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Marketing Asian Places
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What Is A Place?A place is a nation-state, a geopolitical physical space.
A place is a region or state.
A place is a cultural, historical or ethnic bounded location.
A place is a central city and its surrounding populations.
A place is a market with various definable attributes.
A place is an industrys home base and a clustering of like industriesand their suppliers.
A place is a psychological attribute of relations between people
internally and their external views of those outside.
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Growthdynamics
A place is attractive1
. New industry starts up
2. Job opportunities are strong3. Quality of life is attractive
Inward migrationof new residents
and visitors
Inward migrationof new business
and investment
Real-estate costs rise,infrastructure is strained,
social needs rise
Community raises taxes
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Dynamics of declineA place becomes unattractive1
. Major company or industry is hurt or exits
2. Economic recession affects business3. Unemployment climbs4. Infrastructure breaks down5. City budget deficit increases
Outwardmigrationof people
Tourism, conventionbusiness declines
Outwardmigration
of business
Banks tighten creditBankruptcies increase
Crime increasesSocial problems rise
City image deteriorates
Community raises taxes
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External Forces Rapid technological change
Global competition
Political power shifts.
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Hard and soft attraction factorsHard 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 Marketing1. Famous people
2. Enthusiastic local leaders
3. Competent people
4. People with an entrepreneurial profile
5. People who have moved to the place
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Place marketing1. 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 marketing1. 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 andconventions centers)
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Place marketing1. 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 marketing3. 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 specificlink to a region or city
International enterprises with a place-boundlink
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1. The character of a place
A place needs a sound desigh and development plan
that will enhance its attractiveness and more fullydevelop its aesthetic qualities and values.
2. The fixed environment of a place
A place needs to develop and maintain a basic
infrastructure that is compatible with the naturalenvironment.
Various investments a place canmake to improve livability,investibility and visitability.
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3. The service provision of a place
A place must provide basic services of sufficient
quality to meet business and public needs.4. The entertainment and recreation aspects of a place
A place needs a range of attractions for citizens,residents and visitors.
Various investments a place canmake to improve livability,investibility and visitability.
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1. Infrastructure problems.
1.1 Higher unemployment rates a prolongedrecession pushed politicians to improvecompetitiveness. Infrastructure projects
became one answer in the battle toimprove Asian competitiveness.
Infrastructure improvement
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1. Infrastructure problems.
1.2 Traffic congestion reached unacceptablelevels throughout Asian cities.
1.3 Increased competition from within and
outside the region for Foreign DirectInvestment (FDI) and new job creationforced a change in attitude in governmentsand enterprises. In the past, FDI wasaccepted; now, it is recruited, evenseduced.
Infrastructure improvement
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1. A more critical environmental debateacts as a catalyst for a number ofinfrastructure projects.
2. Needs Assessment
3. Infrastructure Management
4. Inter - governmental Planing
5. The Environmental Imperative
6. Synchronizing Place Development Needswith Infrastructure Development
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Basic services: protection of
people and property, socialsecurity, 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. Natural beauty and features2. History and famous people3. Shopping places
4. Cultural attractions5. Recreation and entertainment6. Sports arenas7. Festivals and occasions
8. Buildings, monuments and sculptures9. Museums10. Other attractions.
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Current statusAudit instrument for infrastructure,attractions and people
Infrastructure
Housing
Roads and transportation
Water supply
Power supply
Environmental quality
Basic social security
Education
Lodging and restaurant facilities
Convention facilities
Visitor services
Poor
Fair
Excellent
Good
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Current statusAudit instrument for infrastructure,attractions and people
Attractions
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
Poor
Fair
Excellent
Good
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Current statusAudit instrument for infrastructure,attractions and people
PrepleFriendly and helpful
Skilled
Citizenship
Poor Fair ExcellentGood
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InfrastructureHousing
Roads and transportation
Water supply
Power supply
Environmental quality
Basic social security
Education
Lodging and restaurant facilities
Convention facilities
Visitor services
None Modest Major
Potential Improvement
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InfrastructureNatural 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
None Modest Major
Potential Improvement
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InfrastructureFriendly and helpful
Skilled
Citizenship
None Modest Major
Potential Improvement
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How can a places imagebe measured?
1. Selecting an Audience1.1 Residents :
1.2 Visitors :
1.3 Management :
1.4 Investors :
1.5 Entrepreneurs :
1.6 Foreign investors :1.7 Location specialists :
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How can a places imagebe measured?
2. Measuring the Audiences Perception
2.1 Familiarity - favorability measurement
2.2 Semantic Differential
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Guidelines for designing aplaces image
1. It must be valid.
2. It must be believable
3. It must be simple.
4. It must have appeal.
5. It must be distinctive.
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What tools are available forcommunication an image?
1. Slogans
2. Themes
3. Positions
4. Visuals
5. Stories and Legends
6. Cultures7. People
8. Events
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Segmentation variablesfor the tourist market
Attractionssought
Market areas/Customer locations Characteristics Benefits
Sea, sun, ski
Naturalbeauty/wilderness
Recreation Gaming
Culture/ history/ people
Events/ sports
Theme parks
Facilities/hotels/restaurants
Unique products
wine,beer, perfumeclothes, watches
Non Asian
European
Domestic
Regional
Local
Seasonal / Year around
Language
Age
Income
Family
Single
Professionals
Lifestyles
Ethnic group
Price Convenience Quality Food ServiceFacilities Transportation
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Six generic strategies to improvetheir competitive positions :
1. Attracting tourist and business visitors.
2. Attracting business from elsewhere.
3. Retaining and expanding existing business.
4. Promoting small business and fostering newbusiness start - ups.
5. Expanding exports and outside investments.
6. Expanding the population or changing the mix ofresidents.
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Locational characteristics : Old and newCharacteristics Old New
Labor
Low cost, unskilled
Quality, highly skilled
Tax climate Low taxes, low service Modest taxes, high serviceIncentive Least-cost production, cheap land
and labor Value-added adaptable labor force,professionals Amenities Housing and transportation Culture, recreation, museums,
shopping, airportSchools Availability Quality schoolsHigher education Not key Quality schools and research facilitiesRegulation Minimum Compatible quality of life
And business flexibilityEnergy Cost / availability Dependability/ reliabilityCommunication Assumed Technology accessBusiness Aggressive chamber of commerce Partnerships
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Current trends in the Asiandistribution sector:
A reduction in the number of larger operators as the sectorconsolidates
Closer vertical and horizontal links betweenmanufacturers, 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 sellerstogether 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 inpromoting exports
1. Informer2. Broker3. Expediter
4. Trainer and counselor5. Financier6. Host
7. Targetes
8. Promoter9. Facility developer10. New - technology Developer
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Explotingthe place - of - origin image
1. The impact of place-of-origin varies with the type ofproduct
2. In highly industrial countries, consumers tend to
rate their domestic goods high, whereas consumersin the developing countries tend to have a biasagainst product produced in their own or otherdeveloping countries.
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Explotingthe place - of - origin image
3. Certain countries and places have established agenerally good reputation regarding certain goods:Tokyo for fashion, Dubai for gold, India for textiles,
and Japan for electronics/cars. This reputation stemsnot only from a products characteristics but also fromaccessibility, history and service reliability.
4. The more favorable a places image, the more
prominently its name should be displayed inpromoting the brand.
5. Attitudes towards place of origin can change over time.
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Why resident attraction isimportant in place marketing
1. A world Problem : competing forTalent and Identity
2. Targeting Skilled Professionals3. Targeting Lifestyle Groups
f f
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Asian places face fourmajor challenges :
1. Challenge one : places are increasingly at risk as aresult of the accelerating pace of change in the globaleconomic, political and technological environment.
2. Challenge two : places are increasingly at risk as aresult of the inevitable process of urban evolution anddecay.
3. Challenge three : places are facing a growing numberof competitors in their efforts to attract scarce
resources.
4. Challenge Four : Places have to rely increasingly ontheir own local resources to face growing competition.
H t l d t
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How must places respond tothese challenges?
1. Response One : Places need to establish a strategic vision to facethere challenges.
2. Response Two : Places need to establish a planning process to facethese challenges.
3. Response Three : Places must adopt a genuine market perspective
toward their products and customers.
4. Response Four : Places have to build quality into their programsand services to compete with other places.
5. Response Five : Places need skill to communicate and promote theircompetitive advantages effectively.
6. Response six : Places need to diversify their economic base anddevelop mechanisms for adapting flexibly to changing conditions.
How must places respond to
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How must places respond tothese challenges?
7. Response Seven : Places must develop and nurture entrepreneurialcharacteristics
8. Response Eight : Places must rely more on the private sector toaccomplish their tasks.
9. Response Nine : Each place needs to develop its unique change
processes that arise from differences in its culture, politics andleadership processes.
10. Response Ten : Places must develop organizational and proceduralmechanisms to sustain place development and maintain momentumonce it has begun.
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