THE EUROPEAN CAPITAL OF CULTURE PROGRAMME: PLACE MARKETING AS A COMPETITIVE STRATEGIC WEAPON Zsófia Zadravecz University of Pécs Faculty of Business and Economics Pécs, 15th October 2010 - Joint Conference of UNeECC - Compostela Group of Universities PTE KTK Marketing Tanszék
Why is it a hot topic? Recognition
The world is changing We can shape that change or Be victims of it
Competition Persuasion
Differentiation Sustainability
Source: Clark, G. (2009): Successful Regeneration Strategies
2
PTE KTK Marketing Tanszék
Road/Highway to City Brands Place Marketing
Nation Brand
3
PTE KTK Marketing Tanszék
Problems… as always Importance of cities is increasing Economic control Cultural development Political power Different distinctiveness, nature Divergent behaviour Not only marketing oriented approach
Politics
Culture
Regionalism
History Sociology
Art Geography
Architecture 4
PTE KTK Marketing Tanszék
Problems… as always Mostly personal equations Need for integrated standpoint Few consciously led and coordinated city marketing practice City = complex product (different parameters)
Intangible Emotional content Service oriented Based and depend on human resources Freedom of choices High risk in decisions Seasonal 5
PTE KTK Marketing Tanszék
Behind the scenes - Effective ECoC cities 1. One Plan – Strong Story Line 2. Development agenda not for one department 3. Organised business leadership management Consistent Fast Communicate Cooperate 4. Customer friendly attitude 5. Determined top priorities 6. Expanding capacity to implement 7. Stable financial background 8. Partnerships with targeted groups 9. Always see the big picture 6
PTE KTK Marketing Tanszék
City marketing Specific planning and operational system
Leadership and management approach Mindset
Tool for synthetization and coordination
Capable of defining and realizing the competitive values and comparative advantages
Standardized brand and image, which visualize, give a position and communicate
Capable of carrying the opinion of different target groups in development and functioning
7
PTE KTK Marketing Tanszék
1. External environment analysis, trend analysis
2. Market analysis Value audit
Image audit
Target group audit
Activity audit Competition audit
3. Defining strategic position
4. Setting objectives 5. Strategy formulation Setting marketing programs - tools 6. Realisation strategy 7. Assessment - Monitoring
Source: Piskóti, I. – Nagy, Sz. (2008): Identity and Image in the City Marketing Marketing & Menedzsment Vol. 42. No. 5-6 pp.109
Strategic Planning Process of City Marketing
8
PTE KTK Marketing Tanszék
City Image
Economic (wages, affordable housing, available contacts, opinion of the market…)
Social (security, institutional system, community…)
City Image („the way the world sees and treats it”) Environmental, Ecological (climate, natural possibilities, sustainability, garbage…) 9
PTE KTK Marketing Tanszék
Brand, image or identity? BRAND IDENTITY How the stakeholders want the brand to be perceived
BRAND POSITIONING The part of the value proposition communicated to a target group that demonstrates
BRAND IMAGE How the brand is perceived
10
PTE KTK Marketing Tanszék
City Branding
A process that makes it possible to sell a city itself and it’s products to new customers, and also still can be sold to old customers (e.g. old inhabitants, investors, communities etc.) The aim is to establish and communicate a brand vision which sets up city image elements or emphasizes old ones. 11
PTE KTK Marketing Tanszék
City Branding
Long term investment Key role: visualization Sometimes it means more than city marketing Important actions dig up old stories about the city create new stories, ”fairytales” express emotions picture the city building it into the city, also in the urban space
12
PTE KTK Marketing Tanszék
PÉCS
Story and positioning old mining city – after closing the uranium mine collapse of industry Need for local economic development, transformation of the city Development strategy Resource: culture, education Locate Pécs on the map of Europe - ECoC 13
PTE KTK Marketing Tanszék
PÉCS Investment tools Private capital European Union Fund Municipality, Government Organizational networks Key projects South Transdanubian Regional Library and Knowledge Centre Zsolnay Cultural Quarter Kodály Conference and Concert Centre 14 Revival of public spaces and parks PTE KTK Marketing Tanszék
Promotion and marketing costs in the ECoC cities (1995-2004)
15
PTE KTK Marketing Tanszék
Number of visitors 2009-2010
16
PTE KTK Marketing Tanszék
City Image Toplist 2009 1
Debrecen
13
Székesfehérvár
2
Szeged
14
Pécs
3
Miskolc
15
Békéscsaba
4
Győr
16
Szekszárd
5
Hódmezővásárhely
17
Veszprém
6
Kecskemét
18
Dunaújváros
7
Szolnok
19
Nagykanizsa
8
Szombathely
20
Tatabánya
9
Sopron
21
Érd
10
Kaposvár
22
Zalaegerszeg
11
Eger
23
Salgótarján
12
Nyíregyháza
Source: Imagefactory Observer(2010)
Sample: cities above 10 000 citizens (HCSO), National media appearance Time period: 1st November 2008 – 31st October 2009 Media types: print online electronic Criteria: Number, intensity, frequency and intonation (+,-) of appearance
17
PTE KTK Marketing Tanszék
Is City (Place) Branding a useful tool? It seems to be increasingly necessary Potentially, it can be the expanding point – Outward branding Searching for ”city stories”, ”city values”, ”city pictures (images)” and ”city visions”, can be especially relevant for cities that have lost their identity during a phase of transition – Inward branding It can bring citizens and local actors together Lots of questions in connection with the HOW
18
PTE KTK Marketing Tanszék
Thank you for your attention!
Q&A
PTE KTK Marketing Tanszék
References Aaker, D. A. (1991): Managing Brand Equity: Capitalizing on the Value of a Brand Name. The Free Press, New York Allen, G. (2007): Place Branding: New Tools for Economic Development. Design Management Review. Vol. 2007/Spring pp. 60-68 Anholt, S. – Hildreth, J. (2005): Brand America – The Mother of All Brands. Cyan Books, London Anholt, S.(2003): Brand New Justice. The Upside of Global Branding. Butterworth – Heinemann, London Anholt, S. (2005): Editorial – Some Important Distinctions in Place Branding. Place Branding, Vol. 1/2. pp. 116-121 Anholt, S. (2007): Competitive identity. Palgrave Macmillan, New York Ashworth, G. J. – Voogd , H. (1990): Selling the City. Belhaven, London Barke, M. (1999): City Marketing as a Planning Tool. in: Pacione, M. (ed.) (1999): Applied Geography: principles and Pracitce. Routledge, London Bennet, O. (1999): Destination Marketing into the Next Century. Journal of Vacation Marketing, Vol. 1/1999. pp. 48-54 Echtner, Ch. M. – Richie, J. R. B. (2003): The Meaning and Measurement of Destination Image. The Journal of Tourism Studies, Vol. 14. No. 1. (May/2003) pp. 37-48 Eitel, M. – Spiekermann, M. (2007): Building Reputation – Communicating Identity. Identity and the Place Branding Process. Identitylab, Berlin pp. 1-4 Georgescu, A. – Botescu, A. (2004): Branding National identity. Masters’ Theisis, Lund University Ger, G. – Askegaard, S. – Christensen, A. (1999): Experimental Nature of Product-Place Images: Image 20 PTE KTK Marketing Tanszék as a Narrative. Advanced Consumer Research, Vol. 26. pp. 165-169
References Gnoth, J. (2004): opinion pieces: Where is Place Branding Heading. place Branding, Vol. 1. No. 1. pp. 12-35 Gold, J. R.- ward, S. V. (ed.) (1994). Place Promotion: The Use of Publicity and Marketing to Sell Towns and Regions. John Wiley and Sons, Chichester Goodwin, M. (1993): The City as Commodity: The Contested Spaces of Urban Development. in: Kearns, G. – Philo, C. (ed.) (1993): Selling Places: The City as Cultural Capital, Past and Present ó, Pergamon Press, Oxford Gudjonsson, H. (2005): Nation Branding, place Branding, Vol. 1. No. 3. pp. 283-298. Country of Origin. Management International Review, Vol. 20. No. 4. pp. 26-30. in: Jaffe , E. D. – Nebenzahl, I. D. (1984): Alternative Questionnaire Formats for Country Image Studies. Journal of Marketing Research, Vol. 1984/Nov. pp. 463-471 Hankinson G. (2001): Location Branding: A Study of the Branding Practices of 12 English Cities. Journal of a Brand Management, Vol. 9. No. 2. pp. 127-142 Hankinson, G. (2004): Relational Network Brands: Towards a Conceptual Model of Place Brands. Journal of Vacation Marketing, Vol. 10/2004. pp. 109-121 Hankiss, E. (2006): Társadalom- és brand-építés. „Country Branding – Nemzetközi Identitás és Imázs” Konferencia, DEMOS Alaptívány, 2006. november 28. Hauben, T. – Vermeulen, M. – Patteeuw, V. (2002): City Branding: Image Building and Building Images. NAI Uitgevers, Rotterdam Hunt, J. D. (1975): Image as a Factor in Tourism Development Journal of Travel Research. Vol. 13. No. 3. pp. 1-7 21 Kar, G. K. – Litvin, S. W. (2000): Destination Image. Eclipse Magazine. PTE KTK Marketing Tanszék
References Kavaratzis, M. (2004): From City Marketing to City Branding: Towards a Theoretical Frameworks for Developing City Brands. Place Branding, Vol. 1. No.1. pp. 58-73 Keller, K. L. (1998): Strategic Brand Management: Building, Measuring and Managing Brand Equity. Prentice Hall, New Jersey Haig, Matt (2004): Brand Royalty – How the World’s Top 100 Brands Thrive & Survive. Kogan Page, London and Sterling, VA, United Kingdom Neuemeier, Marty (2006): The Brand Gap – How to Bridge the Distance Between Business Strategy and Design. New Riders, Pearson Education, Berkeley, California, USA Madsen, H. (1992): Place-Marketing in Liverpool: a Review. International Journal of Urban and Regional Research, pp. 633-640 Kotler, P. – Haider, D., Rein, I. (1993): Marketing Places: Attracting Investment and Tourism To Cities, State and Nations, The Free Press, pp. 141 http://www.varosrehabilitacio.net http://www.brandtrend.hu http://www.europeancitiesmarketing.com http://www.andrebranding.eu http://www.bestdestinationmarketing.com/ http://itthon.hu
http://www.placebrands.net http://www.imagefactory.hu http://www.papp-vary.hu http://www.simonanholt.com http://www.destinationbranding.com http://www.eukn.org 22
PTE KTK Marketing Tanszék