Asian Places Attracting Investment, Industry and Tourism to Cities, States and Nations

Philip Kotler, Michael Alan Hamlin, Irving Rein, & Donald H Haider

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. 2. 3. New industry starts up Job opportunities are strong Quality of life is attractive

Inward migration of new

Inward migration of new

residents and visitors

Real estate costs rise, infrastructure is strained, social needs rise

business and investment

Community raises taxes

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

Outward migration of people

Tourism, convention business decline

Outward migration 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 & conventioners Marketing Factors Infrastructure Business & industries

Planning group Citizens Place Marketing Plan Business Community Local Government

Attraction

People

New residents & employees

Image & quality of life

Exporters

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. 2. 3. 4. 5. 6. 7. 8. 9. natural beauty history & famous people shopping places cultural attractions recreation & entertaintment sports arena festival & occasions building monuments 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. 2. 3. Friendly & helpful Skilled 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.
2. 3. 4. 5.

Place audit Vision & goals Strategy formulation Action plan 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 Infrastructure Develop & maintain a basic infrastructure that is compatible with the natural environment Services Develop basic services of sufficient quality to meeet business & public needs Attractions Range of entertaintment & recreation for citizens, residents & visitors.

2.

3.

4.

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)