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Journal of International Studies
© Foundation of International Studies, 2013
© CSR, 2013 Scienti
Þ
c Papers
Karolina Janiszewska Poznań University of Economics Poland [email protected]
Abstract. Place or destination branding has become a very popular approach to manage and foster development of cities, regions and countries. To make the process more efficient, it is necessary to define the basis of place brands properly. One of the key elements in defining brand identity is consumer insight, which has become more popular recently. The main prerequisites of consumer insight importance are dynamic changes in con- sumers’ needs and behaviors, which determines their decisions. Segmentation process based on demographic data in context of postmodernism is not sufficient any more to differentiate the brand. Looking for competitive advantage, brand managers more often focus on consumer behavior, attitude, values, needs and expectations. The competitive environment of place management causes that this tendencies also should be taken into consideration in place brand creation. In the paper the author indicates the complexity and multilevel character of defining consumer insight in place brand context. Based on research (IDI and ethnographic research) the paper presents possibilities and limitations of marketing research implementation in the process of de- fining consumer insight. On Poznań agglomeration case study and research stakehold- ers insight was formulated. Simultaneously, the author points out strategic meaning of consumer insight in place brand management process.
Keywords: Consumer insight, marketing research, place brand identity, place brand positioning.
JEL classification: D10, M39.
THE NATURE AND ELEMENTS OF BRAND IDENTITY AND POSITIONING
In today’s economy, conditioned by globalisation processes, dynamic technological development, high level of competitive efforts and a magnitude of choices made by consumers, a company’s growth is deter- mined by the image and robustness of its brand (Kunde 2002, p.17). The basic tools employed in creating the desirable brand image include brand identity and brand positioning. These conditions affect brand management processes in product and service markets alike; they can also be transferred onto administra-
Received : September, 2013 1st Revision: October, 2013 Accepted: November, 2013
DOI: 10.14254/2071- 8330.2013/6-2/
Received : September, 2013 1st Revision: October, 2013 Accepted: November, 2013
DOI: 10.14254/2071- 8330.2013/6-2/
The strategic importance of consumer insight
in defining place brand identity and positioning
Karolina Janiszewska “The strategic importance of consumer insight in defining place brand identity and positioning.”, Journal of International Studies , Vol. 6, No 2, 2013, pp. 9-19. DOI: 10.14254/2071-8330.2013/6-2/
Journal of International Studies Vol. 6, No.2, 2013
tive units. The possibilities of applying the concept of brand management in administrative units have been largely discussed in literature on the subject (e.g. Matson 1994, Olins 2002; Kavaratzis 2004; Anholt 2005) with special emphasis placed on the competitive approach (Kotler & Gertner 2002). The scientific discus- sion revolves around various groups of stakeholders: investors, tourists, inhabitants, businessmen (Kotler & Haider & Rein 1993). At the same time, a fact is highlighted that place branding is most frequently adapted in a limited context i.e. the promotion context (Papadopoulos & Heslop 2002; Kavaratzis 2004; Parkerson & Saunders 2005; Anholt 2006). The concept’s curtailed use may result from lack of materials introducing a holistic, strategic approach to the brand in the place context as well as non-existent materials presenting the application-related opportunities posed by tools and instruments useful in the brand management process that exceed the area of promotion. As a result of globalization, the world is perceived as a single market where brands compete for the audience’s attention. This holds equally true for countries, regions and cities which attempt to stimulate the inhabitants’ and companies’ involvement, intend to attract tourists, investors or students. For this purpose, they come up with various cultural, sports, business or scientific events in order to build place image and reputation owing to media coverage (Anholt 2009, p. 206). However, it is not possible to purposefully build up a desirable brand image without creating its identity or positioning the brand. This is of special impor- tance to administrative units which may face management discontinuity attributed to the cycles of political elections. A definition of place brand identity and positioning ensures the efforts’ cohesion. It is some sort of a guide verifying a location’s activity areas and resulting in a cohesive brand image. In general, positioning can be described as an activity connected with creating a clear and unique image of a brand in the minds of a target audience (Ries & Trout 1981; Woodward 1996; Nilson 1998). Ries & Trout (1981) argue that positioning is “a battle for the consumer’s mind”. In their opinion, positioning is the way a company wants customers to perceive, think and feel about its brand versus competitive entries. According to such a perspective brand positioning is highly subjective since it refers to the customer’s indi- vidual perceptions. Davis (2000) perceives the notion of brand positioning in a similar way; in his opinion positioning is the place in consumers’ minds that a brand wants to own. It has to be externally driven and rel- evant, it has to be differentiated from the competition and, most importantly, it has to be valued. Davis takes notice of the strategic significance of brand positioning as the basis for further decisions on brand manage- ment. He emphasizes the role of brand positioning for establishing effective communication with customers. The strategic significance of brand positioning has also been presented by Kotler (1994) who places position- ing in his STP concept (Segmenting, Targeting, Positioning). Hence, positioning just like segmentation or the choice of the target group becomes the key foundation for defining a strategy for a brand. On the other hand, on top of the strategic significance of positioning for brand management, K pferer (1992) pinpoints that positioning is a process of emphasizing the brand’s distinctive and motivating attributes in the light of competition. Keller (1998) emphasizes that arriving at the proper position requires establishing the correct point of difference (unique to the brand) and point of parity association (connected with the category, not necessarily unique to the brand). For Aaker, who focuses on tactical operations aimed at building strong brands, positioning is the basis for creating and implementing brand building programs. Finally, Temporal (2002) notes that positioning is vital to brand management because it takes the basic tangible aspects of the product and actually builds the intangibles in the form of an image in people’s minds. The effect of the positioning process is defining the positioning statement which is a synthetic notion of the basic elements (Tybout & Calkins 2005). On the other hand, brand identity as defined by the brand owner is a complex message sent out to prospects. Brand identity should define and precisely specify the meaning, intention and vocation of the brand (Kapferer 1992, Keller 1998). This message is by no means limited to the brand’s promotion activ-
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Brand identity and positioning
Figure 1. The conditioning of defining brand identity and positioning (author’s own source).
Consumer insight is defined as a synthetic description of attitudes, opinions and values preached by a brand’s target group. Identifying consumer insight assumes the form of an individual utterance, most fre- quently in the form of a quotation. Insight can be discovered directly by listening closely to direct opinions of the target group or indirectly, by observing and analysing the group’s attitudes and behaviour. Despite the synthetic nature, consumer insight necessitates a deep relation with representatives of the target group and discovering genuine motifs behind their attitudes and behaviour. These motifs are af- fected not only by rational premises but quite frequently by emotions (Florin & Callen & Pratzel & Kropp 2007). It is virtually impossible to define brand values if we fail to find out about values of importance to the audience in the context of the competitors’ offers. A brand will only have potential to create its own strength and equity if the values it represents comply with values preached by the target group. Similar dependence determines brand identity which should refer to personality traits prevailing or in demand in the target group. In this context, finding out about your customers is of strategic importance to creating brand iden- tity. This approach is in line with the basic assumptions behind the marketing concept focusing on identify- ing, defining and satisfying the needs of target groups (Kotler & Amstrong & Saunders & Wong 2002). In identifying consumer insight, it is important to include the impact of the competitors and the brand’s category. This is because target groups operate in a competitive environment which offers a large choice of alternatives. The magnitude of choice results from globalization and the consumers’ affluence. Ironically, too broad a choice of brands lowers the satisfaction level and leads to anxiety, concern and un- certainty (Lepper 2000, Schwartz 2004). In this context, an in-depth analysis of the target groups’ needs and expectations as well as their concerns may be an important source of inspiration when creating brand identity. These premises also relate to the operations of administrative units where the competitive aspect and the magnitude of choices is very topical. Simultaneously, the need is indicated to step out of a brand’s competitive context related to a direct ref- erence to other, similar offers. Another important factor determining behaviour of target groups is exceeding
Karolina Janiszewska
The strategic importance of consumer insight in deÞning place brand identity and positioning.
the competitive aspect and inclusion of all possible modes of satisfying the target group’s needs. Reference is made to the important change of the context in consumer behaviour with a “competitive context” to a “consideration context”(Florin & Callen & Pratzel & Kropp 2007). An effective reach of the target group and satisfying its individualized needs contributes to building up a relatively stable competitive advantage (Aaker 1996). Therefore, finding out about the needs and motifs of behaviour is of strategic importance in brand management as it allows to design brand identity in line with the stakeholders’ expectations. Brand affinity on the level of needs and values adhered to by the consumers is conducive for enhancing the brand’s credibility in the audience’s minds and builds up trust for the brand. Contemporary research should focus on identifying the reasons behind stakeholders’ behaviour to gain an important source of information useful in establishing brand identity and positioning.
THE OPPORTUNITIES AND LIMITATIONS OF USING MARKET RESEARCH
IN IDENTIFYING CONSUMER INSIGHT
Economic researchers and practitioners have no doubt whatsoever that research can be used in the brand management process, especially in defining brand identity and positioning. Where they may differ in opinions is the scope and form of research. The classical approach focuses primarily on finding out about the behaviour of the target groups in the process of selecting a brand. Therefore, brand awareness and recogni- tion are broadly surveyed as is the brand selection process and image. However, it is crucial to ask not only who chooses what but predominantly why the target groups make specific choices. Researchers and brand managers are also changing their attitudes to the scope of research. On top of the brand selection process, the stage of brand experiencing proves equally important. It determines the stake- holders’ future attitudes towards the brand. Brand experience seems of special importance in the context of territorial brands. With relation to place brand, we cannot refer to brand consumption or use; the notion of brand experience is more adequate here. Feelings and the satisfaction level related to contacts with a place brand largely determines the brand’s image. Brand experience may refer to the rational and the emotional alike. Especially reaching and discovering the emotional necessitates special research methods and tools. When looking for consumer insight, it is imperative to apply special research procedures. Triangulation is of special importance here as a method intended to ensure higher research quality by limiting measure- ment error. In this case, triangulation usually relies on combining quantitative and qualitative methods. In the realm of quantitative research, it is recommended to adopt a nomothetic approach focused on surveying relatively large groups of people. This makes it possible to identify general behaviour and attitude patterns. It is assumed that groups of brand users are a collection of individuals sharing similar characteristics. However, quantitative research should always be complemented with qualitative (idiographic) research focusing on analysing human behaviour in in-depth studies of singular cases (Malim & Birch & Wadeley 1994). In the context of looking for consumer insight, ethnographic research tends to play a special role. Ethnography is one of observation methods which has lately gained popularity in many research areas (Kelly & Gibbons 2008), also with reference to streamlining brand strategy. The chief method employed in ethnography is participant observation; it may be extended with in-depth interviews (typically IDIs) or an analysis of documents and reports covering bonds and relations with the brand. Ethnography represents a holistic approach and has an inductive nature i.e. general rules and patterns of consumer behaviour can be identified with respect to numerous individual observations. This method allows for an in-depth analysis of buyer behaviour (Babbie 2007) and therefore it may serve as a valuable source of information in looking for consumer insight. The major benefit of ethnographic research lies in that fact that it is conducted in the re-
Karolina Janiszewska
The strategic importance of consumer insight in deÞning place brand identity and positioning.
THE RESEARCH METHODOLOGY AND FINDINGS
The research and analyses revolve around the Poznań metropolis: one of the biggest urban concentra- tions in Poland. In recent years in Poland, big cities have created common development policies and plans which concern, among other things, public transport, communal economies, social services and shared promotion. This is also the case of the city of Poznań, which, along with its neighbouring communes, is part of the Poznań Agglomeration. The city of Poznań, the Poznań District, the communes of the Poznań District (17 directly neighbouring communes) decided to establish the Poznań Agglomeration in May 2007. Initially it operated as the Agglomeration Council, a platform of cooperation between the agglomeration communes’ authorities. At a subsequent stage, three other communes (not directly attached to Poznań) joined the Council. That year, a formal body (the Poznań Metropolis Association) was established. It is worth indicating that despite work in progress, the law applying to establishment of agglomerations has not been codified. As a result, Polish cities resort to bottom-up initiatives to set up such associations while the notions of agglomeration and metropolitan area are used interchangeably. The Poznań Agglomeration is one of ten agglomerations set up in Poland since 2005. They are referred to by various names: a partnership agreement, a metropolitan area, an agglomeration, a metropolis and a metropolitan transport association. All these entities comprise of a big city (either a metropolis or some- times 2 cities as is the case of Polish associations) and the area of their impact. By definition, such areas are highly developed and enjoy high concentration of key metropolitan functions. These areas are factors trig- gering growth of production, the job market, innovations, technology as well as the social and cultural life. A new administrative unit needs to be positioned in a context of marketing activity and calls for its identity to be defined. Identification of the target groups’ consumer insight serves as a starting point in defining a place’s identity. To this end, qualitative research has been conducted in order to define brand val- ues and brand identity. Five major target groups have been identified: residents of the city, residents of the agglomeration’s communes, investors, tourists and students. At the same time it has been assumed that at the stage of shaping place brand identity, the priority target groups include residents of the Poznań city and residents of the agglomeration’s communes as these groups’ identities and involvement create a place’s image with reference to the remaining target groups. As part of the priority groups, the 2013 Individual Depth Interview (IDI) was conducted in September (12 interviews in each group) coupled with ethnographic research: the respondents were accompanied in their daily activities while they expressed their attitudes and opinions about daily life in the Poznań metropolis (3 ethnographic surveys in each group). The interviews and the ethnographic research in the groups of residents of the Poznań city and residents of the agglomeration’s communes indicate a relatively strong awareness of the interdependence and benefits resulting from operating as part of a larger entity (an agglomeration). Respondents in both priority groups definitely indicated problems related to the agglomeration’s integration as a homogenous entity. These prob- lems pertained primarily to communication and transport. A need was also voiced to enhance access to in- formation about the city’s offer and, most importantly, the offer of the agglomeration’s communes. Residents of Poznań city are especially expectant of ready-made, comprehensive suburban products created for them. Most frequently, residents of Poznań city indicated the recreational potential of the agglomeration’s communes. Another indication pertained to lower accommodation costs which are of key importance to young people. Costs were topped with higher life quality resulting from more exposure to nature and pace of life slower than in the city. Single respondents put forward arguments related to opportunities of business growth accompanied by identification of its limitations within a city. On the other hand, residents of the agglomeration’s communes definitely emphasized the benefits of living in the vicinity of a large city. They appreciate satisfaction with their lives; inhabitants of the agglom-
Journal of International Studies Vol. 6, No.2, 2013
eration’s communes tend to say that “returning home from the city is like coming to another world”, “a weekend is like a short holiday”. At the same time, they indicate the city’s potential in the realm of educa- tion (most respondents drive their children to schools in the city) and the shopping offer (“we always do big shopping in Poznań as the choice is better there”). The respondents also indicated the benefits of access to cultural offers (cinemas, theatres, music halls, concerts). However, this benefit is in the category of potential opportunities only. In-depth questions about the respondents’ actual attendance in cultural activities indi- cated that they chose to take advantage of them less frequently than twice a year. With reference to the results of the research, universal consumer insight has been established for each group. Presentation of the insights in the form of quotations allows for a better and more empathic understanding of the target groups’ needs, values and feelings (Table 1).
Table 1 Examples of stakeholders’ insights into the Poznań agglomeration based on research findings (IDI and ethnographic research). Residents of the city Residents of the agglomeration’s communes I appreciate living in a big city but I am aware that the qual- ity of my life depends also on the potential and opportuni- ties offered by the surrounding communes: recreation areas, business opportunities, accommodation – the price and quality ratio etc. For me to fully make use of the place’s beneÞts, I would like to have access to information about the local attractions and modes of spending free time. However, the offer itself is not enough; I would like the idea to be well thought and holistic so that I don’t need to worry about anything. The most important thing is enhancement of trafÞc condi- tions to eliminate trafÞc jams.
I live a quiet life in a small commune but I am aware that the proximity and the potential of a big city improves the quality of my life: the cultural and educational offers, business standards, the shopping offer. PoznaĔ offers more jobs and better wages. I always shop in PoznaĔ. I don’t mean daily shopping but planned shopping; the choice is bigger and the shopping conditions are better. What I dislike most is commuting with trafÞc jams. This is the worst moment; but when I get home I feel that the entire pressure is gone. A weekend spent at home out of the city is like a short holiday.
CONCLUSIONS: APPLYING THE CONCEPT OF CONSUMER
INSIGHT IN THE PLACE BRAND AREA
In order to adapt this concept to place branding, we need to redefine the terms. In the context of ad- ministrative units, consumers are replaced with various groups of brand stakeholders. It is therefore justified to replace the notion of “consumer insight” with “stakeholder insight”. Moreover, by definition administrative units operate simultaneously with numerous target groups in mind. This aspect largely determines the definition of brand identity and positioning in order to reflect vari- ous stakeholders’ needs and expectations. The number and complexity of insights depends on identifying target groups relevant to an administrative unit. It is assumed that the more extended the unit, the more groups of stakeholders interested in the unit’s offer. The groups can be arranged in a hierarchy with respect to their importance, highlighting primary groups (of biggest importance) and secondary groups (of secondary importance). This hierarchy may change as the strategic goals change. In the case of a place brand, opinions of the target groups’ representatives which are at the same time the consumer insight tend to be more extended. This results from the complex nature of the brand perceived and experienced on many levels with various points of reference included. At the same time, roles tend to overlap within the target groups. This means that an inhabitant may be an investor and a businessman at the
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prove especially useful. The same principle applies to in-depth qualitative studies exploring the target groups’ lifestyles and referring to the brand experience. Ethnographic methods applied in anthropology seem to be a particularly valuable source of information for administrative units. Research into brand identity and positioning based on the results of surveys conducted on the target groups makes the concept of place brand more credible and therefore has a bigger potential in creating brand equity. At the same time, research- ers indicate the limitations accompanying this concept stemming from the large number and diversity of place brand’s target groups. The research methods presented in this article can be used; however, full-scale application thereof with reference to a wide spectrum of target groups necessitates considerable financial in- vestment. Moreover, while designing research and analysing its results involves experience and competence, administrative units have not developed yet the right skills in implementing the place brand concept which is not applied on a large scale. These limitations can be overcome by resorting to a hierarchy of target groups. Undoubtedly, the concept of stakeholder insight deserves attention in the context of a global, competitive and changeable environment as the basis for establishing place brand identity and positioning. Profound knowledge of the target groups results in a better understanding of them and more complete satisfaction of their needs resulting from deeply-rooted motivation which in turn enhances the competitive position.
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