Nation Branding

Concepts, Issues, Practice

Keith Dinnie

• Publisher: Routledge
• Year: 2022
• ISBN:
  9781000564495
• Edition: 3
• Topic: Business
• Subtopic: Business General
• Index: Business

Nation Branding: Concepts, Issues, Practice provides a theoretical framework, alongside insightful examples from the practice of nation banding, in which the principles of brand strategy and management are applied to countries globally. This new edition has been comprehensively updated and its influential original framework modified to reflect the very latest changes in the field. It remains an accessible blend of theory and practice rich with international examples and contributions.

Updates to this edition:

• New Academic Perspectives and Practitioner Insights in each chapter
• Updated and new cases from a broad range of nations and cultures
• Fresh coverage of online branding and social media
• New material covering the critical and ethical issues of nation branding, including the limitations
• Updated references and sources
• Updated online resources, including PowerPoint slides and Instructor Manual with end-of-chapter discussion points and suggested answers

This is an essential introduction to nation branding for students of Marketing, Brand Management, Communications, and Public and International Relations, as well as policy makers looking for a rigorous yet applied approach.

Part 1
Scope and scale of nation branding

1 The relevance, scope and evolution of nation branding

DOI: 10.4324/9781003100249-2

Key points

• Nations are making increasing efforts to hone their country branding in recognition of the need to fulfil nationally important trade, investment and tourism objectives
• Research in the fields of national identity and country of origin contribute to our understanding of the evolution of nation branding
• The branding of nations, and other places such as cities and regions, is more complex and multidimensional than the branding of a physical product or of a corporation owing to factors such as the multitude of stakeholders and the infinite range of brand touchpoints associated with the branding of places

Introduction

Nation branding is a complex phenomenon. Its complexity is reflected in the many disciplines that now feature research into the theory and practice of nation branding. As a formal discipline, nation branding is still relatively young (Koh, 2021) and new conceptual models are still being developed (Steenkamp, 2021; Torelli, 2021). Whilst the majority of studies into nation branding are rooted in the marketing and branding literature (Freire, 2021; Hao et al., 2021; Kaefer, 2021; Zeineddine, 2017), increasing attention is being paid to the phenomenon in other fields such as management (Yalkin, 2018), history (Gienow-Hecht, 2019; Viktorin et al., 2018), cultural studies (Cormack, 2008; Kaneva, 2018), media studies (Christensen, 2013; Miazhevich, 2018), public relations (Rasmussen and Merkelsen, 2012), public administration (Eshuis et al., 2013), political geography (Hymans, 2010) and postcolonial studies (Holmes and Buscaglia, 2019; Roy, 2019). Merkelsen and Rasmussen (2016) provide an institutionalist perspective on the field of nation branding. Interest in nation branding has thus spread rapidly beyond the limited realm of conventional brand strategy. The growth of interest in the field has also been accompanied by critical perspectives that challenge the practices of nation branding (Aronczyk, 2013; Browning, 2014; Kaneva, 2011, 2021).

As well as attracting increasing interest from academic researchers, in recent years nation branding has steadily gained prominence in practice as more and more countries around the world commit resources to the development of their nation brand. This chapter investigates the relevance of nation branding in terms of what value a nation brand strategy can deliver to a country, as well as tracing the evolution of nation branding and outlining the prominence which it has achieved in recent years.

The first case in this chapter focuses on public diplomacy and the United States brand. The second case discusses China’s promotional videos for national image building. In an academic perspective, Jan-Benedict E.M. Steenkamp outlines a six-step process to build strong nation brands, whilst Simon Anholt provides a practitioner insight into the creation of the Good Country Index.

Defining ‘brand’ and ‘nation brand’

Before looking in detail at the concept of treating a nation as a brand, it is worthwhile to look at some definitions of what is meant by a ‘brand’. Such definitions tend to fall into two camps. On the one hand are those definitions which focus upon the visual manifestation of a brand. On the other hand there are deeper definitions which go beyond the visual aspects of a brand and attempt to capture the essence of a brand.

Doyle (1992) defines a successful brand as having differential advantage through visible identifiers such as a name, symbol or design. A slightly richer definition of a brand, which incorporates a consumer perspective as well as a producer perspective, is given by Macrae et al. (1995), who state that a brand represents a unique combination of characteristics and added values, both functional and non-functional, which have taken on a relevant meaning that is inextricably linked to the brand, awareness of which might be conscious or intuitive. A similar perspective is taken by Lynch and de Chernatony (2004), who define brands as clusters of functional and emotional values that promise a unique and welcome experience between a buyer and a seller.

Brands do not exist in a vacuum and to be successful they must co-exist effectively with the prevailing zeitgeist. Popular culture and trends in society drive and influence strong brands (Roll, 2006). This theme is amplified and theorised by Holt (2004), who analyses how brands become icons through creative interaction with their environment in a process that he terms ‘cultural branding’, a process that he considers particularly suitable for applying to nations. A similar culturally aware vision of brands is proposed by Grant (2006), who suggests that a brand is ‘a cluster of strategic cultural ideas’. Through the foundations of their national identity, nation brands possess far richer and deeper cultural resources than any other types of brands, such as product brands or corporate brands. These cultural resources are explored in Chapter 5.

The practice of branding has been defined as the process by which companies distinguish their product offerings from those of the competition (Jobber and Fahy, 2003). In an increasingly globalised economy, the challenge of distinguishing their product offerings from those of the competition has assumed critical importance for nations competing for both domestic and foreign consumers. Keller (2012) suggests that the strategic brand management process involves the design and implementation of marketing programmes and activities to build, measure and manage brand equity. The concept of brand equity is explored in detail in Chapter 3.

A clarification regarding the role of branding is provided by de Chernatony and McDonald (2003), who warn that it is imperative to recognise that while marketers instigate the branding process (branding as an input), it is the buyer or the user who forms a mental vision of the brand (branding as an output), which may be different from the intended marketing thrust. This point is particularly relevant to the branding of nations, where pre-existing national stereotypes may be entrenched in consumers’ minds and therefore difficult to change. The notion that a brand is something that resides in the minds of consumers has been noted by Kotler and Keller (2011) and Temporal (2010). The brand-building process requires long-term commitment over a period of several years and in the short term only a small payoff may occur (Aaker and Joachimsthaler, 2009). Nations need to acknowledge this reality and adopt a long-term strategic view when building their nation brand, rather than aiming for a quick fix short-term advertising campaign whose effects may be ephemeral.

When applying the concept of a brand to nations rather than to mere products, there is an ethical obligation to do so in an honest, respectful manner and to acknowledge the limits of how appropriate it is to treat nations as brands. A nation brand should derive from the culture of the country, rather than merely taking the form of a superficial advertising logo or campaign. Nations do not belong to brand managers or corporations. Indeed, if they ‘belong’ to anyone, it is to the nation’s entire citizenry. This and other ethical considerations related to nation branding are examined in detail in Chapter 7.

In this book the nation brand is defined as the unique, multidimensional blend of elements that provide the nation with culturally grounded differentiation and relevance for all of its target audiences. This definition acknowledges the multifaceted nature of the nation brand, together with the need to integrate national identity dimensions as discussed in Chapter 5. Moreover, the proposed definition of the nation brand also recognises the contention that brands exist in consumers’ minds rather than being a controllable creation of the marketing function. The definition therefore acknowledges the importance of perceptual attributes and target markets.

Why countries engage in nation branding

The application of branding techniques and terminology to nations is a relatively new phenomenon, one which is growing in frequency given the increasingly global competition which nations now face in both their domestic and external markets. Nations are making increasingly conscious efforts to hone their country branding in recognition of the need to fulfil nationally important objectives in terms of trade, investment and tourism. A further objective for many nations is talent attraction, whereby countries compete to attract higher education students (Herrero-Crespo et al., 2016) and skilled workers. Much of nation branding strategy constitutes an effort to embrace both the past heritage and present living culture, so that outdated images do not obscure consumer perceptions from what may be vibrant modern societies. Transitional countries such as those in Central and Eastern Europe may turn to nation branding to distance their countries from the old economic and political system which existed before transition (Szondi, 2007).

The achievement of such goals requires countries to adopt conscious branding if they are to compete effectively on the global stage (Kotler and Gertner, 2002), a view also expressed by Olins (1999), who asserts that within a few years, identity management will be seen as a key way of contributing to the nation’s brand. It has also been suggested (van Ham, 2001) that the unbranded state has a difficult time attracting economic and political attention, and that image and reputation are becoming essential parts of the state’s strategic equity. A powerful and positive nation brand can provide crucial competitive advantage in today’s globalised economy. In his landmark text, The Competitive Advantage of Nations, Michael Porter (1998) emphasises that nations and national character remain of prime importance, even in the age of globalisation.

The realm of competitive advantage encompasses many sectors, including attracting tourists, investors, entrepreneurs and foreign consumers of a country’s products and services. Nation branding can also help erase misconceptions about a country and allow the country to reposition itself more favourably with regard to target audiences. For example, the development of a strong nation brand by Estonia was driven by key objectives including attracting investment, expanding the country’s tourist base beyond Sweden and Finland and broadening European markets for its exports (Interbrand, 2008).

Some central themes and issues in treating the nation as a brand are summarised in Tabl...