EFFECTIVE ENTERPRISE ZONE MARKETING STRATEGIES

With the reduction of funding facing local communities, economic development efforts must become more focused given the limited amount of resources that are available to market and promote the community. The primary goal and mission of every local economic development organization should be:

To enhance your efforts to increase PRIVATE SECTOR INVESTMENTS; To RETAIN existing jobs and CREATION of new job opportunities, and; To increase and stabilize the TAX BASE of your Community.

The following ten suggestions should be considered in undertaking a marketing program:

1. Develop or refine your marketing strategy and plan. Given the state of the economy, it is important that you use your time and resources wisely. Define how and to whom you intend to market the enterprise zone to ... focus initially on your existing businesses and industries located within the zone. Over 80% of potential investments will most likely occur from existing firms. If your overall strategy includes recruitment of new firms develop a list of targeted businesses that fit your market and compliment existing businesses with an available skilled labor force.

2. Undertake a periodic review and assessment of your marketing plan to gauge your success in addressing your stated goals and objectives. Does your marketing program clearly reflect the goals identified in the enterprise zone application? Make appropriate adjustments and refine as needed.

3. Develop clear and concise marketing pieces that describes the various incentives and programs offered as well as the procedures for accessing the program. It is critical that your marketing program include adequate funds to print promotional materials and pieces. Marketing material to be effective don't have to be "full color print on glossy stock"; it is more important that the material be well organized, easy to read, concise and can be periodically updated.

4. Set up a business retention program to periodically call on existing businesses and industries within your community. Organize teams to make these calls including representatives from the Chamber of Commerce, City & County officials, utility company representatives, etc. This provides an excellent opportunity to explain and discuss the various enterprise zone incentives and other forms of assistance available. Follow up all retention visits by a letter and insure that you respond promptly to all requests for additional information.

5. Distribute the marketing materials to your identified audience. This can be accomplished by various methods including the retention visits, direct mail, prospect inquiries, trade shows, industry and business fairs, financial institutions, and the Chamber office.

6. Schedule local workshops and forums to present information on the enterprise zone program combined with information on other assistance (i.e. job training, exporting, local financing, etc.) that are available. Hold separate meetings with building suppliers, contractors, financial institutions, accountants, etc. to present the specific requirements and steps to use the various incentives and record keeping required.

7. Monitor all projects within the enterprise zone to assess the incentives used and the level of private investments realized, new jobs created and existing jobs retained. Obtain feedback from the firms that have expanded and located in the community to determine where you can streamline the program and the procedures and provide better and more efficient assistance. This can be accomplished through a follow-up mail out survey form.

8. Placement of advertisements in trade journals and publications to market the zone and community can be expensive to undertake with the repetition needed to have impact. If your marketing strategy includes printed ads, be very selective on the journals you use and monitor the number and quality of leads gen-

October 1992 / Illinois Municipal Review / Page 13

erated from each placement. Important that you have in place a policy on responding to and tracking each lead received.

9. Maintain a file of testimonials from CEOs and other businesses that have used the enterprise zone program. Share the successes with the local media and keep them appraised of other economic development activities.

10. Never pass up an opportunity to speak at a local civic organization, business meetings, etc. on the enterprise zone program.

In addition to these suggestions, the local governmental entities comprising the enterprise zone should periodically review the level of incentives offered to determine if the program is addressing the specific needs and goals identified in the application for zone certification. There has been some criticisms aimed at the effectiveness of the enterprise zone program in stimulating economic growth. In particular, the Illinois Tax Foundation in August, 1991 released a study ("Enterprise Zones in Illinois") that was conducted by the Institute for Public Affairs at Sangamon State University with the premise of determining if the local and state incentives being offered to attract business and development within the designated enterprise zones statewide was being administered properly and if the tax costs to the state are worth the economic benefits being derived.

One of the major findings identified in the comprehensive study was the lack of awareness and understanding of the enterprise zone program among the business community. The researchers noted that many of the businesses surveyed were unaware that they were located within a state certified enterprise zone and what the actual benefits were. From this study it was recommended that more emphasis be placed on marketing the enterprise zone program by both the local zones and the Illinois Department of Commerce and Community Affairs.

With the recent budget cuts and reduction in personnel at the state level the baton for marketing the enterprise zones and implementing an effective economic development program is going to have to be carried at the local level. We are in a competitive race to achieve economic growth for our respective areas; Those that properly plan for and initiate sound marketing strategies are going to be the winners. •

Page 14 / Illinois Municipal Review / October 1992