Module #10 – Marketing & Communications for Your Community

1. Module #10 – Marketing & Communications for Your Community

2. 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: • Mail out brochures • Do email blasts • Advertise • Put the pressure on!

3. Marketing is the LAST Piece of the Economic Development Success Formula • There is much preparation and planning to do before you’re ready to market • What is the “product” you are selling? • What are its distinguishing characteristics? • Who is the competition? • Who wants to “buy” it (who is the customer)? • 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

4. Marketing Your Community • Understanding the Customer • Targeting the Customer • Marketing to the Customer

5. 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

6. 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.

7. 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 Steps in Successful Community Marketing

8. Define The Product & Message • Define The Product • Product Development and Definition • Marketing Image

9. Define The Product: SWOT Analysis • Community Vision – what do you want to be? • Community Assessment/SWOT Analysis • Should Cover All Community Factors Because They Are All Relevant To Business Location Decisions and Economic Development Success • Identify assets, opportunities to build on and “sell” • Identify weaknesses and threats to address\ • Vision and assessment differentiate the community from thousands of others • How can you sell a product if you can’t describe it? • How can you target customers if you don’t know what you’re selling?

10. 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)? • Low-skill industries? • High-skill advanced manufacturing? • Warehouse and distribution operations? • Technology-based industries? • Corporate headquarters? • Tourists? • Retirees? • Retail firms?

11. Introduction & Overview • Connecting the Dots in Community Economic Development (CED) • Build Wealth and Value • Neighborhoods • City • State • Prioritized Projects • Strategic Planning Outgrowth • Assigning Responsibility • Identifying Resources • Project Opportunities • Attract Investment • Debt and Equity • Better the Community

12. Develop and Define the Product (Community) Based on Vision and Target Customers • Make decisions and invest scarce resources to achieve your vision and attract targets • Industrial parks (large or small, manufacturing or service jobs?) • Infrastructure (roads, utilities, broadband) • Education • Workforce development • Zoning and permitting

13. 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 Marketing • Positive business image can help: Alabama, Georgia, Virginia? • Negative image can hurt: North Dakota, New York, California? • Image is cumulative (sum of beliefs), can be hard to change • Image often determines whether a state or community is on the initial search list • Image is often a final intangible selection factor

14. Marketing Image • A Marketing Image Should Be: • Valid • Believable • Simple • Appealing • Distinctive (not just another “great place to live, work and play”) • 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

15. Identify The Target Audience • The Marketing Audience • Marketing Segmentation • Target Industry and Company Selection • Know Your Target Audience

16. The Marketing Audience • External Marketing Audience • Outside Companies, Site Selection Consultants, Industrial Real Estate Companies, Venture Capital Companies, Others Involved In Corporate Expansion (Recruitment) • Lead-Generating ED Organizations (State, Regional ED Organizations, Utilities, etc.) • Existing Businesses (Retention and Expansion) • Entrepreneurs (New Business Start-Ups) • Internal Marketing Audience • Stakeholders (Elected Officials, Board Members, Sponsors, etc.) • Media (Newspapers, TV, Radio) • Public • Must keep them informed and supportive of the program

17. Marketing Segmentation • Industry/Sector • Geography • Geography-based target industry analysis is effective • 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

18. 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

19. Target Company Selection • Goal Is To Pick Firms In Target Industries Most Likely To Move Or Expand. Some Criteria Include: • Growth rates • Merger/acquisition • New management • New product or service • Suppliers/customers of existing firms in area • Sources Of Target Company Names • Commercial databases (Dun & Bradstreet, Hoover’s, etc.) • Consulting/research firms • Original research (annual reports, 10-K reports, etc. On-line or hard copy)

20. 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?

21. Needs-Based Selling and Marketing • Consultative Sales & Marketing • Focuses on: • Needs of prospect • Matching product with prospect’s needs • Listening • Long-term • Problem-solving • “Tell & Sell” • Focuses on: • Needs of seller • Convincing prospect to want your product • Prospect listening to the Seller • Immediate – High Pressure • Promotion

22. Distribute Message and Create Awareness • Marketing Material • Elements of Promotion

23. Positive Publicity Public Relations Advertising Direct Mail Email Personal Contact Trade Shows & Expos Networking Web Sites Elements Of Promotion

24. 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

25. Public Relations • Obtaining favorable press • Building up a good public image • Handling or heading off unfavorable rumors, stories, or events

26. 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

27. Advertising • Image building over time • Demonstrates marketing activity • Effectiveness varies widely • National media • State/regional media • Site selection magazines • Trade publications • Billboards, airport advertising, etc.

28. 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

29. Personal Contact • Telemarketing • Cold Calls • Calling Trips • Prospect Visitations

30. Trade Show Attendance • Insight into target industry • Meeting corporate executives informally • Community exposure • Meeting targeted media • Finding out what the competition is doing

31. 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

32. Community Web Sites • Advantages: • Can hold vast amounts of community information • Can be navigated to zero in on just what is needed • Can be constantly updated at little cost • Can give a “virtual tour” of community with pictures, video, testimonials (executives, elected officials, etc.) • More useful in Phases II and III of siting process, less useful in Phase I (initial screening) • Economic development web site is now a common expectation

33. 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

34. Marketing Materials • Brochures – general and special purpose • Flyers, postcards, brief mailings • Community profiles/fact books • Audio-visual presentations • CD-ROM • Laptop computer • Web sites • Promotional items (T-shirts, bags, pens, etc.) • Newsletters • Electronic marketing materials growing in popularity

35. Marketing: What Really Works? Source: SEDC Member Survey 2006

36. 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

37. 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

38. LouisianaCommunityNetwork.org