July 2003, Volume: 6, Issue: e/7, ISBN 1527-5175

~~~Marketing drivers... help us understand the elemental relationship between the product and the target audience. There are three marketing drivers: Product, Sales, and Market. A product-driven organization seeks to attract members of the target audience by building a better product. Sales-driven organizations work to create demand within the target audience, then beat the bushes for prospects. A market-driven organization searches out a critical need within the target audience then works to satisfy this need. Most economic development organizations believe in product (e.g. tech park, software incubator, airport) and sales (aggressive promotion) driven models. Few understand or attempt the more difficult market driven strategy. One of the standout examples in economic development is Indianapolis' Amateur Sports strategy that began nearly 30 years ago. What drives marketing in your community?

~~~Lemming mentality... is to follow the traffic.

~~~The not-quite-urban-not-quite-rural census category... "Micropolitan" is the new census word for the 10-50,000 population, whereas metropolitan statistical areas (MSA) represent 50,000 and above. John Shepard, planner for Larimer County, CO wonders if Micropolitan statistics change the rural econ-dev world? The Census Bureau now calls 565 cities micropolitans. http://www.census.gov/population/www/estimates/metrodef.html

~~~Old school is just that... a collection of ideas, concepts, and practices out of step with current needs and available technology. For example, prior retention and expansion tools served communities well and advanced the profession. However, holding onto old practices in light of changed circumstances and changed technology can be a serious impediment to economic growth in the community. ATTEND - Advanced Business Retention: Beyond the Basics, Charlotte, NC. October 13-14. http://www.blanecanada.com/BCL_retention.html

~~~While at the HANOVER FAIR in Germany... Ken Will (ID) observed that in looking at a range of electric motors, the Chinese price for the manufacture, assembly and delivery was 7% of the U.S. equivalent. No. That's not a typo. Competition might be moving faster than you realize.

~~~"U.S. companies... turn to Chinese factories to save some money during tough times". This is the headline of the 7/7/03 business section of the local paper. The Tooling & Manufacturing Assoc. (TMA) of Illinois went to China to research ways to leverage Chinese manufacturing. Although large corporations have been outsourcing to Chinese manufacturers, small and mid-size companies are exploring opportunities to cut costs. This makes existing business interviews all the more important to you. Source: www.dailyherald.com

~~~Renewed activity... in the number of suspects being reported by our contacts throughout the US. Not many are making decisions yet, but they are showing more interest. This is a good sign. What is your experience? nblane@blanecanada.com

~~~It's still a people business... At its core, economic development is a people business. In business, we all prefer to know who to go to for the information we want or need. If your web site doesn't list your key staff, you are missing a critical piece that will make the caller feel welcome. P.S. When you put contact names on your web site, include phone and e-mail AND don't hide it.  

~~~Synchronist software users... hold their annual forum in Chicago, Sept. 4 & 5. Come hear how people across North America are using the data. Learn of the successful completion of thousands of interviews, the analysis of the data, and how it might compare with other regions. Representatives of various utilities, statewide departments of commerce, major metro and regional groups, as well as small economic development organizations will all be present. Register now. http://www.blanecanada.com/registrationforum.pdf

~~~Writing a grant proposal?... It's not an Op Ed article. It's a sales piece!

~~~Your competition could be south of the border... Companies considering a location in Mexico are receiving offers for tax breaks, reduced real estate costs, and recruitment efforts. Government incentives include up to $500 for each new job. Specialized industries receive additional incentives. For example, Yucatan offers cost savings for aerospace, agribusiness, medical, furniture, textiles, and information technology. However, the availability, quality and delivery of utilities and infrastructure vary dramatically depending on the location. Source: June 2003, Pollina Corporate News, IL

~~~Part of your job is managing the people who hired you. Manage expectations.

~~~Cheap labor... is readily found in Ireland and India to establish telemarketing operations. Cheap labor is in abundance in India to outsource stenographic services from the U.S. "Jobs" can be turned around in 24 hours. You can bet that more U.S. businesses find it cheaper to operate overseas. Plan accordingly.

~~~Riding a bike into the wind... is never easy. When facing the wind, an experienced rider will lower his/her profile (head and shoulders down, arms tucked in) and downshift to keep a constant pedal pressure and speed. Good marketers address the current economy in the same manner. Sure, maybe you have had to downshift, but never, never stop. When the wind shifts, as it always will, you will have a head start on the competition.

~~~It's OK... to say you don't know the answer. But let it be known that you will efficiently find the answer!

~~~Cell phone etiquette... Are you careful about your cell phone behavior? The best rule of thumb: being cautious will seldom cause you to embarrass yourself or your organization.

~~~Brokerage fees... Jeff Finkle, President IEDC, recently wrote the following:  "a developer now working in a rural county... has recently been approached by a firm outside his area offering to provide a candidate business to inhabit a shell building in his county but is requesting a brokerage fee...this is a proposed one time fee of 4.5% of the total value of the lease paid up front." Jeff inquired if this was occurring more frequently, especially in rural areas. What's your take on brokerage fees? Let us know and we will share the comments. nblane@blanecanada.com

~~~Scott in Schenectady, NY... "The best half hour of the month is reading your newsletter." THANKS!

~~~Nano, Nano... Interested in nano technology as a development path? Check out "Nanocosm." The new book "Nanocosm" lays out some grand ideas flowing from this small technology. Presented in lay terms, it sets the stage for the present state of development and forecasts where the science is headed. There's  potential impact on our economic future. William Illsey, author, Anacom, 2003.

~~~Less is more... send info to respond to a suspect's specific interest; do not send an excessive amount.

~~~Congrats, Pinellas County Economic Development... Pinellas County ED (FL) in the last couple of e-mail newsletters has highlighted programs to help growth-oriented businesses grow. To learn about some more creative ways to grow existing businesses read: "The Missing Link: A Vision for Business Retention." If you are in economic development, we believe your job is to help grow (not just with expansions) the businesses already in the community. Times are changing and economic development organizations must as well. http://www.siliconbay.org/, Article, http://www.blanecanada.com/frameset_free.html

~~~Kansas' Lt. Governor... comes from Cessna headquarters to lead the ED effort for the state. What an effective economic development strategy! (Or did Dorothy click those magic red slippers?)

~~~Measuring success... is not a tally of communication measures, e.g. number of ads placed, number of marketing trips and attendance, number of site selectors contacted. Those are tactical measures. They are valuable for keeping on schedule, and that is all. Increased marketing accountability requires a shift to more behavioral measures. How are you impacting the behavior of members of the target audience? Do members of the target audience accept your calls? Do they schedule visits? Do they send project information requests? Until you begin to measure behavioral change, you are not measuring marketing, only activity.

~~~Note: Measuring jobs or capital investment is only a tally of results. This is more a function of sales than marketing. Both need to be measured.

~~~Board members... sign confidentiality agreements? Do it! Linda Jolly (KS) states that this is an annual procedure done during the January Board Retreat.

~~~The supreme compliment... "Yours is the only e-mail newsletter (Economic Development Marketing Letter) I immediately forward to my personal e-mail account and sometimes even print for reading on the road." John Ramer, WI

~~~CALED... The California Assoc. of Local Econ. Development had some interesting programs in April. The theme was, "Challenges Equal Opportunities". The topics were superb: "Federal Perspectives: Who Has Funding? What Are Their Priorities?," "Learn How to Find Resources for Gathering & Applying Workforce Intelligence", "The State of California: How Are They Reacting to Changes and Challenges?", "High Value-Added Economic Development". Their keynote speaker was Joel Kotkin, author, Senior Fellow at both the Milken and Davenport institutes. You, too, might find his writings of interest: "The New Geography, How the Digital Revolution is Reshaping the American Landscape", "If We Let Rural America Die, We Shall Lose a Piece of Ourselves", and "Tech Pros Flee 'Burbs' for Open-Space Locales." Source: www.caled.org

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