A View from Corporate America: WINNING STRATEGIES IN ECONOMIC DEVELOPMENT MARKETING
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1 A View from Corporate America: WINNING STRATEGIES IN ECONOMIC DEVELOPMENT MARKETING Virginia Economic Developers Association June 5, 2013
2 A Word About DCI Worked with 400+ cities, regions, states and countries since Staff of 50 place marketing professionals based in New York City, Denver, Los Angeles and Toronto. Virginia clients: State of Virginia, Virginia Beach, Greater Richmond Partnership, Loudoun County, Norfolk, Hampton Roads, Portsmouth, Staunton CVB, Greater Williamsburg
3 About the 2011 Survey Sixth Edition (previous studies in 1996, 1999, 2002, 2005 & 2008) Survey Audience: U.S. Corporate Executives with Site Selection Responsibilities (CEOs, Presidents, CFOs, Vice Presidents) Location Advisors 322 Total Respondents
4 Overview of Respondents Work Profile C-Level Executives 82% Location Advisors 18% Gross Revenue (Companies) $500+ million 25% $ million 32% Under $100 million 43% Age 39 and under 11% % % 60 and over 21% Gender Male 90% Female 10%
5 Influencing Executive Perceptions
6 Q. What are the three leading sources of information influencing your perceptions of an area s business climate?
7 Leading Sources of Information Influencing Executive Perceptions 60% 50% 40% 30% 20% 10% 0% Social media Direct mail Advertising Personal travel Other TV and radio newscasts/shows Word of mouth Online sources Business travel Meetings with economic development groups Rankings/surveys Articles newspapers and magazines Dialogue with industry peers
8 Leading Sources of Information Influencing Executive Perceptions (Responses Over Time) Sources Dialogue with industry peers Articles in newspapers and magazines 50% 61% 54% 56% 71% 68% 46% 53% 45% 62% 61% 60% Rankings/surveys* 36% 22% 17% 23% 31% 34% Meetings with economic development orgs. 28% 32% 33% 21% 27% 24% Business Travel 27% 42% 45% 47% 45% 52% Online sources 20% 28% 22% 9% 9% -- Word of mouth 19% 19% 16% 29% 21% 24% TV/radio newscasts/ shows 14% 7% 5% 14% 7% 4% Other 13% 10% 14% 14% 8% 15% Personal travel 9% 14% 13% 14% 8% 21% Advertising** 3% Direct mail 0% 2% 2% 2% 3% 1% Social media*** 0%
9 Q. What newspapers and magazines do you read most frequently? Q. Online sources? Q. Television/radio newscasts?
10 Top Information Sources (Print) The Wall Street Journal 82% Daily Local Newspapers 39% The New York Times 28% Industry/Trade Magazines 19% The Economist 13% Bloomberg BusinessWeek 13% Forbes 12%
11 Top Information Sources (Online) WSJ.com 23% Economic Development Agency Websites 19% Bloomberg.com 16% CNN.com 16% Google.com 14%
12 Top Information Sources (Broadcast) Fox 41% Network News Programs (ABC, CBS, NBC) 31% CNN 22% AM radio stations/talk radio 19% MSNBC 16% CNBC 16%
13 Best Marketing Techniques
14 Q. Rate the effectiveness of the following marketing techniques as a means of influencing corporate executives who may be considering a new site location. Advertising Direct Mail Internet/Website Media Relations/ Publicity Hosting Special Events Planned Visits to Corporate Executives Telemarketing Trade Shows
15 Most Effective Marketing Techniques (% Rating 4 or 5 on a 5-point scale) 60% 50% 40% 30% 20% 10% 0% Telemarketing Direct Mail Advertising Media Relations/Publicity Trade Shows Hosting Special Events Internet/Website Planned Visits to Corporate Executives
16 Most Effective Marketing Techniques (Responses over Time) MARKETING TECHNIQUE Planned visits to corporate executives 57% 54% 55% 53% 46% 53% Internet/website 55% 56% 53% 34% 37% 18% Hosting special events 35% 45% 49% 37% 42% 39% Trade Shows* 35% -- 33% 32% 45% 39% Media Relations/ Publicity** 33% 52% 50% 40% 38% 39% Advertising 16% 15% 20% 21% 19% 19% Direct mail 15% 19% 23% 33% 25% 25% Telemarketing 4% 4% 6% 4% 6% 7%
17 Most Effective Marketing Techniques (Response based on Respondent Type) 80% 70% 60% Large company Midsize company Location advisors 50% 40% 30% 20% 10% 0% Telemarketing Direct Mail Advertising Media Relations/Publicity Trade Shows Hosting Special Events Internet/Website Planned Visits to Corporate Executives
18 Projected Location Decisions
19 Q. The next time that your company will move, expand, consolidate or add a facility, which of the following would be the most likely candidate for such a change? Corporate, division or regional headquarters Manufacturing/ production plant Regional sales office or service center Distribution Center Back office facility (financial services, data processing or telemarketing center Other
20 Manufacturing Companies: Most Likely Candidate for Next Facility Change 70% 60% 50% 40% 30% 20% 10% 0% Other Back office facility Distribution center Regional sales office or service center Corporate, division or regional headquarters Manufacturing/production plant
21 Service Companies: Most Likely Candidate for Next Facility Change 40% 30% 20% 10% 0% Other Manufacturing/production plant Back office facility Distribution center Regional sales office or service center Corporate, division or regional headquarters
22 Q. In your next location search do you anticipate outsourcing a portion of the site selection responsibilities? What type of individual/organization is likely to assist with the search? Accountant Lawyer Site Section Consultant Real Estate Broker Other Business Advisor
23 Professional Likely to Assist with Site Search 80% 70% 60% 50% 40% 30% 20% 10% 0% Real Estate Broker Site Selection Consultant Lawyer Accountant Other Business Advisor
24 The Web & Site Selection
25 Q. In your most recent location search, how often did you use the Internet as a source of information?
26 Frequency of Internet Use in Most Recent Site Search (1 = Not at all and 5 = Often) 40% 35% 30% 25% 20% 15% 10% 5% 0% Not at all Often
27 Frequency of Internet Use in Most Recent Site Search (Response based on Respondent Type) 70% 60% 50% Large company Midsize company Location advisors 40% 30% 20% 10% 0% Not at all Often
28 First Contact with Economic Development Groups
29 Q. Generally, at what stage in a site location search would you first contact economic development organizations?
30 First Contact with Economic Development Groups After a location has already been selected 6% We would not contact an economic development organization 17% During initial screening of all possible locations 24% After a few finalists are identified 13% After we have a shortlist 40%
31 70% 60% 50% 40% 30% 20% 10% First Contact with Economic Development Groups (Response based on Respondent Type) 0% During initial screening After we have a shortlist After a few finalists are identified After a location has already been selected We would not contact an economic development organization Large company Midsize company Location advisors
32 Q. What is the likelihood that you will visit an economic development organization s website during your next site location search?
33 Likelihood of Visiting ED Group s Website 70% During Next Site Search (% Rating 4 or 5 on a 5-point scale) (Response over Time) 60% 65% 64% 50% 40% 30% 20% 39% 47% 10% 0%
34 Likelihood of Visiting ED Group s Websites 60% 50% 40% 30% 20% 10% During Next Site Search (Response based on Respondent Type) 0% Low, High, 5 Large company Midsize company Location advisors
35 Best Practices in Website Design
36 Q. Which of the following features do you consider most important to the usefulness of an economic development organization s website?
37 Most Useful Features of an Economic Development Website 70% 60% 50% 40% 30% 20% 10% 0% Video content User-generated content/blog Testimonials from local companies Local schools info Maps of the community News section Quality of life info Staff contact info Target industry info Leading local employers list Competitor locations comparisons Available buildings/sites database Demographic info Workforce stats Incentives info
38 Social Media and Executive Decision Makers
39 Q. Please check all social media channels that you currently use for business. Blog Forums Facebook LinkedIn Twitter YouTube Other social media channels I do NOT use social media for business
40 Social Media Channels Used for Business 60% 50% 40% 30% 20% 10% 0% LinkedIn Facebook Blog Forums Twitter YouTube I do NOT use social media for business.
41 Social Media Channels Used for Business (Response based on Respondent Age) 70% 60% 50% 40% and Over 30% 20% 10% 0% LinkedIn Facebook Blog Forums Twitter YouTube I do NOT use social media for business.
42 Best and Worst States for Business
43 Q. Select the three states whose business climate you perceive as MOST FAVORABLE.
44 Best States For Business Texas 49.4% North Carolina 27.8% South Carolina 14.3% Tennessee 13.9% Florida 13.5%
45 Best States for Business (Response over Time) Texas 49% Texas 41% Texas 33% Texas 25% Texas 30% North Carolina 33% North Carolina 27% North Carolina 30% North Carolina 26% North Carolina 20% California 22% Texas 28% South Carolina 14% Georgia 20% South Carolina 20% South Carolina 18% North Carolina 20% Georgia 27% Tennessee 14% Florida Tennessee 15% Georgia 18% Florida 18% Georgia 17% South Carolina 21% Florida 14% Nevada 14% Nevada 16% Georgia 15% Florida 14% Tennessee 20%
46 How Did Virginia Stack Up? Most Favorable Business Climates #6 in 2011 (11.8%) vs. #15 in 2008 (5.8%)
47 Q. Select the three states whose business climate you perceive as LEAST FAVORABLE.
48 Worst States For Business California 70.5% New York 46.5% Illinois 24.4% New Jersey 23.5% Michigan 16.1%
49 Worst States for Business (Response over time) California 71% California 72% California 66% California 57% New York 29% New York 55% New York 47% New York 42% New York 34% New York 36% California 25% California 47% Illinois 24% Michigan 17% Mass. 22% Mass. 18% Mass. 19% New Jersey 20% New Jersey 24% New Jersey 14% New Jersey 21% New Jersey 15% New Jersey 14% Mass. 19% Michigan 16% Mass. 12% Illinois 13% Florida 10% Connecticut 10% Connecticut 9%
50 Best Economic Development Groups
51 Top Regional Groups
52 Top State Groups
53 A Special Bright Idea Award
54 Bob & Gary s Excellent Adventure
55 Bright Idea Award Vince Barnett Virginia Economic Development Partnership For conceiving the brilliant strategy of a joint business attraction mission to California with Virginia Gov. McDonnell and Utah Gov. Herbert
56 The full report can be downloaded as a PDF Contact information: Dariel Curren Senior Vice President dariel.curren@aboutdci.com Ext. 102 Thank You!!!
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