August 29, 2011

What is Nation Branding?




Canada, South Korea and Tanzania all walk into a marketing agency…no this isn’t a bad joke. It’s nation branding. While candy bars, soft drinks and sneakers are brands commonly seen advertised, countries are now branding themselves like products on a shelf.

Nation branding is a practice which aims to measure, build and manage the reputation of countries. In the late 1990s Simon Anholt, a pioneer in the field, first argued that places and nations themselves are brands.

When you buy a Kate Spade purse you’re not just buying a handbag. You’re buying an experience, recognition and all of the associations that come with the Kate Spade name. According to Anholt’s research, nation branding works the same way.

For example, if deciding between a product made in Mexico and a product made in Japan, which would you choose and why? Countries have reputations. The way a country is perceived globally impacts much more than your next vacation. It can significantly impact varying aspects of a country’s economic landscape.

While nations have had reputations for centuries those reputations become increasingly important in our global marketplace and nations are trying to control them more than ever.

So just how do you brand a nation? Some tourism boards air commercials, while others develop catchy slogans.  But nation branding is so much more than an advertisement. It means consistent policies and making sure that government agencies are in alignment and really living the brand.

Like any other type of branding, nation branding can swing two ways: Positive brands can stick for a long time, but once a country is “branded” negatively it can be very difficult to undo the damage.  Unlike a consumer product, a damaged Nation brand could have a much more severe consequence than lagging 4th quarter sales.

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