engleski

Influence of urban marketing and city branding on the development of local economy in units of local self goverment in the republic of croatia

Influence of urban marketing and town branding on local economic development of units of local government in the Republic of Croatia In the global financial crisis and general recession we are facing today more and more mayors ask the questions: How and in what manner can our own local economy and local economic development be boosted? How to behave during the period of recession? Do the towns have to and do they need to cut their budget expenses? What point of view should be taken-short-term or long term? These are only some of the questions bothering town authorities. Unfortunately, our experience tells us that in tough times consumers too easily and too quickly cut their spending. Numerous companies behave in a similar way. In expectation of lower sales, expenses are reduced too, including marketing expenses, and the emphasis is placed on the realization of short-term profit. Companies also witness a decrease in investment activities. Somehow, everything freezes. How do towns behave in such a situation? Most of them will probably come to a halt, redistribute their budget expenses and attempt to behave as responsibly as possible with their budgetary funds. In the event that some towns have planned funds for the promotion of their band and stimulation of their own local town development, especially through attracting new investments and maintaining tourism turnover, they will try to spend these funds for that purpose. For towns and their leaders, and particularly for political reasons, it is important to recognize short and long-term objectives. Short-term objectives are usually realized by means of quick promotional actions, namely classic marketing strategies and programmes. In this case, towns will find it attractive to propose to their own tourist companies to cut prices aimed at attracting price-sensitive tourists. By the same token, aimed at attracting new investors, they will also find it interesting to cut and reduce all expenses related to purchase of land and construction of connection infrastructure at the lowest level. As far as long-term objectives are concerned, the implementation of concepts of urban marketing and town branding may certainly contribute to more secure and more successful town business activities and local development even in dealing with and overcoming critical situations. In fact, the town with a developed brand and recognizability has firm rational and emotional advantages. Although it might lose a part of its customers (tourists, potential investors, potential inhabitants) forced to postpone their investment, arrival or something else on the same grounds in the period of recession, it is also certain that a large part of tourism turnover and direct investments will actually be preserved. Moreover, there is firm basis and great chance, it can even be claimed that lost customers-users of town services will actually return when the crisis is over because they have a clearest image of the town-brand and they know what they want. In the period of economic slowdown, countless proofs and information suggest that cutting back on advertising in the period of recession is not such a good idea in order to achieve an irrelevant short-term objective, such as limiting expenses and cutting back on overall expenses without considering long-term consequences. In other words, inexistence of town marketing and lack of understanding of town brand will make the so-called “ordinary” towns and classic local authorities incompetent and uncompetitive once the market recovers. Various sources and numerous researches undertaken over a long period of time have shown that the best strategy for long-term return of invested capital is increase of all marketing expenses during the economic slowdown. Therefore, the subject of this research is theoretic development of economic thought aimed at proving a positive influence of urban marketing and town branding on local economic development and their interdependence. The objective of this study is framing a theoretical concept. Such concept would define indicators of successful influence of marketing concept. Furthermore, it would develop a framework for future research of positive influence of urban marketing and town branding on local economy and development of towns. Key words: local development urban marketing, town branding, marketing

local development urban marketing; town branding; marketing

nije evidentirano