Nation and City Branding is the systematic management of perceptions towards a country, region or city, and a fundamental aspect of management is proactivity. So, it involves proactively shaping actions, activities and policies to align with a Central Idea, with the ultimate aim of driving exports, attracting investment, tourism and talent and achieving global recognition.
In this process, several factors can mess with the balance, threatening the positive nature of this development.
1. Poor governance
A lack of oversight and coordination or fragmented governance and excessive bureaucracy are major risks to future-proof development. Sustainability may fall through the cracks because no one sees it as their direct responsibility, or it might be assigned to a department like marketing as just another thing to do and keep in mind. But it is far more than just a task on a checklist! It ties in to all the 13 Perception Elements of the Bloom Consulting Nation Brand Taxonomy Model © – Foreign Affairs; Mitigation of Global Causes; Economy and Business Ecosystem; Products and Services; Culture, Heritage and Art; Sports; Urban and/or Rural Environment; Natural Assets and Scenery; Education System; Society and Values; Wellbeing and Healthcare; Safety and Crime; Governance and Internal Policies – that shape target audiences’ perceptions and must be considered at the top level of coordination.
2. Poor stakeholder engagement
A considerable risk factor is a lack of dialogue with the public and other stakeholders. Commitment from the local community is key to the long-term success of a Nation Brand and City Brand and the balanced development of the place. Understanding their stance, being aware of their joys and concerns and having their buy-in is essential, as one can never assume that every individual or community shares the same perspective and reality. What’s more, integrating the voices of all social groups is critical as discrimination can damage the place and its brand by prioritising the interests of select groups over others, leading to inequality.
3. Greenwashing
In a context where the pressure is on to take action – any action – to appear to be balancing the interests of the economy, environment and society, brands risk falling into the greenwashing trap. While it is important to communicate planet- and people-friendly features and initiatives, any claims and actions should be authentic and in line with the Central Idea, otherwise the disconnect will be obvious.
No long-term success without measurement
Considering the importance of clear and structured governance to the long-term success of a Nation Brand and City Brand and the future-proof development of a place, performance measurement also plays a major role. For anything to be effectively managed, it must be evaluated regularly to establish what is and isn’t working, identify challenges and areas for improvement.
In the past, growth was widely considered the sole measure of success, however, today’s global environmental reality calls for alternatives. Measuring perceptions – both general perceptions and specific perceptions based on the 13 Perception Elements – is a solid starting point. The results will give insight into how global audiences evaluate a Nation Brand’s and/or Brand’s performance, revealing its strengths and weaknesses. The score for deeper research into “Natural Assets and Scenery”, for example, may reveal that a place’s natural attractions are suffering from excessive foot traffic, while measuring “Governance and Internal Policies” could indicate issues of discrimination towards certain social groups. Such discoveries are very valuable as they can inform the future Nation and City Brand strategy to ensure that it balances economic, social and environmental interests.
Risks of ignoring the balance
Failing to prioritize a balanced approach that integrates economic, social, and environmental considerations can severely undermine Nation and City Branding efforts.
Here, let’s again consider the fundamental goals of Nation Branding and Branding, which are to attract investment, tourists, new residents, increase exports and achieve prominence. Places depend on the quality of their unique offering to attract the resources and visibility they seek and need to maintain healthy economies. Think: is the quality really there? What if this offering does not match the needs of the target audiences? For example, if the place cannot provide modern office space and qualified staff for an international business to expand there? Or, if the natural sites that the place advertises are overcrowded and filthy, will they leave the visiting tourist satisfied? Imagine the headlines that this could result in.
In the current global reality, places simply cannot afford to neglect their natural and urban environments and must offer a healthy business environment in order to maintain a good reputation and resilient market standing. Sustainability is key to the success of a Nation Brand and City Brand and, by facilitating actions, activities and policies, Nation and City Branding drives the long-term wellbeing of a place.
Look towards Costa Rica for an example of long-term thinking in action!
Published on 27.03.2025.
