Marketing

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Marketing

• David Zilberman

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Marketing a Product vs. a Region

• Main elements of marketing
• Define the product.
• You may market goods, services, regions, and
  ideologies. You need to know what you are
  selling, know who the potential buyers are, and
  understand their needs.
• Design a marketing campaign including what market
  segments to target and when.
• Provide information (advertisements,
  demonstrations).
• Reduce risk (warranties, money-back guarantees)
• Reduce the transaction cost.

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Marketing a Product

• Buyers are heterogeneous in terms of
• Benefits from products.
• Ability to pay.
• Information about the product.
• Marketing efforts adjust to variability of
  clients.
• Marketing is a dynamic effort.
• Generally you pick the low-lying fruits first.
• Learning is crucial buyers responses lead to
  product improvements.
• Word of mouth and goodwill build future sales.
• Product introduction takes time. First build
  awareness, then learning and assessment, and that
  will lead to sales.
• Marketing strategies include
• Identifying how to pitch the product.
• Price and terms.
• Marketing channels.

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Building Brands

• Brands are assets that
• Reduce marketing costs.
• Increase demand and provide some market power.
• Appreciate or decline in value.
• Reasons for buying brands
• Familiarity (buyers know what it does and how to
  use it).
• Better average quality.
• Reduction in quality risk.
• Image and star appeal.
• Brands have varying durations and strengths
• Depend on uniqueness of product.
• Brand promotion and management can be abused.

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Opportunistic Marketing of Foods

• People buy products for various reasons
• Empathy (want to support local farmers).
• Social norms and customs (e.g., ethnic and
  holiday foods).
• Opportunity cost of time (working moms purchase
  more ready-to-eat foods).
• Image and social acceptance (sometimes buying
  organic foods seems sophisticated).
• Subjective beliefs.
• Buyers are fickle as they
• Take advantage of opportunities as long as they
  can.
• Identify changes and adjust.
• Marketers ability to influence is limited. They
  operate within evolving societies and are subject
  to global events.

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Marketing a Region

• Marketing of a region can be part of a regional
  development strategy. It helps to
• Enhance value of products (Italia vs. Albania).
• Attract investors.
• Attract immigrants with the right skills.
• Marketing of a region is a public good and a
  role of government.
• It can also be done as a joint effort of public
  and private sectors.
• Use local success stories to promote a region.

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The Challenge of Marketing a Region The Vision

• Good marketing provides a clear message.
• Needs a regional definition. What does the
  region sell?
• Recreational opportunities
• Skills
• Special crops
• Processing capacity
• Marketing should be derived from regional
  strategic thinking that is grounded in reality.

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How to Obtain a Regional Vision

• Study opportunities for regional development.
  Have inventory of assets and know your
  limitations.
• Study competitors (what similar regions do).
• Develop assets that will allow growth.
• Human capital
• Infrastructure (ports, roads, schools,
  communication systems)
• Industrial park
• Buy regional growth and vision.
• Subsidize developers
• Provide incentive to entrepreneurs
• Challenge the use marketing to acquire
  entrepreneurship.

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If You Have a Vision, You Can Sell

• Raise awareness through
• Advertisements
• Infomercials
• Websites
• Generate first-hand experience
• Invite individuals and delegation
• Arrange events
• Build goodwill and word of mouth
• Know your target audience
• Vision allows to prioritize the message and its
  targets
• Learn as you go
• May have several target markets for different
  purposes
• Modify the region to enhance attractiveness

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Know What They Want

• Investors are attracted by
• Unique resources
• Favorable terms
• Risk reduction
• Immigrants are attracted by
• Employment opportunities
• Safety and acceptability
• Good schools
• Pleasant climate (cannot do much about it)

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Study Success Stories
Location Activities
Costa Rica Napa Italy/France Nevada Regions in China Hong Kong Sports and entertainment industries How to promote products and raise funds Educational industrial complex Synergies between education and industries