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ISSN: 1692-343X, Medellín-Colombia QUID 2017, pp. 299-304, Special Issue N°1- ISSN: 1692-343X, Medellín-Colombia TERRITORIAL BRANDING AS AN IMPORTANT FACTOR OF THE STEADY INCREASE OF INVESTMENT AND TOURIST-RECREATIONAL APPEAL OF THE REGION (Recibido el 29-05-2017. Aprobado el 23-08-2017) Boris Mojshevich Liliya Raisovna Niyaz Kamilevich Eidelman Fakhrutdinova Gabdrakhmanov Kazan Federal University, Kazan Federal University, Kazan Federal University, Institute of management, Institute of management, Institute of management, economics and finance economics and finance economics and finance [email protected] Abstract. The article discusses the steps and rules of creation of territorial brands in modern conditions. The author shows the peculiarities of formation of urban brands and their main components. It is noted that the creation of territorial brands is a long creative process, requiring considerable investment, but giving the appropriate returns in the form of increased fiscal revenues from the development of tourism in the region. Much attention is paid to the formation processes of territorial brands and co-branding on example of Republic Tatarstan and of Kazan. The role of territorial branding in the development of various types of tourism on the territory of the Republic of Tatarstan. Thus, the article concludes that the formation of the modern territorial brands can give, ultimately, a greater return in the form of the creation of an effective tourist destination in the region. Moreover, this positive experience in the near future can be successfully used not only in Tatarstan, but also in other regions of the Russian Federation. Key words: territorial brand, stages of development of territorial brands, urban brand, co-branding. Citar, estilo APA: Eidelmand, B. M., Fakhrutdinova, L. R. & Gabdrakhmanov, N. K (2017). Territorial branding as an important factor of the steady increase of investment and tourist-recreational appeal of the region, Revista QUID, (28), 299-304. 1. INTRODUCTION Whereas in the most common way brand represents strong trade name, that have high image component, Under current conditions creation and development regional brand development contributes in a varying of territorial brands or regional brands is an degree the increase of the value potential of indispensable element of accelerated development of corresponding geographical unit by strengthening subnational entities. This process is typical for the the tourist and recreational attractiveness of the majority of Industrialized Countries. As for Russia, region (Zhang, Wedel, & Pieters, 2009). the necessity of domestic travel development as an important integral factor of social and economic One of the most important and challenging tasks development of the communities induce to place facing regional brands is the development of special emphasis on the development of regional attractive image of the relevant territory. This brands (Shabalina, Rubtzov & Pratchenko, 2014). attractiveness could be, in particular, described by the following formula: At the moment, any brand is an instrument of marketing activity that act to raise marketability of Attractiveness (П – max) + Risk (Р – min) = product, services, person, region, organization or Confidence (D – max). (1) idea. However territorial brand describes complex of developed images about corresponded region in Among the indexes of effectiveness of territorial people's minds, confirmed by personal brand, most crucial are indexes of social characteristics of this region in different areas: performance (Table 1). executive, recreational, sports, innovative or any other (Mingaleva, & Bunakov, 2014). Table 1: Performance Framework of Territory Branding 2. METHOD Types of Effectiveness Indexs of Effectiveness Territorial brands on the territory of Russia in subject - quality of life; matter could be divided or classified into several - cost of living; groups: - number of manpower in tourism; Social performance of 1) Political and administrative or federal: Moscow city branding - population movement; and Saint-Petersburg; - dynamics of population change; 2) Recreational – Sochi; - number of newborn 3) Mythological or fantasy – Veliky Ustyug (the - number of tourists; birthplace of the Russian Santa Claus); - recognizability of the city; 4) Sports – Kazan; Communicative effectiveness of brand - rating of the territory (The Anholt City Brands Index); 5) Innovative – Skolkovo (close to Moscow), Innopolis - territorial behavior on the part of its (in Republic of Tatarstan) etc. consumers (enquiries) - total wages of people involved in Basic concepts and categories of territorial branding tourism; could be graphically showed in the following - cumulative taxes from tourism; scheme (Figure 1). Economic effectiveness Architecture: brands and touristy Brand platform is an - average savings per household on taxes Goal – creation, sustenance, or places and routs, specific products image of the region, its of city branding change of ideas, intentions and and services, human resources, sustainability contains due to the tourism development; behavior of subjects as regard to investment attractiveness information on every the territory group of customers Objectives: - To increase the prestige of the territory; Primary audience of customers: - value of city brand - earnings from brand - To create unique competitive position; - Investors; - To increase the degree of citizens - Visitors (tourists); identification to the territory of living; - Purchasers of goods and (from trade of licenses - transmission of - To increase the quality of living in the services region; - citizens - To attract new companies; Conceptual construct rights to use city brand) - To increase the cultural attractiveness; of territorial branding - To develop the infrastructure in the region. Funding sources: - Government (local authorities); - Individual partners The object of research is any territorial (interested companies, local space in other words local territory. businesses) Subjects are regional authorities, local Social and economic effect of realization Sources of information: 3. RESULT businesses, non-profit organizations of a project on creation of territorial - Tourism (associations), economical agencies, brand: - Exported brands; local communities (clubs), etc. 1. Marketing factors: - Foreign and - expansion in the number of customers domestic policy in the territory - Investments - raising the status of the territory - Culture and Therefore, the purpose of regional brands creation is 2. Social and economic factors: traditions - satisfaction of needs of the citizens in a - Citizens territory; - rise in value of a territory (as a result as a steady increase of investment and tourist and a result there is an additional income to the budget in the form of tax revenues) - growth of economic activity recreational appeal of relevant geographical unit. Figure 1. Concepts and categories of territorial branding And also as a result of this process, the acceleration 2. Territorial brand could not be created of socio-economic development in this region. without the active participation of the relevant regional education administration. Furthermore, it is Stages of development and creation of territorial very often when it is an order from the regional brands. administration that gives incentive impulse to the regional brand creation (Rosenholz, Li, & Nakano, Process of development and creation of regional 2007). brands could be divided into several stages, which as we go forward will be discussed in further detail. 3. Developing territorial brand must be from one side patriotic, and from the other side stay out of 1. Research of basics of brand formation in the politics and bring interethnic and interchurch peace corresponding territory. When performing the and reconciliation in this territory (Gabdrakhmanov, relevant work could be used different methods of Rubtzov, Shabalina, Rozhko, & Kucheryavenko, strategic management that will help to carry out into 2014). practice comprehensive study of external and internal context. Here, in particular, could be However, when working on the creation of territorial attributed such frequently used in marketing brand, you should always remember that its researches methods as SWOT-analysis, PEST- development is not goal in and of itself, but only one analysis, benchmarking; BCG Matrix and other. of the marketing tools for the promotion of corresponding region, increase of its investment and 2. Development of the conception of tourist and recreational appeal among its citizens, territorial brand and specification of marketing tools public and administration at all levels (including for its creation. especially Federal level). 3. Front-line creation of corresponding The Development of City Brand. territory brand, which includes development of such attributes as description of a brand, it’s slogan, logo, Another variety of territorial brand is City Brand, sound image, video production, promotional which is developed for the purpose of creation of merchandise, etc. distinguishable competitive information for the corresponding city (Andrews & Whitney, 1976). 4. Appraisal of newly created territorial brand in the course of major political, cultural or sports Brand of city or City Brand – it is what unite citizens events, such as Olympic games, Universiade, World of a city and its guests, source of its recognizability championships in various sports, International and maintenance of a constant interest in it. In other political forums, The World
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