MON, SEPTEMBER 28, 2020
City Development through Place Marketing
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City Development through Place Marketing
  • weekly, walkintoKorea
  • 승인 2020.05.28 09:41
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Tae Myung Kim, Ph.D.
President of Daejeon Study Association

 

It is said that God created the world and man invented the city. Really the city is a masterpiece among inventions that man has invented so far. The city has provided man with necessities, so that we can enjoy our lives by satisfying our needs. Only a city can allow us to lead our lives so conveniently. In this sense the city provides us with the best place to live in.

Although the city is a convenient place, it is not always convenient to live. The city is dependent upon the stages of city growth. In general the city goes through four stages of growth such as birth, growth, decline, and death, tracing "the inverted U curve". In each stage of growth the city has specific characteristics, At the stages of birth and growth, the economy is actively expanding, so that the quality of people's lives is getting better. Coming to the stages of decline and death, the city is falling into trouble. The city is suffering from such economic difficulties as loss of jobs and population, high unemployment, falling income and investment, trade imbalances, rising debt, high inflation, and unstable currencies. This is the stage where the city’s main problem arises. The problem is how we can solve these economic difficulties.

To solve this kind of city depression problem the strategy of place marketing, which is to sell a city as if it is a commodity, is now actively utilized especially in this era of globalization. Cities as target places for economic activities increasingly compete with each other to attract investment, businesses, and tourists. The marketing of places has become one of the leading economic activities for city development.

Organizing a program to develop and to market a place requires a thorough grasp of target markets. For which we have to answer two questions: Who and what are the main targets of place marketers? and How do place marketers market their place?

The answer to the first question includes four main target markets such as visitors, residents and workers, business and industry, and export markets. The visitor market mainly consists of two groups, i.e., business and non-business visitors. Business visitors come to a place to attend a business meeting or convention, to look into a site, or to buy or sell something. Non-business visitors include tourists who want to see the place and travelers who are visiting family and friends. Every visitor to a place spends money on food and lodging, local products, and other goods and services. This spending has a multiplier effect on local income, employment, and on tax revenue.

In case of residents and workers who are the second target market a place wants to increase its number of unskilled workers. Some advanced countries, especially Germany and France, once actively recruited foreign low-skilled laborers from Turkey, Algeria, and Morocco. Places with aging populations work hard to attract and retain young people in the community. When cities intend to attract specific residents and workers, they must develop appropriate incentives. Young people place emphasis on schools and public safety as major factors while older families tend to pay attention to cultural and recreational facilities.

The third important target market is focused on business and industry. Places typically seek to attract new businesses and industries to provide jobs for their citizens and revenues for their coffers. Today they are interested in attracting "clean industries" such as banking, tax services, law-firms, consulting, and high-tech firms. What is important to attract business and industry is that a place be well-equipped with business-friendly locational factors such as a friendly business climate, labor force, infrastructure, convenient transportation, schools, hospitals, safety facilities, and so on.

Finally the fourth main target market is the exports market. That is, the ability of a city to produce goods and services that other cities, people, and business firms are willing to purchase. Exports are the lifeblood of city-states like Hong Kong and Singapore as well as industrial countries like Korea.

Coming to the second question: How do place marketers market their places? They generally utilize four broad strategies such as image marketing, attractions marketing, infrastructure marketing, and people marketing.

Under an image-marketing strategy, the place hires an advertising agency or public relations firm to identify, develop, and disseminate a strong positive image for the place. This is often the least expensive of the three strategies since the place is not investing money in adding attractions or improving its infrastructure, but is only communicating something about its present features to others. A place image may be communicated in many ways through several channels if it is to succeed and take root. Images are not easy to develop or change. They require research into how residents and outsiders currently see the place. Improving the image is not enough to ensure a place's prosperity. The place needs special features to satisfy the residents and to attract outsiders.

Thus today many cities are searching for various new attractions to add such as building a new sports stadium, building a giant convention center, constructing a waterfront festival marketplace, creating an entertainment district, installing a dramatic sculpture, and building major shopping centers. Clearly neither image nor attractions can provide the whole answer to a place’s development. They cannot compensate or cover up for a place's deficiencies. The real fundamentals have to do with infrastructure such as good transportation, sufficient low-cost energy, good quality education, safe streets to walk, safe water to drink, recreational space, and good hotels and restaurants.

The fourth marketing strategy is for a place to market people. In selecting target markets, places must consider the perceived character of their people. The image of their people affects the interests of potential target markets. Places need to encourage their citizens to be more friendly and considerate with visitors and new residents. Places also need to raise the level of their citizens' skills so that they can meet the needs of the target markets.

Managing a city into a successful working entity is infinitely more difficult than managing a single business or government agency. Place marketers are faced with many challenges. The challenge is one not only of money but also of people, culture, history, image, and pride. The selling element of the strategic place marketing process is often the most crucial and yet the least understood part of a place marketing plan. The job of selling a place to target visitors, industries, or export consumers is more dynamic, political, and risky than ever. The challenge for place marketers is to understand better the needs, preferences, perceptions, and resources of target buyers before developing their strategic market plan. Only when place marketing takes a demand-oriented approach, it will lead to successful place marketing.

It is said that God created the world and man invented the city. Really the city is a masterpiece among inventions that man has invented so far. The city has provided man with necessities, so that we can enjoy our lives by satisfying our needs. Only a city can allow us to lead our lives so conveniently. In this sense the city provides us with the best place to live in.

Although the city is a convenient place, it is not always convenient to live. The city is dependent upon the stages of city growth. In general the city goes through four stages of growth such as birth, growth, decline, and death, tracing "the inverted U curve". In each stage of growth the city has specific characteristics, At the stages of birth and growth, the economy is actively expanding, so that the quality of people's lives is getting better. Coming to the stages of decline and death, the city is falling into trouble. The city is suffering from such economic difficulties as loss of jobs and population, high unemployment, falling income and investment, trade imbalances, rising debt, high inflation, and unstable currencies. This is the stage where the city’s main problem arises. The problem is how we can solve these economic difficulties.

To solve this kind of city depression problem the strategy of place marketing, which is to sell a city as if it is a commodity, is now actively utilized especially in this era of globalization. Cities as target places for economic activities increasingly compete with each other to attract investment, businesses, and tourists. The marketing of places has become one of the leading economic activities for city development.

Organizing a program to develop and to market a place requires a thorough grasp of target markets. For which we have to answer two questions: Who and what are the main targets of place marketers? and How do place marketers market their place?

The answer to the first question includes four main target markets such as visitors, residents and workers, business and industry, and export markets. The visitor market mainly consists of two groups, i.e., business and non-business visitors. Business visitors come to a place to attend a business meeting or convention, to look into a site, or to buy or sell something. Non-business visitors include tourists who want to see the place and travelers who are visiting family and friends. Every visitor to a place spends money on food and lodging, local products, and other goods and services. This spending has a multiplier effect on local income, employment, and on tax revenue.

In case of residents and workers who are the second target market a place wants to increase its number of unskilled workers. Some advanced countries, especially Germany and France, once actively recruited foreign low-skilled laborers from Turkey, Algeria, and Morocco. Places with aging populations work hard to attract and retain young people in the community. When cities intend to attract specific residents and workers, they must develop appropriate incentives. Young people place emphasis on schools and public safety as major factors while older families tend to pay attention to cultural and recreational facilities.

The third important target market is focused on business and industry. Places typically seek to attract new businesses and industries to provide jobs for their citizens and revenues for their coffers. Today they are interested in attracting "clean industries" such as banking, tax services, law-firms, consulting, and high-tech firms. What is important to attract business and industry is that a place be well-equipped with business-friendly locational factors such as a friendly business climate, labor force, infrastructure, convenient transportation, schools, hospitals, safety facilities, and so on.

Finally the fourth main target market is the exports market. That is, the ability of a city to produce goods and services that other cities, people, and business firms are willing to purchase. Exports are the lifeblood of city-states like Hong Kong and Singapore as well as industrial countries like Korea.

Coming to the second question: How do place marketers market their places? They generally utilize four broad strategies such as image marketing, attractions marketing, infrastructure marketing, and people marketing.

Under an image-marketing strategy, the place hires an advertising agency or public relations firm to identify, develop, and disseminate a strong positive image for the place. This is often the least expensive of the three strategies since the place is not investing money in adding attractions or improving its infrastructure, but is only communicating something about its present features to others. A place image may be communicated in many ways through several channels if it is to succeed and take root. Images are not easy to develop or change. They require research into how residents and outsiders currently see the place. Improving the image is not enough to ensure a place's prosperity. The place needs special features to satisfy the residents and to attract outsiders.

Thus today many cities are searching for various new attractions to add such as building a new sports stadium, building a giant convention center, constructing a waterfront festival marketplace, creating an entertainment district, installing a dramatic sculpture, and building major shopping centers. Clearly neither image nor attractions can provide the whole answer to a place’s development. They cannot compensate or cover up for a place's deficiencies. The real fundamentals have to do with infrastructure such as good transportation, sufficient low-cost energy, good quality education, safe streets to walk, safe water to drink, recreational space, and good hotels and restaurants.

The fourth marketing strategy is for a place to market people. In selecting target markets, places must consider the perceived character of their people. The image of their people affects the interests of potential target markets. Places need to encourage their citizens to be more friendly and considerate with visitors and new residents. Places also need to raise the level of their citizens' skills so that they can meet the needs of the target markets.

Managing a city into a successful working entity is infinitely more difficult than managing a single business or government agency. Place marketers are faced with many challenges. The challenge is one not only of money but also of people, culture, history, image, and pride. The selling element of the strategic place marketing process is often the most crucial and yet the least understood part of a place marketing plan. The job of selling a place to target visitors, industries, or export consumers is more dynamic, political, and risky than ever. The challenge for place marketers is to understand better the needs, preferences, perceptions, and resources of target buyers before developing their strategic market plan. Only when place marketing takes a demand-oriented approach, it will lead to successful place marketing.