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OPINION
By Elly Twineyo Kamugisha
Is a brand a name, or more? Why is it important for countries? Shakespeare once said, What is in a name?
What’s in a name? That which we call a rose
By any other name would smell as sweet? (Romeo & Juliet, Shakespeare)
We will see the importance of a national brand for a country.
As company and product brands are beneficial to companies; nation branding is important to countries. To position yourself well in the market as a company, or country (nation brand), you need to brand yourself. You have to differentiate yourself from the competition.
There are 193 countries, excluding the Vatican City and Palestine (who are non-members of the United Nations). So, each of these countries has 193 competitors.
For a company to successfully market itself (company brand) and its products (its product brands), it needs to identify and focus on what is special and different about its business.
The best approach is to try and express the uniqueness in the marketplace. It has to have, as Rosser Reeves called it in 1950s, a unique selling proposition (UPS); also called unique selling point (USP) about its business versus the competitors.
Currently, differentiating a company’s brands has become more important than in 1950s; 1990s; or the 2000s; and when Henry Ford told his suppliers and buyers that they could buy his Ford Model T, “in any colour as long as it black”.
Therefore, to create a USP, there are several questions that a company should ask about its business and product brands.
We need to always make a difference between customers and consumers in order to promote our brands well. End users are the consumers, but not always the customers. Customers may purchase goods or services for the end users – the consumers. For example, a mother, as the customer, buys toys for her baby, who is the consumer (the end user). Sometimes, customers are also consumers.
These days, we talk more about brands than products. A brand is a name, term, sign, symbol or design, or a combination of these; or any other features that identify goods or services of one seller from the others/competitors.
According to Webster’s Dictionary, a brand is defined as “a means of notification” or “an arbitrarily adopted name that is given by the manufacturer or merchant to an article or service to distinguish it as produced or sold by that manufacturer or merchant that may be used and protected as a trademark.
During the early days, branding was used to mark ownership of cattle or other forms of livestock and later on, during medieval times, brands served as distinguishing symbols on goods created by craftsmen.
Branding is a process of creating positive perceptions about a company, product or service in the minds of target potential customers and consumers. From the customer standpoint, it can be viewed as physical and functional attributes and psychological beliefs and values associated with a particular product or service.
Nation branding refers to how a country positions (and promotes) itself as a place for outsiders (tourists) to visit, investors, and promotes its quality goods and services to external markets. It, therefore, goes beyond country-of-origin issues to encompass more of the economic interests of the country without forgetting political and social aspects.
Like any brand, the national brand has its symbol, name, or logo that makes it unique; and the national brand should be likeable.
Companies care about their reputation and that of their brands.
Similarly, the reputations of countries function like the brand images of companies, and they are equally critical to the progress and prosperity of those countries.
We can variously look at the following reasons in favour of nation branding: boost exports; stimulate inward FDI; attracting tourists; attracting diaspora’s remittance and investment back home; and attract talent (where countries compete to attract higher education students and skilled workers).
In Uganda, we have been attracting a lot of students for higher education in universities. Some universities rely more on foreign students to fill their academic programmes. This is because of the brand Uganda.
A country can enjoy a wider set of rewards from its nation brand beyond those stated above, including: currency stability, international credibility and investor confidence, increased international political influence, and stimulate stronger international partnerships.
Therefore, nation branding boosts the economic growth of the country. It does not only focus on exports and tourism. Neither does it focus only on attracting investments (both domestic and foreign investments); or the diaspora.
It wholesomely promotes the image of the nation brand, and presents it uniquely amidst the 193 competitors – whether at the UN, the World Bank, G77, Non-Aligned Movement, or the World Trade Organisation (WTO)..
Like we say in the secular world, and actually in business, “No romance without Finance”.
There is a cost to be paid to promote the national brand. Ask companies. They can’t survive without promoting their brands. As for the Government, it has to promote its brand so that those of all the companies within its borders can be viewed abroad positively by their customers, and other publics (media, other Government, others)
What can a country do to promote its national brand?
Does a country need to hire companies to represent its national brand in those target countries/markets? Pay them when budget permits.
Research shows that China has benefited hugely from its Diaspora in terms of FDI where the Chinese Diaspora has recently invested an estimated 70% of FDI. We need to, therefore, encourage their investments in their home country. Some of them have hereditary assets such as land. They should be encouraged to utilise it.
Let countries shine. Let countries move into a prosperous world.
The writer is an Economist, Fellow of Marketing – CIM UK, Fellow of Procurement & Supply – CIPS UK, author, and former Executive Director of Uganda Export Promotion Board