The Concept of City Marketing and Place Brand Management

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1 The Concept of City Marketing and Place Brand Management City Marketing Seminar 16 th of April, 2012 Sønderborg, Denmark Sebastian Zenker, PhD, Senior Researcher Erasmus School of Economics, Erasmus University Rotterdam P.O. Box 1738, Rotterdam, the Netherlands

2 Agenda 1 Introduction to Place Marketing and Branding 2 Brand Complexity 3 Place Brand Management 2

3 Agenda 1 Introduction to Place Marketing and Branding 2 Brand Complexity 3 Place Brand Management 3

4 Place Marketing There are more than 300 cities in the world with over a million inhabitants, and all those cities want to be the most attractive. In Europe there are more than 500 regions and 100,000 different kinds of communities competing individually for the same jobs, investments and talented experts. (Moilanen & Rainisto, 2009, p. 3) Place marketing is the coordinated use of marketing tools supported by a shared customer-oriented philosophy, for creating, communicating, delivering, and exchanging urban offerings that have value for the city s customers and the city s community at large. (Braun, 2008, p. 43) 4

5 Aims of Place Marketing Its aim is to maximize the efficient social and economic functioning of the area concerned, in accordance with whatever wider goals have been established. (Ashworth and Voogd, 1990, p. 41) Place marketing, ( ), embraces [ ] promoting the place s values and image so that potential users are fully aware of the place s distinctive advantages. (Kotler et. al., 1993, p. 18) 5

6 Place Marketing and Promotion Place marketing is often mistaken as place selling, focusing solely on the promotional aspects of marketing while disregarding the central aim and broader range of place marketing and branding namely, to satisfy the consumer s needs and wants (demand orientation). Place promotion, on the other hand, describes a process that tries to find the right consumers for an existing product (supply orientation). While the two may work in conjunction, they cannot be used interchangeably. (Berglund and Olsson, 2010) 6

7 Target Groups in Place Marketing (1) visitors (2) residents (3) public & private (4) media leisure visitors internal external internal external business visitors creative class creative class civil service investors professional visitors skilled workforce skilled workforce investors companies (sectors) students students companies (sectors) (Zenker and Beckmann, 2012) 7

8 8 What is Branding?

9 Stereotypes about Branding Branding is only advertising Branding is only about nice pictures and slogans Branding is only for the consumers Branding is nice for the customer but will bring you no profit 9

10 Target Group Specific Brand Tasks Customer Loyalty Higher Purchase Intention Customer Competitor Market Entry Barriers Cooperation Higher Stockholder Loyalty Better Credit Terms More Investors Investor Target Group Specific Brand Tasks Employee Public Better Word-Of-Mouth Better Acceptance Resistance to Negative Information More and Better Job Candidates Higher Satisfaction Higher Loyalty and Commitment 10

11 11 Example: Employer Branding

12 Brand Equity of International Brands Interbrand Ranking 2010 (in Bill. US-Dollar) Nr. Brand Value Country Nr. Brand Value Country 1 70,5 USA 8 29,4 Finland 2 64,7 USA 9 28,7 USA 3 60,9 USA 10 26,9 USA 4 43,6 USA 11 26,2 Japan 5 42,8 USA 12 25,2 Germany 6 33,6 USA 13 23,3 USA 7 32,0 USA 14 22,3 Germany 12 (www.interbrand.com/ )

13 Brands Create Higher Prices AND Higher Sales Volume VW Sharan Price: Sales Volume: Price: Sales Volume:

14 Brands Even Change Your Taste! Blind-Test Open Test 65% 51% 44% 23% 12% 5%... Taste better... Taste better Equal... Taste better... Taste better Equal 14

15 What is a Brand? Brands and Law: It is a protected trademark to differentiate within the market. Brands and Customers: It is a signal for quality. 15 AMA Definition: A name, term, design, symbol, or any other feature that identifies one seller's good or service as distinct from those of other sellers. The legal term for brand is trademark. A brand may identify one item, a family of items, or all items of that seller. If used for the firm as a whole, the preferred term is trade name.

16 What Could be a Brand? Mark Designation : Design: Numbers and Signs: Colours: Pictures: Combinations: Sounds: 16

17 But is this the Brand?

18 Branding as Process Within the Cooperation Self-Picture of the Brand Defining Brand Identity Position the Brand External e.g. Customers Brand Knowledge Brand Awareness Brand Image Behavior Brand Equity Brand Brand 18

19 19 And for Cities?

20 The City as a Brand Focus on brand knowledge: A place brand is a network of associations in the consumer s mind based on the visual, verbal, and behavioural expression of a place, which is embodied through the aims, communication, values, and the general culture of the place s stakeholders and the overall place design. (Zenker & Braun, 2010, p. 4) A place brand is in the consumer s mind 20

21 21 Perception Side

22 The City as a Brand Focus on brand knowledge: A place brand is a network of associations in the consumer s mind based on the visual, verbal, and behavioural expression of a place, which is embodied through the aims, communication, values, and the general culture of the place s stakeholders and the overall place design. (Zenker & Braun, 2010, p. 4) A place brand is in the consumer s mind It is strongly influenced by the residents 22

23 The Four Roles of Residents That's me Target Group Part of the Place Brand Ambassador Citizen (Braun, Kavaratzis, & Zenker, 2010) 23

24 Place Branding is Different Diverse Target Groups (Zenker, 2009; Zenker and Beckmann, 2012) Visitors, residents & business In-group / out-group Diverse Place Offerings (Anholt, 2010; Braun, 2008) A bundle of products and services Hard and soft location factors Non-Profit Aim (Ashworth & Voogd, 1990; Zenker & Martin, 2011) The aim is to maximize the economic and social functioning of an area Political Environment (Braun, 2008; Braun, 2011) Problem of legitimization Different stakeholders from the place must be included Place marketing competences are often separated Different Perceptions for Place Brands (Zenker, 2011; Zenker and Beckmann, 2012) Places have a long history and perceptions are hard to change Place brand associations are very heterogeneous and complex

25 Agenda 1 Introduction to Place Marketing and Branding 2 Brand Complexity 3 Place Brand Management 25

26 Remember: Corporate Branding Within the Cooperation Self-Picture of the Brand Defining Brand Identity Position the Brand External e.g. Customers Brand Knowledge Brand Awareness Brand Image Behavior Brand Equity Brand Brand 26

27 Branding as Process of Reduction The real Product Brand Essence 27

28 Finding the Brand Essence Fuel Consumption Mobility 320d xdrive Z4 Active Hybrid Status Power Hybrid CARS BMW Joy BMW EfficientDynamics Safety Environment 28

29 Urban Diversity Art Culture City Street Culture Music Cosmopolitan Vibrant Party Fun Sample City EVERYBODY A vibrant place where everything could happen! Green City Nature 29

30 30 All the Same but Different?

31 Process of Complexity The real city As much as you can 31

32 How to Catch a City? A place brand is a network of associations in the consumer s mind based on the visual, verbal, and behavioural expression of a place, which is embodied through the aims, communication, values, and the general culture of the place s stakeholders and the overall place design. (Zenker & Braun, 2010, p. 4) 32

33 Conceptualizing Place Brands Elements Categories Dimensions (Zenker, 2011) 33

34 Dimensions of Brand Evaluation STRONG COMMON cultural offerings NEGATIVE Harley Davidson days UNIQUE POSITIVE WEAK (Zenker, 2011) 34

35 The Six Place Brand Categories place inhabitants place business place familiarity place characteristics place quality place history (Zenker, 2011) 35

36 Place Brand Elements For Example: Personality Scales Place Inhabitants Diversity Values (Zenker, 2011) 36

37 Otherwise I amsterdamned

38 Agenda 1 Introduction to Place Marketing and Branding 2 Brand Complexity 3 Place Brand Management 38

39 39 Remember: Focus on Perceptions

40 Perception Management Communication Model of an Environmental Action Feedback Producers Intended Messages Environmental Action Context Received Messages Consumers Interpretations (Appleyard, 1979) 40

41 How Place Perceptions are Build According to Kavaratzis (2008), the expressions of a place are formed by three types of city communication: (1) the primary communication, which includes the architecture and real place offerings, as well as the city s behaviour, and therefore could be labelled as place physics; (2) the secondary communication, which includes the formal communication through official channels, like all forms of advertising or public relations, and therefore is labelled as place communication; and (3) the tertiary communication, which refers to the word-of-mouth details reinforced foremost by the media and the residents themselves, and could thus be described as place word-of-mouth. 41

42 Remember: Multiple Target Groups (1) visitors (2) residents (3) public & private (4) media leisure visitors internal external internal external business visitors creative class creative class civil service investors professional visitors skilled workforce skilled workforce investors companies (sectors) students students companies (sectors) (Zenker and Beckmann, 2012) 42

43 Results Study 1 The City of Hamburg Group A (creative class) n = 20 Group B (students) n = 20 43

44 Place Brand Perception Model Communicated Place Brand Place Physics Place Word-Of- Mouth Place Brand Perception Group A Place Brand Perception Group B Target Groups Intention to Stay/Move Place Satisfaction (Zenker and Martin, 2011) 44

45 Brand Architecture and Places Brand Architecture (e.g., Aaker, 2004) Hierarchical structures of brands (in the corporate context) Multiple target groups Branded House Approach (e.g., Petromilli et. al, 2002) Umbrella brand Target group specific (product) sub-brands Branded House with Places (e.g., Dooley and Bowie, 2005; Kotler and Gertner, 2002) Product or company brand including a place brand Umbrella county brand and regional or provincial city sub-brands We recommend a brand management structure with target group specific sub-brands While the shared associations could build a city umbrella brand 45

46 The Place Brand Center Place Brand Management Communicated Place Umbrella Brand Communicated Place Sub-Brand Communicated Place Sub-Brand Communicated Place Sub-Brand Target Group specific Place Sub- Brand Perception Target Group specific Place Sub- Brand Perception Target Group specific Place Sub- Brand Perception Overall Place Brand Perception Place Physics 46 (Zenker and Braun, 2010)

47 Summary Place marketing is a customer oriented approach Place marketing is not selling (place promotion) Places have diverse target groups The residents fulfill a special role in this process The place brand is in the consumer s mind The different target groups have a diverse and complex place perception Place branding is not a process of reduction, but complexity Place brand management is perception management Three ways of communication: Do not limit yourself to logos and slogans Places need a more advanced brand architecture We recommend target group specific sub-brands and a place umbrella brand 47

48 Thank you for your attention Visit my website: Sebastian Zenker, PhD, Senior Researcher Erasmus School of Economics, Erasmus University Rotterdam P.O. Box 1738, Rotterdam, the Netherlands

49 Literature I Aaker, D. A. (2004). Brand Portfolio Management. New York: The Free Press. Anholt, S. (2010). Places identity, image and reputation. New York: Palgrave Macmillan. Appleyard, D. (1979). The Environment as a Social Symbol. Journal of the American Planning Association, 45 (2), Ashworth, G. J. & Voogd, H. (1990). Selling the city: marketing approaches in public sector urban planning. London: Belhaven. Braun, E. (2008). City marketing: towards an integrated approach. PhD Thesis, Rotterdam: Erasmus Research Institute of Management (ERIM). Braun, E. (2011). Putting City Branding into Practice. Journal of Brand Management, advance online publication, doi: /bm Braun, E., Kavaratzis, M., & Zenker, S. (2010). My City My Brand: The Role of Residents in Place Branding. Paper presented at the 50th European Regional Science Association Congress, Jönköping, Sweden. Dooley, G. & Bowie, D. (2005). Place brand architecture: Strategic management of the brand portfolio. Journal of Place Branding, 1 (4), Kavaratzis, M. (2008). From city marketing to city branding: an interdisciplinary analysis with reference to Amsterdam, Budapest and Athens. PhD Thesis, Groningen: Rijksuniversiteit Groningen. Kotler, P. & Gertner, D. (2002). Country as Brand, Product, and Beyond: A Place Marketing and Brand Management Perspective. Journal of Brand Management, 9 (4-5),

50 Literature II Kotler, P., Haider, D. H., & Rein, I. (1993). Marketing places: attracting investment, industry, and tourism to cities, states, and nations. New York: The Free Press. Moilanen, T. & Rainisto, S. (2009). How to brand nations, cities and destinations a planning book for place branding. New York: Palgrave Macmillan. Berglund, E. & Olsson, K. (2010). Rethinking place marketing A literature review. Paper presented at the 50th European Regional Science Association Congress, 19th 23rd August, Jönköping, Sweden. Petromilli, M., Morrison, D., & Million, M. (2002). Brand architecture: Building brand portfolio value. Strategy and Leadership, 30 (5), Zenker, S. (2009). Who s your target? The creative class as a target group for place branding. Journal of Place Management and Development, 2 (1), Zenker, S. (2011). How to Catch a City? The Concept and Measurement of Place Brands. Journal of Place Management and Development, 4 (1), Zenker, S. & Beckmann, S. C. (2012). Place branding: the issue of a narrowed tourism perspective. In R. H. Tsiotsou & R. E. Goldsmith (Eds.), Strategic Marketing in Tourism Services (pp ). Bingley, Emerald. Zenker, S. & Braun, E. (2010). Branding a City A Conceptual Approach for Place Branding and Place Brand Management. Paper presented at the 39th European Marketing Academy Conference, Copenhagen, Denmark. Available at: Zenker, S. & Martin, N. (2011). Measuring Success in Place Marketing and Branding. Journal of Place Branding and Public Diplomacy, 7 (1),

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