MARKETING & ATTRACTION IN ECONOMIC DEVELOPMENT

Transcription

1 MARKETING & ATTRACTION IN ECONOMIC DEVELOPMENT Brad Smidt & Colleen Schwab

2 OUTLINE Marketing overview Product & positioning Target audiences & industries Marketing tools Delivering a message Marketing plans

3 OVERVIEW Marketing can be used to: Help attract, retain, and expand businesses; Improve a community s image both inside and outside the community; Promote policies and programs.

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5 POSITIONING PRODUCT DIFFERENTIATION PRICE COMPETITIVENESS MARKET FOCUS The product in economic development: o community as a whole o one or more community resources industrial or commercial site, research park, neighborhood policy or program

6 POSITIONING COMMUNITIES Product Differentiation distinct attributes and/or image Price Competitiveness comparatively low cost of doing business Market Focus targeting a particular industry sector

7 TARGET AUDIENCES Traditional: commercial and manufacturing businesses Today: include office, retail, services, R&D, technical, etc. Global: export/import and relocation Decision makers and influencers at each company Executives Most Likely to Lead Location Decisions Chairman/CEO/President Chief Operating Officer 27% 49% Residents are multipliers VP/Director of Corporate Real Estate Chief Financial Officer 24% 22% Data courtesy of DCI

8 ROLE OF THE ECONOMIC DEVELOPMENT MARKETER Marketing for economic development means providing accurate, up-to-date, and credible information to potential prospects interested in investing, locating, or expanding in a specific area. In addition to being an information source, an EDO is often the community s primary marketer.

9 TARGETING INDUSTRIES Practitioners must resolve which industries are the best prospects. Which industries best fit local economic assets? Which industries compliment the overall ED strategy? match capabilities & objectives with industry requirements focus efforts on a few high-potential firms that are likely candidates ensure availability of sites, labor, capital, & other factors to meet needs

10 Industry Types - Target Audiences DRIVERLESS VEHICLES WEARABLES INDUSTRY 4.0 CYBERSECURITY BLOCKCHAIN

11 TARGETING COMPANIES match assets or competitive advantages coincide with development goals investment & growth potential to help diversify local economy

12 SECTORAL ANALYSIS Local industry assessments identify potential target industries by using sectoral analyses INDENTIFY KEY GENERIC FACTORS DETERMINE RELATIVE IMPORTANCE EVALUATE LOCAL CAPACITY RANK INDUSTRIES CHOOSE BEST FIT

13 CLUSTERS concentrations of firms with related activities managed clusters can lead to future growth reinforcing regional strengths & innovation geographic extent varies neighborhood, counties & even states industries grow more rapidly when linked

14 REASONS FOR CLUSTER DEVELOPMENT abundance of natural resources specialized physical infrastructure large pool of capital skilled labor force specialized local demand prior existence of suppliers

15 S.W.O.T. ANALYSIS Strength Company Weakness S W Opportunities Resources O T Threats GROUP TASK: Conduct a SWOT analysis to identify your assigned community s competitive position. Cities: San Diego, Denver, Salt Lake City, Austin, Atlanta, Phoenix

16 COMMUNITY IMAGE image of a location is a critical factor every community, state & region has an image ROLE OF THE MARKETER determine the current image understand how the current image impacts marketing bring facts & perceptions into congruence

17 DEVELOPING A BRAND LOGO COLORS GRAPHICS ETHOS: the fundamental character or spirit of a culture; the underlying sentiment that informs the belief, customs, or practices of a group or society. People buy what you stand for. They buy how you make them feel. They buy to be part of something greater than themselves

18 VICTORIA S SECRET brand ethos Founder of Victoria s Secret: Les Wexner Vision it was built on: Buying beautiful lingerie for his wife Angel / Fantasy / Push-up Sensuality / Sexiness / Seduction

19 POLO brand ethos Self-confident Boston elitism / American Luxury Ideal son-in-law Exclusive / Social distinctiveness From casual to formal always put together Brand perception now?

20 APPLE brand ethos Why are customers so loyal? Their brand. Simplicity / elegance / beauty / cleverness / humility Imagination / Design / Directness / Truth Quality is more important than quantity. One home run is much better than two doubles. Steve Jobs

21 MARKETING TOOLS theconnectedplace

22 MARKETING TOOLS Keys to successful communication Focus on the right audience Hone your message a story well told Leading Sources of Information Dialogue with industry peers Business travel Articles in newspapers/magazines 34% Meetings with ED groups 33% Online sources 27% Word of mouth 22% 42% 46% Deliver at a time and in a way that your audience will receive it Rankings/surveys Personal travel Social media Advertising 21% 17% 11% 9% Data courtesy of DCI

23 PERCEPTION VS REALITY overcoming objections Online reviews Something once heard in a movie A statement from a friend A story they told themselves Believing fake facts

24 IT S A DESERT THERE CAN T BE WATER 100+ years of investment in the region s water supply to prepare for growth Present-day water usage levels are equivalent to usage levels in 1957 Planning efforts have banked 3 trillion gallons of water for future use in Arizona Arizona s population is expected to grow nearly 54% between , yet water use is only expected to grow between 19 25%

25 OVERCOMING OBJECTIONS THROUGH MARKETING Make a list of all the things people say Develop your responses Develop marketing tactics to provide the facts

26 MARKETING TOOLS Where do executives get their news? The Wall Street Journal - 62% The New York Times - 42% Local daily news - 21% Forbes - 13% The Economist - 13% Washington Post - 13% USA Today - 12% Data courtesy of DCI

27 MARKETING TOOLS Messaging crafting a well-told story Relevant Differentiating Motivating

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29 Most Useful Features of an EDO Website Incentive information Demographic information Database of available buildings/sites Workforce statistics Comparisons to competitor locations Major employer list Quality of life information 32% 48% 44% 43% 39% 38% 57% Data courtesy of DCI

30 SOCIAL MEDIA Empire State Development NFIA North America Detroit Economic Growth Corporation LinkedIn Twitter Facebook

31 SOCIAL MEDIA Social Media Channels Used for Business LinkedIn 77% Facebook Twitter 37% 43% Blog forums Youtube 27% 26% Data courtesy of DCI

32 DELIVERING A MESSAGE GROUP TASK: Create a mock-up print advertisement for your assigned city. Ad should include: Headline Tagline Supporting points (approx. 3) Key visual(s)

33 EVALUATING RESULTS Establishing KPIs and goals Auditing and tracking Strategic review of what s working and what s not working

34 STRATEGIC MARKETING PLAN Having a long-term 3-5 year vision of where to head Setting annual objectives, goals, strategies and measures Team development and buy-in (internal and external stakeholders) Transparency and communicating the plan

35 WHY MARKETING PLANS ARE IMPORTANT to the community, government officials, & board members COMMUNICATES GUIDES management actions & resource allocations allows the organization to shape its future rather than react SHAPES COORDINATES organizes activities of different members of the marketing effort provides a control system to monitor deviations CONTROLS JUSTIFIES provides justification for funding AGILE APPROACH

36 STEP ONE: IDENTIFY PLAYERS & STAKEHOLDERS Include key community leaders government reps neighborhood assoc, developers, private financial institutions Gain Leadership Buy-in help leaders understand & approve of goals change opposing attitudes pursue alternative strategies Garner Support hold small meetings recruit diverse groups

37 STEP TWO: ASSESS COMPETITIVENESS ECONOMIC ENVIRONMENT COMMUNITY RESOURCES BARRIERS TO LOCAL DEVELOPMENT SWOT identify & prioritize the main issues

38 STEP THREE: IDENTIFY POTENTIAL MARKETS CONCENTRATE ON BEST- SUITED INDUSTRIES sound market research & analysis community profile details DETERMINE COMPONENTS TO PROMOTION develop message target purpose desired response determine channels

39 STEP FOUR: GOALS, OBJECTIVES, STRATEGIES GOALS overall vision or desired outcome OBJECTIVES specific targets may have several per goal STRATEGIES detail how to achieve goals & objectives short-term & longterm

40 STEP FIVE: PLANS OF ACTION spell out sequence of events specify necessary resources action plans should indicate: o responsibility (who & what) o activity implementation o personnel requirements o cost estimate o expected impact o timeline & completion date

41 STEP SIX: IMPLEMENTATION carrying out action plans orgs. must be able to implement plans long-term commitment is a must determine best way to share information think from target audience s perspective

42 STEP SEVEN: MONITORING & EVALUATION goals & objectives should allow for evaluation monitoring should be on-going evaluations should be periodic monthly, quarterly, semi-annually, or annually

43 STEP EIGHT: PLAN ADJUSTMENT plans should be revisited & adjusted regularly EDOs will need to regularly examine & evaluate the vehicle that delivers the community s message. For example, print media has been consolidated in recent years as social media outlets have become more popular.

44 USING FINANCIAL INDUCEMENTS Inducements and incentives attract or retain businesses Most common incentives Priority of incentives varies EDOs should ALWAYS utilize performance-based incentives Performance measures and monitoring compliance

45 MARKETING VIA PUBLIC-PRIVATE PARTNERSHIPS: GPEC BEST PRACTICES Collaboration and alignment around a common vision/mission Highlighting successes while balancing neutrality Establishing performance measures to justify continued support and funding

46 CULTURE OF INNOVATION - TEAM

47 POWER OF PR When you think about high-tech, connectivity and the Internet of Things, perhaps Silicon Valley comes to mind. But it s Greater Phoenix where that innovation now goes to scale. Amazon is transplanting around 130 jobs from Seattle to Phoenix.

48 DO SMALL THINGS INTENTIONALLY Updating content on a blog post Assuring the photos on your site have metatags

49 OPTIMIZE AND MAXIMIZE

50 GET PERSONAL Social channels trained us to gravitate towards personal content Be real

51 TEAM UP WITH YOUR NEIGHBORS We know our city boundaries residents often don t

52 CELEBRATE TECHNOLOGICAL INNOVATION By 2020, spending on smart city initiatives worldwide is expected to grow to $34.35 billion, an increase from $14.85 billion in Health / well-being opportunity making resident life better

53 STAY CONSISTENT & HAVE FUN

54 BRAD SMIDT SVP, Business Development THANK YOU GREATER PHOENIX WHERE TALENT IS BRED, COMMUNITY IS BUILT AND BUSINESS THRIVES. COLLEEN SCHWAB SVP, Marketing & Communications gpec.org Address 2 N. Central Ave., Suite 2500 Phoenix, AZ Contact Info info@gpec.org Telephone (602)