Nation branding: Concepts, Issues, Practice

1 Nation BrandingThis page intentionally left blankNation BrandingConcepts, Issues, PracticeKeith DinnieAmsterdam Boston Heidelberg London New York OxfordParis San Diego San francisco Singapore Sydney TokyoButterworth-Heinemann is an imprint of ElsevierButterworth-Heinemann is an imprint of ElsevierLinacre House, Jordan Hill, Oxford OX2 8DP, UK30 Corporate Drive, Suite 400, Burlington, MA 01803, USAF irst edition 2008 Copyright 2008 Elsevier Ltd. All rights reservedNo part of this publication may be reproduced, stored in a retrieval systemor transmitted in any form or by any means electronic, mechanical, photocopying,recording or otherwise without the prior written permission of the publisherPermissions may be sought directly from Elsevier s Science & Technology RightsDepartment in Oxford, UK: phone (+44) (0) 1865 843830; fax (+44) (0) 1865 853333.

2 Email: Alternatively you can submit your request online byvisiting the Elsevier web site at , and selectingObtaining permission to use Elsevier materialNoticeNo responsibility is assumed by the publisher for any injury and/or damage to personsor property as a matter of products liability, negligence or otherwise, or from any useor operation of any methods, products, instructions or ideas contained in the materialhereinBritish Library Cataloguing in Publication DataA catalogue record for this book is available from the British LibraryLibrary of Congress Cataloging-in-Publication DataA catalog record for this book is available from the Library of CongressISBN.

3 978-0-7506-8349-4 For information on all Butterworth-Heinemannpublications visit our website at and bound in Great Britain080910 10987654321 Working together to grow libraries in developing | | the authorxiiiAbout the contributorsxvPART 1 SCOPE AND SCALE OF Nation BRANDING1 Chapter 1 The relevance, scope and evolutionof Nation branding3 Country Case Insight South Africa(Yvonne Johnston)5 Introduction13 Defining brand and Nation -brand 14 Academic Perspective: Adapting brand theoryto the context of Nation branding(Leslie de Chernatony)16 Why countries engage in Nation branding17 The evolution of Nation branding20 Practitioner Insight.

4 Fromnation brandingtocompetitive identity the role of brandmanagement as a component of national policy(Simon Anholt)22 Nation -branding issues and initiatives23 Summary31 References31 Chapter 2 Nation -brand identity, image and positioning35 Country Case Insight Egypt (ZAD Group)37 Introduction41 Identity versus image41 The facets of Nation -brand identity45 Deconstructing Nation -brand image46 Conceptual model of Nation -brand identityand image49 Academic Perspective: Re-positioning Nepal inglobal public opinion and markets: Place-branding for sustainable economic development(Dipak R. Pant)50 Positioning the Nation -brand51viContentsLiberation through modularity53 Summary54 References54 Chapter 3 Nation -brand equity57 Country Case Insight Chile (Christian Felzensztein) 59 Introduction61 Alternative perspectives on brand equity62 Academic Perspective.

5 A CRM perspective onnation branding (Francis Buttle)66 Sources and dimensions of NBEQ67 Summary73 References73 PART 2 CONCEPTUAL ROOTS OF Nation BRANDING 75 Chapter 4 Nation branding and the country-of-origin effect77 Country Case Insight Switzerland(Martial Pasquier)79 Introduction84 Overview of COO research84 COO and brands85 COO and services87 COO and the product life cycle89 COO and demographics90 COO and ethnocentrism91 Practitioner Insight: Inverting the COOeffect: How Portuguese firm Ecoterra leverages country-of-sell effect (Jo ao R. Freire)91 COO and social identity93 COO and semiotic theory93 COO perceptions in flux over time94 Combating a negative COO bias96 Country Case Insight Nevis (Elsa Wilkin-Armbrister)97 Summary101 References101 Chapter 5 Nation branding and national identity105 Country Case Insight Russia (Vladimir Lebedenko) 107 Introduction111 Fundamental features of national identity112 The Nation as an imagined community116 Invented tradition117 Cultural elements of national identity118 Practitioner Insight: Sonic branding Capturingthe essence of a Nation s identity(Daniel M.)

6 Jackson)124 Attitudes and national stereotypes126 ContentsviiSummary127 References127 Chapter 6 From country-of-origin and national identity tonation branding131 Country Case Insight Brazil (Renata Sanchesand Flavia Sekles)133 Introduction136 National identity and country-of-origin: Areasof commonality136 Branding s differentiating power139 Practitioner Insight: Greek olive oil The paradoxof a product and a national icon(Anthony Gortzis)140 Nation branding conceptual framework141 Country Case Insight Germany (GianfrancoWalsh and Klaus-Peter Wiedmann)154 Summary158 References159 PART 3 ETHICAL AND PRAGMATIC ISSUESIN Nation BRANDING161 Chapter 7 Ethical imperatives in Nation branding163 Country Case Insight Bolivia (Ximena AlvarezAguirre and Ximena Siles Renjel)165 Introduction169 The legitimacy of Nation -brand management169 Practitioner Insight.

7 Smaller nations enter theglobal dialogue through Nation branding(Jack Yan)170 Identification and selection of Nation -brand values172Is brand acceptable?173 Sustainability and Nation branding173 Summary178 References179 Chapter 8 Pragmatic challenges to the Nation -brandingconcept181 Country Case Insight Iceland(Inga Hl n P alsd ottir)183 Introduction187 Who needs to be involved?187 Coordinating Nation -brand touchpoints192 Academic Perspective: Corporate branddifferentiation in the financial services industry Applying the highest central common factorconcept to Nation branding (Olutayo B. Otubanjoand Melewar)194viiiContentsNation-brand architecture197A highly politicized activity200 Country Case Insight Hungary (Gyorgy Szondi)201 Summary204 References205 PART 4 CURRENT Practice AND FUTUREHORIZONS FOR Nation BRANDING207 Chapter 9 Elements of Nation -branding strategy209 Country Case Insight Japan (Satoshi Akutsu)

8 211 Introduction219 Principles of strategy220 Nation -brand advertising224 Customer and citizen relationship management227 Nation -brand ambassadors227 Diaspora mobilization228 Nation days229 The naming of Nation -brands229 Nation -brand tracking studies230 Country Case Insight Estonia (Interbrand)230 Summary235 References235 Chapter 10 Future horizons for Nation branding237 Country Case Insight France (Philippe Favre)239 Introduction242A shift away from anglocentric paradigms242 Improved coordination of Nation -branding strategy 243 Growing adoption of brand management techniques 243 Practitioner Insight: The coming crisis in thegeography-chained market of nations(Chris Macrae)245 Online Nation branding246 Increasing impact of consumer-generated media247 Internal Nation branding248 Sonic Nation branding248 Academic Perspective: True North (Stephen Brown) 249An alternative lexicon for Nation branding?

9 251 Soft power and public diplomacy251 Nation branding as a driver of sustainabledevelopment and competitive book has been written to make a contribution to the small but rapidlygrowing literature on Nation branding. It is designed to show not onlythe ways in which conventional brand management techniques can beapplied to nations but also to provide some background depth on thecontext and nature of Nation branding. Therefore, the scope of the bookencompasses wider issues related to national identity, sustainable devel-opment and political awareness, in addition to the more familiar brandingthemes of brand identity, brand image, brand positioning, brand equityand so on.

10 This approach is intended to ensure that the theory and prac-tice of Nation branding is covered in a rich, multi-dimensional book is written for a number of audiences, each of whom willcome to the field of Nation branding with their own specific interests andagenda: MBA, Masters and upper level undergraduate students studyingmarketing, branding, international business, public diplomacy andtourism Government and policy-makers worldwide, particularly in economicdevelopment agencies, export promotion agencies and tourismorganizations Individuals with an interest in how their country is perceived andthe ways in which their country is (or is not) attempting to enhanceits reputationA key feature of the book is the provision of multiple perspectives onnation branding through the inclusion of over 20 contributions from awide range of academics and practitioners.