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Why and What They Sell


Those who are active in area and site marketing cover a wide spectrum. They range from individual site owners to large, sophisticated multi-departmental national organizations. It is generally true that wherever a marketer may be working he can identify some allies. Just as surely, these allies face intense competition from counterparts throughout the nation and, frequently, around the world.

It is relatively easy to determine the geographic sphere of interest of various groups. A county organization is usually engaged in promoting the economic development of the county. Similarly, state organizations sell states, and national agencies promote nations.

The "why" of these marketing efforts is not so transparent. Because the marketers in a given area usually have strong mutual interests, it is often assumed that they have the same objectives. This is a dangerous misconception. It is possible, in almost any large metro area, for example, to assemble a dozen active area marketers, each of whom is motivated by a different goal.

  • Jobs vs. Tax-base. Urban areas of high unemployment and rural areas which are losing young people usually have as their prime objective the attraction of new jobs. More affluent areas, especially bedroom communities near large metro centers, may, however, be much more interested in attracting investment which will spread the tax base.
  • A survey conducted by Site Selection several years ago, found that for local governments responding, 733 listed jobs as their goal, while 583 gave tax base as the objective of development efforts. In California, the "Proposition 13" state, the emphasis was on jobs by a slight margin, while in Alabama the new job goal was twice as important as tax base.
  • Services. Another group of marketers is impelled by the desire to generate use of rail, banking, utility and other services. These groups typically have a broad public-service goal in addition to their specific interest.
  • Sites and Buildings. Still another group is motivated to sell specific properties. Even this group reflects the diverse interests of property owners, developers, brokers, lenders, contractors and various professionals.
  • Intangible Motives. Not all worthy motivations for promoting economic development can or should be attributed to dollar-measured objectives. There are intangible values related to civic pride, community morale, worker inspiration and the aims and aspirations of young citizens which are extremely important but which defy accounting.

    The successful marketer soon becomes aware that the efforts of most marketers in an area are interwoven and interdependent. For example, the local chamber of commerce and the private developer of an industrial park have distinct roles, yet each may be dependent upon the other.

    The "Composite Budget" For An Area

    Wherever two or more area development organizations serve the same area, it is their composite effort which must be considered. The coverage at a Point A which is in the hinterland away from any local, metro, or multi-county program may be entirely dependent on a state program. Point B is in a metro area where it may benefit from a metro area program, as well as those of banks, utilities and others. Point C is a local jurisdiction perhaps an aggressive municipality or county which may add an intensive local effort to those of cooperating metro, state and other units.

    The composite budgets for A, B, and C may thus vary enormously. Point A may benefit from a state expenditure of, say, 50 cents per capita. Point B may be marketed via a composite $2 per capita, while Point C may be enjoying the impetus of $6 per capita composite budget Examination of a Site Selection survey some years ago showed that it is not uncommon for some areas to have composite budgets twenty-five times as great as others.

    It is important for every marketer to be aware of these different roles and distinctions, not only to maintain a sharp focus on his own goals, but also to be able to work in harmony with others.

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