City Hierarchies and Citymarketing

To which extent can information influence the process?

Guidline to Citymarketing via WWW

Citymarketing is still a rarely used marketing-concept to control the information-output of a city and its hierarchical positioning. In the following paper the major elements of the conception will be pointed out:

1. Citymarketing

2. City hierarchies

3. Electronic Citymarketing

1. Citymarketing

1.1. Definitions

1.1.1. City
1.1.2. Marketing
1.1.3. Citymarketing

1.2. Main Elements of Citymarketing according to Kotler et al (Kotler 1993)

1.2.1. Parties
1.2.2. Marketing-Factors
1.2.3. Target groups

1.3. Objectives of Citymarketing

1.3.1. Increasing the attractivity of the city as place of work
1.3.2. Increasing the attractivity of the city as place of residence
1.3.3. Increasing the attractivity of the city as recreation and leasure area
1.3.4. Increasing the attractivity of the city als place of economy
1.3.5. Support of tourism
1.3.6. Acquisition of capital
1.3.7. Improving the image
1.3.8. Social welfare
1.3.9. Alteration of city hierarchies

1.4. Dig.3.9. Alteration of city hierarchies

1.4. Digression: Limits to and possibilities of Citymarketing

2. City hierarchies

2.1. Categories within City hierarchies

2.2. Theories on City hierarchies

2.3. Alteration of City hierarchies by citymarketing

3. Electronic Citymarketing

3.1. Components of electronic citymarketing

3.1.1. The role of electronic data transfer in connection with citymarketing
3.1.2. Users and providers
3.1.2.1. Government
3.1.2.2. Private Persons
3.1.2.3. Institutions / Firms
3.1.2.4. Public

3.2. Kinds of electronic citymarketing

3.2.1. Touch-Screen (Verweis auf Gruppe mit Stadterfahrung)
3.2.2. World Wide Web

3.3. Pros and Cons

3.4. Perspectives (Information Super Highways)

1. Citymarketing

Citymarketing includes all activities of a city, which are determined to support the socal welfare and the economic development of this city and to stay competitive and hierarchically important compared to other cities.

1.1. Definitions

1.1.1. City

On the one hand, the term 'City' denotes the whole area within the city boundaries, on the other hand it is used only for the city center of large towns.

1.1.2. Marketing

In the economic usage marketing is deemed to be a measure of business management, which focuses all activities of a company consequentlocuses all activities of a company consequently on the present and future demands of the markets with the aim to achieve the company's targets.

This profit-oriented kind of marketing is opposed by the non-profit-marketing (marketing of non-profit-organisations) and the social-marketing (marketing of cultural or social institutions and of the government). In these cases, marketing is used as tool to control interpersonal and social processes. To meet the targets, economic, sociological, psychological, legal and behavioural aspects are used in addition to the business-oriented parts. (Lechner 1983)

1.1.3. Citymarketing

From the very beginning of the emergence of cities existed advertising to support their development. However, the term citymarketing did not conquer Europe but in the 1980s and differs from the original advertising in several points. In the narrower sense we understand by citymarketing the location support and the promotion of the cooperation between privates and the government, in short the pure orientation on the objective of economic development. In the wider sense, citymarketing also includes all activities to support different aspects of social welfare. In this meaning it corresponds to social
marketing applied to the requirements of the physical entity called 'City'. Whereas the promotion formerly mainly concentrated on financial incentives to support the economic development, the modemic development, the modern marketing-orientation consits of an integral, target-oriented concept for the erection respectively the remodelling of the city-image. (Paddison 1993)

According to product-marketing, the measures product-creation and communication policy are applied to the product 'City' by

According to Hallier (1990) Citymarketing is a market-oriented city-development-policy, which aims at integrating living, working, location of trade and industry, traffic, culture, leasure and shopping in an extensive manner of the urban city-experience into an integral marketing concept.

1.2. Main elements of citymarketing

According to Kotler et al (Kotler 1993) the main elements of city marketing are

1.2.1. Parties

Affected by the city-development and therefore to be integrated into the planning period of citymarketing are the following persons and groups: First, the relatihe citizens. First, the relationships between them have to be established, afterwords a common strategy for the long-term creation of a city-image should be worked out, which can be followed by each individual. Especially important is the analyses of the present situation, the qualities and the defects of the city and the establishing of target pictures.

1.2.2. Marketing-factors

The marketing strategy developed under 1.2.1. has to be based on the four main elements of a city:

1.2.3. Target markets

The interaction between the parties and the marketing factors should have effects on the following target groups: All those targets groups have in common, that they are important financial upholders. Since the growth and the status of a city depends on its financial resources, a target-oriented advertising is necessary.

1.3. Objectives of citymarketing

(Paddison 1993, Kotler 1993)

1.3.1. Increasing the attractivity of a city as a place of work

The economic development of the countries of the First World is characterized by a shift in employment from the primary and the secondary sector to the tertiary sector, i.e. from agriculture and manufacturing tor, i.e. from agriculture and manufacturing to services. Accordingly, the economic wellbeing of cities and regions depends to a large extent on their locational advantages and disadvantages. Infrastructure extension-projects, financial incentives, and a clear labour market administration foster the attractivity of a city as business location (see 1.3.4) and as place of work. However, the marketing activities must not be reduced to operational activities, but have to be supported by an accompanying information policy.

1.3.2. Increasing the attractivity of a city as place of residence

To improve the local living moral and to stop or prevent the emigration into the sourrounding regions intensified efforts to increase the attractivity of the city as recreation and leisure area (see 1.3.3.) on the one hand and the extension of public means of transport, infrastructure for the private car trae private car traffic, the offer of residences and the support of trade on the other hand can be used. In all named areas electronic information transfer simplifies the spreading of the activities and the execution. The reason why cities want to attract residences is the wish for the settling of persons with special knowledge and characteristics (e.g. doctors, specified professional groups, pensionists) to improve the demographic features or the financial potential of the city.

1.3.3. Increasing the attractivity of a city as recreation and leisure area

As we could see from the example of Glasgow (Paddison 1993), the fostering of cultur and art can increase the attractivity of a city enourmously. Also the extension of sport facilities, parks and culinary variety supports the efforts. The usage of the city as recreation and leisure area effects the upswing of complementary industries and thereby increases the financial resources of the city (taxes have to be paid!). To spread the knowledge about all those possibilities it is helpful to use electronic data transfer.

1.3.4. Increasing the attractivity of the city as place of economy

As mentioned under 1.2.1., several measures have to be taken to support the original locational factors or even build up new ones. The locational factors must be competitive to the ones other cities can offer to attract further capital. Additionally, the produc. Additionally, the production of export-products has to be promoted to enable the import of goods which are not available in the region.

1.3.5. Support of tourism

Before marketing efforts are started it is advisable to execute a market analyses and segmentation, since only special target groups should be adressed. The market-conception has to be adapted to altered demographic factors (e.g. decreasing number of families, increasing mobility of pensioners etc.).

1.3.6. Acquisition of capital

All efforts mentioned above (points 1.3.1. - 1.3.5.) are aimed at the acquisition of capital. The increased spatial mobility of capital and its internationalisation intensify the competition of cities concerning the efforts to attract this capital (Paddison 1993). Electronic citymarketing will be an important factor for success to reach also foreign resources.

1.3.7. Improving the image

Most cities could build up their present image in the course of centuries conforming to historical events and their locational factors. Due to economic recessions, increased immigration or the emergence of slums, many cities urgently need a polish of their image. An alteration of the sectoral main stress and the emphasis of other positiv tendencies of development (cultur, recreation etc.) can, as the example of Glasgow shows, lead to such an improvement. Communication policy to spread the new possibilities opread the new possibilities of performance is one of the main elements of this measure.

1.3.8. Social welfare

By the improvement of social welfare a city receives
increased attractivity as place of residence on the one hand and on the other hand criminality is lowerd by social security, the quality of live is increased and so a better starting situation for all objectives of citymarketing (1.3.1. - 1.3.7.) is gained.

1.4. Digression: Limits to and possibilities of citymarketing

Not everything can be changed by marketing!

The historical growth of a city causes inflexible structures in some areas like infrastructur, buildings, locational factors etc.

The effects of citymarketing not only affect the city itself but also the surrounding areas.

Mainly concepts with social demand should be supported. The measures have to be democratically decided but also politically enforceable. (Paddison, 1993)

Sometimes it is difficult to create a common marketing-concept of all parties, as individual interests dominate societal interests (e.g. districts, political parties etc.) (Jacobs 1991)

The framework cannot be changed by citymarketing. It is not possible to impose an artificial revaluation that contradicts the reality.

2. City hierarchies

2.1. Theories on City hierarchies

One of the best known theories concerning city systems is theeories concerning city systems is the theory of central places.

(The theory of central places is based on a traffic system which is extended equally in all directions within a homogenous plain. Producers which maximize their profit and consumers which maximize their benefits are a further assumption.)

New theories of city systems understand city sytems as ”a set of interrelated subsystems nesting in a complex hierarchy of increasing scale upward form individual urban areas to a national urban system” and include besides of economic processes also social, demographical and geographical connections. The dynamic aspects are in the forefront.

(Maier/Tödtling, Regional- und Stadtökonomik, Wien 1992, Abb. 7.6.)

Not only the physical but also the hierachical distance is decisive. The hierarchical distance consists of elements in the sense of the theory of central places as well as elements of the physical distance. Places at a lower hierarchical step in the surrounding of a national center have an advantage compared to other places at the same level due to their lower physical distance to the centre. Therefore, the first represent the same hierarchical distance from the national center as cities of the second highest level in the hierarchy.

2.2. Categories within city hierarchies

Tietz cites in his book 'City Studie' some guidlinesook 'City Studie' some guidlines for the creation of cenral places.

(These Guidlines originated from the Conference of Ministers for regional planning of 16th June 1983, for the development of upper centers.)

When creating upper centers, some rules have to be kept. They are related to the education system, the health system, cultur, sport, trade and banking systems, administration and jurisdiction, communiation, traffic and the labour market.

The upper center has to fulfill all these categories totally. According to those the guidlines for the middle centers are structured. The middle center has to fulfill the categories necessary for an upper center only partially and to a lower extent. Another level lower are the guidlines for the creation of a lower center.

(The following factors are necessary for the creation of central places

(Bruno Tietz, City Studie, the decision 'upper centers' of the conference of ministers for regional planning dated 16th June 1983 is only valid for Germany)

1. Educational system, Research

2. Health system

3. Culture and Sports 4. Trade and Banking 5. Administration and Jurisdiction 6. Communication 7. Transport and Communications 8. Labour market Those categories are only valid within the Federal Republic of Germany, and have to be applied when new centers are build up, not when historically grown cities are extended. For the latter other categories are relevant. The denomination as center in the case of historically grown cities does not only depend on the existing facilities. Also the physical distance to other cities is of decisive importance.

Due to additional factors like innovations, tendencies of development, technical progress, social engagement, political and military facilities and the communication and information a complex picture is put together, which also consists of several overlapping levels and finally forms the city hierarchy. After new evaluation of the single factors new hierarchical relationships between the cities are borne.

2.3. Alteration of city hierarchies by citymarketing

Since there are several relations between the cities within a city system according to the theory of city systems, the cities can actively place their position, at least partially. They can cooperate with other cities, try to strenghten specific functions and draw back others. They can also specialize in any kind of industry or tourism. Furthermore the can alter their hierarchical distance to oteir hierarchical distance to other cities to some extent.

At this level, citymarketing has to start. Due to the extension of telecommunication highways the physical presence of some industries was no longer necessary. A lot of businesses profited from the increased communication. This was the basis for the economic dynamic of cities. Via citymarketing the cities get the opportunity to increase their attractivity as place of work, place of residence, touristic place, recreation and leisure area, industry location, shopping center etc. only on the bases of information spreading. Growing knowledge about a city can also result in the alteration of the level of this city in the city hierarchy.

3. Electronic citymarketing

3.1. Components of electronic citymarketing

3.1.1. The role of electronic data transfer in connection to citymarketing

Within post-industrial societies the information technology is seen as dominant organisational factor for the society. Information has to be available at all levels in an interactive manner, between departments of the government, the government itself, private institutions and the citizens. Interfaces have to be easily manageable, the language should be standardized and the system should allow the colletion and speading of different information at as many places as possible. In this way the transfer of know-how can be simplified. (Thornley 1974)

fied. (Thornley 1974)

Especially the creation of a new image, which is mainly based on communication policy, receives an upgrading by electronic data transfer since slogans, topics, positions, symbols etc. can be sent to the right target groups in an easy, direct and fast way.

3.1.2. Users and Providers

3.1.2.1. Government

Due to its present sovereignty (e.g. post monopoly) the government has perfect and free access to electronic means of information transfer. However, it cannot only offer information to the public but can also use the network for internal and external data transfer, a measure which would shorten the bureaucratic way and could improve the acquisition of know-how by establishing international contacts.

The information offered via the internet by a city government has, however, to be treated with caution, since a one-sided point of view is probable.

3.1.2.2. Private Persons

Due to relatively high fees for usage the access to the internet is presently quite difficult for private persons / households. The Austrian Postal Services billed at least ATS 14.500,-- per month in August 1994.

In the near future, mainly the usage by private persons will be enforced, mainly in the interactive areas like electronic shopping electronic banking etc. via the internet. The importance of a city which is connected to t a city which is connected to the internet and offers this possibility to the business sectors will increase due to the additional acquisiton of customers.

3.1.2.3. Institutions / Firms

The usage of the internet in the commercial area is increasing enourmously. As mentioned under 1.3.2.2., an extension of the offered possibilities will follow in the near future.

3.1.2.4. Public

The internet renders the public the possibility for broad information spreading. Political initiatives could reach an enlarged target group and gain political importance.

3.2. Kinds of electronic citymarketing

3.2.1. Touch-Screen (bzw. Verweis auf Gruppe mit Stadterfahrung)

Presently, several touch-screen facilities exist in Vienna, which should offer information about the city to citizens as well as tourists. The information is only presented in German. The success of the system is limited.

3.2.2. World Wide Web

a) History

The World Wide Web, synonymous also named Web, WWW or W[[threesuperior]], was produced in 1989 at CERN near Geneva. Tim Berners-Lee and Robert Cailliau developed hypertext (By HyperText we understand the special preparation of a text, which enables to get detailled prescreptions of especially marked words, so-called HyperLinks. It offers the possibility to establish connections with information of diff connections with information of different kind and worldwide sources within the net, between which the user can make his choice. The detailed informationan does not have to consist of text, but can also be composed of graphics and audio-video sequences, which is then named HyperMedia.) At the end of 1990 the first prototype of a WWW system was created and in May 1991 the basic model was introduced to the public. In July 1992 the WWW software was made accessible to the public as a package in the internet. In March 1993 the WWW was presented at the 'Online Publishing' and one year later existed already 800 WWW-Server worldwide.

b) Working Process

The WWW functions on a client-server-basis, i.e. the information provided at the server can be read by each computer which is connected to the internet and equipped with the proper software. The information is saved on the server in a hypertext format. By means of the client, also called browser, the HyperText-document can be read, with the communication between the client and the server running via the HyperText Transfer Protocol (HTTP-Protocol).

To allocate the hypertext-ressources properly, the Uniform Resource Locator (URL) was taken as standard. It locates ressources exactly by the listing the kind of access, the name of the computer and the name of the file.

3.2. Participants and networking

Presently exist about 800 WWW-Server worldwide, but with the proporldwide, but with the proper server-software and a permission of access to a foreign server anybody has the possibility to dispose information to the net and to update it comfortly in very short time periods. With the help of the freely obtainably client-software each person which has access to the internet also has the possibility to read the information of the WWW.

The internet offers the opportunity of an optimal, worldwide network of all WWW clients and servers.

3.4. Future perspective

Presently the Web is seen as the internet service with the highest future perspectives, since unified standards are used, the transfer is simple and totally networked and the access is easy and can be done with every computer category (PC, etc.).

3.4.1. Pros and Cons

The advantages of electronic citymarketing are obvious: a broad range of target groups can be addressed,, the information is highly up-to-date and reaches a global spreading due to the enourmous network of the information technology.

The special pro of the WWW is that formerly incompatible information can be accessed and that it does not need high financial ressources.

On the other hand, there exists the disadvantage that the image of a city drawn on the web does not have to conform to reality. But since reality and Webinformation cannot be compared immediately creditibility might get lost. (Paddison 1993) Furthermore a haraddison 1993) Furthermore a hardly manageable excess information is created, mainly when all cities start to support the net with information for competitive reasons.

3.4.2. Perspectives (Information Super Highways)

'The revolutionary development of new information and communication technologies can ... be an instrument, to revitalize the rural regions and to give the people who live there, the hope for a better quality of live and a harmonic relationship between city and rural areas.' (Catherine Lalumière)

The expression Information Super Highway refers to broadband communication. Broad band services offer fast transfer, flexible bandsize, flexibility of services, different services with only one access, interactive communication and economic ressource allocation.

All datas (language, video, multi-media) are channelled through an ATM-interface.

In Austria, the Information Highway was founded in 1994 and consits of broadband interfaces in Vienna, St. Pölten, Linz, Graz, Bruck/Mur, Salzburg, Klagenfurt, Villach, Innsbruck und Dornbirn, which are linked by a 140 Mbit/s-cable. The European Community plans to realize the Trans European Network-Integrated Broadband Communication until the year 2000 in Europe and to standardize it via EURESCOM.

Electronic banking, shopping, booking and teaching interactively will be enahing interactively will be enabled by this network and offers Austria, respectively the connected cities, to take part in the latest developments. So the cities can get a locational advantage, which induces the chain reaction: establishing of firm, offers on the labour market, increased financial benefits, complementary industries, growth.....

Literatur:

Jacobs, S.: City-Marketing, in: Marketing ZFP, Nr. 2/II (1991)

Kotler, P. / Haider, D.H. / Rein, I.: Marketing Places, New York 1993

Lechner, K./ Egger, A. / Schauer, R.: Einführung in die Allgemeine Betriebswirtschaftslehre, Wien, 1983

Maier, G. /Wildberger, A.: In 8 Sekunden um die Welt, 3. Aufl., Bonn 1994

Maier, G. / Tödtling, F.: Regional- und Stadtökonomik, Wien 1992

Paddison, R.: City Marketing, Image Reconstruction and Urban Regeneration, in: Urban Studies, Nr. 2 (1993)

Tietz, B.: City Studie, Landsberg/Lech 1991

Thornley, J.R. / McLoughlin, J.B.: Aspects of Urban Management, Paris 1974

 is 1974