Territory marketing as a way to attract foreign investment

Attracting foreign investment is a necessary measure in modern condition. The reason for this is factors such as the international division of labor, the improvement of international relations, the iteration of economies, and the improvement of industrial relations. It is the stable inflow of foreign investments that is the driver of the growth of the country's economic indicators. Currently, the Russian economy is facing new difficulties, the main of which are Western sanctions. At the moment, Russia is the most sanctioned country, as evidenced by graph 1.

■ Before 22 February ■ After 22 February

Figure 1. The World's most sanctioned country, March 2022 [1]

Table 1. So vereign rating of Russia fro m 2008 to 2022

The decision to downgrade the rating was made on the assumption that Russia would not pay its external debt on Eurobonds in accordance with the provisions of the agreement. But we must understand that analysts assess the importance of international credit ratings as significant, as they reflect possible government risks (economic, political, social). Therefore, these ratings as a whole can be considered as a generalized country risk, which is necessary and used by foreign investors when making investment decisions. The rocks that reflect the ratings in question indicate the level of uncertainty in the development of business conditions that investors may feel during their activities in a particular country. And many foreign investors refuse to invest in Russia due to the low sovereign rating and significant risks.

But the need for foreign investment remains high, Russia is among the top 10 countries in terms of depreciation of fixed assets, as evidenced by Figure 2.

Figure 2. The degree of depreciation of fixed assets in the Russian Federation as a percentage, 2010-2021 [2]

The level of depreciation of fixed assets is at the level of 40-50%, such values greatly slow down the production process and further the process of economic development. Given the difficult situation with the state of fixed assets in the Russian Federation and the prospect of their improvement, Russian industrial firms should not hope for the expansion of production capacities and the introduction of new technologies. Private funds, as well as public ones, are not enough, so the only solution is to attract foreign investment, and it should also be noted that without a timely response to this problem, the situation may worsen. We must understand that improving investment attractiveness is not a quick process that requires a comprehensive approach.

We propose a solution to this problem using a tool called territory marketing, the most position with regard to this tool was the well-known economist Philip Kotler, who believes that with the help of territory marketing it is possible to significantly accelerate the process of economic development of the territory. He believed that territory marketing can be used at all levels of strategic planning, since it is with the use of this tool that it is possible to comprehensively change the perception of the country [3]. Consider this tool under the prism of attracting foreign investment, since it can significantly improve the investment climate, but we also need to understand that its implementation takes time, because it is very difficult to change the perception that has been laid down for a long time.

Marketing of a particular country has its own characteristics due to the complexity of the country's system, formed from a variety of territorial entities. All countries, including the Russian Federation, have an image that is very difficult to change for the better. All countries, to one degree or another, have a number of established relations with other countries. The country and its image are greatly influenced by political aspects, which are often unexpected. We suggest using such a marketing tool as branding. being part of the country's marketing, and tools for attracting foreign investment. The brand of the territory is a set of transitive values that reflect the unique characteristics of the territory, its social approval and features for which there is a stable demand from consumers of the territory [4]. The brand should be formed on the obvious advantages of this territory, it is pro- posed to look for obvious advantages and disadvantages by selecting a group from different fields of activity and conducting a SWOT analysis. Based on its implementation, we will understand the strategy and the basis of the already existing image, its natural, industrial, social, economic features, scientific and other achievements in various fields.

In the current situation, the formation of the image of the territory takes place according to a general orientation strategy, when there is no specific addressee. In the process of brand formation, first of all, those areas that are of the greatest interest to consumers of the territory should be taken into account. But since there is often more than one such group, all the possibilities of the territory, namely its resources and features, must be taken into account. It is also very important to identify risks and take measures to eliminate them in order to reduce them.

Summing up all of the above, we found out that territory marketing is an effective tool that comprehensively solves the situation of attracting foreign investment. Building a sustainable brand that will work more effectively on the basis of building a SWOT analysis will lead to an increase in foreign investment, and subsequently increase the welfare of the country.