Target group segmentation in the virtual space as a tool for defining the concept of a territory brand

Abstract

Purpose: The article is aimed at investigating the possibility of competitiveness increase and investment attractiveness of the territory by means of virtual space segmentation where territorial entities interact. Design/Methodology/Approach: At present, interaction of most economic agents is conducted by means of internet technologies and web platforms. In the framework of territory development special emphasis is given to a territory brand to attract investments. Sustainable territory development in the competitive environment directly depends on the unleashing of territory potential, which in its turn is closely related to the problem of attracting resources and investments. In the context of the developed information society competitiveness of territorial entities is largely determined by the level and activeness of their representation in the internet space. Since the quality of the territory is determined by a number of advantages over other territories claiming to the same investments, one of the key mechanisms of forming such advantages is an effective presence of a territorial entity in the internet space. Findings: A three-tier synthetic model of the target group segmentation in the territory virtual space defining the brand concept is elaborated and justified. Practical implications: In practice, a proposed toolkit allows organizing internet representation of the territory, which lets take the territory represented to a new level of competitiveness. Originality/value: An original tool mechanism of forming the concept of territory brand by means of the target segmentation of the virtual space is proposed.