Marketing plays an essential role in the success of every kind of business. Good marketing can do wonders for a business. It can set trends, change the perception and create demand for a product or service in the market. Nowadays, marketing is not only used by businesses to sell their products but it is used for the promotion of different things. For example, educational institutes use marketing to attract students in their institutes, writers market their books to attract readers, and even marketing is used for the promotion of a place for different purposes.
A place competes with other places to attract people, businesses, and resources. Therefore, place marketing has attained a lot of importance in the past few years.
In this article, you will learn about what is place marketing, the definition of place marketing, variables or parameters included in place marketing.
Definition of place marketing
Place marketing can be defined as a marketing strategy to promote a particular place. Using a place marketing, a place, its local attractions, traditions, business opportunities, etc. are promoted to attract people from all around the world to visit the place or to invest their money in business at that place.
What is Place marketing?
Place marketing can also be referred to as place branding or place promotion. Place marketing is a marketing strategy using which a place is promoted. The marketing concept has gone beyond the promotion of products and services.
Nowadays, marketing is used for the promotion of a place. However, the place is also a broad term. It can be used to refer to a country, a state, a city, a village, or even a single building. The place marketing means communicating the attractions, resources, and business opportunities available at that place.
Tourism has become one of the main contributors to the national income of a country. Therefore, many countries, whether developed or developing, are promoting their tourist places to attract tourists from all around the world. A lot of people have started traveling all around the world. Several people are earning well or have become millionaires by sharing their travel experience with people on their social media platforms like Facebook, Instagram, Youtube, etc. or by writing their travel blogs.
Two decades ago, nobody gave too much emphasis on traveling. People were content with the country or city in which they were living. But, nowadays, even 13-year-old aims to travel around the world and they are many who are already doing it.
Why did this happen? How did this happen? What made people attracted to other countries or places? The answer to all these questions is “Place marketing”. Place marketing has played an essential role in encouraging people to travel to different places situated in different countries. Nowadays, even a place or a city is also being promoted with the help of advertisements.
For example, one of the most famous examples of place marketing campaigns is the place marketing campaign ran by Iceland’s administration. Iceland has its tourism website that inspires people all around the world to visit Iceland. Where they share posts about the local things to experience in Iceland, places to visit in Iceland, and to experience the culture of the country. They share small video clips to give an insight into the country to the travelers.
Another famous example of a place marketing campaign for tourism purposes is an example of Assam tourism. Assam is a northeastern state of India and it is renowned for its diverse culture and beautiful scenic views. Priyanka Chopra is the brand ambassador of Assam tourism. Priyanka Chopra being an international celebrity helps in attracting tourists from different countries.
Another Important use of place marketing is done by administrations to attract foreign entities to invest in local businesses or to set up their businesses in their countries. With the help of place marketing, administrations influence the minds of the target group and create a favorable image of the places in the eyes of the target group of people.
Creating a favorable image means to project the place as a secure place to do business and acquire resources. For example, recently, Amazon has built its largest fulfillment center in India to expand its business in the country. It is Amazon.in’s third fulfillment center in the country. This is possible because of the right place for marketing.
There is fierce competition between global entities to attract business. Countries are offering lower taxes, and easy to do business to encourage more and more global companies to invest in the states. India and China are the largest markets that are attracting foreign entities to invest in their countries by the use of place marketing.
Some parameters and variables of Place marketing
The following are a few parameters that are part of place marketing.
1. Standard of local service:
The standard of local services plays an essential role in encouraging companies to invest in a particular place or encourage tourists to visit a place. A place which provides a good standard of quality is always preferable than the place with the poor standard of local services.
It is one of the main things that people enquire about before investing in a place. Therefore, with the help of place marketing, administrations create a positive image about the standards of local services in a place.
2. Business potential and ease of doing business:
Business potential and ease of doing business are the two most important aspects of a country that encourages a company to set up its business in a particular country. Because of this reason, many developing countries are improving their rules to do business in the countries and are making them ease to attract businesses from all around the world.
New Zealand holds the first position when it comes to the ranking of ease of doing business and a developing country like India holds 63rd place in the comfort of doing business. The ranking of India has improved by 14 places in the last financial year, because of the efforts of the administrations to attract foreign entities to set their business in the country.
3. Tourism Infrastructure:
Developed as well as developing countries make use of place marketing to promote their tourism. Increased tourism not only provides additional income to the country, but it also provides a mode of earning to local people. Therefore, countries spend millions on the promotion of tourism in their countries.
4. People and resources:
People and resources are also the parameters that influence the decision of a company to invest in a country. Companies require skilled employees to work in their companies. A country like India has a high number of educated and experienced youngsters that can be employed by foreign companies.
Resources like fuel, electricity, water, and space to set up buildings are also crucial for a company. More and more companies will invest in a place where they can easily find these resources to run their business.