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Designing value propositions in branding a rural community

Nieminen Lenita; Lemmetyinen Arja; Go Frank M.

dc.contributor.authorNieminen Lenita
dc.contributor.authorLemmetyinen Arja
dc.contributor.authorGo Frank M.
dc.date.accessioned2022-10-28T14:19:52Z
dc.date.available2022-10-28T14:19:52Z
dc.identifier.urihttps://www.utupub.fi/handle/10024/170731
dc.description.abstract<p> The purpose of this paper is to examine the power of symbols and communication in<br /> contemporary society within the European context to establish branding as a new resource for<br /> community development and the building of public-private coalitions that further community<br /> goals. The research builds on social system theory (Luhmann&rsquo;s theory, 1986) and adopts<br /> discourse analysis (Mabey and Freeman (2012) as an informed method for examining<br /> leadership in place branding. A fundamental dilemma in designing value propositions to meet<br /> place-branding objectives is, in a nutshell, variety versus specificity. The visionary Steve<br /> Jobs claimed that the &lsquo;biggest innovations in the 21st century would be at the intersection of<br /> biology and technology&rsquo; (cited in Myers, 2012). From this perspective, rural nature will<br /> complement scientific bio design, thereby allowing communities to build a strategy that<br /> addresses the need for specificity and contributes to achieving the aim of rural sustainable<br /> development. Three research questions are addressed. What should the community brand<br /> represent? How should the represented brand be marketed so as to give decision makers a<br /> perspective from which to tackle the branding dilemma between variety and specificity?<br /> What new brand values, architecture and incentive systems should be implemented for<br /> capturing possibilities and, simultaneously, fending off attacks on the core community brand,<br /> including anti-brand sentiments?<br /> Theoretical background<br /> It is not only an organization&rsquo;s internal logic, but also and especially its collaboration with a<br /> variety of societal stakeholders that have assumed increasing importance as a mechanism for<br /> developing a reputable brand. The branding process is evolutionary (Lemmetyinen &amp; Go<br /> 2010) and serves to enhance corporate brand equity, defined as &ldquo;the set of brand assets and<br /> liabilities linked to a brand, its name, symbol, that adds to or subtracts from the value<br /> provided by a product or service to a firm and/or to a firm&rsquo;s customers&rdquo; (Aaker 1991, p. 15).<br /> Brand equity is typically measured on several dimensions. These include, first, brand loyalty<br /> or the ability of the brand to differentiate itself (variety) so as to attract and retain a high<br /> 47<br /> percentage of dedicated customers. Second, name awareness is likely to attract more people<br /> to a place than if the location is obscure and unheard of. Third, perceived quality places the<br /> brand in a certain way in the customer&rsquo;s mind (specificity), which persuades him or her of its<br /> superior strength in comparison to rival brands. Brand strength, in turn, is nurtured by<br /> attribute associations, which are understood to determine the direction of &ldquo;added value&rdquo;<br /> (Riezebos 1994). Companies render goods and services with an aura of spectacle, beauty or<br /> authenticity by drawing on the context specificity of places, such as their landscape, heritage,<br /> climate, local competences and technologies. In this way their immaterial, symbolic cultural<br /> signifiers are imbued with economic value: surviving buildings, relics, memories and place<br /> associations are preserved and presented as tourist attractions and promising investment<br /> objects. As a consequence, such centers no longer function solely as places of consumption<br /> but are, in turn, consumed (Urry 1995). The commodification of places exemplifies an<br /> extreme of the &ldquo;density principle&rdquo; or the degree to which the mobilization of resources occurs<br /> in a particular situation &ndash; &ldquo;e.g. for a customer at a given time in a given place &ndash; independent<br /> of location, to create the optimum value/cost result&rdquo; (Normann 2001, p. 27). On the<br /> conceptual level there are three overlapping paradigms. The first is the discourse of global<br /> business, which through physical and virtual interactions contributes to the transformation of<br /> the reputational landscape of place brands. Second are the place-branding debates on the<br /> potential impact of the twin forces of globalization, , mediated technologies, on actors,<br /> varying significantly in geography and between criticaster and scientist. Third are the social<br /> systems, which according to Luhmann (1986) reproduce interdependent communications and<br /> relationships among rural stakeholders and with their counterparts at the national, provincial,<br /> and local level. In line with Luhmann&rsquo;s theory we argue that a branding system could be<br /> interpreted as a specific type of rural social system.<br /> Methodology<br /> Our aim in this research is to explore how the building of an umbrella place brand based on<br /> trustworthy relationships helped to satisfy the full range of a community&rsquo;s needs, including<br /> living, working, conducting business and welcoming visitors. We distinguish three analytical<br /> perspectives on questions of marketing management, the &ldquo;outside-in&rdquo;, the &ldquo;inside-out&rdquo;, and<br /> the inside-in&rdquo;. The &ldquo;first two shed light on the dynamism stemming from the interfacing of<br /> heritage and open-world narratives enacted by stakeholders in a variety of roles, often with<br /> conflicting interests and agendas.<br /> We conducted a case study in a rural area in Finland and observed the process of building a<br /> brand identity. The informants represent different business sectors. As part of the community<br /> they are more or less consciously building a joint brand identity. Qualitative methodology in<br /> the form of interviews was used for collecting the empirical data, the aim being to define the<br /> critical phases in the process. The analysis is based on multiple, &ldquo;outside-in&rdquo;, &ldquo;inside-out&rdquo;<br /> and &ldquo;inside-in&rdquo; perspectives, the aim being specifically to determine whether the impact of<br /> cultural heritage could be characterized as a relevant association in branding (rural)<br /> communities.<br /> Findings<br /> A multilevel reflexive analysis of how the cultural heritage of a place could add value to its<br /> brand equity helps communities to set a common vision for the brand-building process. The<br /> preliminary analysis from each of the perspectives shows that as regards the outside-in view<br /> the potential visitors do not see a joint brand promise that covers all the service providers in<br /> the area. The service offerings have not been developed into product and service concepts<br /> targeted at potential visitors, such as culture tourists and families. From the inside-out<br /> perspective it is evident that only a few of the service providers are committed to keeping the<br /> 48<br /> joint brand promise with their respective stakeholder networks. Finally, from the inside-in<br /> perspective it seems that the values of the brand should be strengthened and supported by the<br /> appropriate brand architecture.<br /> Discussion<br /> Early-awareness models are inadequate because they respond to attacks and opportunities<br /> with rather static, narrow and generalized assessments. Given the growing emphasis on<br /> interaction and collaborative learning about place branding across conventional, professional,<br /> and territorial boundaries, it is relevant to enter into a dialogic discourse. This would<br /> facilitate examination of the underlying assumptions and the arrival at different<br /> interpretations of how a given place is being branded and led. The perspective in this study is<br /> multilayered, and focuses in particular on 1) interaction with informants (vs. inside-in), 2)<br /> interpretation of stakeholders&rsquo; views (vs. inside-out), and 3) critical interpretation of the<br /> &lsquo;outsiders&rsquo; = students, press (vs. outside-in). Alvesson and Sk&ouml;ldberg add a fourth layer<br /> addressing the notions of self-criticism and selectivity. This stands in contrast to the<br /> corporate-brand narrative theorized in the unilateral consumer culture granting marketers<br /> cultural authority, which simultaneously undermines its transparency, authenticity and<br /> distinctiveness consequent to its intrinsic contradictions. Hakala, Lemmetyinen and Kantola<br /> (2013), for example, analyzed Finland&rsquo;s image as a nation-branding tool from the &ldquo;outsidein&rdquo;<br /> perspective. On the other hand, the &ldquo;inside- out&rdquo; and &ldquo;inside-in&rdquo; perspectives concentrate<br /> on the question of whether brand strategies either independently within an organization or in<br /> a network configuration based on a logic embedded in electronic systems provide a structure<br /> for linking global supply chains to specialized regional economic clusters. They also focus on<br /> the extent to which such an organizational design will create a competitive space of global<br /> proportions that allows flexibility, responsiveness and capability, rendering an independent<br /> organizational scenario hardly sustainable. Such fundamental restructuring shapes a whole<br /> new order of business. It also raises questions concerning process functions with reference to<br /> managerial roles and styles, decision models, and determining the organization&rsquo;s key set of<br /> core competences. Typically, big internal restructuring operations are followed by refocused<br /> outsourcing strategies, coupled with internationalization strategies and new forms of<br /> interrelationships in the hierarchy between mission and objective setting, and inputs from<br /> stakeholders with regard to operating procedures and corporate culture. From an external<br /> analytical perspective, the restructuring of internal processes in large organizations<br /> increasingly implies that vendors are reinventing themselves as brand-management<br /> corporations. An outsourcing strategy permits the development and conveyance of images<br /> and sensory experiences aimed at shifting the attention of consumers from the material space<br /> of goods and products to the projection of continuously alternating images. Furthermore, an<br /> experiential marketing strategy serves as a substitute for the former and allows corporations<br /> to operate flexibly under a standard umbrella brand with the aid of alternating themes (e.g.,<br /> trust, quality of life, and transparency). Such immaterial adaptations can be incorporated<br /> much faster and more flawlessly than would be the case in adapting physical products<br /> (Harvey 1989; Lash &amp; Urry 1994) to changes in the market environment., Given their<br /> intangible rather than tangible attributes, media publicity and word of mouth are key<br /> instruments with which to market products within this place-branding framework .<br /> Theoretical Implications<br /> Discourses are not intended to be theoretically watertight boxes. Instead, their permeability<br /> allows for more imaginativeness about the way they flow into each other. Our study findings<br /> contribute to the theoretical discussion on leadership in the research domain of place<br /> branding. The evidence gathered also enhances understanding of how the process of building<br /> 49<br /> a brand identity is connected to the community&rsquo;s attachment to the cultural heritage of a<br /> place. Our justification for using a multi-authored discourse approach is that it offers a more<br /> holistic view of marketing. In terms of managerial implications, the impact of Web 2.0<br /> technologies and the diffusion of social media are relevant because they lead to dynamic<br /> interactions among possibly geographically distant stakeholders, thereby enabling<br /> technology-mediated interactions of global proportions.<br /> Limitations<br /> Frequently mentioned limitations of a case study include the issues of reliability, validity, and<br /> generalizability. We discuss these issues thoroughly in the full paper (cf. Gobo, 2004).<br /> Originality/Value<br /> This study allows for the positioning of brands as a component of a social system designed to<br /> overcome provocations and present opportunities that leverage the potential of people as<br /> citizens, consumers, workers, artists and co-producers of brands.<br /> Key words<br /> value propositions, community, rural, place branding<br /> References<br /> Aaker, DA 1991, Managing Brand Equity: Capitalizing on the Value of a Brand. The Free<br /> Press, New York.<br /> Alvesson, M. &amp; Sk&ouml;ldberg, K. 2008, Tolkning och reflektion. Vetenskapsfilosofi och<br /> kvalitativ metod. Student litteratur, Denmark.<br /> Gobo, G. 2004, Sampling, representativeness and generalizability. In: C. Seale, G. Gobo, J.F.<br /> Gubrium, &amp; D. Silverman (Eds.) Qualitative research practice, pp. 435-456. Sage, London.<br /> Hakala, U., Lemmetyinen, A. &amp; Kantola, S-P 2013, &lsquo;Country image as a nation branding<br /> tool&rsquo;, Marketing Intelligence and Planning, vol. 31, no.5, pp. 538-556.<br /> Harvey, D 1989, The Condition of Post modernity, Blackwell, Cambridge.<br /> Lash, S &amp; Urry, J 1994, Economies of Signs and Space. TCS/Sage, London.<br /> Lemmetyinen, A &amp; Go, FM 2010, &lsquo;Building a brand identity in a network of Cruise Baltic&rsquo;s<br /> destinations. A multi-authoring approach&rsquo;, Journal of Brand Management, vol. 17, no. 7, pp.<br /> 504-518.<br /> Lemmetyinen, A, Go, FM &amp; Luonila, M 2013, &lsquo;The relevance of cultural production &ndash; Pori<br /> Jazz &ndash; in boosting place brand equity&rsquo;, Place Branding and Public Diplomacy, vol. 9, no. 3,<br /> pp. 164-181.<br /> Luhmann, N 1986, &lsquo;The Autopoiesis of Social Systems&rsquo;. In: F. Geyer &amp; J. Van d. Zeuwen<br /> (Eds.) Sociocybernetic Paradoxes: Observation, Control and Evolution of Self-Steering<br /> Systems, pp. 172-92. Sage, London.<br /> Mabey, C &amp; Freeman, T 2012, &lsquo;Four Readings of Place and Brand Leadership&rsquo;. In: F.M. Go<br /> &amp; R. Govers (Eds.) International Place Branding Yearbook Managing Smart Growth and<br /> Sustainability, pp. 33-44. Palgrave MacMillan, Basingstoke.<br /> Maturana, H &amp; Varela, F 1980, &lsquo;Autopoiesis and Cognition: The Realization of the Living&rsquo;.<br /> Reidel: Dordrecht.<br /> Myers, W 2012, &lsquo;Bio Design Nature, Science creativity&rsquo;. Thames &amp; Hudson, London.<br /> Normann, R 2001, &lsquo;Reframing Business: When the Map Changes the Landscape&rsquo;. John<br /> Wiley &amp; Sons, West Sussex, UK.<br /> Urry, J 1995, &lsquo;Consuming places&rsquo;. Routledge, London and New York.</p>
dc.language.isoen
dc.titleDesigning value propositions in branding a rural community
dc.identifier.urlhttp://www.utu.fi/en/units/tse/sites/10thglobalbrandconference/Documents/extended-revised-abstracts.pdf
dc.identifier.urnURN:NBN:fi-fe2021042715202
dc.contributor.organizationfi=Porin hankerahoitus|en=Porin hankerahoitus|
dc.contributor.organizationfi=Porin tutkintokoulutus|en=Porin tutkintokoulutus|
dc.contributor.organization-code2608800
dc.contributor.organization-code2608802
dc.converis.publication-id3469520
dc.converis.urlhttps://research.utu.fi/converis/portal/Publication/3469520
dc.okm.affiliatedauthorNieminen, Lenita
dc.okm.affiliatedauthorLemmetyinen, Arja
dc.okm.discipline512 Business and managementen_GB
dc.okm.discipline512 Liiketaloustiedefi_FI
dc.okm.internationalcopublicationinternational co-publication
dc.okm.internationalityDomestic publication
dc.okm.typeO2 Other
dc.relation.conferenceGlobal Brand Conference
dc.title.book10th Global Brand Conference of the AM's Brand, Corporate Identityand Reputation SIG
dc.year.issued2015


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