marketing & attraction in economic development

Arizona Basic Economic Development Course

MARKETING & ATTRACTION INECONOMIC DEVELOPMENTBrad Smidt & Colleen Schwab



MARKETING FOR ECONOMIC DEVELOPMENT

OUTLINE

• Marketing overview

• Product & positioning

• Target audiences & industries

• Marketing tools

• Delivering a message

• Marketing plans



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.



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



POSITIONING COMMUNITIES

Product Differentiation

• distinct attributes and/or image

Price Competitiveness

• comparatively low cost of doing business

Market Focus

• targeting a particular industry sector



TARGET AUDIENCES • Traditional: commercial and

manufacturing businesses

• Today: include office, retail, services, R&D, technical, etc.

• Global: export/import and relocation

• Residents are multipliers

Decision makers and influencers at each company

49%

27%

24%

22%

Chairman/CEO/President

Chief Operating Officer

VP/Director of Corporate Real Estate

Chief Financial Officer

Executives Most Likely to Lead Location Decisions

Data courtesy of DCI



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.



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


Industry Types - Target Audiences

DRIVERLESS VEHICLES

WEARABLES INDUSTRY 4.0 CYBERSECURITY

M A RK E T ING FOR E CONOM IC DE V E LOP M E NT

BLOCKCHAIN


• match assets or competitive advantages

• coincide with development goals

• investment & growth potential to help diversify

local economy


TARGETING COMPANIES



SECTORAL ANALYSIS

Local industry assessments identify potential target industries by using sectoral analyses

INDENTIFY KEY GENERIC FACTORS

DETERMINE RELATIVE

IMPORTANCE

EVALUATELOCAL CAPACITY

RANKINDUSTRIES CHOOSE BEST FIT



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



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


S W

O T

Weakness

Threats

Strength

Opportunities

Resources

Company


S.W.O.T. ANALYSIS

Cities: San Diego, Denver, Salt Lake City, Austin, Atlanta, Phoenix

GROUP TASK: Conduct a SWOT analysis to identify your assigned community’s competitive position.



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


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

DEVELOPING A BRAND


LOGOCOLORS

GRAPHICS


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

VICTORIA’S SECRET – brand ethos



Self-confident

Boston elitism / American Luxury

Ideal son-in-law

Exclusive / Social distinctiveness

From casual to formal – always put together

POLO– brand ethos


Brand perception now?


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

APPLE– brand ethos




MARKETING TOOLS

theconnectedplace



MARKETING TOOLS

Keys to successful communication

• Focus on the right audience

• Hone your message – a story well told

• Deliver at a time and in a way that your audience will receive it

46%

42%

34%

33%

27%

22%

21%

17%

11%

9%

Dialogue with industry peers

Business travel

Articles in newspapers/magazines

Meetings with ED groups

Online sources

Word of mouth

Rankings/surveys

Personal travel

Social media

Advertising

Leading Sources of Information



Online reviews

Something once heard in a movie

A statement from a friend

A story they told themselves

Believing “fake facts”

PERCEPTION VS REALITY – overcoming objections



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 2016-2035, yet water use is only expected to grow between 19 – 25%

IT’S A DESERT – THERE CAN’T BE WATER



OVERCOMING OBJECTIONS THROUGH MARKETING


Make a list of all the things people say

Develop your responses

Develop marketing tactics to provide the facts



MARKETING TOOLSWhere 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



MARKETING TOOLS

Messaging – crafting a well-told story

• Relevant

• Differentiating

• Motivating


57%

48%

44%

43%

39%

38%

32%

Incentive informationDemographic information

Database of available buildings/sitesWorkforce statistics

Comparisons to competitor locationsMajor employer list

Quality of life information

Most Useful Features of an EDO Website



Empire State Development NFIA North America Detroit Economic Growth Corporation


SOCIAL MEDIA

LinkedIn Twitter Facebook


77%

43%

37%

27%

26%

LinkedIn

Facebook

Twitter

Blog forums

Youtube

Social Media Channels Used for Business


SOCIAL MEDIA



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)



EVALUATING RESULTS

• Establishing KPIs and goals

• Auditing and tracking

• Strategic review of what’s working and what’s not working



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



WHY MARKETING PLANS ARE IMPORTANT

• to the community, government officials, & board members

COMMUNICATES

•management actions & resource allocations

GUIDES •allows the organization to shape its future rather than react

SHAPES

•organizes activities of different members of the marketing effort

COORDINATES •provides a control system to monitor deviations

CONTROLS

•provides justification for funding

JUSTIFIES

AGILE APPROACH



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



STEP TWO: ASSESS COMPETITIVENESS

ECONOMIC ENVIRONMENT

COMMUNITY RESOURCES

BARRIERS TO LOCAL

DEVELOPMENT

SWOT• identify & prioritize the

main issues



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



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 & long-term



STEP FIVE: PLANS OF ACTION

• spell out sequence of events

• specify necessary resources

• action plans should indicate: o responsibility (who & what)o activity implementationo personnel requirementso cost estimateo expected impacto timeline & completion date



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



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



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.



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



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


CULTURE OF INNOVATION - TEAM



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.”


Updating content on a blog post

Assuring the photos on your site havemetatags

DO SMALL THINGS INTENTIONALLY



OPTIMIZE AND MAXIMIZE



GET PERSONAL


Social channels trained us to gravitate towards personal content

Be real


TEAM UP WITH YOUR NEIGHBORS


We know our city boundaries –residents often don’t


CELEBRATE TECHNOLOGICAL INNOVATION


Health / well-being opportunity –making resident life better

By 2020, spending on smart city initiatives worldwide is expected to grow to $34.35 billion, an increase from $14.85 billion in 20151.


STAY CONSISTENT&

HAVE FUN



THANK YOUGREATER PHOENIX

WHERE TALENT IS BRED, COMMUNITY IS BUILT AND BUSINESS THRIVES.

2 N. Central Ave., Suite 2500Phoenix, AZ 85004

[email protected]

(602) 256-7700Address

Contact Info

Telephone

gpec.org

BRAD SMIDTSVP, Business [email protected]

COLLEEN SCHWABSVP, Marketing & [email protected]

marketing & attraction in economic development

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