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Marketing
in Troubled Times
By Michael Alan Hamlin
December 17, 2001
One of my co-authors for Marketing Asian Places, Irv
Rein, has just written on the logic of place marketing in troubled
times. His piece is timely, thoughtful, and relevant, and I'd like
to share it with you. Here is what Irv, who is professor of communication
studies at Northwestern University, has to say:
The bad news never seems to end for Asian cities, states,
and nations. The seeming optimism that followed the conclusion of
the Asian recession in the nineties has been diminished by the September
11th attack on the US. After all, when revenues begin to dry up,
spirits sag and economic pressures surge. Despite the need for economic
development of places, the natural inclination is to cut down on
so-called "soft" communication services. This phenomenon
is felt all over the world as marketing and research efforts on
place development and enhancement are often dramatically cut back.
This shifting of assets away from marketing and communication
initiatives is shortsighted and inevitably is regretted. It is during
this period of reduced economic activity that place marketing should
be focused and enhanced because the potential outcomes are far greater.
If business is terrific, the value added of marketing is less visible
than when there is greater pressure for performance. Place competition
does not end in difficult periods. Places need to act now and not
wait out the downturn. There are four initiatives that are of minimal
cost and will improve places' visibility and attractiveness in these
troubled market conditions.
The first initiative is to mine the surveys, databases,
and research already completed in good times. Most places during
boom times have paid for research to attract tourists, gain new
business, or enhance resident's satisfaction. If you look at this
body of data, often it has not been fully exploited. Because of
reduced budgets, information gathering, whether it is marketing
reports or surveys of buyers, is probably going to decrease, and
this is an ideal time to reexamine and explore new uses for this
material. For example, marketing studies to attract high tech industries
may be converted to new uses such as seeking government grants or
retaining manufacturing plants. In the US the city of Chicago has
cut back on many city services because of a reduced budget. However,
all the city's scheduled events such as concerts, parades, marathons,
and sporting events are becoming a special point of emphasis. Chicago,
like many major Asian cities, cannot afford the perception that
it has reduced its commitment to attracting business and enhancing
resident attraction. Event management is a window into a city's
vitality and is critical to its continuing world presence. The costs
of maintaining such a visible presence is minimal, as much of the
planning and marketing effort has already been done.
The second initiative is to fine tune already designed
messages. There is no question that image has become a major selling
point for place development. Images are shorthand for a perception
of a place. They are a product of the mind trying to process and
frame huge amounts of data about a place. An image can be positive,
negative, contradictory, or void. Macau, for example, can be seen
as an island of triads and gangsters, and, at the same time, include
the contradictory image of a picturesque island with a unique culinary
tradition. There is real value in reexamining the image assumptions
and seeing if your place has hit its target.
If you look at a places' image initiatives, there are
probably three areas that have been developed: (1) slogans and themes,
(2) visual symbols, and (3) events and deeds. In these economic
times reevaluation of past efforts can be useful. Is the current
slogan a good platform for which the places' image can be amplified?
Are the visual symbols such as stationary, brochures, billboards,
and dozens of other items used in a systematic manner? Are the events
and deeds branding the place and making its image permanent? Many
places such as China, Japan, and other Asian countries have systematically
used event marketing as a national tool for political and economic
reasons. Are the events and deeds branding the place and making
the image permanent?
The third initiative is to enhance marketing by utilizing
the various local communities and citizen groups. What local communities
have is people power. The advantage to the place is often low cost,
focused energy, and increased visibility for often underexposed
areas. In many cities these local communities have developed sophisticated
marketing and public relations skills that can be utilized without
much mentoring. Successful places will help organize and support
these local community operations because they are potentially powerful
forces in an environment when resources are scarce.
Closely related to showcasing the community groups
is encouraging developers to continue to invest in the local neighborhoods
and business districts. In Singapore the developer of Clarke Quay
turned that district into a family entertainment center. With the
encouragement of Singapore, they are improving the land and water
transportation and generally enhancing the attractiveness of the
community at private businesses' expense. While the business sector
is also suffering during this downturn, combining government support
with attractive developments can yield impressive results.
The fourth and final initiative is reaching beyond
geopolitical boundaries to leverage resources, attack common problems,
and share collective benefits. Tourism, conventions, airports, bridges,
and so on can often consolidate activities beyond the local community.
In some cases, individual projects go beyond national boundaries
as with the Malaysia-Singapore Second Crossing. Other projects such
as the Orient-Express Trains and Cruises and the "Silk Road"
concept made up of the World Tourism Organization and nineteen participating
countries are examples.
It is often easier to leverage scarce resources when
there are multiple partners. All over the globe there are wine producers,
short holiday trip destinations, and science park complexes that
are marketing their regional power rather than a restricted local
positioning. In some cases, places can offer superior public relations
services while others are strong in marketing or are proficient
in design and infrastructure. In any case, places can gain more
visibility and more expertise while utilizing fewer taxpayer resources.
In these tough times cities, states, and nations can
position themselves for the next boom. The challenges and threats
to Asian prosperity have never been greater, as new opportunities
arise and new threats mount at an increasingly faster rate. In this
highly competitive environment, no place can wait for the economy
to turn around to address important marketing issues. In the end,
strategic market planning requires not only patience and persistence
during tough times but also a canny analysis of cost-effective opportunities.
(Michael Alan Hamlin is the managing director of consultancy
TeamAsia and the author of three books on Asian economies and companies.
His latest book is Marketing Asian Places, of which he is
a co-author (Wiley, 2001).)
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