Nation Branding And Place Marketing Iv The Place

Nation Branding And Place Marketing Iv The Place

Nation Branding and Place Marketing - IV .​
The Place
IV .​
The Place
Some countries are geographically disadvantaged .​
Recent studies have demonstrated how being landlocked or​ having a​ tropical climate carry a​ hefty price tag in​ terms of​ reduced economic growth .​
These unfavorable circumstances can be described as​ natural discounts to​ a​ country's price.
What can be done to​ overcome such negative factor endowments?
In classical microeconomics,​ the​ element of​ place in​ the​ marketing plan used to​ refer to​ the​ locus of​ delivery of​ the​ product or​ service .​
Well into the​ 19th century,​ the​ place was identical to​ the​ region where the​ product was manufactured or​ the​ service rendered .​
In other words,​ textiles weaved in​ India were rarely sold in​ Britain .​
American accountants were unlikely to​ practice in​ Russia .​
Distribution was a​ local affair and networks of​ dissemination and marketing were geographically confined.
A host of​ historical and technological developments drastically altered the​ scene and frayed the​ straitjacket of​ geography.
The violent disintegration of​ the​ old system of​ geopolitical alliances led to​ the​ formation of​ massive,​ multiplayer trading blocs within which and among which the​ movement of​ goods and,​ increasingly,​ services is​ friction-free .​
The vast increase in​ the​ world's population - matched by the​ exponential rise in​ purchasing power - created a​ global marketplace of​ unprecedented wealth and a​ corresponding hunger for goods and services .​
The triumph of​ liberal capitalism compounded this beneficial effect.
The advent of​ mass media,​ mass transport,​ and mass communications reduced transaction costs and barriers to​ entry .​
The world shrank to​ become a​ veritable global village.
The value of​ knowledge (processed information) has fast risen to​ surpass that of​ classical (physical) goods and services .​
Information has some of​ the​ properties of​ a​ public good (for instance,​ nonrivalry) - coupled with all the​ incentives of​ a​ private good (e.g.,​ profit-making).
Thus,​ the​ very nature of​ distribution had been irrevocably changed .​
The distribution channel,​ the​ path from producer to​ consumer (in our case,​ from country to​ foreign investor or​ tourist,​ for example) is​ less encumbered by topography than it​ used to​ be .​
Even the​ poorest,​ most remote,​ landlocked,​ arid,​ and disadvantaged country can nowadays leverage air flight,​ the​ Internet,​ television,​ cell phones,​ and other miracles of​ technology to​ promote itself and its unique offerings (knowledge,​ plant and animal species,​ scenery,​ history,​ minerals,​ cheap and educated manpower,​ cuisine,​ textiles,​ software,​ and so on).
The key to​ success is​ in​ a​ mix of​ both direct and indirect marketing .​
Nowadays,​ countries can (and do) appeal directly to​ consumers (ads targeted at​ tourists or​ road shows aimed at​ investors) .​
They present themselves and what they have to​ offer,​ circumventing brokers and agents of​ all kinds (disintermediation) .​
Still,​ they should not fail to​ cultivate more traditional marketing channels such as​ investment banks,​ travel agents,​ multilateral organizations,​ or​ trade associations.
With many of​ the​ physical obstacles to​ marketing removed in​ the​ last few decades,​ with the​ very concept of​ place rendered obsolete,​ promotion emerged as​ the​ most critical facet of​ nation branding and place marketing.

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