Marketing Asian Places

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What Is A Place?
A A A A A place is a nation-state, a geopolitical physical space. place is a region or state. place is a cultural, historical or ethnic bounded location. place is a central city and its surrounding populations. place is a market with various definable attributes.

A place is an industrys home base and a clustering of like industries and their suppliers. A place is a psychological attribute of relations between people internally and their external views of those outside.

Growth dynamics

A place is attractive
1. New industry starts up 2. Job opportunities are strong 3. Quality of life is attractive

Inward migration of new residents and visitors

Inward migration of new business and investment

Real-estate costs rise, infrastructure is strained, social needs rise

Community raises taxes

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Dynamics of decline
A place becomes unattractive
1. 2. 3. 4. 5. Major company or industry is hurt or exits Economic recession affects business Unemployment climbs Infrastructure breaks down City budget deficit increases Tourism, convention business declines Banks tighten credit Bankruptcies increase Crime increases Social problems rise City image deteriorates Community raises taxes
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Outward migration of people

Outward migration of business

External Forces
Rapid technological change Global competition Political power shifts.

Hard and soft attraction factors

Hard factors
Economic stability Productivity Costs Property concept Local support service and networks Communication infrastructure Strategic location Incentive schemes and programs
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Soft factors
Niche development Quality of life Professional and workforce competencies Culture Personal relationships Management style Flexibility and dynamism Flexibility and dynamism Professionalism in contact with the market Entrepreneurship
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People Marketing
1. 2. 3. 4. 5. Famous people Enthusiastic local leaders Competent people People with an entrepreneurial profile People who have moved to the place

Place marketing
1. Local actors
1. Public - sector actors
Mayor and/or city manager
Business development department in the community Urban planning department of the community (transport,education, sanitation, etc.) Tourist bureau Conventions bureau Public information bureau

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Place marketing
1. Local actors
2. Private - sector actors
Individual citizens Leading enterprises Real - estate developers and agents Financial institutions (banks and insurance companies) Electricity and gas utilities, telecommunication companies. Chamber of commerce and other local business organization

Hospitality and retail industries (hotels, restaurants, department stores, other retailers, exhibition and conventions centers)
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Place marketing
1. Local actors
2. Private - sector actors
Travel agencies Labor market organizations Architects Transport companies (taxi, railway, airline) Media (newspaper, radio, TV)

2. Regional actors
Regional economic development agencies County and state government National tourist boards

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Place marketing
3. National actors
Political heads of government Inward investment agencies National tourist boards

4. International actors
Embassies and consulates Inward investment agencies Economic development agencies with a specific link to a region or city International enterprises with a place-bound link
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Various investments a place can make to improve livability, investibility and visitability.
1. The character of a place
A place needs a sound desigh and development plan that will enhance its attractiveness and more fully develop its aesthetic qualities and values. The fixed environment of a place A place needs to develop and maintain a basic infrastructure that is compatible with the natural environment.

2.

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Various investments a place can make to improve livability, investibility and visitability.
3. The service provision of a place
A place must provide basic services of sufficient quality to meet business and public needs. The entertainment and recreation aspects of a place A place needs a range of attractions for citizens, residents and visitors.

4.

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Infrastructure improvement
1. Infrastructure problems.
1.1 Higher unemployment rates a prolonged recession pushed politicians to improve competitiveness. Infrastructure projects became one answer in the battle to improve Asian competitiveness.

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Infrastructure improvement
1. Infrastructure problems.
1.2 Traffic congestion reached unacceptable levels throughout Asian cities.
1.3 Increased competition from within and outside the region for Foreign Direct Investment (FDI) and new job creation forced a change in attitude in governments and enterprises. In the past, FDI was accepted; now, it is recruited, even seduced.
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1. A more critical environmental debate acts as a catalyst for a number of infrastructure projects. 2. Needs Assessment 3. Infrastructure Management 4. Inter - governmental Planing 5. The Environmental Imperative

6. Synchronizing Place Development Needs with Infrastructure Development

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Basic services: protection of people and property, social security, and education
1. Programs for Improving Security 2. Programs for Improving Education

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10 Major types of attractions that places can consider:

1. 2. 3. 4. 5. 6. 7. 8. 9. 10. Natural beauty and features History and famous people Shopping places Cultural attractions Recreation and entertainment Sports arenas Festivals and occasions Buildings, monuments and sculptures Museums Other attractions.
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Audit instrument for infrastructure, attractions and people Current status

Infrastructure Housing Roads and transportation Water supply Power supply Environmental quality Basic social security Education Lodging and restaurant facilities Poor Fair Good Excellent

Convention facilities
Visitor services
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Audit instrument for infrastructure, attractions and people Current status

Attractions Natural beauty and features Poor Fair Good Excellent

History and famous people

Shopping places Cultural attraction

Recreation and entertainment

Sports arenas Festivals and occasions
Buildings, monuments, and sculptures

Museums
Other attractions
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Audit instrument for infrastructure, attractions and people Current status

Preple Friendly and helpful Skilled Citizenship Poor Fair Good Excellent

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Potential Improvement
Infrastructure
Housing Roads and transportation Water supply Power supply Environmental quality Basic social security Education Lodging and restaurant facilities Convention facilities Visitor services
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None

Modest

Major

Potential Improvement
Infrastructure
Natural beauty and features History and famous people Shopping places Cultural attraction Recreation and entertainment Sports arenas Festivals and occasions Buildings, monuments, and sculptures Museums Other attractions
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None

Modest

Major

Potential Improvement
Infrastructure
Friendly and helpful Skilled Citizenship

None

Modest

Major

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How can a places image be measured?

1. Selecting an Audience
1.1 1.2 1.3 1.4 1.5 1.6 1.7 Residents : Visitors : Management : Investors : Entrepreneurs : Foreign investors : Location specialists :

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How can a places image be measured?

2. Measuring the Audiences Perception
2.1 Familiarity - favorability measurement 2.2 Semantic Differential

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Guidelines for designing a places image

1. 2. 3. 4. 5. It must be valid. It must be believable It must be simple. It must have appeal. It must be distinctive.

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What tools are available for communication an image?

1. Slogans 2. Themes 3. Positions 4. 5. 6. 7. 8. Visuals Stories and Legends Cultures People Events
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Segmentation variables for the tourist market

Attractions sought
Sea, sun, ski

Market areas/ Customer locations

Characteristics
Age Income Family Single Professionals Lifestyles Ethnic group

Benefits
Price Convenience Quality Food Service Facilities Transportation

Non Asian European Natural beauty/wilderness Domestic Recreation Regional Gaming Local Culture/ history/ people Seasonal / Year around Events/ sports Language Theme parks Facilities/ hotels/restaurants Unique products wine,beer, perfume clothes, watches

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Six generic strategies to improve their competitive positions :

1. 2. 3. 4. 5. 6. Attracting tourist and business visitors. Attracting business from elsewhere. Retaining and expanding existing business. Promoting small business and fostering new business start - ups. Expanding exports and outside investments. Expanding the population or changing the mix of residents.

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Locational characteristics : Old and new

Characteristics
Labor Tax climate Incentive

Old
Low cost, unskilled Low taxes, low service Least-cost production, cheap land and labor

New
Quality, highly skilled Modest taxes, high service Value-added adaptable labor force, professionals

Amenities
Schools Higher education

Housing and transportation

Availability Not key

Culture, recreation, museums, shopping, airport

Quality schools Quality schools and research facilities

Regulation
Energy Communication Business

Minimum
Cost / availability Assumed Aggressive chamber of commerce

Compatible quality of life And business flexibility

Dependability/ reliability Technology access Partnerships

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Current trends in the Asian distribution sector:

A reduction in the number of larger operators as the sector consolidates Closer vertical and horizontal links between manufacturers, wholesalers and retailers A slower increase in the number of hypermarkets A rise in franchising increased distance selling Networks of multifunction distribution centers Increased use of automation and information technology, especially e-marketplaces that bring buyers and sellers together electronically. New concept stores being introduced Moves towards internationalization and cross-border networks Growth in the Asianized dimension.
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Way to assist companies in promoting exports

1. 2. 3. 4. 5. 6. 7. 8. 9. 10. Informer Broker Expediter Trainer and counselor Financier Host Targetes Promoter Facility developer New - technology Developer
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Exploting the place - of - origin image

1. The impact of place-of-origin varies with the type of product

2.

In highly industrial countries, consumers tend to rate their domestic goods high, whereas consumers in the developing countries tend to have a bias against product produced in their own or other developing countries.

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Exploting the place - of - origin image

3. Certain countries and places have established a generally good reputation regarding certain goods: Tokyo for fashion, Dubai for gold, India for textiles, and Japan for electronics/cars. This reputation stems not only from a products characteristics but also from accessibility, history and service reliability.

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5.

The more favorable a places image, the more prominently its name should be displayed in promoting the brand. Attitudes towards place of origin can change over time.
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Why resident attraction is important in place marketing

1. A world Problem : competing for Talent and Identity 2. Targeting Skilled Professionals 3. Targeting Lifestyle Groups

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Asian places face four major challenges :

1. Challenge one : places are increasingly at risk as a result of the accelerating pace of change in the global economic, political and technological environment.
Challenge two : places are increasingly at risk as a result of the inevitable process of urban evolution and decay. Challenge three : places are facing a growing number of competitors in their efforts to attract scarce resources. Challenge Four : Places have to rely increasingly on their own local resources to face growing competition.
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2.

3.

4.

How must places respond to these challenges?

1. 2. 3. 4. 5. 6. Response One : Places need to establish a strategic vision to face there challenges. Response Two : Places need to establish a planning process to face these challenges. Response Three : Places must adopt a genuine market perspective toward their products and customers. Response Four : Places have to build quality into their programs and services to compete with other places. Response Five : Places need skill to communicate and promote their competitive advantages effectively. Response six : Places need to diversify their economic base and develop mechanisms for adapting flexibly to changing conditions.

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How must places respond to these challenges?

7. 8. 9. Response Seven : Places must develop and nurture entrepreneurial characteristics Response Eight : Places must rely more on the private sector to accomplish their tasks. Response Nine : Each place needs to develop its unique change processes that arise from differences in its culture, politics and leadership processes.

10.

Response Ten : Places must develop organizational and procedural mechanisms to sustain place development and maintain momentum once it has begun.

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