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MARKETING

PLACES
Attracting Investment,
Industry, and
Tourism
Philip Kotler
What is a Place?
A geopolitical physical space
A cultural, historical or ethnic bounded
location
A central city and its surrounding population
A market with various definable attributes
An industrys home base
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 Inward migration of new


residents and visitors business and investment

Real estate costs rise,


infrastructure is strained,
social needs rise

Community raises taxes


Dynamics of Decline
A place become unattractive
1. Major company/industry is hurt/exits
2. Economic recession affect business
3. Unemployment climb
4. Infrastructure breakdown
5. City budget deficit increases

Outward migration Tourism, convention Outward migration


of people business decline of business

Banks tighten credit, bancrupties increase


crime increase, social problem rise, city mage
deteriorates

Community raises
taxes
To solve the problem:
Place Marketing
Develop strong & attractive positioning & image for
the community
Set attractive incentives for buyers & users of goods
& services
Deliver a places products & services in an efficient,
accessible way
Promote a places attractiveness and benefits
Levels of Place Marketing
Target markets

Tourists Business
& conventioners Marketing Factors & industries
Infrastructure

Planning group

Citizens

Place
Attraction Marketing Plan People

Business Local
Community Government

New Image & quality Exporters


residents of life
& employees
4 Main Target Markets
1. Visitors
Business (convention, survey, buy & sell)
Non-business (tourist & travelers)
2. Resident & employees
Professionals
Skilled employees
Wealthy individuals
Investors
Entrepreneurs
Unskilled workers
Senior citizens & pensioners
3. Business & industry
Heavy industry
Service companies, high technology
4. Export markets
International markets
4 Strategies

1. Image marketing
Clever slogan that is believable &
demonstratable
Communicated in many channels
Bali Island of Gods, Malaysia The Truly
Asia, Singapore Lion City
4 Strategies
2. Attraction marketing
1. natural beauty
2. history & famous people
3. shopping places
4. cultural attractions
5. recreation & entertaintment
6. sports arena
7. festival & occasions
8. building monuments
9. museums
4 Strategies
4. People marketing
The success/failure of independent republic depended on the
character of its citizens, the civic virtues they possess
(Machiavelli)
1. Friendly & helpful
2. Skilled
3. Citizenship
Major Actors in Place Marketing
1. Local actors
Public sector actors
Mayor/city manager, business development
department, urban planning department, tourist
bureau, convention bureau, public information
bureau
Private sector actors
Individual citizens, leading enterprise, finncial
institutions, telecommunication, chamber of
commerce, hospitality & retail industries, travel
agents, transport companies, media, etc
Major Actors in Place Marketing
2. Regional Actors
Regional economic development agency,
province government, regional tourist board
3. National actors
Political heads, investment board, national
tourist board
4. International Actors
Embassies & consulates, economic
development agencies, international enterprises
Strategic Market Planning
Process
1. Place audit
2. Vision & goals
3. Strategy formulation
4. Action plan
5. Implementation & control
1. Place Audit
Establish a places attraction factors
Identify main competitors
Identify major trends & developments
SWOT analysis
1. Hard factors:
economic stability, productivity, costs, property
concept, support services & network, communication
infrastructure, strategic location, incentive scheme
2. Soft factors:
quality of life, workforce competancies, culture,
management, flexibility, entrepreneurship
2. Vision & Goals
Which unique combinations of attraction
factors should the community target?
Which are the target markets of the
community?
Which are the long-term & short-term goal?
Which are the operative prequisites for the
vision?
3. Strategy formulation
4 Generic strategies
1. Design
Sound design & development that will enhance
attractiveness
2. Infrastructure
Develop & maintain a basic infrastructure that is
compatible with the natural environment
3. Services
Develop basic services of sufficient quality to meeet
business & public needs
4. Attractions
Range of entertaintment & recreation for citizens,
residents & visitors.
4. Action Plan
Who is responsible?
How is the action to be implemented?
How much will the action cost?
What is the expected completion date?
5. Implementation & Control
Places annual report
Facts & figures about number of
citizens, economic result, jobs, income,
taxes, etc.
Communitys annual report should
receive broad public distribution (local
newspaper, magazine, internet)
Readings
Kotler, Philip, Michael Alan Hamlin, Irving Rein, and Donald H.
Haider. Marketing Asian places: attracting investment, industry,
and tourism to cities, states, and nations. John Wiley & Sons,
2002.

Roy Langer, Place images and place marketing.


http://openarchive.cbs.dk/bitstream/handle/10398/7721/langer_
place.pdf?sequence=1