More from DCI’s “Winning Strategies” Survey: Influencing Corporate Decisions

Where do corporate executives get their information about business locations? Which marketing tactics can economic development officials use to influence target companies? What factors are most important in making a location decision?

For the fifth time, Development Counsellors, Inc.’s “Winning Strategies” survey asked corporate executives with site selection responsibilities to tell us which sources of information influence their perceptions of a community’s business climate. Respondents were asked to choose three from 13 possible responses: “articles in newspapers and magazines,” “business travel,” “dialogue with industry peers,” “direct mail,” “meetings with economic development groups,” “national surveys,” “personal travel,” “print advertising,” “TV/radio advertising,” “TV/radio newscasts/shows,” “word of mouth,” “online sources” (added in 1999) and “other.”

The top five responses are:

1. Dialogue with industry peers 61%
2. Articles in newspapers and magazines 53%
3. Business travel 43%
4. Meetings with economic development groups 32%
5. Online sources 28%

The top three influencers – “dialogue with industry peers,” “articles in newspapers and magazines” and “business travel” have remained remarkably consistent since the survey was first conducted in 1996. Executive perceptions are heavily influenced by what “other credible sources” say about a community (or what they observe in their own travels), rather than by what a community says about itself via controlled media.

According to DCI, economic development groups need to think creatively about how to apply these lessons to their own marketing programs. They offer two observations drawn from DCI’s experience in economic development marketing:

 Stimulating greater “dialogue with industry peers” – essentially getting local business leaders to communicate with external colleagues about a region’s business advantages - remains a challenging but potentially blockbuster marketing opportunity. Successful ambassador programs initiated by local economic development groups have had some impact in this area. Growth in social media and online communications offers a new and inexpensive avenue for “peer-to-peer” dialogue.

 A structured program to communicate with the business traveler offers a similar opportunity – particularly for larger communities with significant tourism assets. Creative approaches implemented by economic development organizations include training programs for taxi/limousine drivers, tailored materials in airport/hotel business centers and “strategic conferencing” – attracting specific meetings/conferences that will bring target executives to a community.

The full report can be viewed at DCI’s website here.