ECONOMIC DEVELOPMENT TITLE MARKETING & ATTRACTION. Julie Engel President/CEO Greater Yuma EDC. Arizona Basic Economic Development Course

Transcription

1 ECONOMIC DEVELOPMENT TITLE MARKETING & ATTRACTION Julie Engel President/CEO Greater Yuma EDC

2 OUTLINE Overview of Economic Development Marketing Assessing the Economic Base Strategic Marketing: Using a Marketing Plan The Use of Financial Inducements & Cautions on their Use

3 Overview of Economic Development Marketing

4 what marketing entails IAL marketing is about positioning a product identifying & meeting the customers needs developing a message to communicate community attributes persuading potential investors to invest

5 positioning PRODUCT DIFFERENTIATION PRICE COMPETITIVENESS MARKET FOCUS The product in economic development: o community as a whole o one or more community resources industrial or commercial site, research park, neighborhood policy or program

6 positioning communities Product Differentiation distinct attributes and/or image Price Competitiveness comparatively low cost of doing business Market Focus Targeting a particular industry sector

7 marketing targets the economic developer s audience for marketing each target has a different objective targets of marketing efforts have broadened o retail, services, R&D, & technical firms o residents & workers can be important targets o other countries o local leaders & the community itself

8 role of the ED practitioner work with & educate local leaders and constituents market the community internally establish a positive image & attitude o amongst business, political & community leaders o encourage collective stakeholder contribution build positive relationship between public & private sectors

9 Marketing for economic development means providing accurate, up-to-date & credible information to potential prospects interested in investing, locating, or expanding in a specific area. Moreover, the practitioner may be the chief spokesperson of a community, playing a key role in identifying & promoting a community s assets.

10 Assessing the Economic Base

11 assessing the economic base outsider perception relative to the competition KNOW THE PRODUCT INVOLVE LOCAL BUSINESS help these stakeholders understand the economic base create in-house method to collect & update information ESTABLISH INFORM use assessment information to profile community fulfill information requests

12 competitive advantages assess competitive advantage with SWOT analysis o strengths & weaknesses are internal factors o opportunities & threats are external factors gain competitive advantage relative to other areas o attract & serve a target industry o develop attributes needed and/or preferred by the target industry more than any other community

13 targeting industries Practitioners must resolve which industries are the best prospects. o Which industries best fit local economic assets? o Which industries compliment the overall ED strategy? match capabilities & objectives with industry requirements focus efforts on a few high-potential firms that are likely candidates ensure availability of sites, labor, capital, & other factors to meet needs

14 which companies should be targeted? match assets or competitive advantages coincide with development goals investment & growth potential to help diversify local economy

15 industry factors to consider ownership suppliers & buyers capital expenditure location, building/site requirements, resource needs labor skill requirements, wage rates, employment energy needs Building or site requirements or resource needs growth trends & forecasts transportation requirements, infrastructure

16 sectoral analysis local industry assessments identify potential target industries by using sectoral analyses INDENTIFY KEY GENERIC FACTORS DETERMINE RELATIVE IMPORTANCE EVALUATE LOCAL CAPACITY RANK INDUSTRIES CHOOSE BEST FIT

17 clusters concentrations of firms with related activities managed clusters can lead to future growth o reinforcing regional strengths & innovation geographic extent varies o neighborhood, counties & even states industries grow more rapidly when linked

18 reasons for cluster development abundance of natural resources specialized physical infrastructure large pool of capital skilled labor force specialized local demand prior existence of suppliers

19 Strong clusters experience slower economic growth but are associated with higher employment & patent growth in linked industries & neighboring regions.

20 linking clusters vertically SUPPLIERS Competitor Competitor YOUR FIRM Competitor linking clusters horizontally BUYERS 20

21 targeting clusters identify core industries, determine greatest growth potential o location quotient analysis o analyze industry trends identify & target firms that support that industry o suppliers, buyers or businesses that would benefit from networking o identify similar businesses by NAICS codes

22 identifying prospects many EDOs target geographic segments o particular industry in a region or all industries in a region o can be as broad or as narrow as resources allow identify individual firms o note that confidentiality policies complicate this step some information sources o state ED agencies, chambers of commerce o utility companies, businesses in the community o real estate brokers, site selection consultants o trade/business journals, trade associations

23 location factors differ among industries & within sectors firm size is a factor o space, & availability of workforce o operating cost factors in times of economic downturn

24 location decision-making factors access to markets availability o raw materials o intermediate goods & services o labor (and cost) o adequate utilities business climate quality of life factors telecommunications

25 community image image of a location is a critical factor every community, state & region has an image ROLE OF THE MARKETER determine the current image understand how the current image impacts marketing bring facts & perceptions into congruence

26 distressed communities generally lack significant selling features face constraints o high crime o vacancy, dilapidated properties, environmental contamination o perceived under-skilled workforce o limited resources focus marketing on retention & expansion for existing businesses

27 adjustments for distressed communities economic base audit surveying working alongside existing businesses Determine why businesses stayed? Work to improve weaknesses start with most manageable alter negative perceptions cleanup programs rebates to offset the cost of security

28 marketing to retailers & service industries requires an understanding of local community particularly downtown or shopping area assessment should include o survey of existing land & building uses o identifying all vacant & unused building spaces o surveying parking availability o storefront attractiveness o public space o free wi-fi

29 International Markets/FDI aim to create & maintain jobs typically organized at the state level o more recently organized by larger cities BMW s manufacturing facility in Spartanburg, South Carolina created thousands of jobs throughout the region but profit returns to the BMW headquarters in Germany.

30 marketing messages importance of targeting o direct & concise message o utilize visual aids or enhancements to increase impact tag lines & logos o embody marketing message o reinforce message or tag line o promote immediate recognition presentation of marketing materials

31 presenting marketing materials COHERENCE clear & sensible message RELEVANCE materials contain information businesses care about CONSISTENCY same from beginning to end graphics & illustrations reinforce the message RELIABILITY materials use recognized & verifiable sources of information CREDIBILITY CREDIBILITY materials use accurate information materials use accurate information ORGANIZATION users CAN access the information that they want ORIGINALITY materials design & message differentiate the community from the competition ACCESSIBILITY How people access your materials

32 six main techniques advertising publicity promotional materials direct mail social media / web 2.0 personal selling

33 Strategic Marketing: Using a Marketing Plan

34 marketing technique criteria Exposure Presentation Cost Information Evaluating Results The goal in marketing is to create the greatest number of positive impressions on the target audience for the least cost.

35 using a marketing plan A marketing plan guides all marketing activities. o outlines strategy for achieving marketing goals o specific activities & timetables to realize goals o financial resources & staff needed to support activities o how to evaluate the effectiveness of activities It is important that a marketing plan is one that an organization is capable of implementing & committed to supporting over an extended period of time.

36 why marketing plans are important to the community, government officials, & board members COMMUNICATES GUIDES management actions & resource allocations. allows the organization to shape its future rather than react SHAPES COORDINATES organizes activities of different members of the marketing effort provides a control system to monitor deviations CONTROLS JUSTIFIES provides justification for funding

37 step one: identify players & stakeholders Include key community leaders government reps neighborhood assoc, developers, private financial institutions Gain Leadership Buy-in help leaders understand & approve of goals change opposing attitudes pursue alternative strategies Garner Support hold small meetings recruit diverse groups

38 step two: assess competitiveness ECONOMIC ENVIRONMENT COMMUNITY RESOURCES BARRIERS TO LOCAL DEVELOPMENT SWOT identify & prioritize the main issues

39 step three: identify potential markets CONCENTRATE ON BEST-SUITED INDUSTRIES sound market research & analysis community profile details DETERMINE COMPONENTS TO PROMOTION develop message target purpose desired response determine channels

40 step four: goals, objectives, strategies GOALS overall vision or desired outcome OBJECTIVES specific targets may have several per goal STRATEGIES detail how to achieve goals & objectives short-term & longterm

41 step five: plans of action spell out sequence of events specify necessary resources action plans should indicate: o responsibility (who & what) o activity implementation o personnel requirements o cost estimate o expected impact o timeline & completion date

42 step six: implementation carrying out action plans orgs. must be able to implement plans o long-term commitment is a must determine best way to share information think from target audience s perspective

43 implementation considerations what are the best ways to market to the target? what is the most effective way to get the message out? what medium gets the most responses? o social media v. print media Given the budget, which are the most effective marketing tools?

44 step seven: monitoring & evaluation goals & objectives should allow for evaluation monitoring should be on-going evaluations should be periodic o monthly, quarterly, semi-annually, or annually

45 monitoring & evaluation factors to track actual & scheduled progress dollars spent & resources allocated number of inquiries generated number of jobs created or retained external changes that may impact outcomes

46 step eight: plan adjustment plans should be revisited & adjusted regularly o changing conditions & outcomes EDOs will need to regularly examine & evaluate the vehicle that delivers the community s message. For example, print media has been consolidated in recent years as social media outlets have become more popular.

47 marketing via public-private partnerships (PPPs) PPPs have benefit of both public & private sector demonstrate a strong alliance with the private sector can be very effective for multi-jurisdictional regions typically private sector-led with public-private sector board funding is joint

48 potential partners PUBLIC MEMBERS city & county elected officials representatives from public universities state ED orgs PRIVATE SECTOR MEMBERS businesses, banks, accounting & law firms, utilities chambers of commerce real estate developers, industrial parks private colleges labor

49 alliances should be strategic identify organizations & agencies involved determine what products orgs. are marketing o note messages & marketing approaches meet with orgs. o determine what the message should be o resolve any contradictory messages o coordinate efforts to reduce duplication determine mutual goals, strategies & roles o allocate resources

50 criteria for successful partnerships clearly defined mission o addresses public & private sector concerns designation of control consensus among members o regarding mission & implementation of the mission adequate funding established performance measures o justify continued support & funding

51 The Use of Financial Inducements & Cautions on their Use

52 using financial inducements... inducements & incentives attract or retain businesses o lower cost of doing business most common incentives o low-cost financing, tax abatements, enterprise zones o training programs o low-cost utilities, turnkey facility plans priority of incentives varies o consider the type of business operation

53 criteria for incentives EDOs should ALWAYS utilize performance based incentives Number of jobs created Quality of jobs Minimum investment requirements Reporting requirements But-For determination

54 performance measures & monitoring compliance state & local officials raise costs for non-performance o clawbacks explicit quid pro quo into the economic development process often assessed through interest penalty more effective if based on specific contractual agreements o accountability clauses performance indicators can be problematic o distinguishing between underperformance & inherent risks business cycle & market changes can negatively impact a business performance consider specifying a financial recovery procedure

55 QUESTIONS? Julie Engel