Branding of the territory: a new paradigm of development

Abstract

The article gives grounds for a new paradigm of development - branding of the territory. The problem of region brand formation is actualized. The point of view of the author on the territorial branding as a technology of providing the balanced and stable socio-economic territory development in current conditions deserves particular attention. The analysis of territorial branding formation as independent marketing trend is given. The scientific interpretations of the category "territorial branding" are given. The proposition that branding is an effective instrument of attracting attention to the territory is stressed. In conditions of informational and creative economy the existence of the city brand and its development strategies become the necessary factor of the effective realization of territorial potential. The conceptual framework of territorial branding and main characteristics of the utility of the territory are considered. The results of scientific research develop scientific knowledge in the field of branding territory theory, promote the development and use of intellectual and institutional resources of the territory for the growth of its marketing potential. This indicates, that the basic principles of territorial development, starting from the main concept to the specific project documents need updating, which is connected with the economic processes and also democratization and globalization processes. The cultural-economical planning gets priority, the foundation of it is the use of human and cultural capital of the city. The novelty is that material assets, traditionally considered being the basis of territorial economy development, lose their significance comparing to intangible assets, which are of various character: creative and cultural potential of the inhabitants, management professionalism, information environment saturation, the possibility to create the atmosphere of tranquility and comfort on the territory. Not the territory size and its economic base become the main success factors, but new unconventional management decisions, an energetic wish of the territory to formulate clearly its strategical interests in the country, in the region and in the world. This is the aim of the territorial branding. Currently the changing of territory development paradigm takes place. It becomes the subject of socio-economic relations, goods, intangible assets concentration. The emphasis of the development shifts towards culture, entertainment, impressions.