2.9 Introduction
2.9.2 Dinnie’s Nation Brand Equity Management Strategy
Since this research seeks to develop a nation brand equity management strategy and branding framework, it was informed by a nation brand equity (NBEQ) model by Dinnie (2008:12).
The model is based on the conceptual understanding that nation brand equity is influenced by the innate, nurtured, vicarious, and disseminated assets of a nation. The model regards internal assets “as innate (iconography, landscape and culture) or nurtured (internal buy-in, support of the arts) and external assets as vicarious (nation image perceptions, external portrayal in popular culture) or disseminated (brand ambassadors, the Diaspora, branded exports). Nation brand equity is thus a summation of intangible and tangible internal and external assets (and liabilities) that relate to the nation in question” Dinnie 2008a:159). The model is graphically presented as in Figure 7.
Figure 7: Model of Asset-Based Nation Brand Equity Source: Dinnie (2008a:160)
Dinnie (2008a:163) describes NBEQ as the perceptible and imperceptible, external and internal assets (or liabilities) of a nation. From this conceptualisation, the innate, natured, vicarious, and disseminated assets of a nation influence the nation brand equity. The model
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presents internal assets as innate (iconography, landscape and culture) or nurtured (internal buy-in, support of the arts) and external assets as vicarious (nation image perceptions, external portrayal in popular culture) or disseminated (brand ambassadors, the Diaspora, branded exports). Nation brand equity is thus a summation of intangible and tangible assets (and liabilities) that relate to the nation in question (Dinnie, 2008a:164).
Internal Assets
According to Figure 2.9.2, Dinnie (2008a:164) proposes that internal assets are things that add value to the nation brand and that the nation has direct control over. Internal assets are innate when their features are enduring and capture national identity and the essence of the nation including the nation’s culture, iconography and landscape. Nurtured assets derive from current deliberate attempts to create a congenial atmosphere for brand equity development and include patriotism, positive national sentiment, domestic support and support for the arts.
The innate assets (iconography, landscape, and culture) are those that distinguish a nation the most. Iconography includes such things as national flags, visual symbols, places, personalities, and products that wield a specific reputation at the global market. As Nelson Mandela could be an icon for South Africa, Scotch whisky could be an icon for Scotland, as Hollywood is an icon for the United States of America. Dinnie (2008a:164) observes that landscape including cities, places such as the colourful lagoons and unusual rock formations and volcanic craters in the Uyuni salt in Bolivia are uniquely Bolivian. These play a powerful role in defining the essence of a country and are therefore a key component in nation branding. Similarly, traditional customs and cultural practices may influence the recognition of a nation by foreigners and provide a unique and authentic basis for national identity.
Caution may need to be exercised, however, as these may also procreate the perception that the nation is uncivilised and backward, thereby derailing efforts to portray the nation as vibrant modern economy (Dinnie, 2008a:164).
Music, movies, literal works, language, and sport are a manifestation of culture that can help to determine perceptions of a nation image. Dinnie (2008a:165) observes that damaging opinions associated with a nation’s politics can be potentially reduced by favourable associations made with the nation’s culture. He points to the global demand for America’s film products to illustrate the compensatory effect of culture against the hostility in many parts of the world and American dominant stance on the international front.
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Nurtured assets (internal buy-in, support for arts, loyalty levels), according to Dinnie (2008a:161) are one source of nation brand equity challenge often overlooked by researchers and nations. This normally poses a communication complication for the organisation charged with the role of managing the nation brand. If the local people do not accept and support the brand personality being portrayed, then they will not ‘live the brand’. The effect is a perceptual gap between what obtains on the ground and what the brand communicates. Nation brands should ordinarily reflect the people and the values of the nation behind them.
International tourists and investors tend to believe what they hear from the ordinary people of a nation than what comes from official government communication channels. This is in line with the notion that word of mouth is more credible than commercial messages in brand perception and positioning. The role played by internal stakeholders in brand communication is important (Kemming, 2009:32). Kemming (2009:32) observes that in this contemporary
“knowledge and service society”, it is the people who deliver and represent brands, thereby revealing the critical role they play. The internal activities around brand recognition, brand internalisation and living the espoused brand values are essential for consistent external brand communication. Dinnie (2008a:167) has also included the arts as a key nurtured asset for a nation brand. The level of loyalty among multiple brand consumers including own citizens, trading partners, foreign customers, political allies, tourists and investors is a key aspect for a nation brand.
External Assets
External brand assets of a nation are either vicarious (appreciated indirectly through other people) or are disseminated throughout the world. Vicarious assets pertain to the nation image perceptions as externally portrayed through popular culture. The nation image perceptions held by the wider world may be at variance with the reality at home. This negative image may reflect a myriad of underlying problems such as crime, governance gaps, and corruption, among others. Where this happens, Dinnie (2008a:168) suggests that remedial action should take precedence over any nation branding work. He therefore emphasises the need to keep track and assess brand perceptions for timeous management before they become liabilities.
Disregarding image tracking often results in historical stereotypical images that distort the current realities of the nation. He further observes that there are various aspects of brand equity that are beyond the control of those who formulate nation-branding programmes.
These include performance by sporting teams, government behaviour and conduct by the exporting community.
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Books, music, and films can either have positive or negative stereotypical effect in their portrayal of a nation. Nations ought to downplay negative aspects and highlight the positive ones. Nations could fund international tours by local and contemporary musicians, art performers, and bands to enhance the nation’s reputation indirectly.
Disseminated Assets (brand ambassadors, the Diaspora, branded exports) are also essential.
Dinnie (2008a:169) posits that it could be very cost effective for nations to run with a global web of brand ambassadors mandated to promote the nation brand at every opportunity. He insists, however, that the brand ambassadors must mirror the persona of the nation and positive facets that the nation seeks to project. Some international sports personalities are de facto brand ambassadors for their countries, albeit not officially appointed. The Diaspora could also be considered a readily available community of effective brand ambassadors awaiting activation. If tapped, the Diaspora could bring immense value to the nation brand and they are more aware of the dynamics of the markets in the countries where they are based.
Moreover, these Diaspora networks can also be a source of FDI and individual remittances.
Another type of disseminated assets is branded exports, which can help to establish a nation’s international reputation. Some consumers’ experience with a given nation could be through branded products from that nation, and that may be enough to form opinions and perceptions about the nation. The implication is that nations need to adequately resource their export promotion agencies to play a supportive role towards nation brand equity.