Public marketing of services: European experience

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PUBLIC MARKETING OF SERVICES: EUROPEAN EXPERIENCE

Oleg Diegtiar

Ph.D. from the State Administration, Assoc. Professor, Professor of the Department of Management and Business Administration, Vasyl Stefanyk Precarpathian National University

Olena Uhodnikova

PhD, Associate Professor of the Department of Tourism and Hospitality O.M. Beketov National University of Urban Economy in Kharkiv

Abstract

Finding ways to effectively develop the economy in the context of European integration transformations is of great practical importance. The implementation of the best European experience in domestic management systems requires an analysis of the specific characteristics of the industry and prospects for its development. The services sector, which is currently actively developing, has a high priority for the development of the public sector and the provision of socioeconomic guarantees. The development of the service sector is faster than the development of other sectors of the economy, because it is the service sector determines the standard of living and ranks the country among the world's leading economies, or, in the absence of quality services, third world countries. European countries have the world's most expensive brands, which were formed due to the focus of the state on the demands and needs of consumers of services in domestic and foreign markets. Accordingly, the article analyzed the tasks and priorities for the development of services, among which the basic priorities for focusing on human needs. The basic principles of public-private sector interaction in the service sector are defined through the formation of common guidelines for social development, implementation of specific actions to ensure them, distribution of powers between the public and private sectors to provide strategic guidelines and operational objectives. Thus, the article considers the ways of forming such a state policy that would help increase entrepreneurial activity and improve the investment climate in order to ensure the development of the private service sector. European countries have not only a deep historical experience of their own positioning, but also high results in the implementation of marketing mechanisms at the level of public administration. Thus, the article analyzes the best European experience in building effective marketing mechanisms at the level of public administration, identifies prospects for implementing best European practices in the system of public management of marketing processes in the service sector, in particular, improving the use of marketing technologies through public and private sector. increase competitiveness, use of modern digital resources and technologies, development of effective ways of positioning the country's brand. Modeling of the country's brand positioning processes according to the preliminary analysis of consumers and markets will be considered in further research.

Keywords: public marketing, services, public administration.

marketing state policy investment

Formulation of the problem

Marketing as an economic system is considered mainly in the commercial sphere. The commercial objectives of marketing, which were set at the beginning of its implementation in economic processes, were determined by increasing the profitability of the enterprise. However, with the growth of competition, the transition from industrial to post-industrial society, the development of information technology, came to the fore the formation of loyalty, positive consumer perception of goods or services, which in turn affects the formation of additional income. Thus, the change of guidelines and the vector of development of the marketing system allowed to consider the possibility of its use in social processes. Today, the role of marketing in the public administration system is high. It is expedient to consider the marketing system as processes of loyalty formation, information component, information security, determination of social development landmarks and many other tasks of strategic importance for the development of the state. In sectors of the economy with a high degree of commercialization, such as services, it is advisable to consider atypical for other sectors of the economy mechanisms for marketing processes that determine the interaction of public and private sectors, which is one of the objectives of the study.

Analysis of recent research and publications

Issues of service development have been considered in the works of many scholars, which is explained by the active development of services and increasing their role in social security and the economy. Issues of public-private sector interaction are also highly relevant. Thus, we can identify the following studies that are devoted to this topic, in particular: Kondratenko, V., Okopnyk, O., Ziganto, L., & Kwilinski, A [1], Boni Z., Rosciszewska E. [2], Arduini, D., Belotti, F., Denni, M., Giungato, G., & Zanfei, A. [3], Dalevska, N., Khobta, V., Kwilinski, A., & Kravchenko, S. [4], Pavel Bachmann [5], Fung Archon [6], Kim Annice E., Hopper Timothy, Simpson Sean [7] and others.

However, the issue of building a system of public marketing in the service sector, especially in the face of new societal challenges, needs further research.

The purpose of the article is to analyze the leading European experience in building a system of public marketing in order to ensure the effective development of the service sector.

In accordance with the goal in the article the following tasks are solved:

- analysis of tasks and priorities for the development of services,

- definition of basic principles of formation of interaction of public and private sector in the field of services,

- analysis of world experience in the development of public marketing in the field of services,

- identification of opportunities to apply European best practices in the system of public management of marketing processes in the service sector.

Presenting main material

The development of society forms new requirements for the system of public administration. The transition from an industrial to a post-industrial society changes the priorities in both the production system and the consumption system. Services began to play a leading role in human life, and the supply of these services became more competitive due to lower barriers to entry than in industry or agriculture. Thus, services have become a daily occurrence of human life, and their quality and availability are constantly growing [1-2].

The formation of domestic and foreign policy depends on the values and priorities of society. Accordingly, the change of values requires the search for new mechanisms to meet the needs of the population at the public level. European practice shows the high efficiency of public policy-making based on the system of public administration and administration, which considers the state as a system of public services. Accordingly, the strategic guidelines of such a system are formed: human orientation, social and societal development, quality of service provision, formation of the system of serving the needs of the population in the system "customer-performer" of services. Accordingly, it can be stated that public administration, which meets the requirements of modern society, essentially forms a system of providing services at the level of public administration. Accordingly, it is advisable to consider the possibility of applying marketing mechanisms in the system of public administration as one that is focused on the formation and provision of services [3-4].

The sphere of services should be divided into two large blocks: services of a social nature (administrative services, social services) and services of a commercial nature (tourism, hospitality, recreation, catering, beauty industry, etc.). The first block defines the leading role of the state in the formation and provision of services, such as: issuance and extension of various documents, provision of social guarantees, medical care, educational activities, etc. [5]. The second block has a high degree of commercialization, but continues to play an important social role. This role is directly related to the standard of living of the population. In the transition from a raw materials economy and production to an economy that focuses on meeting the needs of the population through the provision of services, an important component of living standards is the quality and availability of services. In addition, it should be noted that many areas that are socially important, and in some countries belong to the first block (public services) in other countries may also be commercialized, but with an increased regulatory component of the state [6]. This applies, in particular, to private medicine and the provision of paid educational services. According to the transformations in the system of service provision, the state must ensure the stability and quality of service delivery, despite the degree of commercialization of the industry, because it has a significant social impact.

Therefore, it is expedient to determine the basic principles of formation of interaction between the public and private sector in the field of services:

- determination of common guidelines for social development, formation of goals and objectives of society development in accordance with the demands and values of the population,

- implementation of specific actions to ensure the implementation of social development objectives,

- distribution of powers between the public and private sectors for the implementation of social development objectives,

- definition of strategic guidelines and operational objectives for the provision of services separately administrative, social and private with the establishment of responsibilities for each unit,

- formation of a system for regulating the provision of services: creation and development of regulatory mechanisms to ensure the quality and availability of services, monitoring and controlling systems, external audit, etc.

- creation of regulatory and legal support for the provision of services in the field of high commercialization, as well as administrative and social blocs,

- formation of such a state policy that would promote entrepreneurial activity and improve the investment climate in order to ensure the development of the private service sector,

- formation of open market conditions with transparent and fair competition,

- creation of professional associations of representatives of the service sector, which will allow to accumulate the main problems and carry out a consolidated search for solutions to the development of the service sector,

- ensuring open dialogue and feedback from the public, services and the public sector.

Thus, the formation of basic priorities for cooperation between the public and private sectors in the system of development of the service sector requires the search for specific mechanisms for their implementation. In order to find specific mechanisms for implementing the priorities of cooperation, it is advisable to analyze the leading European experience in those areas of services that have a high degree of commercialization, including tourism, recreation, hotel and restaurant business.

It is advisable to analyze the system of communications at the level of public and private sector in the field of services on the example of tourism - Fig. 1

Fig. 1. Communication system at the level of public and private sector in the field of services (developed by the authors)

As you can see, the service sector can be structured by the scale of enterprises that provide services. For example, the tourism industry is characterized by the presence of large enterprises that form travel packages, negotiate with representatives of hotels, restaurants, carriers, etc. - tour operators, as well as a system of small businesses that retail established tour operators.

At the same time, it is important to note that regardless of the scale of enterprises operating in the industry and their specifics, the interaction of public and private sectors must be implemented at each structural level, otherwise the system will simply not work. Therefore, when analyzing the European experience of building a marketing system in the field of service, it is advisable to consider the system and complexity of this category. Among the basic technologies that can be implemented in the service sector are the following [7]:

- technologies to increase competitiveness by improving the quality of services and their compliance with social needs and societal needs;

- formation of information support for service provision and information support during service receipt;

- promotion and positioning of the service in domestic and foreign markets to increase the level of attractiveness.

To analyze the European experience, it was decided to identify the most popular countries among tourists by the level of tourism brand, which includes the development of tourism, hospitality, restaurant business and recreation. To select the countries that could be analyzed, it was decided to refer to the value of the country's tourism brand, which was calculated by the laboratory of the University of Bormunt and the International Federation of Information Technology in Travel and Tourism, which conducted IT research services [8]. In particular, the TOP European countries were selected by the value of the tourist brand: Italy (5,147 thousand US dollars), Spain (3,750 thousand US dollars), France (3,598 thousand US dollars) [8].

For further analysis, the state-created media resources for positioning the country in the international market and shaping its image were identified. The initial data for analysis are presented in table. 1.

Table 1 - Analysis of marketing mechanisms for popularization and image creation of European countries with the most expensive tourist brands [9-12]

According to the table, it is determined that the countries with the most expensive global brands have a wide representation in social networks. The public sector of these countries allocates funding for the creation and promotion of the country's brand. However, it should be noted that the country chooses for its positioning those social networks and resources that are more popular in this country. However, for international positioning, it would be more appropriate to use resources that are more popular in countries that are potential consumers of tourism services. For example, when positioning the tourist and recreational potential for tourists from the United States, it is advisable to use Twitter, while in post-Soviet countries this social network is almost never used, so it is better to use Instagram or YouTube, which are very active.

Therefore, after analyzing the brand positioning technologies of the countries with the most expensive tourism brands in the world, it is advisable to provide the following recommendations for the implementation of the system in the national system of public marketing:

- positioning of the country is the basis of brand formation, and is the responsibility of the public administration system,

- increasing the efficiency of marketing technologies is possible only in the conditions of cooperation between the public and private sectors for the development of the service sector,

- information support should be aimed at increasing the competitiveness of service enterprises, which, accordingly, will solve the socio-economic problems of the public sector,

- the most effective method of positioning the country in domestic and international markets are digital resources and technologies, as evidenced by the experience of leading tourism brands in the world,

- to determine the positioning model, it is advisable, first of all, to determine the target audience: its requests, values, needs, ways of obtaining information, etc.,

- in accordance with the results of the analysis of the target audience, it is advisable to develop ways to position the country's brand.

Modeling of the country's brand positioning processes according to the preliminary analysis of consumers and markets will be considered in further research.

Conclusions

Thus, the study analyzed the tasks and priorities for the development of services, including improving living standards by ensuring entrepreneurial activity, increased competitiveness and investment attractiveness of enterprises operating in the service sector. Among the basic principles of forming the interaction of the public and private sector in the service sector were outlined their areas of responsibility, tasks and mechanisms for creating favorable conditions for the development of the service sector. The leading experience of the EU countries, identified as the most expensive global brands, has allowed us to formulate opportunities for the application of best European practices in the system of public management of marketing processes in the field of services at the national level.

References

1. Kondratenko, V., Okopnyk, O., Ziganto, L., & Kwilinski, A. (2020). Innovation Development of Public Administration: Management and Legislation Features. Marketing and Management of Innovations, 1, 87-94. https://doi.org/10.21272/mmi.2020.1-06 [in English].

2. Boni Z., Rosciszewska E. (ed.), Udzial obywateli w tworzeniu polityk publicznych [Participation of citizens in public policy-making], Foundation for Social and Economic Initiatives, Warsaw 2010. DOI 10.5604/01.3001.0014.4508 [in Polish].

3. Arduini, D., Belotti, F., Denni, M., Giungato, G., & Zanfei, A. (2010). Technology adoption and innovation in public services the case of e-government in Italy. Information economics and policy, 22(3), 257-275. URL https://ideas.repec.org/a/eee/iepoli/v22y2010i3p257- 275.html [in English].

4. Dalevska, N., Khobta, V., Kwilinski, A., & Kravchenko, S. (2019). A model for estimating social and economic indicators of sustainable development. Entrepreneurship and Sustainability Issues, 6(4), 1839-1860. URL DOI:10.9770/jesi.2019.6.4(21) [in English].

5. Pavel BACHMANN Public Marketing: Case of Self-governing Regions' Brands in Online Environment. April 2020. Conference: Hradec Economic Days 2020. doi: 10.36689/uhk/hed/2020-01-003 [in English].

6. Fung Archon. 2015. Putting the Public Back into Governance: The Challenges of Citizen Participation and Its Future. Public Administration Review: 75, 513-522.https://doi.org/10.1111/puar.12361 [in English].

7. Kim Annice E., Hopper Timothy, Simpson Sean et al. 2015. Using Twitter Data to Gain Insights into E-cigarette Marketing and Locations of Use: An Infoveillance Study. Journal of Medical Internet Research: 17(11), e251. https://doi.org/10.2196/jmir.4466 [in English].

8. About us // eTourismLab. Bournemouth University. - Access mode: http://blogs.bournemouth.ac.uk/etourismlab/about-us/ [in English].

9. Official site of the social network Facebook URL: https://uk-eng.facebook.com/ [in English].

10. Official site of the social network Instagram URL: https://www.instagram.com/ [in English].

11. Official site of the social network Youtube URL: https://www.youtube.com/7hUENG [in English].

12. Official site of the social network Twitter URL: https://twitter.com/ [in English].

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