Radu Cristian BarnaRadu Cristian Barna

Regional Marketing and FDI

Why regional marketing?

European unification process competition on a

single unified market

Globalization regional economies – independent

parts of an integrated global economy

regions become real actors on the

investment market

Regions use marketing techniques on the

regional investment market

What methodes ?

Relational marketing:

customer expectations are presented in terms of global performance not only of a product;

services allow for the understanding of the organization;

relation with other actors (agents, government, civil society) gains more in importance

4P + C = marketing mix

Industrial marketing:

the supplier (region) communicates the characteristics of the region

the customers are organizations made of professionals

Why to attract FDI?

Transfer of technology and know-how;

Attracting managerial expertise;

Creating new jobs;

Creating new fiscal revenues;

Creating an attractive image for the region.

Who “sells” the region?

The state, which represents the total activities undertaken by the authorities in order to encourage or discourage an investment;

„the business community”, made of consulting firms, banks, lawyers etc.;

promotion agencies, which apart form the activities oriented towards investors, must also motivate and inform the government and the local business community of the intentions and expectations of the investors.

What can the region do?

The regions, from a marketing point of view can influence several variables, parts of the “regional” product:

its characteristics and its potential;

the business climate and the size of the market;

the infrastructure and the quality of the labor force;

the image of the region;

the added value created by the promoting agencies.

What activities?

promotion and communication, so that it can provide a favorable image of the location and for attracting investors;

- „image building”, oriented towards consolidating the image of the region;

- „investment generation”, oriented towards maintaining close contacts with the investors.

An activity of services that is oriented towards promotion, consultancy and support for the investor.

After-care?

In order to have an efficient promotion, the client must not be presented with a product but with a global service. This “complete solution” includes:

- facilitating the selection process; - a diminishing of uncertainties; - an increase in the utility of the general product.

„after-care” programs represent an „ensemble of potential services offered to a firm by the government and by the region, whose purpose resides in both facilitating the beginning and the development of a business, at the same time having as target the maximization of the contribution of this company for the regional development”

 

Goal Services

Reducing the level of incertitude

Supplying information on the key elements of a localization Estimating the costs for investment and exploitation and the enabling of contacts with the already present investors

Facilitating the access to territory

Assistance in negotiating with the authorities, lobby at different local actors Help for compiling a file (advices, support...)

Facilitating the start and post – investment aid

Recruiting and selecting personnel, programs for professional training, global assistance The integration of the expatriated personnel and of their families Post – investment support

Regions need an imageRegions need an image

It can reduce the level of uncertainty and risk and can have a positive effect on the mark of the investor.

The regional image is formed from:

   the standard of life in the region;

  the „made in” reputation;  the presence of some prestigious firms;the attitude of the authorities towards foreign

investments;  the attitude of the population towards work .

Communicating the image

Conclusions

In Romania, the regions suffer from the lack of a regional identity; regions do not even have a name, and in order to communicate certain characteristics, aspects and qualities of a region it is necessary for a region to have a marketable identifier

Competition between regions have a name (making a name for themselves) be a name (making themselves known and renowned) sell the name

„taking part in a competition is only half the way to victory”

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Thank you Thank you

very very muchmuch