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Features of Touristic Territory Branding on the Example of Sochi City
(Russian Federation) and Jurmala City (Latvia)
Marina Gunare a, Evgeniya V. Vidishcheva b , *
a Baltic International Academy, Latvia
b Sochi State University, Russian Federation
* Corresponding author
E-mail addresses: (E.V.Vidishcheva)
The brand is a harmonic combination of social and cultural life, modern infrastructure, authorities and business activities, attractive investing climate and historical heritage. In a modern world territory brand formation and its successful integration is a key aspect in ensuring of well-being and development of society. Geographic mobility is increasing and it influences welfare of territories. Complex of branding activities provides a sustainable place in a market for territory. Russian experience in tourism development demonstrates that each ruble spent on tourism promotion returns to growth of tourist flow, tax revenues and local producers’ incomes. So territory brand promotion expenditures can give a heavy impact to socio-economic development of the region. The brand of territory is directed to diverse target audiences, the most important of whom are investors, tourists, consumers of goods and services in the external market, residents.
The article considers the touristic territory branding experience of Russia and Latvia. Research aims to analyze how the implementation of branding activities contributed to achieving a new level in tourism and investment attractiveness of cities, and if it allowed creating an image of unique place for visiting.
Keywords: touristic territory, brand, promotion, strategy, branding activities.
In globalization time and intense competition for investment brand reputation is undoubtedly important. Brand can be both challenging and constraining factor in the territory development. Brand-building of resort towns consists of several stages, including the development of strategy, analysis of key market segments, brand positioning and so on.
2. Materials and methods
The methodological bases of the study are the works of Russian and foreign scientists in the field of territory branding, formation and successful implementation of branding strategies in Russia and Latvia. The study was based on the works of (Anholt, 2005; Kotler, Gertner, 2002). The paper used methods of system, factor and comparative analysis, as well as the method of statistical processing of empirical data.
Branding territory study has not a long-term history. The concept of "place branding» wasfirstly used in 2002. Simon Anholt – the author of term. However, the lack of terminology does not imply the absence of the process. For the first time to promote the territory brand (namely the country brand) suggested David Ogilvy in the 1950s. Later, in 1980, T. Levitt raised the issue of creating a unique image (brand) to achieve a positive effect in his book "Marketing success through differentiation."Scientists who studied the essence of branding processes, issues to increase their tourist attractiveness are Ward, S. V. (1998), A.P. Pankrukhin (2002), S. Devis (2005), F. Sharkov (2006), Danny K. (2013) and others.
Research of branding policy of resorts proved that in a variety of modern methods of brand promotion there is not universal safe version, each territory requires a special approach. Sochi implements more aggressive tactics of brand promotion, and becomes a world-class resort in a short term. Such a fast-moving tactic requires significant financial investments, the support of the authorities and the use of bright events (event marketing) to attract global attention. Olympic Games played an important role in city marketing; after Games Sochi "wakes up" famous in a moment. However, to hold large event is not simple way to form a successful brand of the city. There are many examples of unsustainable management of post-Olympic cities, which leads to non-use of the Olympic legacy and the fall of the city's popularity. Sochi continues to support a brand even after its successful formation and so stimulates the growth of tourist flows after the Olympic Games.
Advertising Expenditure... – Advertising Expenditure in Latvia. The Statistics Portal [Electronic resource].URL: www.statista.com (date of access: 09.12.16)
Anholt, 2005 – Anholt, S. (2005). Brand New Justice: How Branding Places and Products Can Help the Developing World, Great Britain.
Kotler, Gertner, 2002 – Kotler, P., Gertner, D. (2002). Country as brand, product and beyond: a place marketing and brand management perspective. Journal Brand Management, 9(4): 249-261.
Kukina, 2011 – Kukina, E.N. (2011). Branding territories: essence and design principles. Vestnik Volgograd State Technical University, 11(4).