes, number of doctors, number of restaurants and shops, etc.), Environment (9 indicators, Among the percentage of renewable energy, waste recycling index, city gardening, comfort of temperature conditions, which Air et al.) and accessibility (10 indicators, including direct flights, international airstraps, density of intra-city stations, time on the road, etc.). The total number of indicators (indicators) for which is equal to 70, which provides multidimensional rating. The global index of cities is capable of covering strengths, weaknesses and problems of global cities in a constantly changing world, not only by rating, as well as through the analysis of specific ranking components. Thus, both new data and the results of previous observations can help in planning urban policies, developing strategic directions of development of both individual enterprises and the city as a whole. Developers of domestic brands of cities may, in turn, navigate those indicators that the most attractive cities in the world occupy the highest positions in the rating.

Regulatory indicators of the efficiency of the place branding should be determined and adjusted annually based on benchmarking studies of branding efficiency in other places in the world. This will allow the territorial authorities to have clear ideas about the level of economic and other types of branding efficiency, which will determine the optimal approach to the formation of the city's brand-budget (Herezniak, Florek, & Augustyn, 2018). Specific goods produced in the region can be used as brands of the regions. Part of the regions confidently maintains and uses the inheritance brands, such as mineral waters «Morshinskaya» and «Svalyava» in the Carpathians. However, due to the insufficient activity of the administration, these well-known brands are still ousted by newer, but unfortunately, which are not related to the region. Meanwhile, there is hope that in Ukraine there may be a tradition known for all over the world, - patent the trademark of goods at the place of its origin. In Ukraine, three products with a protected geographical indication are officially registered - the Hutsul cow brynza, the Hutsul sheep brynza and the Melitopol Cherry. Such products are preparing for registration: Kherson Watermelon, Carpathian Honey, Wine «Transcarpathia», «Shabsky», «Belgorod-Dniester», «Yalpug», as well as - Lamb Fruumushiki and Bessarabian Walnut.

The brand can be a certain historical event related to the region. Thus, the Poltava region revived the brand of the Sorochinsky Fair and presented it as one of the business cards of the region. Obviously, in addition to direct economic benefits from exhibition activities, the region receives and significant symbolic benefits. The ancient city of Chernihiv positions itself as a city of legend. The brand was based on the unique characteristics of the city: one of the oldest cities in Europe; for a long time it was the capital of a huge principality; a kind of «intersection of the worlds»: the paths from East to the West are intersecting, from the north to south; many legends related to historical slavic patterns (Antoniyev Caves, Yelets Monastery, Old Tree, Mysterious Kurgans); universality of the concept of “legend”, the potential of widespread filling with new meanings and the possibility of creating individual tourist products (Boyko, 2013).

When building a brand of territory, the same principles apply as in business - to find and strengthen regional advantages, retouch deficiencies. It should always be remembered that the features of the city or region chosen as a brand must necessarily cause positive associations. For example, the positioning of Odessa as the city where smugglers were going and the bandits of all the masters could hardly consider successful, since such a brand causes subconscious doubts in the stability and security of the city. In addition, the brand must be truthful and have a real basis.

Successfully found idea for the brand is able to revive the economy of the region. It is clear that tourists pull entrepreneurs from other industries. At the same time there is space for the initiative of local entrepreneurs who can build their business with regard to the characteristics of the region.

In addition, the development of a strategy and program of comprehensive brand promotion allows you to optimize budget and extrabudgetary expenses for information, socio-cultural, sports and other projects, which in any case occur in the cities and regions. With a comprehensive approach, the results of the implementation of these projects are not fragmented, and purposefully synthesized into the brand strengthening, the development of the positive image of the region and its leaders in the perception of target audiences: the regional authorities, Ukrainian and foreign investors, business associations, civil society associations, media.

The brand increases the level of self-assessment of local residents, making them living more comfortable and less conflict. After all, create a brand - it means to realize all the advantages and the uniqueness of the city or region. The consequence of the creation of brands, among other things, a large self-sufficiency of regions should become and their smaller dependence on the center - at least in the worldview of their inhabitants.

The brand of the region or city, among other things, can set the strategic vector of the development of the territory. However, in order for this plan to be viable, the brand is based on a strong idea that represents the city as a phenomenon in the country and the world and allows you to combine the interests of many dozens and hundreds of thousands of people inhabiting its territory.

In connection with the intensification of world processes the following cities Dnipro, Khmelnitsky, Chernigov, Chernivtsi, Kryvy Rih, Khotin, Vinnytsia, Slavutych, Rakhov, Kalush, Genichesk announced the intention of forming its own branding. The competition of works on the creation of branding of the territory in Kyiv, Odessa and Lviv continues to be dynamically updated. Recently were successfully implemented project of regional branding of the Kherson and Cherkasy regions. Although branding of the territory in the present not only innovative notion, but the vital necessity of territories, but the cities are: Zhytomyr, Mikolayv, Ternopil, Poltava, Rivne, Sumy, Uzhgorod have not yet created the concept of their brands. Thus, «territorial brand» belongs to the list of key priorities of regional development in Ukraine to be taken into account in strategies socio-economic development of regions.

branding globalization socioeconomic

Conclusions

Given the general overview of the need for branding of territories and its impact on the socio-economic development of the region, a few important conclusions can be drawn. The following tasks can be distinguished associated with increasing the role of brands in the progress of the region in the globalization space: increasing the degree of identification of citizens with its territory of residence and attracting residents themselves to solve regional problems; improvement of competitiveness of enterprises of industry and services located in the region; increasing of tourists flow; attracting the attention of the government to the problems and achievements of the region. The development of regional branding, based on the state-based policies of the modernization of the domestic economy, is very important today, as it makes it possible to position himself not only within Ukraine, but also in the international arena. Under these conditions, the role of the process of forming effective brand technologies increases, the use of which will allow any region to attract and build up resources for its development. Regional brands indicate a specific territory, the geographical environment of which determines the characteristics goods. This is what is in demand now in the world to the greatest extent. This circumstance is a significant factor in increasing the fame and attractiveness of the region, with the creation of favorable conditions not only for investment in various spheres, but also for the formation of human capital, the development of small and medium-sized businesses, creating new jobs. Brand of the territory can act as a tool for the strategic development of the region aimed at adapting the territorial community to market changes, raising the level and quality of life of the population.

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