Marketing & Attraction Flashcards
Marketing can be used to help
attract, retain, and expand businesses, improve a community’s image inside and out, and promote poilices and programs; also used to retain and attract labor
marketing entails
- identifying and meeting the customer’s needs
- developing a message to communicate a community’s attributes
- persuading potential investors to “buy” the product
what are the three main distinctions a marketer can make?
- product differentiation
- price competitiveness
- market focus like geographic region or audience
what is product differentiation?
developing attributes or an image that is distinct from other communities like workforce, core industries, or unique R&D activities
what is price competitiveness?
having comparitively low cost of doing business like lower land and labor costs, lower tax and utility rates, incentives that reduce the cost of operation –value proposition
explain market focus
targeting a particular sector or geographic region for a particular audience
what ar targets?
the economic developer’s audience
name some targets of economic development marketing
- businesses from all industries (commercial and manufacturing)
- young families to change the demographics of an area
- local leaders to get them to accept and support economic development goals
what three things should practitioners do when assessing the local economy
- involve local business in understanding the economic base
- establish an in-house method of collecting and updating information and ask other organizations to share what they have
- use the info collected to help profile the community to prospects and fulfill information requests
After information is collected what is the next step?
to conduct a SWOT analysis and assess the community’s competitive advantage
provide examples of strengths
highly skilled labor, proximity to critical infrastructure, research parks and universities, low cost structure
provide examples of weaknesses
low-skilled labor, lack of building and site inventory, crime, low access to capital
provide examples of opportunities
technological changes, changes to the economy, demographic changes
provide examples of threats
technological innovations could pose threats
what is a target industry?
a group of companies you want to reach
by matching a community’s ____ and ____ with companies that require those ___ and ____ a community can focus their efforts on a few high potential firms
capabilities and objectives; capabilities and objectives
communities should target companies that
- match its assets or competitive advantages
- coincide with development goals
- have investment and growth potential that will help the local economy
list some of the industry factors to include when developing a target
- suppliers and buyers
- capital expenditures
location
labor skill requirements, wage rates, employment - energy needs
- growth trends
- building or site requirements
- growth forecasts
- transportation requirements, infrastructure, or communication needs
sectoral analysis
looks at different industrial sectors in broad terms and how identifies how industries will fit into the community
cluster analysis
involves identifying core industries in the community and determining which industries have the best growth potential. Also involves targeting firms that support that industry like suppliers, buyers, or businesses that would benefit from networking with cluster firms
what are two of the possible approaches to identifying target firms?
sectoral and cluster analysis
lists the steps involved in a sectoral analysis
- identifying key generic factors that are important to different industry sectors
- determining the relative importance of those factors for each sector
- evaluating the community’s capacity to satisfy those factors or prefernecs
- ranking industries on the basis of the community’s capacity to satisfy location requirements and overall economic development objectives
- indentifying the industries that best fit the community’s goals
how can clusters be linked?
horizontally - businesses that compete in similar markets or share resources like technology, resources, or workforce
vertically - in the case of buyers and suppliers
what are the two kinds of factors in firm location?
cost factors and non-cost factors
cost factors inlcude
rent, taxes, labor, and utilities
non cost factors include
quality of life and labor skills
location factors _____ among industries and ______
differ; within sectors
list some of the location factors
- access to market and the network to get there
- access to services
- “ready” land and facilities
- environmental condition of land
- availability and cost of financial capital
- community image
- incentives
- labor force quality, productivity, cost, availability
- unionization
- quality of life
- regulations - environmental, workers comp, zoning
- state and local government attitudes toward business
- taxes - sales, property, corporate, and personal
- telecommunication systems
- utility capabilities and rates
regarding community image, the role of the economic developer is
- to determine what the image is
- understand how the image impacts marketing, particularly for targets
- bring facts and perceptions about the community into congruence
to market to retailers you need to
understand the shopping areas - downtown, parking, available storefronts, attractiveness, public space
FDI marketing campaigns
attract and retain multinational firms to create jobs and grow the tax base
what are the two components of promotion
- developing a message
2. conveying the message
what are some of the things marketing materials should be evaluated on
coherence relevance consistency reliability credibility organization originality accessibility
what are the six marketing techniques
social media (continuous dialogue and interaction)
advertising (news inserts, commercials)
publicity (press releases, press kits)
personal selling (trade shows, envoys, events)
promotional materials (exhibits)
direct mail (letters, postcards)
the goal of marketing is
to create the greatest number of impressions for the least cost
evaluate each marketing technique based on these three things:
- exposure - will this reach the right people?
- presentation - can this be demonstrated, visualized, explained and is it credible
- cost - which is the most expensive vs. which is the least expensive
most prospects will want to know about
workforce
available sites or buildings
housing
contacts
marketing efforts should be ____ to see what works and what doesn’
audited
track marketing efforts by benchmarking or comparing current results
with past performance
results of marketing efforts in other communities
against targets established at the beginning of the effort
Aside from job creation measures of marketing success may include
number of new start-ups
percent of businesses in operation 1, 3, 5 years out
new recruitment or expansions within target industry
percent of job growth at 125% of median income
number of patents awarded to local companies
marketing plans outline a strategy for
achieving goals, timelines, costs, and evaluation
marketing plans
- communicate to the community, government officials, and board members what the organizations is trying to achieve and why and how it will do it
- provides a guide for management actions and resource allocations
- allows the organization to shape its future rather than react to situations as they arise
- coordinates activities of different members of the marketing effort
- provides s control system to monitor deviations from assumptions that underlie the plan, and results that don;t meet goals
- justifies funding levels and how the money will be spent
site selection:
finds the most appropriate site for a business from an economic and operational perspective
list some examples of the types of site selectors and their sevices
firms that offer comprehensive service real estate firms and brokers professional service firms economic development strategy consultatns corporate real estate executives
factors that site selectors consider when conducting a project vary based on
industry, client needs and a consultant’s method and area of expertise
site selection considerations include
- business strategy
- operating costs
- operating requirements
- risk factors
typically when projects involve executives, managers, and skilled workers or an HQ to relocate _______ is a consideration
quality of life
what are the typical steps of a site selection process?
defining the project requirements, broad screening and cuts, identifying a short list and making site visits, negotiating incentives and finalizing the project
Regarding incentives a community should know what they are willing or ___ to offer a project
not willing
most common incentives are
- low cost financing
- tax abatements
- training programs
- low-cost utilities
- turnkey facility plans
- enterprise zones
common criteria communities use to make incentive decisions include;
- job numbers
- quality of jobs
- investment requirements
- reporting requirements
- “but for” determinations - this project wouldn’t have happened “but for” the availability of this funding tool
clawbacks are
part of a written agreement that says if the recipient of incentives doesn’t meet their requirements or shuts down they must refund all or part of the incentive.
