Nation Branding and Place Marketing - I. The Marketing Plan
Nation branding is the process of creating an image of the country's place in international markets. Place marketing is an approach to nation branding that emphasizes promoting a destination as a travel destination or a place to do business. Nation branding and place marketing may differ in their approach and implementation, but both are considered by some to be forms of "branding" for a country or region.
In the early 2000s, nation branding was a relatively new concept. The term "Nation Branding" was first used in 2000 in a joint report by the United Nations World Tourism Organization (UNWTO) and the World Economic Forum (WEF). Since then Nation Brands have become an important element of national image campaigns. Nation branding has been used to describe many different international image enhancement strategies, including place marketing, that are not necessarily mutually exclusive. Many countries have developed nation brand strategies that contain elements of both nation branding and traditional place marketing approaches to international trade promotion.
Nation branding attempts to create a positive image of the country or region by promoting the nation as an attractive place to visit and do business. Nation branding is a process that builds on the existing popularity of the country, creating a synergistic effect between place marketing and national image. Nation branding serves to build on market-oriented approaches to international marketing strategy, but also seeks to establish or enhance national pride and identity through an attractive perception of the country's place in world markets.
The National Brand Councils in 1988, 1999 and 2006 have called for a new approach to international trade promotion, by brand development and greater investments in national brand building strategies for countries with economies based on free trade. The National Brand Council in 1998 defined 'nation branding' as:
"the process of building a national image that is based on market-based, entrepreneurship and entrepreneurship-associated characteristics. It is not so much about the power of government, political leadership or harmonious civil society as it is about people taking responsibility for their own life and moving towards the future guided by their own values. This requires building a national brand and promoting it around the world through a comprehensive image strategy."
Nation brand strategies work to establish a positive international image for a country or region. Nation branding involves developing an attractive perception of the country's place in international markets, while place marketing focuses on promoting trade with other countries through travel and business. Nation branding is a result of both market and government strategies to promote a regional economy, while place marketing may be an integral part of a nation's foreign trade promotion strategy.
The National Brand Council in its 1998 "National Branding Guidelines" suggested that nations develop their own brand strategies, but also recognize that other countries are also developing their own brand strategies. The experience of other nations with Nation branding programs is important for the development of country-specific approaches to international marketing policy. Nation branding is not just an individual country's or region's strategy; nation brands are the result of multiple nation branding efforts. Other countries may employ different elements in their national brand promotion programs, depending on national markets and industry structure. Nation branding and place marketing can be used interchangeably. Yet the distinction between these two approaches to international marketing policy is not a hard-and-fast one.
Nation branding can be used in the process of developing an image of the country or region, but also serves as an integral part of a nation's foreign trade promotion strategy. Nation brands are often developed by developing brand strategies that reflect a particular set of values that are specific to the country or region, but also seek to create an attractive perception of their country in international markets. As such, nation brands are different from place brands, which represent only a subset of values with no requirement for international appeal. A place brand identifies and promotes the identity of a destination for its end-users. A nation brand represents a broader set of values, that if properly promoted can enhance international trade and business development. A place marketing program is also an integral part of a country's export strategy. The National Brand Council in its 2009 report notes that the National Brand Council works together with the Export Promotion Council to support export promotion and trade policy aimed at enhancing the value of Swedish exports at home and abroad. Nation branding emphasizes promoting the country's place as a travel destination or business location through marketing policy, while place marketing strategies emphasize promoting tourist services or business services in other countries through international promotion strategies.
Conclusion "Nations are primarily brands. Branding is an important component of international image-building. If nations are brands, then they need to be built and sold. Numerous studies have demonstrated the importance of proper nation branding as a tool for gaining advantage in the global market."
Many countries are now implementing Nation Brand strategies in an attempt to attract international businesses and tourists, as well as stimulating domestic trade, while simultaneously reinforcing national pride in their country's identity.
The key elements of Creating a National Brand Strategy include:
A Nation brand should be based on values that appeal to a wide range of potential visitors or investors and that reflects the core competencies, strengths and competitive advantages of the country or region.