Rural society in placemarketing – methodological aspects

The aim of a paper is to evaluate, which placemarketing activities should be proceeded in rural areas where there are very few attractions for outer place-buyers according to rural society opinions. According to a definition placemarketing is designing a place to satisfy different needs, especially those declared by the inhabitants, entrepreneurs, visitors and investors (Kotler, Asplund, Rein and Haider 1999, p. 125). The paper contains methodology of rural society research (local entrepreneurs and inhabitants of Konin region) on local authorities activities for territorial units of different multifunctional rural development level. Among soft factors rural development soft ones become as significant as the infrastructural ones. The paper is finished with preferences of main place-buyers regarding marketing tools.


Introduction
There is a difference between using an idea of place-marketing in rural areas than in cities or regions.In cities and regions organizational and marketing effort is concentrated on attracting outer place-buyers, esp.tourists and investors (Olins 2004, p. 156-158).Residents or local businesses as inner place-buyers are often treated as resources (mainly as labour or suppliers market) for outer ones, composing the basis of place-branding, practically dedicated as idea to cities or regions.Focusing on branding idea in case of towns may cause problems with allocating funds and other resources on low effective activities.The aim of a paper is to evaluate, which placemarketing activities should be proceeded in rural areas where there are very few attractions for outer place-buyers according to rural society opinions.Commune needs were

Definition of placemarketing
Designing a place to satisfy different needs, especially those declared by the inhabitants, entrepreneurs, visitors and investors constitutes one of the placemarketing definitions 1 .City could be a place, as could be an area in the city, rural area, region, country, group of countries (for example UE) or even continent.Main placemarketers are self-government representatives.Moreover other local, regional and national actors are responsible for performing placemarketing tasks.
Main placemarketing goal is to satisfy different needs, but there are also its dimensions focusing on competitiveness of places 2 .Using the idea of placemarketing one should consider both goals.Problems described in this paper relate to the first goal.Competitiveness usually means rivalry (Budner, 2004, p. 46).But territorial competitiveness could be divided into direct and indirect one (Markowski, 1996).Indirect competitiveness means creating conditions of regional environment for individuals, enterprises and other organisations.In other words, it is creating possibilities of competing for domestic economic entities 3 .In that case place is treated as a sum of many areas (territorial products).Direct competitiveness means rivalry of territorial units for different benefits.Place is treated as one product offered to external place-buyers (mainly investors and tourists).For regions or other large territorial units direct competitiveness becomes more important goal than for communes, which prefer indirect one treated as a way of improving level of government proficiency what leads to higher effectiveness (improving local statistics) (Komorowski, 2000).Indirect competitiveness means also partnership of territorial units for common benefits with the use of democracy procedures (Prawelska-Skrzypek, 1997, p. 85).

Methodology of rural society research
This paper is based on a premise that designing rural areas begins with asking domestic placebuyers, how to satisfy their needs, because it helps improving local statistics in comparison with other communes.Secondly, empirical verification of theoretical reflection bases on field research conducted in each rural commune of Konin region (former Konin voivodship in Poland) in 2005.This part of present Wielkopolska voivodship has been classified as peripheral area with no specific territorial values (Wysocki, Łuczak, 2002, p. 503).The region has been dominated by backward agriculture and some mining and energy industry (based on brown coal/lignite) highly determining the employment structure.It is difficult to undertake a nonagricultural activity in the region, however it is internally differentiated.Research findings can be generalized for areas, which characterise inner differentiation and similar social-economic situation, such as backward agriculture and industry, but also some opportunities like adjacency of the A2 motorway (Berlin -Poznań -Warsaw -Moscow) and possibilities of alternative energy development (mainly geothermal energy and biomass).Konin region has been chosen, as it indicates the potential to provide an answer to a still current question about what can be done in multifunctional rural development of unattractive areas.Thirdly, it is set that each rural commune of Konin region should be classified to one of five types according to the level of multifunctional development 4 .Multifunctional rural development (MRD) means modification of the rural employment structure, which is related not only to farmers, but to the whole rural population as well (Kłodziński, 1997, p. 41; Zarębski,  2002, p. 6).This type of development (Duczkowska-Małysz, Małysz, 1994, p. 35) 5 seems to be the most appropriate for Polish rural areas, because it helps to stimulate the entrepreneurship of local actors and allows to avoide vast state intervention in market mechanism (price intervention) 6 .
The classification became the basis for opinion poll research involving proportionally selected population of 621 inhabitants (that are not entrepreneurs) and 150 entrepreneurs of the region 7 .Each respondent was asked to estimate his/her satisfaction from 33 marketing factors (tools).Subjective grades of placemarketing tools correspond with emotional reasons for starting business activity, which is the basis of the MRD.In fact subjective grades help with measuring the level of satisfaction and influence (importance) of each factor (place-marketing tool) in the local development.
Placemarketing in early definitions was directed to external place-buyers, especially tourists and investors.In that case the most important goal for a territorial unit is to differentiate the local offer in comparison with other ones.Moreover, basic placemarketing task is to create a plain system of identification (place branding) (Olins, 2004, p. 147 -166) 8 .But if investors decide to invest in the place, they change their status into local entrepreneurs (or local division of transnational corporation).In that case the system of identification matters less for investors and localisation acceptance is a function of investment climate and commune facilities.
Attracting investors to a place can be short-time effect, but keeping them in long run depends on conditions and regulations offered to local enterprises.Local opinions about local infrastructure elements and the level of other placemarketing activities could be important measure for local authorities helping to decide what should be the frames of local development politics.

Commune needs of rural entrepreneurs and inhabitants
The study presented in the paper focuses on comparative analysis of inhabitants and local entrepreneurs' preferences.Local authorities willing to increase the level of commune competitiveness (indirect meaning) should recognise main local preferences, especially in rural areas, because strong local economy is not only needed for local society, but also attractive for exterior place-buyers (table I).Wealth broadening is a determinant of the last stages of economic growth (Rostow, 1960; Grant,  1991, p. 540) and empirically proves that MRD is a way of implementing rules of market economy in the rural areas.Gaining freehold is very important for entrepreneurs in very poor communes as well.It can be presumed that Polish entrepreneurs of rich communes treat freehold as a basis for investment, while Entrepreneurs in poor ones regard freehold as a traditional factor of functioning.
The second most important commune needs declared by entrepreneurs are tax reductions, financial support and gaining external investors (35% total indications).In marketing literature the needs are called economic (cost or price) ones.Promotion of local enterprises is much more important for entrepreneurs than improving technical infrastructure or delivering the information about commune auctions and investments.
The needs may be estimated by using questions about information that should be available on communes' internet websites.Almost 22% polled entrepreneurs were not able to answer the question 9 (Table II.), what could be related to 24,3% of entrepreneurs declaring no access to internet (Fig. 1.).Attention: "C"the condition of tool means the level of satisfaction of commune element or activity; "I"the influence of tool means subjectively graded level of tool importance in MRD; 5-point scale was used.

Source: own elaboration on empirical research
Local authorities could compare grades of each tool (infrastructure element or activity) declared by entrepreneurs, inhabitants or other important place-buyer to decide which tool should be primarily improved.Decisions may be made according to the "condition" grades (low value suggests urgent action) or "importance" grades (high value suggests urgent action).The third premise of a decision-making process could be comparison of both grades for each tool 10 .
Three placemarketing tools achieved very high grades of importance in MRD: commune site, gas and electricity network and inclusion of inhabitants and entrepreneurs in a decision-making process.The condition of last tool, which is treated as an vital effectual partnership activity, was graded at the lowest level of all presented tools 11 .This suggests that partnership activities are not satisfactory (especially for entrepreneurs of rich communes).
Entrepreneurs declare the importance of technical infrastructure as well as administration features (especially clerk honesty and operational readiness to help).Soft factors become as significant determinant of rural development as infrastructural ones.Those traditional development factors are treated by entrepreneurs of rich communes as secondary, while partnership, entrepreneurial mentality of inhabitants or costs of functioning are basic for MRD.Even commune promotion is graded higher than technical infrastructure.This observation strengthens the thesis that in rich communes soft factors are more significant than infrastructural ones.
Localisation, technical infrastructure and administration features are treated as important in MRD, but their condition grades are high as well.This idicates that important needs are rewardingly satisfied.The worst satisfied entrepreneurs' need is partnership (inclusion in the decision-making process) 12 .
Entrepreneurs and inhabitants are different target markets for placemarketers.Both groups have been discussed separately, but in a way that enables the comparison.Polish law treats inhabitants as commune 13 .Local authorities (self-government) act on their behalf and for them.
Inhabitants should be in that case regarded as a main placemarketing target market.
Authorities of rural areas ought to decide which target group gives chance to gain higher level of commune multifunctionality.Inhabitants are mainly beneficiaries of MRD, because they could be employed by newly-created enterprises or farmers changing their production profile.Identifying inhabitants' needs is necessary to support MRD (Table IV.).The widest gap between condition and importance grades appeared in inclusion of the inhabitants and entrepreneurs in the decision-making process.The highest condition grades were given to gas and electricity facilities and they are higher then importance grades.That infrastructure element satisfied inhabitants' needs better than it had been expected.All elements of technical infrastructure achieved best condition grades as a group, but the most important group of placemarketing tools are elements of business environment.

Fig. 1 .
Fig. 1.Access to internet declared by entrepreneurs and inhabitants of Konin rural areas

Table I . Commune needs declared by entrepreneurs in different rural areas of the Konin region
Source: own elaboration on empirical researchMain commune needs for entrepreneurs are new workplace endowments and SME support.The hierarchy of commune needs confirms demand for MRD support.The need is the most important for entrepreneurs of almost every commune type except the most developed ones.Entrepreneurs functioning in rich communes are primarily interested in easy procedures of freehold gaining, tax reductions and financial support.

Table II . Type of internet information preferred by entrepreneurs
own elaboration based on empirical research Entrepreneurs of almost every commune type prefer standard news (especially local legal rulings and regulations) and information about auctions, investment plans or real estate offer (respectively 30,42% and 14,20%).Before conducting the study, it had been presumed that more detailed information should have been wanted in rich communes.But entrepreneurs in poor communes are interested in using both general and detailed internet information (such as trainings, consulting, economic news etc.).Entrepreneurs seem to be rural avant-garde, especially in communes of very low level of MRD, and local authorities should begin strategic planning together with economic entities.Defining local needs and sources of information is a first step in describing detailed opinions on placemarketing tools (TableIII.). Source:

Table IV . Commune needs declared by inhabitants in different rural areas of the Konin region
The main commune need declared by inhabitants is labour market support what is classified to be the basic problem of MRD.Inhabitants of rich communes demand technical infrastructure improvements and commune safety, order and clean keeping.Administration features are not as important as in other commune types.Financial and social support seems to be secondary commune need.This indicates that Polish rural inhabitants, though influenced by communist past, do not declare claimant attitude and prefer improvements in the entrepreneurial climate.The needs of labour market support are verified by opinions on information that should be available on commune internet websites (Table V.).

Table V . Type of internet information preferred by inhabitants
At first, rural inhabitants look for standard news and local law changes, especially in rich communes.Second important need is the information about trainings, consulting, job offers and also cultural, tourist and entertainment information.First need for entrepreneurs and inhabitants is the same, but the second one differs.Economic entities think of investments, while inhabitantsabout spare time.Job offers are very important for inhabitants of poor communes, but they visit internet websites occasionally (Fig.1.).Rural authorities should consider personal contacts (formal and informal) to support positive processes (MRD, unemployment reduction, etc.).Furthermore, inhabitants appreciate capacity to enter relations with domestic enterprises and external investors (TableVI.).The technical infrastructure is graded on the similar level by inhabitants and entrepreneurs.The most urgent action should be undertaken to improve motorways network and internet access (the widest gap between condition and importance grades).
14habitants give lower condition grades to business environment, but higher importance grades than entrepreneurs.If authorities want to develop professional services (such as consulting and training centres or other business facilities), it will indicate competitive niche thinking attitude (Kotler, Asplund, Rein and Haider 1999, p. 104)14, the highest level of strategic market planning.

,01 4,01 3,14 3,51 3,19 3,90 2,99 3,71 3,45 3,94 3,17 3,67
Attention: scalekey (the most important), very important, important, average, unimportant Source: own elaboration on empirical research Inhabitants declare the need of labour market support as well as entrepreneurs wanting new workplace endowments.Multifunctional rural development as a chance to improve competitiveness of rural communes should begin with local entrepreneurs, because they are more responsive to self-government's marketing activities (high importance notes of all placemarketing tools, high sensitiveness about local integration).Besides, entrepreneurs know their local environment much better than inhabitants or even farmers.Local actors consider soft factors as more important in development than technical infrastructure.Rural communes of the Konin region represent model of development in which communes of very low level of MRD should improve technical infrastructure (necessary, but not sufficient requirement of development).Simultaneously the communes of very high level of MRD should increase level of soft factors, such as partnership or investment climate.At the beginning of MRD process financial support is needed, although treated as investment, and not as longlasting intervention.Local entrepreneurs should become leaders of the transition, helping to increase the level of indirect (and even direct) competitiveness.Could inhabitants and entrepreneurs really help in designing rural areas?They not only could but should.They are simultaneously place-marketers (help designing the place) and place-buyers (designed place's offer satisfies their needs).