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Module #10 – Marketing & Communications for Your Community

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Marketing Your Community is Easy, Right?

• My community is a great place to live, work and play; marketing it will be a cinch!

• I’m not a procrastinator! Time for action! Let’s market! I’m ready to:o Mail out brochureso Do email blastso Advertiseo Put the pressure on!

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Marketing is the LAST Piece of the Economic Development Success Formula

• There is much preparation and planning to do before you’re ready to marketo What is the “product” you are selling?o What are its distinguishing characteristics? o Who is the competition?o Who wants to “buy” it (who is the customer)? o What kind of buyers do I really want to attract?

• To jump into a marketing program before you do above is equivalent to: Fire! Ready! Aim!

• Let’s discuss marketing and all that must precede it to be successful

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• Understanding the Customer• Targeting the Customer• Marketing to the Customer

Marketing Your Community

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Definitions Of Marketing

General Marketing:

“The performance of business activities that direct the flow of goods and services from producer to consumer”

-- American Marketing Association

Societal Marketing:

“To determine the needs, wants and interests of target markets and to deliver the desired satisfactions more effectively and efficiently than competitors in a way that preserves or enhances the consumer’s and the society’s well being.”

-- Phillip Kotler, Marketing Management

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Community Marketing

Community marketing is not like consumer product marketing where hoards of consumers buying everyday products can be enticed to switch brands with a television jingle. Community marketing is about creating an image in the minds of key executives that make expansion and location decisions and staying in contact with them so that when the time comes to act, they consider a particular area.

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Steps in Successful Community Marketing

• Define the Product and Message• Identify the Target Audience• Distribute Message and Create Awareness• Make a Convincing Case and Close the Deal

Note: Our focus here is on business recruiting, but principles apply to tourism, retail, retirees, etc. and to business retention and expansion and new business start-ups

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• Define The Product• Product Development and Definition • Marketing Image

Define The Product & Message

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Define The Product: SWOT Analysis

• Community Vision – what do you want to be? • Community Assessment/SWOT Analysis

o Should Cover All Community Factors Because They Are All Relevant To Business Location Decisions and Economic Development Success

o Identify assets, opportunities to build on and “sell”o Identify weaknesses and threats to address

• Vision and assessment differentiate the community from thousands of otherso How can you sell a product if you can’t describe it? o How can you target customers if you don’t know what

you’re selling?

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Product Development and Definition Depends on the Vision and Target Customer

• What Does Your Community Want to Be (Vision) and Who Are You Selling to (Target Audience)?o Low-skill industries?o High-skill advanced manufacturing? o Warehouse and distribution operations? o Technology-based industries?o Corporate headquarters? o Tourists? o Retirees? o Retail firms?

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Introduction & Overview

A. Connecting the Dots in Community Economic Development (CED)1. Build Wealth and Value

a. Neighborhoodsb. Cityc. State

2. Prioritized Projectsa. Strategic Planning Outgrowthb. Assigning Responsibilityc. Identifying Resources

3. Project Opportunitiesa. Attract Investmentb. Debt and Equityc. Better the Community

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Develop and Define the Product (Community) Based on Vision and Target Customers

• Make decisions and invest scarce resources to achieve your vision and attract targetso Industrial parks (large or small, manufacturing or

service jobs?)o Infrastructure (roads, utilities, broadband)o Educationo Workforce developmento Zoning and permitting

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Marketing Image

• Image Is The Sum Of Beliefs, Ideas and Impressions That People (Residents, Target Audience, Outside Public) Have Of A Place

• Image Creation And Management Is A Key Component Of Economic Development Marketingo Positive business image can help: Alabama, Georgia,

Virginia? o Negative image can hurt: North Dakota, New York, California?o Image is cumulative (sum of beliefs), can be hard to changeo Image often determines whether a state or community is on

the initial search listo Image is often a final intangible selection factor

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Marketing Image

• A Marketing Image Should Be:o Valido Believableo Simpleo Appealingo Distinctive (not just another “great place to live, work and

play”)o Related to target audience

• Image Often Serves As A Rallying Point For The Community (Internal Audience) As Well As Prospects (External Audience)

• Image Idea Often Comes Out Of SWOT Analysis And Community Strategic Planning/Visioning

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• The Marketing Audience• Marketing Segmentation• Target Industry and Company

Selection• Know Your Target Audience

Identify The Target Audience

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The Marketing Audience• External Marketing Audience

o Outside Companies, Site Selection Consultants, Industrial Real Estate Companies, Venture Capital Companies, Others Involved In Corporate Expansion (Recruitment)

o Lead-Generating ED Organizations (State, Regional ED Organizations, Utilities, etc.)

o Existing Businesses (Retention and Expansion)o Entrepreneurs (New Business Start-Ups)

• Internal Marketing Audienceo Stakeholders (Elected Officials, Board Members, Sponsors, etc.)o Media (Newspapers, TV, Radio)o Publico Must keep them informed and supportive of the

program

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Marketing Segmentation

• Industry/Sector

• Geographyo Geography-based target industry analysis is

effectiveo Should Nebraska send brochures touting a

productive labor force and right to work state to target industry companies in Kansas or New York?

• Type Of Company/Organization

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Target Industry Selection

• Pick Your Targets (Industries) Based on Vision and SWOT• Location Needs of Target Industries Matched With the

Assets of the Area • Historical Growth and Potential Growth of Industries• Skill Levels and Wage Rates of Industries• Specific Community Considerations (Environmental, Hi-

Tech, Image of Industry, etc.)• Mix of Industries to Diversify Economy• Other Criteria as Appropriate

Targeting is important for business retention and expansion

and new business start-up support as well

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Target Company Selection

• Goal Is To Pick Firms In Target Industries Most Likely To Move Or Expand. Some Criteria Include:o Growth rateso Merger/acquisitiono New managemento New product or serviceo Suppliers/customers of existing firms in area

• Sources Of Target Company Nameso Commercial databases (Dun & Bradstreet, Hoover’s, etc.)o Consulting/research firmso Original research (annual reports, 10-K reports, etc. On-line or

hard copy)

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Know Your Target Audience (Customer)

• How Do Companies Make Expansion and Location Choices?

• What Benefits Are They Seeking?• What Problems Are They Avoiding?• What Key Factors Influence Their Decisions?• What Are The Key Issues Or “Hot Buttons” Facing Your

Target Industries And Companies?

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Needs-Based Selling and Marketing

“Tell & Sell”

• Focuses on:

o Needs of seller

o Convincing prospect to want your product

o Prospect listening to the Seller

o Immediate – High Pressure

o Promotion

Consultative Sales & Marketing

• Focuses on:

o Needs of prospect

o Matching product with prospect’s needs

o Listening

o Long-term

o Problem-solving

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• Marketing Material• Elements of Promotion

Distribute Message and Create Awareness

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Elements Of Promotion

• Positive Publicity

• Public Relations

• Advertising

• Direct Mail

• Email

• Personal Contact• Trade Shows &

Expos• Networking• Web Sites

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Positive Publicity

• Being able to get the news media to broadcast or publish news about your community and/or its events and accomplishments

• Staging events that are likely to obtain the interest of the news media

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Public Relations

• Obtaining favorable press

• Building up a good public image

• Handling or heading off unfavorable rumors, stories, or events

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Direct Mail Steps

1. Obtain or create mailing list (target industries and companies)

2. Determine what to mail – postcard, letter, brochure, etc.

3. Prepare mailing piece

4. Test mailing lists and approach

5. Mail material

6. Follow up on responses within 24 hours

7. Send new letter and materials second and third time

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Advertising

• Image building over time

• Demonstrates marketing activity

• Effectiveness varies widelyo National mediao State/regional mediao Site selection magazineso Trade publicationso Billboards, airport advertising, etc.

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Personal Contact

• Telemarketing

• Cold Calls

• Calling Trips

• Prospect Visitations

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Trade Show Attendance

• Insight into target industry

• Meeting corporate executives informally

• Community exposure

• Meeting targeted media

• Finding out what the competition is doing

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Networking Opportunities

• State economic development agency• Utility companies• Real estate brokers and developers• Site selection consultants• Existing employers in the area• Railroads• Trade associations (IAMC, SEDC, etc.)• Trade shows for target industries

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Community Web Sites

• Advantages:o Can hold vast amounts of community informationo Can be navigated to zero in on just what is neededo Can be constantly updated at little costo Can give a “virtual tour” of community with pictures, video,

testimonials (executives, elected officials, etc.)

• More useful in Phases II and III of sifting process, less useful in Phase I (initial screening)

• Economic development web site is now a common expectation

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Suggestions For Web Sites

• Don’t bury the economic development web site in a municipal, chamber or other web site. Make the economic development part at most one click away from home page

• Orient your economic development web site toward external users (prospects). Don’t make users wade through chamber banquet announcements

• Keep the information up to date. Old data gives a bad impression and may contribute to eliminating your community from consideration

• Liven it up with graphics, pictures, videos, but don’t make download too slow.

• Encourage people to visit web site in marketing materials

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Marketing Materials

• Brochures – general and special purpose• Flyers, postcards, brief mailings• Community profiles/fact books• Audio-visual presentations

o CD-ROMo Laptop computero Web sites

• Promotional items (T-shirts, bags, pens, etc.)• Newsletters• Electronic marketing materials growing in popularity

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Marketing: What Really Works?

22. Sources of prospect leads(% selecting each as one of the top 3 lead sources)

13%

17%

20%

39%

40%

44%

55%

68%

0% 10% 20% 30% 40% 50% 60% 70% 80%

Direct mail

Email

Advertising (print, electronic media)

Prospect trips

Trade shows and conferences

Your web site

Networking/word of mouth

Leads from state and reg. ED orgs.

Source: SEDC Member Survey 2006

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Your Community Needs a Written Marketing Plan!

• Mission statement for marketing plan; vision statement for community

• Situation analysis (SWOT analysis summary)• Target audience• Marketing goals and objectives• Strategic actions to achieve each objective• Budget and resources• Clearly defined staff requirements and positions• Responsibilities of participating organizations and

stakeholders clearly defined• Should be updated at least annually

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Concluding Observation

The fortunes of places depends in the final analysis on the collaboration of the public and private sectors – teamwork among governmental units, business firms, voluntary and civic associations and marketing organizations. Unlike commercial product marketing, place marketing requires the active support of public and private agencies, interest groups and citizens.

A place’s potential depends not so much on a place’s location, climate and natural resources as it does on human will, skill, energy, values and organization.

--Philip Kotler, Marketing Places

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