Competitors include other regions and countries. A nation that is committed to developing proactive branding runs the risk of being positioned anywise by its competitors, making it increasingly difficult to control its economic future Gilmore, Spain is an example of a country that successfully underwent this repositioning process Gilmore, However, it should be highlighted that the change that occurred in Spain with regard to its national image is the result of fundamental changes in its political, economic and social system that occurred over a period of twenty years, and not only the result of branding campaigns Fan, This means that branding is a powerful tool, but if a country cannot change its social, economic and political bases, as well as its strategy, branding actions will not work, especially those linked to publicizing and divulging the country at the international level.
Therefore, countries must understand that branding involves a long-term commitment Dinnie, Finally, considering the three elements of country branding, it can be seen that the positioning of a country functions as an element that connects country-brand identity and its image, a view similar to that of Pike Furthermore, by revisiting and furthering discussions on this topic, it is possible to reflect on these relationships and the way in which country branding encompasses these elements, as shown in Figure 2 :.
Figure 2 shows that country brand identity is the desired image of a country and its brand. In other words, it is the image that branding managers wish to create in the minds of international consumers. It is the basis for positioning, as it seeks to differentiate the country from its competitors and create meaning in the mind of consumers.
Identity is the essence of the nation, that which makes it unique: its history, people, sports and culture. The result of this positioning, and how these elements are perceived by consumers, shapes their associations and images of the country, which may often be based on stereotypes.
This country image may prove to be a helpful tool when it comes to country branding, generating value for the country brand and the country-of-origin effect, as seen above.
Furthermore, it can be said that country branding ranges from creation and planning to the communication of the country brand. This creation and planning include knowledge of the country brand identity and its elements, which in turn are analyzed to trace the positioning of the country brand. Having defined the positioning, the country brand managers communicate the positive and relative points of the country through branding actions. From this communication, international consumers form the country image.
In a competitive and dynamic international scenario, countries are increasingly seen and acting as brands. Thus, this study presented, through a theoretical review, the main concepts related to country brand and its management, seeking to differentiate it from country image and country-of-origin effect. It also sought to describe this brand management in detail, exploring its main differences in relation to the product and service brand management, its fundamental goals and main elements.
First, the country brand concept was shown to be related to, but different from, the concepts of country image and country-of-origin effect. Country image is part of a perceptual process. It is how consumers perceive the country and its characteristics, acting as a tool to increase the power of the country brand.
Meanwhile, the countryof-origin effect occurs when consumers incorporate a stimulus of the country which may be derived from its country brand or image as a criterion in their attitudes to the products and services supplied by that country. The managerial process of a country brand is called country branding. It ranges from the creation to the international communication of the country and its brand and its fundamental purpose is to attract tourists, stimulate investments, increase exports and attract talent.
However, it is much more complex than product and service branding, as it involves more stakeholders governments, industrial groups, companies , more target audiences tourists, investors, possible residents , and is derived from several theoretical disciplines, such as political geography, international relations and marketing.
It is also necessary to consider three fundamental inter-related elements: country brand identity, country image and the positioning of the country and its brand. The first is the essence of the nation, the image that the country desires to form in the mind of its consumers.
It is based on culture, history and people, and is the basis for the positioning of the country in the international scenario. Positioning uses elements of identity logo, slogan and name as well as communication tools to differentiate the country from its competitors and create meaning in the mind of international consumers.
As these elements, which reveal characteristics of the country, are perceived by international consumers, they constitute the country image. Thus, it was possible to understand and clarify core concepts associated with country brand and its management, illustrating its complexity. Important information was also obtained for country brand managers to aid the construction of this brand, which is an ongoing process.
Future studies can use these clearer definitions to measure country image, country brand and countryof-origin effect more accurately. Another aspect highlighted in this study is the goals of country branding, which can be used to bridge another theoretical gap in future research, namely how to develop a competitive country brand to achieve these important and complex goals. Thus, new works could investigate the creation and construction of country brands, with in-depth case studies, conducting interviews with the people in charge of managing these brands to gain a better understanding of the process, its advantages and disadvantages and its stages in order to map its competitive differential.
Another approach would be to measure the country-of-origin effect accurately, based on the concept presented here to gauge how country brand and country branding can influence the behavior of international consumers, i. Building strong brands. New York: The Free Press. Construindo marcas fortes. Porto Alegre: Bookman. Journal of International Management, 16 1 , p.
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The same basic principle applies to countries. The market capitalization of many companies often puts a value on their brands which is many times greater than their tangible assets. If it were possible to measure the brand value of countries, it would probably exceed their physical resources by an equally large factor. The idea of country of origin COO effect — the power of an explicit or implicit Geographical Indication to add appeal to products and services, to create a price premium for them, and to stimulate customer loyalty towards them — is well known.
Exports - In developing countries, products and services are all too often exported as unbranded commodities. This represents a failure to capitalize on the significant potential for enhanced market value through the IP of brand.
A powerful, distinctive, broad-based and appealing national brand is the most valuable gift a government can give to its exporters. Today, branded exports are one of the most potent ways of building and sustaining national image.
Governance - Places are also judged by the part their leaders play in foreign and domestic affairs. The brand image of good governance seems to exist independently of any detailed knowledge about it.
People - When each ordinary citizen — not just diplomats, media stars and politicians — becomes a passionate ambassador for his or her home country or city, positive change can really happen. Investment and Immigration - Many of the best examples of rapid growth during the last century occurred because certain places became magnets for talent, investment and business ventures.
A reputation for plentiful intellectual capital invariably attracts more of the same, creating a virtual circle of accelerating quality and innovation. A powerful and consistent place brand can help get places on the right shortlists. Places which treat growth as a purely economic issue run the risk of developing a two-dimensional brand image, of interest only to investors, tax exiles and currency speculators.
Culture, heritage and sport provide the third dimension, giving places richness, dignity, trust and respect abroad, and quality of life at home.
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