Editorial Some important distinctions in place branding

‘Brand’ is a difficult word. The problem of publishing genius, and has probably of defining it has spawned thousands of blackened the word ‘brand’ for papers and articles in the marketing field, generations to come. This is a pity, and it is still widely misunderstood. because it risks blinding people to the real ‘Brand’ is one of those jargon words economic and social values which the like ‘trauma’ and ‘phobia’ which serve discipline of branding can bring if for years, performing a humble responsibly and imaginatively applied. descriptive role within their own So it is particularly important that, specialist sector. Then, for some reason, before entering into conversations about the specialist sector suddenly becomes the branding of places, there is clarity the focus of public attention, and there is about which particular interpretation of a mad rush for the jargon. Words get the word is intended. Far too many appropriated, first by journalists, then by discussions about place branding go awry the population at large and finally by because of a failure to establish a politicians, and used for all the wrong common understanding of the word purposes in all the wrong places. The before starting, and this sets up a words quickly lose their edge and are cognitive dissonance between the eventually discarded because they do not participants which can go unobserved for seem to work properly any more. a very long time before the argument We may now be seeing this happen to breaks down in confusion or acrimony. ‘brand’. Now that Madonna and Pavarotti are brands and Greenpeace is a brand, US foreign policy, the European THREE DEFINITIONS OF BRANDING Union and NATO are brands, the word The words ‘brand’ and ‘branding’ are is perilously close to becoming a used, broadly speaking, in three ways: a synonym for ‘thing’. Thanks to the wide popular way, a simple way and an advanced success of a slew of anti-global, way. (I will not attempt to consider here anti-corporate, anti-this and anti-that what the differences are between ‘brand’ books — Naomi Klein’s ‘No Logo’, and ‘branding’, as that question provides Alissa Quart’s ‘Branded’, Eric Schlosser’s material enough for a paper on its own.) ‘Fast Food Nation’, George Monbiot’s The popular understanding of branding ‘Captive State’ and many more besides is the least precise: it is used as a vague — ‘brand’ is quickly becoming conflation of several marketing synonymous with ‘bad thing’. disciplines, and often interchangeably The linking of this ever-popular theme with advertising, marketing, PR and sales to the wave of vague but keenly felt promotion. It is believed to be a support for the anti-global, anti-corporate marketing buzzword which refers in a and anti-empire movements was a stroke general way to all modern selling

116 Place Branding Vol. 1, 2, 116–121 ᭧ Henry Stewart Publications 1744–070X (2005) Editorial activities, and often has a connotation of recognises that companies are unlikely to something aggressive and malevolent, achieve a sustainable advantage in the which descends directly from an older marketplace unless both employers and use of the term (eg ‘branded as a employees — and ideally other traitor’), and ultimately to the original stakeholders too — sharesomebeliefs meaning of the word: a hot iron applied about the product or service and engage to livestock, permanently identifying the in a degree of consistent behaviour. animal’sownership. This advanced conception of branding The simple understanding of branding in a company is a total approach to is used by marketing services firms and managing a business, with the brand their clients and refers to a designed providing the key to company strategy visual identity — name, logo, slogan, and corporate culture. According to this corporate livery. It is the way in which definition, the brand becomes a central the identity of the company, product or organising function of the company, and service is dressed, and thus recognised. In may prove to be the company’smost a subtle way, this dress is also understood valuable asset. to be a channel of communication; the The popular and simple ways in style and content of the design implies which the word is understood are based something about the nature and on a belief that branding is simply a personality of the product, and technique or set of techniques, like consequently its desired target audience. ‘advertising’ or ‘root canal surgery’,and The advanced definition of branding consequently can be defined both includes the simple definition but goes succinctly and comprehensively. The on to cover a wide area of corporate advanced definition, on the other hand, strategy, consumer and stakeholder considers branding to be a field of theory motivation and behaviour, internal and and practice, like ‘business’ or ‘medicine’, external communications, ethics and which can of course be briefly described purpose. Companies which espouse this but not exhaustively defined except understanding of branding use it to through a study of its practice and navigate through the complex web of literature, which, while not as broad as relationships between the personality of those of business or medicine, includes the company, product or service — the many hundreds of works. brand itself — and the people who produce and deliver it, as well as the people who consume it or otherwise ADVANCED BRANDING AND ITS come into contact with it. APPLICATION TO PLACES This understanding of brand also Much of the animosity shown towards the recognises that in marketplaces where the concept of place branding arises directly functional or physical attributes of from the popular or simple understanding companies and their products become of the word ‘brand’,leadingtoan less and less relevant, their intangible or assumption that the practitioners and brand-related qualities — the ‘halo’ of supporters of the discipline wish to brand value and associations, lifestyle, nations like cattle — in other words, to desirability of the marque, the strength of slap on an attractive logo and a catchy the maker’s reputation and the behaviour slogan, and market the thing as if it were of the company’s representatives — nothing much more than a product in the become paramount. supermarket. Advanced brand theory therefore This is an animosity with which the

᭧ Henry Stewart Publications 1744–070X (2005) Vol. 1, 2, 116–121 Place Branding 117 Editorial

writer entirely sympathises: the idea that Taiwan being one example of a country simply providing a place with a new which has attempted to promote itself as graphic device and a new catchphrase a whole, using conventional promotional can do anything to change its fortunes techniques. The only single message (other than by wasting its money) is which an entity as complex and diverse patently absurd. as a country could possibly settle on as When, on the other hand, the best representing its ‘pitch’ to the world lessons, techniques and observations from would be so vague and so bland as to advanced branding are intelligently, render any expenditure on broadcasting responsibly and imaginatively applied to the message a waste of resources. People, places, the consequences are fascinating, as a rule, are only prepared to give their far-reaching and potentially attention to commercial messages which world-changing. are inherently interesting, and no amount Not only are people often confused of expenditure on media or creativity about what branding is: they are also can force people to pay attention to a confused about what is being branded. message which is vague, bland or There is a lack of clarity about the general. Hence the dismal nature of difference between place branding and much ‘corporate’ advertising, which the promotion of the nation’s individual usually achieves little more for the assets or ‘products’, such as tourism, corporation than reassuring shareholders inward investment, culture and exports. of its prominence. ‘Destination branding’, a term often used For the same reason, corporations to indicate a modern form of tourism which produce a number of different promotion, is frequently conflated with products, like Procter & Gamble or nation branding, but this is misleading, as Unilever, tend not to promote Hugh Davidson points out in his book themselves directly, but rely on good review in this issue. Tourism is just one governance and brand portfolio component of the city, nation or region management to build their corporate (readers may recall my use of the brands. Countries, regions and cities are ‘nation-branding hexagon’ to illustrate likewise best promoted indirectly by a this relationship), and, unlike the nation harmonised and strategically informed as a whole, is a ‘product’ which needs to approach to the promotion of their be ‘sold’ in the global marketplace. In ‘products’ and ‘sub-brands’,andtheir this context, simple branding is not only overall reputations built by their actions possible but also necessary, and the whole and behaviour (which are guided, of panoply of visual identity, slogans, design course, by the same strategy). and advertising plays a critical role in The question which all effective selling the product. promotional activity must address at Components of the place can be some level is the consumer’seternal promoted, even sold, but the nation, city ‘what’s in it for me?’.Whenweare or region cannot. This is partly because, talking about a country, a region or a almost by definition, the nation is city, the question has little or no unlikely to have a single target market or meaning. a single offering, and in such conditions But whether or not countries, cities promotion becomes difficult and rather and regions can be promoted, they pointless. Amine and Chao’spaperon certainly do have brands, and those Taiwan in this issue presents interesting brands certainly do affect the views, food for thought on this subject — decisions and behaviour of their friends,

118 Place Branding Vol. 1, 2, 116–121 ᭧ Henry Stewart Publications 1744–070X (2005) Editorial enemies, allies, visitors, investors and online media planning can make tourist consumers. The application of advanced boards more competitive; some attractive branding in this context is much more design can help investment promotion an attempt to manage the ‘reputational agencies in their work; and so forth. assets’ of the place than sell it in the If the usefulness of modern commercial global marketplace: in other words, to do practice and theory to statecraft really did whatever is possible to ensure that the amount to this and nothing more, it country’s reputation is a fair, balanced would be difficult to justify the existence and useful reflection of its real assets, of this journal, or indeed to explain the competencies and offerings, and not excitement around the emergence of a merely an outdated or unjustly biased field called place branding. cliche´, informed by long-past events or No, the reason why the convergence ignorant assumptions. of advanced brand theory and statecraft is truly epoch-making is because branding is, potentially, a new paradigm for how THE SIGNIFICANCE OF places should be run in the future. PLACE BRANDING A globalised world is a marketplace Since the most commonly held where country has to compete with understanding of branding outside country — and region with region, city sophisticated marketing departments tends with city — for its share of attention, of to be the popular or, at best, the simple, reputation, of spend, of goodwill, of it is hardly surprising that policy makers trust. That places should look to the are reluctant to accept that this approach disciplines of the marketplace for canhaveanythingoftrulycentral inspiration about how to prosper in this importance to their work. world is entirely logical. Yet there is undoubtedly a growing The objection that the commercial acceptance in public affairs that a model is mainly associated with profits familiarity with the techniques of rather than people does not stand up to commercial marketing is increasingly scrutiny. Branding in its advanced form is relevant. That ministries of foreign affairs primarily about people, purpose and and their foreign services must practise reputation, not about money — although something called ‘public diplomacy’ is there is little question that organisations now commonplace; likewise the fact that which are clear about their brand values public affairs has become an international and brand strategies ultimately stand a affair, and that investment promotion and better chance of sustainable profitability tourist promotion must be as than those which are not. sophisticated as the most sophisticated Flexibility is the essence of modern commercial marketing, since both are brand theory: it has a unique ability to competing for consumer mindshare in equate ‘soft’, human issues with ‘hard’ thesamespace. financial and organisational ones and But the debate never seems to go resolve them humanely and intelligently beyond the not-very-challenging truism into a functioning and compassionate that some learnings from the private whole. It reconciles the needs of the sector can bring benefits to the way in organisation and the forces of the which places are marketed: a bit of PR marketplace with the ‘human capital’ or media training can sharpen up which is the raw material of both. In the diplomacy in the ‘media age’;a commercial sector, enlightened brand knowledge of internet marketing and strategy embraces creativity and human

᭧ Henry Stewart Publications 1744–070X (2005) Vol. 1, 2, 116–121 Place Branding 119 Editorial

resources with administration and makes it harder for states to persist in finance; so, in the public sector, it secretive, unethical or authoritarian comfortably embraces culture and society behaviour. with economics and politics. — The falling cost of international travel, the rising spending power of a growing international middle class and WHY THE TIME FOR PLACE its constant search for unfamiliar BRANDING HAS COME experiences compel more and more Big changes in the social and political places to market themselves as tourist fabric of modern society make the more destinations; at the same time, the ‘public-oriented’ approach of place threat of ‘product parity’ among such branding a necessity in the 21st century. destinations makes a clear, This is not a question of governments distinguishing and economically ‘playing to the gallery’ or a strategy for sustainable brand strategy essential so legitimising state propaganda, but simply that they can compete effectively in a growing acknowledgment of the the international marketplace. influence of peoples on international — An ever more tightly linked global affairs. As I mentioned in my editorial to economic system and a (currently) the first issue of Place Branding, a rough rather scarce pool of international distinction between place branding and investors being chased by a growing propaganda might be that ‘propaganda is number of industrial and service the deliberate use of manipulated public locations applies similar pressures to opinion as a tool for achieving a political the business of foreign direct end; place branding is the consequence investment promotion; again, the of a realisation that public opinion is an tendency towards parity between the essential component of achieving a offerings and the need for a political end’. competitive strategy which is Just a few of the conditions which sustainable in the long term against now make a brand-oriented approach to the threat of highly mobile global statecraft not merely desirable but capital drives places towards an ever necessary are as follows: more sophisticated and brand-led approach to developing, managing, — The spread of democracy and positioning and promoting themselves democratic-type governance in many in the marketplace. parts of the world and an increasing — A range of consumer products tendency towards transparency of sourced from an ever wider pool of government and open relationships countries increases the need to build between state players, as well as a trust in both company and country of growing interest and awareness of origin; at the same time, a growing international affairs among publics, interest, reflected in the international drives the need for a more media, in the ethical and ecological ‘public-aware’ approach to politics, credentials of manufacturers and diplomacy and international relations. service providers creates a situation — The growing power of the where it is ever more critical for international media, driven by a more places to pursue a long-term strategy informed and news-hungry audience for building and managing a positive and more influential country-of-origin effect. non-governmental organisations, — For poor and developing places, the

120 Place Branding Vol. 1, 2, 116–121 ᭧ Henry Stewart Publications 1744–070X (2005) Editorial

intense competition for international not merely markets for products or funds, funds, technology and skills transfer, but for ideas, for influence, for culture, for inward investment, export markets and reputation, for trust and for attention) trade makes a clear positioning, a which are rapidly fusing into a single, well-defined sense of national global community. Here, only those economic, social and political purpose global players — be they countries, cities, and a degree of influence over national regions, corporations, organisations, reputation more and more essential. religions, NGOs, charities, political parties — Countries, regions and cities are also or individuals — with the ability to competing more intensely and more approach a wide and diverse global widely than ever before for talented marketplace with a clear, credible, immigrants, whether these are foreign appealing, distinctive and thoroughly nationals in search of ideal social, planned vision, identity and strategy will cultural, fiscal and living conditions, or survive and prosper. returning members of the diaspora Someclaimthatsuchasituation looking to reinvest in their home unfairly favours places with the funds to country. Again, a clear positioning, a promote themselves more vigorously believable and attainable set of than others, but this view derives from promises in these areas and a the popular view of brands, where well-maintained and well-deserved branding is confused with advertising and reputation become essential attributes other traditional forms of paid-for media of the competitive nation-state. promotion. A powerful and imaginative — A growing demand on the part of strategy which is more the product of consumers for an ever wider, richer intellectual than of financial capital, as in and more diverse cultural diet, enabled the commercial marketplace, may well and stimulated by the rapid growth of prove a greater asset than huge amounts low-cost global digital and of money used to thrust uninspiring communications media, means that the messagesontoanunwillingaudience. global marketplace is open as never For places to achieve the benefits before for places with unusual and which the better-run companies derive distinctive traditional or invented from branding, the whole edifice of cultural products to ‘punch above their statecraft needs to be jacked up and weight’ in world affairs, and use their underpinned with the learnings and culture to communicate more of the techniques which commerce, over the real richness of their society to ever last century and more, has acquired. more distant audiences. Much of what has served so well to — The currently depressed popularity of build shareholder value can, with care, American culture, policies, products build citizen value too; and citizen value and services will create a vacuum in is the keynote of governance in the the global marketplace for clearly modern world. positioned and consistently presented The underlying theme of this places to build real competitive publication is that branding, if it is to advantage. serve its real purpose in the world, is not something you add on top: it is The list could continue for page after something that goes underneath. page. The driver of the new paradigm is simply globalisation: a series of regional Simon Anholt marketplaces (and by marketplaces I mean Managing Editor

᭧ Henry Stewart Publications 1744–070X (2005) Vol. 1, 2, 116–121 Place Branding 121