Positioning the Nation State

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Positioning the Nation State Opinion Piece Positioning the nation-state Received (in revised form): 22nd December, 2004 John Quelch is a marketing professor at the Harvard Business School and former Dean of the London Business School. He is a non-executive director of WPP Group plc and Chairman of the Massachusetts Port Authority. His latest books are ‘The New Global Brands’ (2005) and ‘The Global Market’ (2004). Katherine Jocz is a researcher at the Harvard Business School. Previously she was Senior Thought Leader at Marketspace, a Monitor Group company, and Vice President of research operations at the Marketing Science Institute. Abstract Having a clear, differentiated positioning gives a country an advantage in attracting investment, business and tourism, and in building markets for its exports. Countries like Greece, Spain and Chile are successfully repositioning themselves using coordinated marketing and highly visible events like the Olympics. Positioning and national image also matter greatly in public diplomacy and cannot be taken for granted. Recommendations are given for positioning a nation-state based on a frank appraisal of perceptions and realities. Keywords: Country image, positioning strategy, public diplomacy, image management POSITIONING THE NATION-STATE: and teams and in television advertising INVESTMENTS AND BENEFITS went away satisfied. Also, the Karamanlis Over 10,000 athletes from nearly 200 government possibly earned enough countries came to the 2004 Olympic political capital to push through overdue Games in Athens to compete to the best economic reforms that will cut of their abilities. At the end of the bureaucracy and encourage Games, 929 individual athletes and entrepreneurship. national teams left with medals and The costs of hosting the Games enormous pride in their approached $10bn, or about 5–6 per cent accomplishments. If medals were also of GDP — an enormous sum for a small awarded to the host, Greece would country of 11 million people. Many in surely have won one. Widely praised for Greece questioned the wisdom of playing carrying off a smoothly run Olympics, host on this scale (Vecsey, 2004). Yet the the nation defied the expectations of the prevailing sentiment among Greeks and John Quelch sceptics — internal and external — who outside observers is that the investment Harvard Business School, Morgan Hall 185, said it could not manage such a large, was justified. First, in successfully bidding Soldiers Field, complex and expensive undertaking (The to host the Olympics, Greece committed Boston MA 02163, USA. Economist, 2004a, 2004b). The itself to an aggressive improvement in Tel: 617 495 6325 Fax: 617 496 5853 multinational corporations that had infrastructure by a fixed date. The e-mail: [email protected] invested millions in sponsoring athletes government constructed a sorely needed ᭧ Henry Stewart Publications 1744–070X (2005) Vol. 1, 3, 229–237 Place Branding 229 Quelch and Jocz new transportation system around Relatively obscure countries which Athens, including a new airport, roads, ‘punch above their weight’ in the trams and an expanded subway, that competition — that is, whose athletic could have taken 20 years to build performance exceeds expectations based otherwise (Cambanis, 2004). Private on their size, wealth and previous sports sector investment updated the cellphone record — likewise boost their public network. Container shipping through the image around the world. China, host of port of Piraeus increased due to facility the 2008 summer Games, has already improvements made for the Olympics announced building projects exceeding (Pangalos, 2004). Such improvements in $30bn, and is busy meeting with infrastructure, along with planned legal Olympic corporate sponsors (Kahn et al., and administrative reforms, will spur 2004). No doubt China will be working business development. Additionally, hard to surpass the USA in gold medals Greece plans to stimulate the economy and total medals won when it holds the by redeploying the sporting venues and Games on its own turf. housing built for the Olympics, under a The intense competition to host the mix of public and private ownership. Olympics and other international sporting Secondly, in hosting the Olympics, events increasingly requires nation-states Greece drew the world’s attention to to understand and practise good itself as an attractive tourist destination. marketing. But marketing for a Television networks broadcast spectacular nation-state covers much more than images of its scenery and classical competing to be selected as the one-time antiquities to 4 billion viewers venue for a cultural or sports event such internationally. Favourable press coverage as the Olympic Games, however depicted the nation and its people as significant that is. For Greece the cosmopolitan, safe, friendly and capable. challenge is to build on the foundation Thirdly, and more elusively, by rising of its updated infrastructure and the to the occasion, Greece captured the favourable awareness created by the world’sconfidence and respect. For Olympics to promote itself as a unique instance, by installing a sophisticated place for tourism and business. For security system, at a cost of $1.2bn, and nations in general, successful marketing cooperating with NATO partners to involves a long-term commitment to patrol airspace and seaways, the nation consistent and comprehensive execution joined ranks in the fight against of a positioning strategy that sets forth terrorism, acquired skills that would serve the distinctive strengths and benefits the it later on (Agence France Presse, 2004) nation offers to the people and businesses and countered the long-standing it wishes to attract. reputation of the old Athens international airport for lax security. Further, national pride soared as Greek athletes won six THE MARKETING CHALLENGES gold medals — twomorethaninthe While managing a national image is previous Games — and the country similar in principle to managing a ranked 17th among all countries in terms corporate brand, the marketing challenges of total medals won. facing nation-states and corporations do Greece is not alone in benefiting from differ in several respects. First, the chief the Olympics. Spain built on the success executive of a company is more likely of the Barcelona Games to reinforce its than a political leader to view ongoing repositioning programme. him/herself as the chief marketing 230 Place Branding Vol. 1, 3, 229–237 ᭧ Henry Stewart Publications 1744–070X (2005) Positioning the nation-state officer. The CEO is ultimately whole, especially when the nation, as in responsible for developing and retaining thecaseoftheUK,isidentified overseas the customer relationships upon which with a single world-class city like the cashflow of the corporation depends. London. In this case it becomes difficult The CEO sets a marketing strategy that for the central government to rally targets the likeliest customer prospects resources behind a single, integrated and ignores the rest. In contrast, the national campaign. The CEO of a political leader of a nation cannot pursue company is better able to develop a a clear-cut strategy so easily. A joined-up marketing programme; he or democratically elected leader cannot pick she sets the compensation of other and choose which citizens to serve. He managers in the company and that or she has to negotiate policies with compensation, including the value of legislatures and key constituencies and bonuses and stock options, depends on must make compromises among all of them striving to enhance competing interests in order to be shareholder value. re-elected. Fourthly, in the age of the internet, Secondly, when undertaking global 24-hour-a-day news and easy marketing campaigns to position or international travel for the masses, it is reposition a national or corporate brand perhaps harder than ever for a image, it is easier for the corporate CEO government to control the information to enlist the support of employees than flows that help shape its national image. for the national leader to enlist the Not only is information harder to support of the public, civil servants and control, but national images have deep other stakeholder groups. The CEO pays roots. As John Ruskin, the 19th century employees to follow the strategy; if they British writer stated: ‘Great nations write cannot in conscience do so, they are their autobiographies in three manuscripts invited to leave. But the national — the book of their deeds, the book of political leader in a democracy has only their words, and the book of their arts’ the power of persuasion to rely on in (Ruskin, 1885). trying to motivate a broad coalition of To illustrate these challenges for citizenry and stakeholder groups to nation-states, consider two examples. follow the marketing programme. If the Spain was reborn as a vibrant emerging vast majority of citizens do not buy into democracy in the 1980s, a transformation or are cynical about the marketing marked by its entry into the European proposition, it simply will not work. Union in 1986. Business and political Visitors to the country will discover that leaders jointly worked to restore national the reality does not reflect the promise; pride and economic performance, in part such a disconnection can only lead to by leveraging Joan Miro’ssunimageasa disappointment, low repeat purchase rates visual symbol of Spain’srebirth.The and negative word of mouth. 1992 Barcelona Olympics successfully A third difference is that power is showcased the new Spain to the world often more diffuse in a nation than a inthesameyearthattheEuropean corporation. Local governors and mayors, Union implemented the single-market along with their bureaucracies, will not programme to reduce non-tariff barriers necessarily pull in the same direction as and boost intra-European trade. Spain the national leadership. For example, they backed up its new image with public will often want to promote their regions sector reforms and improved and cities more than the nation as a infrastructure; Spanish GDP accelerated ᭧ Henry Stewart Publications 1744–070X (2005) Vol. 1, 3, 229–237 Place Branding 231 Quelch and Jocz throughout the 1990s (Gilmore, 2002; 2002).
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