Tampere - All Bright! Ambassador network – an international place branding tool Mari Taverne Master’s thesis November 2015 Degree programme of Inter- national Project Management ABSTRACT Tampereen ammattikorkeakoulu Tampere University of Applied Sciences Degree programme of International Project Management MARI TAVERNE Tampere - All Bright! Ambassador network - an international place branding tool Master's thesis 102 pages, appendices 6 pages November 2015 Place branding has become an essential part of regional development strategies and it has been recognized to be a significant part of different international marketing activities of a city or a region. The international marketing activities have been concentrated in invest- ment promotion as well as tourism attraction. In recent years, talent attraction has devel- oped to be a more and more important part of the international marketing strategy of a city and therefore it has influenced the development of new and non-traditional marketing tools and methods. Place branding is no more leaning on traditional marketing but it has introduced the importance of connections and networks as modern marketing methods. Word-of-mouth and relational branding are new phenomenon which could be utilized as a branding tools even to a greater extent. An ambassador of a place gives a face and new a channel for place branding tool box as well as it can be converted to become a regional development tool as well. The objective of this thesis is to define the most important motivational factors that influ- ence potential ambassadors to join the case company’s ambassador network and which are the motives that influence the ambassadors in long term to promote the city region on their own channels and networks. This thesis will provide a clear framework of the moti- vational factors which can be utilized in strategic planning of an ambassador network in place branding context. In addition to the motivation framework the outcomes of this thesis are the suggestions for the Tampere – All Bright! Ambassador network for its future development process. This study was conducted by using qualitative research and bench- marking methods. The theoretical part of this thesis consists theories of branding, place branding, network management, social capital and human motivators. These theories are combined to estab- lish a theoretical framework for this study and to provide the possibility for the researcher to analyse the ambassador networks from human perspective as well as from modern marketing perspective. The theoretical part consists of confidential information of a re- search for the commissioner and information of a development project which results are partly used in this study. With the help of this study, the commissioner has the possibility to develop the Tampere – All Bright! Ambassador network as a long term place branding, international marketing and a regional development tool. Key words: Place branding, Ambassador networks, International marketing, Market- ing, Networks 3 CONTENTS 1 INTRODUCTION ............................................................................................. 5 1.1 Background of the thesis ............................................................................ 6 1.2 Purpose and objectives of the study ........................................................... 7 1.3 Definitions of key terms ............................................................................ 9 1.4 The research problem / question .............................................................. 12 1.5 Limitations and structure ......................................................................... 13 2 THEORETICAL FRAMEWORK .................................................................. 15 2.1 Branding ................................................................................................... 15 2.2 Place branding .......................................................................................... 17 2.2.1 The need for place branding and international awareness ............ 19 2.2.2 An international overview of the Tampere region ........................ 19 2.2.3 Global competitiveness approach to place branding ..................... 27 2.3 Social networks in international context .................................................. 29 2.3.1 Networks as a gateway for international marketing of the place .. 30 2.3.2 Testimonials as a powerful marketing method ............................. 31 2.4 Framework of network management ....................................................... 32 2.4.1 Finding the right target group and strategic network planning ..... 34 2.4.2 Social groups, relationships and interactions ................................ 36 2.4.3 The influence of social capital in economic growth ..................... 38 2.4.4 The concept of network management in ambassador networks.... 40 2.5 Approach to human motivation factors in networking context ............... 41 2.5.1 Maslow’s theory ............................................................................ 44 2.5.2 Intrinsic motivators ....................................................................... 46 2.5.3 Extrinsic motivators and rewarding .............................................. 47 2.5.4 Approach to the key factors that motivate ambassadors ............... 49 2.5.5 The emotional and cultural perspective ........................................ 52 3 RESEARCH METHODOLOGY .................................................................... 55 3.1 Chosen data collecting methods .............................................................. 57 3.1.1 Qualitative methodology ............................................................... 59 3.1.2 Questionnaires and benchmarking as data collecting methods ..... 60 3.2 Chosen data analysing methods ............................................................... 61 3.3 Validity and reliability ............................................................................. 62 4 RESEARCH RESULTS AND ANALYSIS OF AMBASSADORS’ MOTIVATION FACTORS ............................................................................ 65 4.1 Respondent’s profiles and backgrounds .................................................. 66 4.1.1 Other networks, social media and communication channels ........ 71 4 4.2 The expectations and objectives of the ambassadors ............................... 73 4.2.1 Ambassadors’ expectations towards the network ......................... 74 4.2.2 Key network activities in long term .............................................. 77 4.2.3 The goals and benefits of the ambassadors ................................... 79 4.3 Benchmarking cases ................................................................................ 82 4.3.1 OnlyLyon ambassador network from France ................................ 82 4.3.2 The Youth Goodwill Ambassador programme of Denmark ......... 85 4.4 Ambassadors’ motivational framework ................................................... 88 4.5 Comparison to previous studies ............................................................... 91 5 SUMMARY AND CONCLUSIONS .............................................................. 93 5.1 Summary of the study .............................................................................. 93 5.2 Conclusions .............................................................................................. 94 5.3 Suggestions for future research ................................................................ 96 REFERENCES ...................................................................................................... 97 APPENDICES .................................................................................................... 102 Appendix 1. Survey’s cover letter ................................................................. 102 Appendix 2. Survey questionnaire ................................................................ 103 Appendix 3. Additional survey’s cover letter and questions ......................... 107 Appendix 4. The questions for the benchmarking cases. .............................. 108 5 1 INTRODUCTION Building the attractiveness of a city and especially strategic building of a city brand has increasingly augmented its value among the marketing departments of cities and regions. Branding has generally been considered particularly a marketing concept in the business world. At present, city regions all over developing countries try to lift their profiles inter- nationally in order to become more attractive among international investors, tourists and even professional talents. Tightened economic competition between cities has forced the city regions to profile themselves to differ from others and to think about new ways of international marketing. City branding is here to stay and global competition between countries has changed marketing strategies for good. Countries have to think about how to succeed and prosper on global battlefield so that their business environments and tour- ism attractions are seen as the most attractive ones. Simon Anholt states that brand value is part of the very foundations of competitiveness in free marketplace, and slight variations are to be found in education, in politics, in in- dustry, in labour market and throughout the public sector. Anholt also suggests that brand- ing is a tool for commercial, cultural and economic development. (Anholt 2005, ix) Country branding, or nation branding, is infinitely more complex than product or service branding. A country’s image influences on people’s decisions in relation to purchasing products or services from that country. (Kotler et al. 2012, 547) With regard to branding a city, a region or a country, networks have become a valuable asset for businesses and brand marketing. In today’s world, businesses have much poorer survival chances without networks in changing global business environments. The same paradigm is seen in place branding. Anholt states that country branding occurs when pub- lic speaks to public; when a substantial proportion of the population of the country gets behind the strategy and lives it out in their everyday dealings with the outside world. (Anholt 2005, 19) Marcus Andersson and Per Ekman have explored ambassador networks as a place mar- keting and place development tool in their research study in 2009. Their findings about using ambassador networks in international marketing of a place were very encouraging and their data offers us tools for branding cities and city regions more efficiently. They 6 bring out the value of word-of-mouth effect to influence others through their networks and relationships. It is not only a cost effective marketing tool, but also even more effec- tive when it comes to building a positive image and influencing target groups. (Andersson & Ekman 2009, 43) Anholt has made the same discovery in country branding and he asks: “How often, for example, have we completely changed our minds about a country simply because of one good friend who comes from there, or one clever business associate?” (Anholt 2005, 119) Ambassadors give a credible testimonials of their countries, cities of origin, their univer- sities, culture, language and even businesses. This thesis will examine how ambassador networks can be used as a place branding tool for Tampere city region in Finland and especially what the motivational factors influencing potential ambassadors to take the role of a brand ambassador are. This thesis will introduce the ambassadors’ motivational fac- tors found in the research on becoming a Tampere - All Bright! Ambassador as well as factors which motivate the ambassadors to participate in international marketing activities in long term for the benefit of the city region of Tampere. This research is done by the request of Tampere Region Economic and Development Agency Tredea Oy (commissioner) which launched the Tampere - All Bright! Ambassa- dor network in May 2015. Tredea Oy is a non-profit organisation which is owned by the city of Tampere and seven other surrounding municipalities (Kangasala, Lempäälä, Nokia, Orivesi, Pirkkala, Vesilahti and Ylöjärvi). 1.1 Background of the thesis Tampere Region Economic and Development Agency Tredea Oy, hereafter referred to as Tredea, was created in 2009 as a result of a mutual understanding between the city of Tampere and the surrounding municipalities that international awareness of the city-re- gion needs collaboration between municipalities and targeted actions. During the last six years Tredea’s strategy has developed into three different categories: investment and tal- ent attraction, development of business environment and tourism attraction. These three strategic focus areas define Tredea’s operations in Tampere city region and the topics for the development projects funded by Tredea. 7 The importance of place branding and international marketing arises especially when we look at the focus areas of investment and talent attraction and tourism. International awareness and place branding are the tools to enhance the attractiveness of Tampere city region in the eyes of investors, talents and tourists. Between 2013 and 2015, Tredea participated in Nordic city region collaboration of talent attraction tools and methods. This collaboration allowed to benchmark other city regions’ methods regarding place branding and learning of their best practices. The Nordic city region network was managed by Swedish consultation agency Tendensor. The idea of an ambassador network was found to be as one of the best means of enhancing the international awareness of the city regions. An interesting discovery was that an am- bassador network could be applied in several ways to activate internationally oriented people in the development of their home city and fostering the international brand of the city. From Tredea’s strategic point of view, Tredea’s focus areas seemed to match with the concept of the ambassador network which further developed the idea of establishing an ambassador network for Tampere city region as well. Place marketing needs new methods and alternatives to support the already existing marketing strategies of online marketing and traditional media/marketing methods such as television and printed media. An ambassador network can give new methods for marketing which are based on personal recommendations given by the ambassadors. The goal of this study is to provide Tredea with useful guidelines for developing the am- bassador network so that it supports their strategic goals. The study also gives an aca- demic approach on network management as a place branding tool in general and it is therefore a unique study of a subject on a national level in Finland. Other similar studies regarding ambassador networks have been conducted abroad. In Finland, studies on am- bassador networks have concentrated on the ambassador networks of the universities on an organizational level. 1.2 Purpose and objectives of the study Tampere - All Bright! Ambassador network was launched in May 2015 and the first net- working event gathered approximately 80 people who were interested in international networking and enhancing the international awareness of the Tampere city region. As a 8 result of these ambassador networking events and the development of the network’s struc- ture it became necessary to understand the motives and personal goals of the potential ambassadors. The objective of this thesis is to investigate the motives of the potential ambassadors in joining the network and to provide answers on the factors which motivate the ambassa- dors to contribute further in the network’s activities. These results will give essential guidance for Tredea on how to implement the motives into the network management strategy and how network managers should develop the network’s processes further. In the big picture the results of this thesis will help Tredea to build a model of an ambassador network which could be implemented in other cities in Finland and therefore enhance the country brand of Finland internationally. Tredea has already drawn some conclusions on how to establish the ambassador network in the region based on the information gathered from the benchmarking cases from other cities and planning the network activities with a test group of ambassadors. All of these actions allowed the launch of the network which was necessary in order to proceed re- garding the company’s strategic timeframe. In addition, it offered empirical information for Tredea on the strategic approach with the potential ambassadors and how the network should be conducted. The importance of this study is significant from Tredea’s point of view as there are only a few studies to give guidelines on building a sustainable network which follows their operational goals: 1. Tampere region is an international and attractive operational environment for innovations and new business ideas to develop now and in the future. 2. The international networks of different organizations and operators are sys- tematically utilized to bring benefit and success for the region. (Tredea 2015) Furthermore the present study will open new alternatives for utilizing human capital as a marketing and development tool as well as in place branding. The findings of this thesis can and will be used for future developments of Tredea’s ambassador network project 9 and they can possibly provide help with further actions in finding public or private fund- ing for the ambassador project. The research methods applied are qualitative surveys, interviews and secondary data. The qualitative data collection was executed in the spring of 2015. In addition, the researcher executed an additional study in October 2015 on the first group of ambassadors for the network. The benchmarking cases were executed during autumn 2014 and the data will be analysed in this thesis to find out the best practices which can give guidelines for further develop- ment. The data consists of interviews about two cities (Lyon and Copenhagen) which have utilized ambassador networks as place branding tools. Literature on place branding and branding methods, as previous studies on ambassador networks, as well as web pages will be used as secondary sources. 1.3 Definitions of key terms The definitions of the key terms that are used in this thesis are described in this section. Defining these key terms helps the reader to understand better the theoretical part of the study and how the study is applied in this particular context. Brand “A brand is a name, symbol, logo, design or image, or any combination of these, which is designed to identify a product or service and distinguish it from those of their compet- itors. A brand is an entity which offers customers added value over and above its func- tional performance” (Kotler et al. 2009, 467). Anholt concludes that “brand is a multiplier value, and as such, represents a substantial advantage for its owner” (Anholt 2005, 1). According to Moilanen, “a brand is a blend of rational and emotional perception in con- sumers’ minds, resulting from an iterative process of customer receiving messages which he or she relates to the value offering developed and managed by a marketed entity” (Moilanen 2008, 17). The definition of a brand is worth exploring before proceeding to the phenomena of place branding. In the end, the branding of places follows the same rules as branding consumer goods. The image or sense of added value that is created in the consumers (e.g. visitors) minds creates the brand image of the place. 10 Place branding Place branding as a phenomenon consists of country branding and city branding. It is a recent concept which has developed during the last two decades. (Kotler et al. 2012, 547) Even though the strategic management of the country or place brand has developed re- cently, people have always made traveling or consumer decisions based on the country’s image or where the product comes from. The challenge for a country brand is, as Anholt states, that building it is a very slow process. The image of a country has been shaped by history, wars, famous people and religion etc. (Anholt 2005, 116) Place branding strategy plays an important role in shaping the brand of a country or a place. But in the end the same rules apply for place branding as for consumer brands. Brand management “A brand image belongs not to a brand - but to those who have knowledge of that brand” (Kotler & Gertner 2001). Strategic brand management should follow this idea of who owns the brand and who has the power in shaping it. Kotler et al. add that brand manage- ment includes customers, employees, suppliers and resellers and what is important to re- member is that brand management “is the sustained effort by the company to encourage people to see its brand in the light in which it portrays it” (Kotler et al. 2012, 473). In other words, a company cannot create the brand without its stakeholders and most im- portantly its customers. My definition of brand management in the place branding context is that customers are seen as direct consumers of the place (e.g. tourists or investors) or indirect consumers of a product with a brand image that is partly connected with the brand image of the country. A careful brand management strategy may have a positive influence on increasing the company’s profit or the country’s economic development in the long term. (ibid) Brand ambassador According to Merriam-Webster Online Dictionary, the word ambassador is defined as “the highest-ranking person who represents his or her own government while living in another country” (Merriam-Webster Online Dictionary 2015). In the blog of GC Marketing Services, Cicchetti writes that a brand ambassador is some- one who represents a brand in a positive way. He or she takes the role of a messenger to pass the company’s message to the consumers. In addition to this, the brand ambassador should appeal to the human aspects of the product. (Cicchetti 2011)