1. Marketing David Zilberman

2. 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.

3. 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.

4. 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.

5. 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.

6. 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.

7. 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.

8. 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.

9. 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

10. 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) Know What They Want

11. Study Success Stories LocationActivities 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