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Specifics of Development of Closed Administrative Territorial Units as an Object of Marketing

Author: Olga T. Yergunova and Sergey V. Smirnov

Abstract:

The paper reveals the distinctive features of closed administrative territorial units (CATU) namely, restricted access to territory, special funding of budgets and limitations on information exchange, entrepreneurial activities, attraction of investment. At the same time while determining the necessity of considering CATU as a very specific object of marketing it notes that CATU represents a single socio-economic set which has a dual nature. The paper treats CATU as an administrative territorial space where a specific reproduction process takes place, which at different stages uses these or those resources and has a number of peculiarities leading to a particular result (aggregated output). At this, the essence of place marketing of CATU preconditions the possibility to build a marketing-focused mechanism, backward and forward linkages of which allow identifying prospective needs of CATU in knowledge-intensive spheres and create conditions for maintaining outstripping supply of goods and services to external consumers while forming demand on their part for products, services and public goods produced in such municipalities.

Keywords: marketing; closed administrative territorial unit; gross product; aggregate output; territory.