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A version of this paper research has been published as a chapter in the book Information Communication Technologies
and City Marketing: Opportunities for Digital Cities around the World, edited by Mila Gasc-Hernndez and Teresa TorresCoronas; published in IGI Global Publishing, Information Science Reference, Hershey; 2009 New York.
Doctor of Economics and Business Administration, Professor of Marketing at the University of Leon, Spain. Diploma in European
Union and Foreign Trade by the Polytechnic University of Madrid (Spain); Master Science of Transport & Distribution Management,
University of Central England (Birmingham, England); has conducted courses on culture and languages in various
universities in Germany and France. Has published papers in academic journals, in books; lecturers in various forums and
conferences in Spain and international spheres. Teaches in some master and postgraduate courses, with stays at universities and
institutions from Europe, the Americas and Asia. His areas of research are: city marketing and place branding, strategic
marketing, international retailing, and new trends in tourism. Conducting international researches, such as a European Union
project with the cities of Leipzig (Germany), Bologna (Italy), Ljubljana (Slovenia) and Len (Spain), he has also worked with
Medelln (Colombia) and Kuala Lumpur (Malaysia), where he is visiting professor at the Asia-Europe Institute, University of
Malaya. He has taught courses on new trends in tourism in Mexico and Colombia, and doctoral courses in Brazil and
Venezuela. Founding member of the Latin American association International Network of Marketing and Urban Development
(Red Internacional de Marketing y Desarrollo Urbano), which promotes exchange of knowledge and urban experiences.
The global network of urban areas is beginning to give rise to a new geopolitics that seems likely soon to become
more important that the geopolitics of nation states (A. Zaera-Polo, director of Foreign Office Architects, 2004).
From being really just run of the mill, which is what cities were at the start of industrialization, western metropolises
have undergone a recycling that presents them as consumer products (V. Verd, sociologist and writer, 2001)
Abstract
Cities are acquiring a key geopolitical importance in the shaping of world-wide flows and exchanges,
playing a key part in modern socio-economic relations within the framework of the world order termed
globalization. Urban areas are the nodes where networks of various types of interchange come together:
economic, social, cultural, communications and interpersonal. While having a leading role in these major
relations of world-wide exchanges, cities in addition shape their own interchanges between what they can
offer and the demands from the various groups within them. These are principally their citizens, but also
investors, tourists and administrative and civil institutions.
Strategic marketing and management approaches have been implemented into the field of countries,
regions, and especially cities, which are adopting these approaches to sell what they have to offer, to be
manage better and compete more effectively. Marketing provides a conceptual framework and tools for
managing these exchange relationships between what cities supply and demand. This research explores
these issues, and examines the evolution of city marketing, from emphasizing infrastructures and urban
regeneration towards stressing intangible values, such as multicultural integration, urban quality of life,
appreciating aesthetics, the design and beauty of a city, a marketing of cities by means of intangible and
emotional elements.
Music festivals: Bayreuth R. Wagner- (Germany); Salzburg W.A. Mozart- (Austria); Verona
G. Verdi- (Italy). Nashville North American folk- (USA); New Orleans Jazz, Gospel- (USA). Great
Industrial cities
Cities with
research centres
Vanguard
forefront cities,
trend setting
cities
Natural beauty
Touristic cities
Metropolis or
megacities
Cities-state
-2-
Brussels European Union, NATO- (Belgium); New York United Nations- (USA); Geneva United
Nations, International Red Cross- (Switzerland); Paris UNESCO- (France); Lausanne International
Olympic Committee- (Switzerland); Washington D.C. International Monetary Fund, World Bank,
Administration of the USA; The Hague some international courts of justice- (Netherlands)
Kyoto Protocol on Climate Change (Japan); Maastricht Treaty on European Union (Netherlands);
Davos annual meeting of the World Economic Forum- (Switzerland)
Eindhoven Philips- (Netherlands);Leverkusen Bayer- (Germany); Wolfsburg Volkswagen(Germany); Torino FIAT- (Italy); Toulouse aeronautical industry- (France); Ulsan Hyundai- (S.
Korea); Seattle Boeing-aeronautical, Microsoft-software- (USA); Detroit automobile industry- (USA)
Car racings: Montecarlo Formula 1, Rally (Monaco), Le Mans 24 hours race (France);
Indianapolis 500 miles- (USA), Wimbledon tennis (Gr. Britain); Wimbledon tennis- (Gr.
Annual events
Britain); Paris tennis: Roland Garros, cycling: Tour France final stage- (France);
St. Andrews golf- (Scotland, Gr. Britain); Augusta golf- (USA)
Summer Olympic Games: Sydney presentation like one of the best cities of the
Oneoff events with long term world - (Australia), Barcelona urban remodelling, world promotion -; Beijing
Cities and
returns.
places with
-presentation and promotion of the city but also of China as a new superpower-.
They
attract
investments and
sporting events
Winter Olympic Games: Salt Lake City (USA), Calgary (Canada), Lillehammer
boost tourism
of international
(Norway), Albertville (France), Torino (Italy)
repute
Football World Cup: Germany 2006, South Africa 2010.
European Football: Real Madrid, FC Barcelona (Spain); Milan, Inter Milan, Juventus
Sports clubs that provide
Torino (Italy); Ajax Amsterdam (Netherlands); Bayern Munich (Germany);
international reputation to the
Manchester United, Liverpool (Gr.Britain)
cities that shelter them
Basketball NBA: Los Angeles Lakers, Boston Celtics, Chicago Bulls (USA)
Cities with a
religious
significance
Jerusalen Judaism, Christianity, Islamism- (Israel, Palestine); Rome Catholicism, Vatican- (Italy); Santiago de Compostela
pilgrim way of Camino de Santiago- (Spain), Mecca Islam- (Saudi Arabia); Varanasi Hinduism- (India)
Singular cities
Venice singular urbanism channels- (Italy); New York singular architecture, skyscrapers- (USA); Las Vegas city of the game
and gambling in casinos, original architecture of the hotels and casinos (USA); Paris beauty and monuments (France)
These attributes or potentials can be capitalized on by cities taking full advantage of them. In this sense
there is a parallel with the approaches of strategic management and marketing in the world of business.
These qualities would be equivalent to the concept introduced by M. Porter, competitive advantage, a
capacity which if developed by an enterprise would allow it to achieve better results than competing
businesses. In the same way, when a city is able to capitalize on its resources and potentials, or is
remodelled and promoted, as Barcelona and Sydney were through their organization of the Olympics,
then it achieves international fame and reputation that facilitates attracting investments and visitors.
Figure 1. CITIES WITH INTERNATIONAL REPUTATION ACCORDING TO SOME ELEMENTS
Tourism in the
Fontana di Trevi,
Rome
-3-
Leverkusen
,Copyright:
la ciudad
sede
2001 de
Der
Spiegel
empresa
Leverkusen
(Germany),
a la
city
linked to
Kyoto in the
international
press due
to the
Climate
A city and a football team with the name of a pharmacist
Change
Protocol
the Bayer
company
Brussels,
the capital of the lobby
Lobbyists have close ties with the EU authorities
The capital
Amsterdam,
of the Freedom
avant
garde and
singularity
urban city
Building of the UN
headquarters, New York
Empire
State
Building
Chrysler
Tower
Statue
of
Liberty
-4-
The profile of a city can be influenced greatly by major public works. These can include new airports, as in
Hong Kong, or extensions to existing airports, like Barajas in Madrid or London Heathrow; ports as in
Yokohama; new museums like the Guggenheim in Bilbao, the area of Arts and Sciences in Valencia, or the
Picasso Museum in Malaga, or renovations, such as the Louvre in Paris, the Rijksmuseum in Amsterdam or
the Prado in Madrid; facilities for artistic activities, like the Sydney Opera House or the new Alexandria Library
in Egypt; buildings for conventions; skyscrapers like Taipei 101 in Taiwan or the Petronas Towers in Kuala
Lumpur in Malaysia or the Freedom Tower project at the site of the ill-fated towers of the New York World
Trade Center; sports facilities, like olympic parks or stadiums that are innovatory in their technology and
design such as the Allianz Arena Munich, or the Olympic Stadium in Beijing; renovation of waterside areas,
as in Barcelona, of riverside zones, as in Bilbao, or of historic centres as in Santiago de Compostela, all three
in Spain; theme parks like Eurodisney near Paris. These constructions equate in modern times to what
cathedrals represented in mediaeval Europe. Many cities commission major works of this sort from star
architects who create structures that become new urban icons, symbols advertising the city. Mention may be
made of N. Foster, J. Nouvel, R. Koolhaas, R. Rogers, F. Gehry, Herzog & de Meuron, A. Siza, R.Moneo, S. Calatrava.
Figure 2. BIG BUILDINGS and SKYSCRAPERS AS URBAN ICONS and LANDMARKS.
New
New
Skysrapers
IninShanghai
Sears
Tower
Burj Tower,
Dubai
Burj
Al
Arab
World's first
rotating tower
Dubai
A luxury hotel;
its design evokes
a sailing ship
on the sea,
landmark of Dubai
-5-
Buildings of artistic
manifestations and museums
Guggenheim
Museum Bilbao,
Museum of Contemporary Art
New symbol
MUSAC. Len, Spain
of this city, that
European Union Prize 2007 for
Auditorium, Ciudad de las Artes
has changed its
Contemporary Architecture
y las Ciencias. Valencia (Spain)
Mies van der Rohe Award
urban positioning
and regenerated
Big sport Innovators in technology and design
its riverside
stadiums
Opera House,
Sydney icon
and a symbol
of Australia
Innovator
in design:
quilted
bubble
Innovator in technology: translucent multi-chromatism
Olympic stadium
of Beijing (China),
popularly called
The Nest
New Terminal T4
Modern architecture
and traditional one
-6-
Potential and
National State
+ Positive points
Current
and Town Halls
eventual
residents
residents
and strenghts
INSTITUTIONS
Regional
International
for
CITIZENS
INTERNAL -Negative points
Institutions institutions
eac
Neighbourhood
hc
ANALYSIS and weakness
communities Resident workers
oll
Educational and cultural
in nearby localities that
institutions; universitities
of the city
Search of the differentiation. ective
g
move to diary to the city
rou
To identify the unique and
p
distinctive features and
characteristics of the city
+ Oportunities
- Threats
Socio-cultural
Environment Economic
EXTERNAL
ANALYSIS
of the city
tive
llec
o
c
h
eac
Political
of
Demand
up
gro
Urban tourism
Business
Shopping visitors
visitors
Local
Public
institutions companies
INVESTORS
Competitors: to identify
rival cities
TOURISTS
Employer associations
and working unions Multinational
corporations
Perception of
residents
Perception of
investors
Cultural tourism
Tourism of
Sun and beach
Conferences
linked tourism Business and
leisure
tourism
Perception of
tourists
Perception of
institutions
Current positioning
IDENTITY
defining a
STRATEGIC POSITION
MARKETING
STRATEGIES
-7-
The principles of economics and business studies can be applied to cities because cities are places, but
they are also entities and systems of relations. The complexity of the interchanges and relationships
between the various groups (citizens, institutions, investors and tourists of various sorts) justifies studying
these approaches with an eye to identifying what is the best possible thing the city can offer, whether
internally in accordance with the needs of its citizens and other component groups or externally, meeting
the demands of outside groups and markets. This would allow appropriate selling of what can be offered
by a city in the more and more complex and internationalized markets in which cities increasingly compete.
Defining and developing Strategic Management and Marketing in an urban context, implies making a
diagnosis of the situation of the city, and also requires to be undertaken and should include an internal and
an external analysis. The internal analysis would cover the strengths and weaknesses the city may have
for each group, so that those involved may differ over this aspect, in the sense that what for one group
may be positive may not be so for another. The external analysis should consider opportunities and
threats that might arise from various sources (Fernndez Gell, 1997): the surroundings, whether seen
from a political, economic or socio-cultural angle, the demands different groups make on the city, and
study of possible competitor cities.
Before applying marketing approaches in the area of cities, it is necessary to analyze the concepts of
identity and image of the city. The identity has been analyzed in the field of corporate brand (1992). The
identity can be defined as the set of traits items and attributes that define the essence of the city, some
of which are visible and others are not. The image of a brand is the set of mental representations, both
emotional and cognitive an individual as a set of individuals associated with a brand or an organization
(Lambin, 1991). Thus, it is very important to link these two concepts, because one will be expressing a
defined personality (identity) and another with the perception of that personality (image). In the case of a
city, identity is what the city is, and its image is the perception.
The reality of a city can be compared with its image. One step is to investigate what the city is, that is the
identity, its objective positioning, by means of a set of urban indicators that allow observation of the relative
position of a city as a function of a range of variables. Ideally, rather than being restricted to one given
moment, this methodological tool should be able to extend over time, so that it would be a question of a
permanent observatory permitting analysis of the evolution of the position cities held. This objective
analysis should be compared with study of how the city is perceived, in other words how it is seen by the
various groups related to it. In this case it would be a matter of a subjective positioning obtained by
measuring the image of the city. Detecting differences between what the city is and how the city is
perceived would help in determining the current position of the city and serve as a base for the
construction of a future positioning, confirming or modifying previous plans and actions. In its turn, the
image of a city may differ from one to another of the groups involved in it. Even the image one person has
of a city can come from various sources: stereotypes lodged in the collective imagination, personal
experiences, what other people say, information drawn from the mass media (radio, television, the press,
the cinema, and similar), opinions formed about national and international events, and so forth.
From these steps it would be possible to define what it is desired a city should be, its corporate philosophy
and the strategic principles on which to construct it. All of this is strongly determined by aspects that
cannot be adjusted, like the physical geography and location, or the climate, history and socio-cultural
values of the city. Strategic approaches and marketing may be applied at three levels. Firstly, a definition
for the strategic and growth management of a city would include a model for physical development (town
planning, infrastructures, socially owned facilities, services in general, and other features); an economic
model, in which it would be possible to choose specialization or diversification of economic and business
activities (as may be seen in some sections of Table 1); and a social model, which would include social
services and employment and should shape the general pattern of social relationships. Secondly, when
-8-
applying strategies for competition and co-operation, the competitive advantages of the city should be
identified; with a view to seeking differentiation both in itself and in relation to the cities that are its most
direct competitors. It would be useful at this stage to use the methodological tool of benchmarking (Font,
2003), in other words comparison of cities through the key activities that each city does best, in an attempt
to achieve urban improvements in the cities under study. An example would be the comparative analysis
carried out in the context of the Eurocities network covering the cities of Antwerp (Flanders) in Belgium,
Bilbao (Basque Country), of Spain, Bologna (Emilia-Romagna), Italy, Eindhoven (North Brabant) in the
Netherlands, Lisbon in Portugal, Munich (Bavaria) in Germany, Rotterdam (Mouth of the Rhine zone) in the
Netherlands and Turin (Piedmont) in Italy (Van den Berg, Braun and Van der Meer, 1999).
Networks of Cities: Competition and Co-operation
The challenges of globalization imply major economic, social and cultural changes in the flows of exchanges
in the modern world. In this context, cities develop numerous networking relations, either horizontal with
other cities (whether competitive or co-operative) or vertical with other institutions (the central state, regional
authorities, international bodies, or businesses).
Modern approaches in Strategic Management and Marketing stipulate that besides competing there is a
need to co-operate and establish strategic networks so as gain a good position in markets. Some authors
(Brandenburger and Nalebuff, 1996) call the converging of relationships of competition and co-operation by
the portmanteau acronym term co-opetiton. Among cities it is also increasingly common for networks to be
established. While horizontal strategic alliances and networks for co-operation with other cities are set up to
defend common interests and collaborate, vertical connections with national authorities and with regional or
international institutions are of importance because of the political and financial support they provide for
urban management. Collaboration, associations and networks linking cities are of a range of types, as may
be seen in Figure 5.
Collaboration may take many different forms. Sometimes it is economic in nature, as in the case of the
Metropolis network of 81 cities around the world intended to develop solutions for the problems of great
world cities, Cities Project, a network for identifying the competitive advantages of the cities forming it, for
urban innovations, aiding other cities around the world to spot their strategic opportunities. There is also
collaboration of a cultural type, such as, for example, the co-operation on matters of a historical and
cultural nature between the UNESCO World Heritage cities in Spain, or the localities that co-operate over
the Pilgrims Way to Compostella, promoting tourism and culture. There are networks of cities that
concentrate on collaborating to support values, like the group of cities that encourage the creation of music
within the framework of cultural diversity, or the network of cities that promote solidarity, backing and
refuge for threatened writers from around the world.
Alongside the dimension of co-operation, cities compete in many ways: to attract investment; to be the
headquarters for institutions or businesses; to organize sports events like the Olympics, World
Championships of a particular sport (especially football, but also basketball, athletics, swimming and
others), various other sports competitions, or events not of a sporting nature, such as Universal
Expositions; to be centres for economic activities (for example, the struggle between Hong-Kong and
Shanghai in China to be financial and commercial centres in the Far East), for cultural activities (like the
competition among the larger cities of Spain through their museums of contemporary art) or for mixed
economic and cultural activities (like the competition between cities in the USA to host the Grammy music
awards).
-9-
Cities
cooperating
Beat San Francisco
as the candidate de USA
Beat Sevilla as
the candidate Spain
(Gr. Britain)
(Russia)
(Gr. Britain)
Toronto
(Turkey)
(Germany)
(Canada)
Santiago de Compostela
Salamanca
San Cristbal de la Laguna
vila
Paris
Barcelona
(Spain)
(Yugoslavia)
(Australia)
Barcelona, Gijn
Sabadell (Spain)
Ibiza
Amsterdam
(Netherlands)
Madrid, Barcelona
Belgrade
Cities of Spain
World Heritage
Cuenca
UNESCO
Cceres
Segovia
Baeza
Toledo
and beda Crdoba
Osaka (Japan)
(France)
(Cuba)
Birmingham
Istambul
Leipzig
(China)
(Spain)
Competed for
hosting the
Olympic Games 2012
Moscow
Beijing
Madrid
London
Cities
competing
Zaragoza (Spain)
(Germany)
(Spain)
Helsinki
PANEL
(Finland)
European Network
Lyon, Grenoble
Alpes Maritimes aimed at rewarding the creation,
innovation
and
business
(France)
Stockholm,
excellence
Southern Swede
Milano, Torino
(Sweden)
Emilia-Romagna
Oxford, Cambridge
They competed
tor hosting
the Expo 2008
Trieste
Thessaloniki
(Italy)
Oporto(Portugal)
(Italia)
(Greece)
(Gr. Britain)
Cities Refuge
Network of cities and regions
Gteborg
(Norway)
promoting performances of
(Sweden)
Bergen, Oslo (Norway) Reykjavik Helsinki, Oulu, Tampere, Turku (Finland)
solidarity, shelter and support
Ithaca-Cornel
(Island)
Viena, Salzburg
Copenhagen (Denmark)
Varsaw (Poland) Talln (Estonia)
writers threatened
Las Vegas (USA)
Vorarlberg
in the world
Dublin
Dubrovnik, Split, Zagreb (Croatia)
Londres, Liverpool, Glasgow
(Ireland)
Graz (Austria)
Mexico City
Birmingham, Jersey (Gr. Britain)
Olomouc, Praga (Czech Rep.)
Puebla (Mexico) Lagos
Venice
Helsinki
Amsterdam, Rotterdam (Netherlands)
Sarajevo Ljubljana, Maribor
(Nigeria) Procida (Italy) (Finland)
(Bosnia)
(Slovenia)
Bruselas, Gante (Blgica)
European
Budapest (Hungary)
Cities Tourism
Malta Luxemburg
Network which defends the
Zrich, Ginebra, Bern
Mnaco Andorra
interests of the tourist
Basel, Lausanne, Lucern (Switzerland)
Compete because they point
Graz, Innsbruck
European cities
link between markets
Madrid
Salzburg,Viena (Austria)
Miami
Genova, Turn (Italy)
(Spain)
(USA)
Latin American, the
Lisboa (Portugal)
Sevilla, P. Mallorca, Zaragoza
Aachen, Dsseldorf, Leipzig
United States and Europe
Aix-en-Provence, Dijon Tarragona, Lrida, S. Sebastin
Dresden, Bonn, Heidelberg
Niza, Metz, Nantes
La Corua, Mlaga Valencia
Nrenberg, Kln, Berlin
Lyon , Paris, St. Etienne
Barcelona, Madrid, Bilbao
Munich, Karlsruhe, Stuttgart
(France)
Oslo, Stavanger
Kristiansand
(Spain)
London
Frankfurt, Munich
(Gr. Britain)
Paris
(Germany)
(France)
Madrid
Barcelona
Subnetwork Access,
incentives urban mobility
108 cities, chairs Leeds
Committee Environment
promotes sustainable development
Eurocities
60 cities, presides over Seville
Platform claiming
Committee Culture
cities in European
promotes cultural exchanges
construction
40 cities, presides Stockholm
(Italy)
Amsterdam
(Ntetherlands)
Reykjavik
Tby
(Island)
(Sweden)
Quebec
Hmeenlinna
(Finland)
(Canada)
Mitaka
Phoenix
(USA.)
(Spain)
Milano
Brussels
(Belgium)
(Germany)
Cities of Tomorrow
(Japan)
Network encouraging
innovations in local
development
Christchurch
presides Leipzig
(New Zeland)
Mnster, Essen
Delft, Tilburg
Bilbao, S.Sebastin, Vitoria
(Holanda)
London Lewisham
(Basque C. Spain)
Toronto (Canada)
Liverpool, Braintree (Gr. Britain)
Miami, Filadelfia
beat Palma de Mallorca
Genova, Torino (Italy)
Boston (USA)
as the candidate Spain
Singapur
Lyon
(France)
Project
Cities
Berlin (Germany)
Dakar (Senegal)
Network to identify competitive
Medelln (Colombia)
Valencia
Marseille
advantages cities members, urban
Dubai
(Spain)
(France)
World triangle of
innovations, helping other cities
(Arab Emirates)
Monterrey (Mexico)
electronic music
around the world to identify
Arriyadh
Montevideo (Uruguay)
They competed for
strategic opportunities
(Saudi Arabia)
hosting the America's Cup
Miami
Curitiba, Rio Janeiro (Brazil)
Ibiza
Shanghai
Sailing 2007
(USA)
(Spain)
Santiago (Chile) Sydney Kuala Lumpur Hong-Kong
(World's oldest
(Germany)
(Australia)
(Malaysia)
(China)
Napoli
Leewarden
Brighton, Telford
Postdam
(Gr. Britain)
(Germany)
(Italy)
Eskilstuna (Sweden)
(Netherlands)
Shanghai (China)
Eurotowns
Hasselt
(Belgium)
Seinjoki
Mikkeli
Jyvskyl
(Finland)
(Italy)
-10-
Sporting competition)
Lisboa
(Portugal)
Aspects
Business companies
Cities or towns
Ownership
Top management
Products
Clients
Competitors
Owners, shareholders
Boards of directors; executive management
Manufactured goods or services
Consumers
Other business companies
Despite the application of such a philosophy of business management and marketing, the governance of
cities cannot be directed simply by transferring over these principles. This is because of the social and
human function that should guide city management with priority over financial profitability. It is also because
of the great complexity of the multiple interchanges that take place in a city. Cities have certain attributes that
-11-
cannot be modified, such as their nature, climate, or geographic situation. They have others which are
modifiable, relating to infrastructures, leisure, culture and education, health, economy, businesses and
employment, public safety, government and politics, social atmosphere and the development of civil society.
Aguilera and Perales (1994) conceive of the city as an open project, developed by public administrations, the
private sector and civil society. This view is based on three criteria:
What the city has: natural resources, such as landscapes, or attractive features of the climate, and
created items, like green spaces, town planning, historic and artistic treasures, local dishes and so forth.
What the city does: social, organizational and institutional relationships, economic, cultural and
educational activities, artistic and sporting events, and the like.
What the city represents: for a given national or cultural identity or for symbols of affiliation (national,
iconography, history and legends, famous figures, celebrations and festivals, and similar).
The process of strategic management and marketing should culminate in communication of the urban
strategies and policies, which would attempt to broadcast the image of the city among the various groups
and markets, whether national or international. A plan for ways and means can be drawn up, which would
include publicity, promotion at tourism or business fairs, public relations, and the like. Communication
campaigns based on massive publicity reach out a long way and may produce more immediate results.
Communication campaigns involving public relations are more direct and credible. Influential figures, such as
artists and sportsmen from the city itself or other famous people, transmit a positive view of the city.
One of the principal ways of ensuring external projection and communication of cities is the organizing of
events that bring international fame and transmit values. They also have positive effects for the citizens
and institutions of the city, since they involve projecting values relating to the pride of belonging to a city or
living there, to innovation and change. In a word, they generate collective enthusiasms. Spanish cities are
active in this way. Barcelona, Vittoria, Gerona and Santiago de Compostela have received international
awards. Besides this, a number of international events have been organized in Spanish cities. These
include the World Swimming Championships in Madrid in 1986 and Barcelona in 2003; the Olympics in
Barcelona 1992; the Expo in Seville 1992; European Cultural Capital status for Madrid 1992, Compostella 1995
and Salamanca in 2002; the World Athletics Championships in Seville in 1999; the Americas Cup sailing
contest in Valencia in 2007; and the Expo in Zaragoza in 2008. Marcos Blanco (1993) considers the study
carried out for the Barcelona Olympics in 19921 to be one of the greatest large-scale applications of city
marketing, and taking the Olympic Games into a new prestige on a global scale after some previous failures.
For this, a great deal of energy was brought into play by citizens and businesses, together with an extensive
communication campaign, well programmed in time, for which four types of sector were assigned as the
target publics2, and this led to the designation of Barcelona as the site for the Olympics. After this Barcelona
1992 successful Olympic Games, most of the mayor international cities are willing to host this biggest sport
event, which bring global reputation, investments, visitors, media attention, etc.
The distribution policy of a city can be conceived of as how it makes available services and brings them
closer to citizens and users.
Barcelona gained international exposure through the 1992 Olympics. This city is a host to trade fairs, congresses, sports events and urban tourism, as well
as being a major stopping point for European and transatlantic cruises (in the Western Mediterranean especially after the 11 September 2001 terrorist
attacks). The next major project by Barcelona was the Universal Forum of Cultures in 2004, involving further world-wide promotion of the city, and
remodelling of urban areas including prolongation of the renovated seafront beyond what had already been done in 1992.
2
Target Sector I Extraordinarily Important: members of the International Olympic Committee; Target Sector II Important: members of national Olympic
committees, international federations, sports federations for Olympic sports, specialist international press, world and national opinion leaders, Olympic athletes;
Target Sector III Further Interest: ex-Olympic sportspeople, participants in sports, sports clubs, artists, national and local press; Target Sector IV Associates
and participants: professional organizations, businesses, students, citizens of Barcelona, Catalonia and Spain.
-12-
For its part, a price policy of the city as a product may be seen as the set of costs of using the services offered
by the city. These comprise the cost of land for residential or industrial use, the price of services (social and
municipal, of various sorts), transport, education and culture, health care, sports, leisure and tourism, and so forth.
Some of these will depend on decisions taken at a municipal level, others on the market. Many cities already have
cards allowing discounts for residents or tourists using public services, similar to what is also done by retail
companies with their payment cards that are intended to generate customer loyalty.
Figure 6. CARDS FOR USING URBAN SERVICES
Also in recent times, the marketing principles are extending into territories such as countries and
regions, to implement strategies in order to market their offerings and compete better. Eventually, a
strategic management or governance approach and city marketing process would go into a more or less
advanced stage of brand creation in a city or a place or territory, then one also speaks of -place
branding-, an emerging concept in recent literature (Dinnie, 2004; Kavaratzis, 2004; Kolb, 2006; Skinner
y Kubacki, 2007; Morgan, Pritchard y Pride, 2007; Anholt, 2007; Moilanen y Rainisto, 2009).
This is a consolidating burgeoning academic literature in the last three decades, on marketing cities
and more advances stages of branding, either for geographical scope of cities, regions or countries.
We may consider these approaches as a natural extension of the strategic management or territorial
building planning process. Thus, considering this sequence, and applied to three geographical
areas: cities, regions or networks of cities, and countries and international spheres, so the following
table embodies some outstanding research in these senses.
Table 3. ACADEMIC RESEARCH ON PLACE STRATEGIC MANAGEMENT OR TERRITORY BUILDING, MARKETING and BRANDING,
AT THE GEOGRAPHICAL SCOPE OF CITIES, REGIONS, COUNTRY and INTERNATIONAL LEVEL.
Research covering different
geographical scope
Research relating to various
management concepts,`
place marketing or branding
Related concepts
Geographical scope
Region, nation, places:
City, urban or
metropolitan area:
Concept
Territorios
inteligentes
Eg.: urban regeneration, building
Urban regeneration,
Clusters and competition
infrastructures, promoting values
image reconstruction and Competitiveness of locations (Porter 1998)
city marketing (Paddison 1993) Marketing metropolitan
Selling the city. Marketing in
regions (Van den Berg et al. 1990)
Marketing: process
urban planning (Ashworth & Voogd 1990)
of developing and
Country; international
scope; urban networks:
Country or Nation-state strategy
International perspective
Thematic partnerships between
cities (national or international)
Competitive advantage
of nations
(Porter 1990/98)
(Sassen 2002)
et al. 2005)
communicating urban,
(Kolb 2006)
(Kotler et al. 1999)
regional or national offerings, Marketing turstico de ciudades, regiones, lugares y pases (Chas 2005)
Place marketing; Northern
in its marketing exchanges Marketing des Villes Place promotion; Publicity and Marketing
Europe and USA (Rainisto 2003)
(Noisette & Vallerugo 1996)
(sales, promotion) with
to sell towns and regions (Gold & Ward 1994)
Place marketing; Britain
the demands of different Marketing de ciudades
Positioning (also applied to places
(de Elizagrate 2003/08)
and North America (Ward 1998)
audiences and institutions
place positionings-) (Ries & Trout 1986)
From city marketing to
Country marketing and
2002)
Brand Management for Cities, Regions and Nations. Competitive identity (Anholt 2007)
Gertner 2002)
(Mikunda 2006)
Destination branding (Morgan et al. 2007) Brand Singapore (Seng Ooi 2007)
-13-
While some of these researches could be framed specifically at a city level, others in a regional level,
and others in national or country level, some other research includes various areas simultaneously.
Some research can be considered more strategic management or territory planning or building, while
others relate more to the field of marketing or branding. We can find research that relate to different
phases of the strategic process. For example, as shown in Table 3, Paddison (1993) includes concepts
of 'urban regeneration', which could be included on the first phase of the table, prior to city marketing in
the second stage of marketing. In the area of countries, Wells and Wint (2000) speak of "Attracting
Foreign Investment ', which could be framed more in the first phase of a country's economic management,
together with 'marketing a country" of the second phase. On the phases of marketing and branding, other
studies raise an evolution from a city marketing approach to a phase of city branding (Kavaratzis, 2002), or
the relationship between country and brand marketing management (Kotler & Gertner, 2002).
Alongside this academic level shown in Table 3, also in recent times numerous cases of marketing and
place management initiatives are being developed worldwide, whether at the level of cities, regions or
networks of cities, and countries (Table 4).
Table 4. MARKETING & BRANDING CAMPAIGNS and STRATEGIES for CITIES, REGIONS and COUNTRIES
City marketing
and branding
Branding
strategy
between public and private institutions
to promote Amsterdam in the World
Country marketing
and branding
Germany has a strong
international reputation in
technology and reliability
With regard to the phase of place branding, in recent years numerous initiatives of logos and slogans
have been developed as a final part of a management and marketing strategy. However, this phase
should be designed together with the previous one, as part of a long-term strategy and not as mere
campaign to promote a territory short-term; to be effective and visible and eventually provide national
or international reputation, would be much more advisable to plan a long term strategic approach.
-14-
The communication strategy may culminate in the creation and projection of a brand image of the city related
directly to its identity. Just as businesses have brands, slogans, logos or emblems can be designed for a city
or for an event organized by it. A good slogan or symbol may communicate the identity of an event or of the
city itself and transmit values, whether these are current or those it is desired to project as an image.
Figure 7. LOGOS OF CITIES AND URBAN EVENTS
I love New York: arose
spontaneously in the Tshirts. It is probably the
best known city logo in
the world
I love NY has inspired
numerous imitations
and advertising
campaigns of all kinds
Logo of the network Slow Cities: the initials consists of the Italian word
citta (which means cities in English) and slow. Combined the ItalianEnglish term reflects a new concept of Mediterranean style way of life,
which is fast catching. The snail symbolizes slowness, and the shell
reflects traditional architecture and profiles a historical city
-15-
The Merlion,
Singapore
organizes
the first
urban night race Formula 1,
clearly promoting the city
Catalonia suggest
the artist Dal
Forest of palm
trees. World
Heritage
UNESCO
A cool glance
-16-
'I amsterdam' is the new motto for Amsterdam. It is the city marketing initiative as
a means for Amsterdam to profile itself assertively on the international arena
Logo in front of
the Rijksmuseum
Picture by
Edwin van Eis
'Victory
Boogie
Woogie'
by
Piet
Mondriaan
-17-
Figure 8
EVOLUTION AND CHANGES OF THE ECONOMY AND THE MODERN CAPITALISM
CREATIVE ECONOMY,
MARKETING OF VALUES
ANCIENT ECONOMY
Overcoming stages of
subsistence, hunting and
fishing to agriculture,
extraction of raw
materials,
Explorations, discovery
and conquest of new
territories, colonizations,
trade
Social and economic
transactions
PRODUCTION
CONSUMPTION
Industrial revolution
Manufacturing, industry.
Production technology
Orientation towards
output, production.
Supplying markets with
goods
Emphasis on
communicating
features and qualities of
articles, triggering a desire
for material items
Emphasis on the
qualities of the articles
produced, the useful and
real
It may be asked what implications this socio-economic process has for the evolution of cities,
conceived of as places to live and seen also in their relationships of exchange and trade with those
who seek things from them: citizens, visitors, investors, institutions. Cities rose up as structures of
refuge (Mitchel, 2007), and as sites where trade developed, then later services in modern
economies, and throughout the history of urban settlements cities have been meeting points for
culture in its various differing manifestations. Many historic cities have survived from ancient times
to this day, while many others have disappeared or been transformed.
Figure 9
Cities as a network of
creative connections.
Multiculturalism
The search for quality of life,
urban aesthetics and beauty,
leisure
Cities as objects of
consumption in their own
right
Some cities become brands
In the industrial period, a city was a place where industrial production took place; in it there was a
predominant presence of capital and labour for production. Cities are where trade and services are sited;
they commercialize the wish to consume. At the present day, cities are centres where there are multiple
flows and networks of connections generating innovation and economic progress. In a sense, a city may
be seen as an object of consumption in itself. It is no longer just the place where exchanges are carried
out, but rather is itself an object and subject of them. Additionally, some cities become brands in their own
right, objects for consumption to which people travel, where people wish to live, and which offer
experiences or monuments that can become urban consumption icons. This development is shown in
figure 9.
One city that brings together infrastructures and values is Munich in Germany. In this capital of the region
and of the Federal State or Land of Bavaria, there is a balance and harmony between industries at the
cutting edge of technology (such as BMW or Audi nearby in Ingolstadt, and Siemens), institutions (like the
Government of Bavaria, or the European Patent Office) and traditions and social life, with a good quality of
life, sociability in the beer-gardens, natural surroundings of great beauty (Alpine lakes and mountains). It
was the first large German city to be reconstructed as it had been before the Second World War.
-19-
Figure 10. MUNICH (GERMANY), A CITY THAT COMBINES INFRASTRUCTURE AND VALUES
Entreprises: BMW,
Siemens, Audi (in
Ingolstadt, near Munich)
Top technological
industry
Government
of the region
of Bavaria
European Office
of Patents
Big international
airoport
Fairs and exhibitions
MUNICH
Infrastructures
and equipments
Mass media
(Tv, press,
publishing editorials)
Universities and
research institutes
(i.e. Max Planck)
MUNICH
Values of the
civil society
Museums:
Deutsches Museum
Alte Pinakothek
Neue Pinakothek
Haus der Kunst
Urban tourism,
Knot of roads of conferences,
of capacity,
business,
high-speed train
leisure
Reconstruction of
Festival of music
Beautiful nature
the historical center
Summer pera
in the southern part
as it was before
Sports: Bayern Munich
Olympic Parc
Alps, lakes
the World War II
Football Club
Munich
and the
beer
Oktoberfest,
Further examples of cities in the vanguard would include Curitiba in Brazil, which has set up participatory
environmental management; Vancouver in Canada which is a model multicultural city, with a good quality of
life and beautiful surroundings. Others would be Singapore, which is a multicultural Asian City-State, a
financial and communications centre, with one the largest port in the world and a major airport serving
Southeast Asia and Oceania; or Sydney in Australia, which presented itself through the 2000 Olympics as
one of the best and most beautiful cities in the world. Barcelona is cited as a model of town planning; it
brought back into use its sea waterfront thanks to the urban revitalization and promotion brought by the
Olympics in 1992 and the Universal Forum of Cultures in 2004. The modernist or art-deco style associated
with Gaud lends enchantment to the city; it has been chosen as the best city in the world by a programme
that selects the 20 best destinations worldwide under various headings (20 WORLDS TWENTY BEST 2004). The
evolution of the key dimension of cities from infrastructures to values is reflected in figure 11.
Figure 11. EVOLUTION OF THE KEY URBAN DIMENSIONS
Infrastructures
Values
Urban regeneration
in Guayaquil (Ecuador)
-20-
If values are becoming the new key factors in the pattern of urban development, creativity, talent and
tolerance stand out as generators of economic progress.
factory and warehouse buildings, followed by gay and unmarried folk, then later families, urban
professionals (yuppies and similar categories); technological companies and small shops gave a final
consolidating touch in these districts. There are firms that gain additional advantages from the fact that
they are located in a given place, particularly when this implies attracting talent. It is not just a question of
creating employment: people seek work but also keep in mind in what location this work is situated.
Successful places take the shape of complex, multisided ecosystems, like those to be found in the natural
world. Among them are cities in environments that do not just provide work but offer the crucial conditions
for residing with a high quality of life: the ability to find like-minded people and friends, pleasant
surroundings, in some cases being in areas of great beauty. These are attractions that permit people to a
build a life of the style they wish, taking all these features as a whole.
Economic and business thinking and strategic analyses have gradually evolved. In general the dominant
line of thought in the 1980s was to investigate inside companies, gauging strengths and capacities, while
studies of nations and regions concentrated essentially on national economic policy. After having
introduced the concepts of strategies and competitive advantages in the 1980s, Michael Porter concluded
in the 1990s that a large portion of the competitive advantages enjoyed by firms did not lie within them, or
even necessarily in their sector; but was to be found in their geographical sitting or location: nations and
regions, but especially cities and urban areas. In other words, a considerable part of a businesss chances
of success may depend on whether it is located in a particular city or region.
This is a wide-ranging and dynamic theory of the enterprise. It is wide-ranging through not being restricted
to the internal features of enterprises and dynamic because it can evolve over time. The globalization of
the economy has contributed decisively to expand the internal zone of businesses by increasing the
availability of production factors to a larger number of countries. This focuses the capacity for
improvement not so much on internal processes or on vertical integration within the firm as on the quality
of the economic environment. In certain geographical locations, notably cities and metropolitan zones,
accumulations or clusters arise, geographically dense groupings of enterprises and institutions with shared
characteristics, networks of creative connections. Porter states that the majority of the members of these
clusters or networks of businesses do not compete directly with one another, but target different sectors, in
accordance with the strategic groupings that form, and hence share many common characteristics.
Geographical proximity brings them closer to production factors like access to suppliers, technology,
information and personal communication with other enterprises and institutions. In this way relationships
of shared interest and consciousness arise, networks of civic commitment, of capital and social adhesion.
A collective reputation grows up and joint marketing can be brought into operation. This was how the
technological vanguard formed in the famous Silicon Valley in California and in Austin in Texas. A similar
process led to the concentration of the chemical industry in south-western Germany around Freiburg, with
its university dating back to the Middle Ages, and in the northern cantons of Switzerland near Basel; the
high positioning car industry in Stuttgart and Munich, or the cinema in Hollywood.
While huge countries like China or India are certainly going to become great political or economic powers,
if considered from an aggregate or macroeconomic standpoint, their advantages will come more from a
capacity for low-cost industrial production than from leadership in core managerial skills. According to R.
Florida, world economic leadership will lie in the hands of small European countries, such Finland,
Sweden, Denmark, Holland and Ireland, or English-speaking countries like Canada, Australia or New
Zealand, which are able to combine a capacity for technological excellence with the ability to attract
creative talent from round the world. Hence, although the large countries like India and China are building
up technologically advanced cities such as Bangalore in India or great commercial and financial
metropolises such as Shanghai in China, as are other emergent states such as Brazil, with its economic
centre in Sao Paulo, the true vanguard will be found in the leading-edge cities in the former countries.
These will be cities such as Helsinki in Finland, with Nokia leading research into telecommunications,
-22-
Dublin, concentrating the economic and technological growth of Ireland, Vancouver as a Canadian city
that is multicultural and offers a good quality of life, Sydney or Melbourne as the front runners in Australia,
or Florianopolis or Curitiba as improved alternatives to the sprawling Sao Paulo or Rio de Janeiro in Brazil.
They may also include Singapore and Kuala Lumpur in Malaysia as multicultural Asian cities, centres for
trade and finance, but of a more balanced size than the overgrown and chaotic Bombay or Calcutta in
India, Karachi in Pakistan, Jakarta in Indonesia, Manila in the Philippines, or Bangkok in Thailand.
The true cause for the flourishing of these cities is their capacity to combine technology with talent and
tolerance. According to Florida it is possible to identify in the United States cities that bring all three
together. There is San Francisco and its nexus of San Jose, Silicon Valley and the universities at Stanford
or Berkeley; Boston with Harvard or the Massachusetts Institute of Technology (MIT); or Seattle con
Microsoft and computing, and Boeing the aeronautics industry. All three are open, multicultural, tolerant
cities. Cities with one or two of these three variables would include Pittsburgh or Cleveland, which have
excellent universities with a good research record, but have little attraction for people of diverse sorts; or
Miami, which attracts immigrants, especially South Americans, and is a showcase for a lifestyle related to
sunshine and good weather in beautiful coastal surroundings, but has little technological capacity and few
people involved in this field and in research.
At a world level, it is possible to distinguish, on the one hand, Asian cities which are becoming outstanding
technologically but have relatively little diversity and tolerance. Examples are Bangalore in India, Seoul in
South Korea, Taipei in Taiwan, Shanghai in China and Tel-Aviv in Israel with its geopolitical conflicts. Only
Singapore would escape this trend. It is a city-state and former British colony where communities of
Chinese, Indian and Malay origin live, together with westerners. Kuala Lumpur, the capital of Malaysia,
also presents a diversity of cultures, races and religions in an Asian context. On the other hand, mention
may be made of avant-garde, multicultural cities, basically English-speaking, in countries formerly
colonized by Great Britain, which offer good levels of tolerance and security, without the racial conflicts and
inequalities of many cities in the United States. These include cities with surroundings of natural beauty:
Sydney and Melbourne in Australia, Vancouver and Toronto in Canada, Wellington and Auckland in New
Zealand, Cape Town in South Africa. Florida explains the curious case of Wellington and how it was the
place where the Lord of the Rings trilogy was filmed, attracting many people related to the world of the
cinema, its special effects, graphic design, and similar. This tendency was strengthened later when the
director Peter Jackson brought the production of the new version of King Kong to the city. All this
encourages the development of creative industries, just as the saga of Star Wars by George Lucas gave
an impulse to the development of videogames and cinema marketing in California.
The new cities that mark trends in the world are setting their influence and marketing through the
following dimensions (International Conference of Metropolitan Capital Regions; Madrid, 2006).
Managerial
dynamism
Political and
economic power
Figure 12
Key dimensions of
influence and attraction
of the metropolitan
cities
Culturalcreative
Leisure and
Tourism
The creative cultural dimension is based on elements of intangible culture, with large interrelationships, as can
be seen in figure 13.
-23-
Sydney 2000
-24-
Salzburg
Prague Wagner,
Mozart-
rallye of Montecarlo
Monaco Formula 1
J.Joyce, S.Becket
F.Kafka
Munich
Brussels
Dublin
Prague
Beers:
Dublin
Prague
Wines:
DRINKS
Bordeaux (France),
La Rioja (Spain),
GASTRONOMY
Tuscany (Italy)
Whisky:
Scotland
W. Shakespeare
MUSEUMS
Beirut, Baghdad
Wars in the Middle East
Medelln, Cali
Drug traffic, crime
Bayreuth
Elvis Presley
Rum (cocktails): Spanish
Verdi
Verona
Ham
La Habana
Liverppol- ARTISTS Carlos Gardel
Rio
Janeiro
Opera Samba, Bossa Nova
Bob
Buenos
Beatles
Tango
Marley
Aires
MedellnMUSIC
New Orleans Jazz
Jamaica
Juanes,
Salvador
Reggae
Hiroshima
F.Botero
de BahaVienna
SicilyMafia;
atomic
bomb
Carlinhos Brown Michelangelo,
Classical
NapoliCamorra
Picasso
Leonardo da Vinci,
music
Belfast
Mlaga,
Negative reputation
Florence
Barcelona Andy Wharhol
conflict
Renaissance
of Ulster
wars, crime
Pittsburgh
Memphis,
Las Vegas
Americas
Cup -Sailing-
Valencia
H. Hemingway
Carnival
Rio de Janeiro,
Salvador de Bahia
New Orleans,
Venice
Horse race
Siena
Sanfermines
Pamplona
POPULAR
CELEBRATIONS
Stratford-upon-Avon
Verona
La Habana
Paris
(beer party)
Notting Hill
Paris
film Casino
Las Vegas
Munich
Fallas
Oktoberfest
Valencia
New York
The Godfather,
Manhattan,
King Kong, etc
London
CINEMA and
TELEVISION
Los Angeles
Las Vegas
Roman Holiday
La Dolce Vita
Rome
Hollywood
Elements of intangible culture that give international reputation and promote a city
Figure 13
Conclusions
It is in cities where the multiple interchanges of the new world socio-economic order flow together. At the
same time they are becoming subjects or products for consumption, brand-names with identities and
values. To manage the complexity arising from modern relations between what urban areas can supply
and the various demands made on them by people and institutions, cities are increasingly adopting
marketing approaches. The progress of cities has moved away from the economic aspects of
industry and infrastructures towards an emphasis on values, creativity and intangible cultural
elements.
Recently successful cities around the world tend to be of a moderate and balanced size, bringing together
economic development and quality of life, proactively integrating people of different sorts, accepting a
multicultural nature as a treasure leading to cultural and artistic creativity, which translates into social and
economic progress. They are cities in which urban life harmonizes with the natural surroundings: indeed,
many are set in areas of great beauty. They care about town planning, and urban design and aesthetics.
Marketing as a management philosophy can aid in becoming aware of and orientating the needs of
citizens, tourists, and sources of investment. It can develop offers adapted to the needs of these groups
and ensure adequate promotion and communication. Marketing in the broader sense can also provide
those institutions related to cities, such as councils, businesses, or states, with a conceptual framework,
bringing together approaches from various fields, like town planning, sociology, environmental protection
and culture, such as to identify the competitive advantages of a city. It can seek out creative ways of
differentiating it, create values of tolerance, multicultural integration, balance with nature, and excellence in
physical configuration and urban landscapes. At the same time that they need to be better places to live,
cities are becoming products competing among themselves, brands and items for consumption in
accordance with their identities.
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