Wednesday, June 20, 2012

Applied Strategy-Practitioner-Strategic Positioning of Nations as Brands

Applied Strategy- Practioner- Strategic Positioning of Nations as Brands

Source:   Journal of International Business Research; Jun2011, Vol. 10 Issue 2, p135-147, 13p

The purpose of this article is to discuss nations branding.  The concept has not been utilized to its full extent and the author makes comparisons on nations branding to product branding to help the reader fully understand how this could be done.  The article talks about brand positioning and how nations use positioning to get their point across as for how they fit into their particular branding category.  In the case of this article they are discussing the strategic position of nations (countries) brands.  The positioning strategy is something that the marketing team as well as managers for the company needs to understand.  This helps the country as far as tourism, exports, and business investments.  So in relation to nations this would be how they could use marketing strategies to enrich their country.  The article explains that positioning must first be established before branding because a company must first see where and how they will fit into their industry.  The difference between image and reputation are discussed.  It states the image is the immediate thought process about a company and the reputation is something that is formed about a company over time.  If you think more in depth about it, when you imagine something you are thinking about a subject as you see it not necessarily how they really are.  When you talk of the reputation of something or someone it is based on what you have seen or heard over a period of time.
When reading the article it discusses six different approaches to positioning  as used by (Aaker& Shansby, 1982) and they are:  by attribute, by use, by user, by product category, by price/quality and competitive positioning  (Harrison-Walker, 2011).  Attribute is the first one that people can relate to.  This means what are they known for, so to relate this to a country you can easily think of certain countries and know what they are known for. For use would be what you would need them for.  User category is who would use this product? What group are they focusing on or targeting?  As far as a nation is concerned it is where a person would go for a particular need.   Product category is where they would fit in relation to other nations.  For price/quality in relation to a nation, certain nations are known for being wealthy or sought after for luxurious vacations, etc. Competitive Positioning is the ranking of a nation in relation to others in their category. Also the article speaks of an unheard of place/nation using competitive position to associate themselves with familiar nations/countries that are similar grade to help the user relate to something familiar.

The implications that the article suggests for managers are to first find a way to differentiate themselves from the competitor before starting the branding process.  That way once they start working on branding they will be work toward a specific purpose.  One of the things the author speaks of is that most country’s branding effort doesn’t stand out enough to differentiate them from competing countries because they choose to be neutral in there advertising to avoid offending any person.  The branding that should be chosen is one that upon hearing the slogan or seeing the advertisement would make the viewer say “Oh they are talking about (whatever country being advertised)".  Also management should find a specific purpose and go with that and not try to reach every facet of what it has to offer.  That way they can be relatable to interested parties and also have support from their citizens because that is very important.
The problems with nation branding compared to product branding was that nations are not giving themselves a distinct enough branding to make themselves stand out from other countries brands.  (HarrisionWalker, 2011) says that if you took away the name of the nation and just listed the brand, you could not relate their brand from any other country.  So that means that the branding of that nation is not distinct enough for people to remember them. 

6 comments:

  1. Michellene,

    I think Nation Branding was not so important in the past, but with the introduction of affordable cruise ships and packaged vacations, Nation Branding is more important today.

    I would not have thought about it before reading your piece, but more commercials are seen today, directing to you to this country or the other. Each commercial focuses on the beautiful contryside, the carnival atmosphere or the ability to see a bit of history.

    In an article by Janine Wiler, she does not think Nation Branding includes the people that live in the country and it should. the people that live in a particular country does add to the attractiness of that country. The can bring added value to the tourism trade.

    Rose Adkison

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  2. Penne,

    Lately I have seen a lot of nation, country and even state branding used in advertisements. Different countries and sates have begun to advertise their best assets in hopes to get vacationers to come or even have them consider becoming residents. Tourism can greatly impact a nation economically. It can stimulate trade, create new job opportunities and help certain areas grow.

    We have all seen the commercials and brochures. California has a commercial where movie stars and celebrities talk about why they chose to live there now. I think that this type of branding is going to increase and become more aggressive. Soon, nations will be labeled in a way that can possibly hurt them. Singling out certain attributes of a location might decrease the growth of areas that are not advertised. Also, who is it to say what makes a nation, country or state great? What is great for one person might not be great for another.

    http://www.journal.au.edu/abac_journal/may99/article3_f.html

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  3. I agree with Kimberly. In recent years, I have noticed an increase of television advertisements about states advertising their best assets in hopes of bringing tourist. I think its a great way to help that particular economy and I also believe that it has the potential to create new jobs.

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  4. I see something like this happeneing on a daily basis. Many glass artists do a lot fo very similiar glass art in just the same way that brazil might be easily mistaken for Chile or another South American country. For people to really know a particular country they need to have a image of that country in their head. Think of mexico you see tacos, see china you see eggrolls but what if you think of vietnam, do you think of spring rolls instead of eggrools? Do you even know the difference? I think a country needs to have something special about it to make you want to go there, countries should find something that ONLY they have and advertise that!!!!

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  5. You have a good point Russell. When you start talking food people listen. When people make plans to visit a country, sightseeing is not the only thing they focus on. Food is also something they make plans to explore. Some countries could market their authentic cuisine to draw people into their country to try their food. People like to eat so a country could capitolize on that.

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  6. yep, everyone's gotta eat and can relate to food, (except for those less fortunate in africa or wherever).

    I have a very multi cultural set of friends and one thing we always seem to talk about is food. I can order food in about 5 different languages but speak only one fluently.

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