Small towns are gradually integrating into the Russian socio-economic system and are forced to increasingly participate in the competition for offering quality living conditions for citizens, attracting investments and the necessary workforce. Priority of the marketing concept in choosing approaches for the development of small cities was determined. In achieving the goals pursued by the marketing of a small city, an important role belongs to entrepreneurship as a catalyst for the economic activity of this subject. It should be borne in mind that a developing small business does not compensate for what was lost as a result of market transformations of past decades in cities that have lost the functions of enterprises of a city-forming base or transport and logistics centers, if it does not apply all the possibilities of modern marketing methods and tools. Traditional approaches to doing business in these conditions cannot fundamentally solve the problems of reviving the economy of a small city and require changes. The development of such forms of business as electronic marketing may be an opportunity to enter new markets and reduce tension in the labor market. The development of small towns requires special procedures: improving the image of the administrative-territorial formation and increasing competitiveness with the help of marketing tools and technologies. The use of electronic marketing is changing the entire business environment of a small city. As a result, the investment climate rises and the welfare of the subject increases. Electronic marketing adds factors such as round-the-clock availability, completeness of information and the presence of feedback (in the form of feedbacks), interactivity, instant reaction and constant updates, as well as other advantages of the virtual environment in the real process of promoting the territory.