Monday, October 06, 2008

Binghamton maps strategy to market city

Officials plan to make most of $12,310 budgetBy John HillPress & Sun-Bulletin

BINGHAMTON -- How do you sell a city?

If you're Binghamton Economic Development Director Merry Harris, you do it on a shoestring.
Next year, the city will spend $12,310 on marketing -- the signs, brochures and advertising aimed at attracting and retaining businesses, investors and people.

The spending amounts to less than two-hundredths of a percent of the city's proposed $79 million budget. That's less than the $19,000 it has earmarked for uniforms in the Department of Public Works, or the $15,000 planned for repairs to elevators at city hall.

The instinct to spend less on promotion during lean economic times is common, a marketing expert said. It's also the complete opposite of what organizations, both private and public, should be doing.

"That's when you can least afford to cut," said Binghamton University professor Subimal Chatterjee. "You have to stop that bleeding, and how do you stop that bleeding? Through even better marketing tactics."

Most of the city's marketing will be done in-house. The city's economic development office will design brochures and signs. If the office had more money, Harris said she would hire an outside marketing agency, something several council members have suggested.

Still, with a budget hampered by rising costs and sagging revenues, and funded by a substantial property tax increase, spending in any "non-essential" area is unpopular.

During last month's budget hearings, the city council added $5,000 to the marketing budget -- bringing it up to $12,310 -- though only after nearly two hours of debate.

"If I want to sell my car, I better wash it first," said Councilman Robert Weslar, D-1st District, who advocated for more funds.

Some council members said the marketing budget was so small that an extra $5,000 wasn't enough to make a difference.

The city administration believes that, despite the tiny amount to be spent, they are putting together a plan that can be built upon in the future. Next year, Harris plans to ask for $25,000.

"The budget is small, but it has the potential to have an impact," city spokesman Andrew Block said.

Harris said the plan is to "start close to home," reaching out to people who already have some connection to the city: either as residents, neighbors, employees or visitors. That includes a "Buy Binghamton" campaign that will encourage local consumers to spend money in the city, especially downtown.

In an outline of her marketing plan, Harris explained the city's goals: "The rationale is ... to try to get those folks to think about and act toward the City of Binghamton in a more positive way."

This year, the city spent $10,000 on promotion. That bought an ad in about a dozen small downstate newspapers, some fliers and banners at local events, like the Chris Thater bicycle race.

It's often difficult to convince managers and executives of the long-term benefits of selling yourself, Chatterjee said. That's especially true during budget time, when the focus is on one year's spending, rather than projecting forward.

A paltry budget can often be blamed on the marketing department itself, Chatterjee said. The onus is on the marketers to provide hard numbers that prove their methods, no matter how small, are effective.

"Otherwise, what happens is it becomes shooting in the dark," he said.

Harris told the council it was difficult to produce hard numbers for how the city's efforts were performing. Next year's plan includes several methods to track progress, including consumer surveys done by BU's School of Management.

According to a draft of the city's marketing plan, Harris would spend the money on signs and phone boards at the airports in Binghamton, Syracuse and Scranton. A single-page brochure will be distributed to regional employers, hotels and other tourist centers, promoting Binghamton tourism and economic development.

The Broome County Industrial Development Agency markets the county at certain "gateways" -- Greater Binghamton Airport and Interstate 81 -- but the city itself does not have a defined presence at either, Harris said. The city certainly benefits from marketing done by the IDA and the Greater Binghamton Chamber of Commerce, she said, but it needs to promote itself as the hub of the region.

Catherine Glover, president of the Greater Binghamton Chamber of Commerce, said the city is on the right track, highlighting strengths like historic architecture, a diverse small business community and good quality of life.

"We've got some strong assets down here," Glover aid.

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