This document discusses trends, tools, and tactics for marketing and attracting businesses for economic development. It covers 4 key discussion points: defining economic development; distinguishing between product and economic development marketing; understanding changing customer characteristics; and adopting new roles and tactics. The document emphasizes that economic development is becoming more complex with global uncertainties, political divides, and disruptive technological changes occurring more frequently. It argues that communities need to shift from traditional job and product-based models to knowledge and wealth-based models focused on talent, innovation, and quality of life to effectively compete.

1. Marketing & Attraction
Trends, Tools, and Tactics
Stephen McKnight
Vice President
Community and Market Assessments
www.fourtheconomy.com

2. 4 Key Discussion Points:
1. What is Economic Development
2. Product vs. Economic Development Marketing
3. Getting to Know the New Customer (Pace of Change and Shifts Occurring)
4. New Roles & Tactics

3. Strategic Planning Economic Developers
Impact Studies Higher Ed
Asset Mapping Developers
Corporate Site Selection The Fourth Economy Non-Profits

4. This business of economic development
is not getting any easier…
National Issues to be Determined:
 Global Financial Uncertainty
 Political Divides
 Federal Innovation Investment vs. Spending (NIH/NASA/DOD R&D?)
 Transportation Funding
 Revenue Generation (Taxes/Incentives/Global Competition)

5. How Do You Define
Economic Development?
Create Good Jobs
Retention Family Sustaining Wages
Creation Expand Tax Base
Keep Our Children Local
Attraction
Land Development

6. Why Here?
Great Place To Raise A Family
Low Cost of Living
Live, Work, Play
Quick Commutes
Available Land

7. City/County & Economic Development Websites
Phrase Million Phrase Million
Pages Pages
Business friendly 2.1 Good place to raise a family 1.81
Creative 2.1 Great business climate 1.79
Innovation / innovative 2.02 Beautiful parks 1.75
Natural resources 2 Biotechnology 1.69
Quality of life 1.98 Friendly business climate 1.26
World class technology 1.95 Hip 1.09
Leading research 1.95 Nanotech 0.673
Good or great work ethic 1.84 Most livable 0.638
Great place to raise a family 1.83 World class amenities 0.333

8. SO WHAT?
Investment Decision Process:
Competition is Fierce, Fluid and
Sites Global…
Buildings
What Sets You Apart?
Communities
Lifestyle & Incentive Drivers
Regions Within/Across States
Cost & Lifestyle Drivers
State/Multi State Level
Logistic Drivers
Global or National Level
Market Drivers

9. So What Do You Need to Know
to Compete?
First, things Are Happening Fast
Second, Investment Priorities are Shifting

10. Raw Material Extractors & Farmers
1700s – 1850s (150 Years)
Industrialists
1850s – 1950s (100 Years)
The Virtuals
2020s + (Every 3 to 5 Years)
The Digitals The Law of Manufacturers
Advanced
2010s to 2020s (10 Years) 1950s – 1980s (30 Years)
The Fourth Economy
Technology Developers and Communicators
Economic Cycles and Years)
1980s to early 2000s (20 Disruptive
Events Will Occur Every 3 to 5 Years

11. Recognize the Shift
New Strategies
Tools
Tactics
Job Based Model Required
Wealth Based Model
“Job Creation” “Sustainable Wealth and Value”
Product Driven Knowledge Driven
Cost Sensitive Value Sensitive
Market Driven Place Driven
“Making the Sneakers” “Designing the Sneakers”

12. Jobs
Jobs Model
Products
Sites
Water / Sewer / Roads

13. Customers Characteristics
in a Jobs Model
 Heavy Manufacturing
 Large, Centrally Located Employment Base
 People followed Jobs
 Cost and Wage Sensitive
 Use of Natural Resources
 Large Tracts of Land

14. We know Things Have Changed…
Large Traditional Expansions and Relocations Within the
U.S. Are Increasingly Rare and Market Driven

15. Wealth
Wealth Model
Knowledge
Technology
Human Capital
Financial Capital
Place
Corporate / Retail / Housing Quality and Options
Transportation Infrastructure
Community – Civic Spaces
“The Built Environment”

16. “Average Space Required
Customer Characteristics
Per Person Down from in a Wealth Model
250 sq/ft to less than 150
sq/ft”  Innovation is a Cornerstone
 Smaller Sizes – Many Locations – Higher Growth
ULI  Talent Driven / Attract and Retain
 Grow by Buying or Joining Other Companies
 Business Follows the Talent
 Corporate Image Important
Businesses with fewer  Both Rural and Small Urban Settings
than 20 employees  Serial Reinvestment
account for 90 percent of
all U.S. firms and are responsible for
more than 97 percent of all new job
SBA

17. Higro businesses are those that expanded net
employment at least twice between 2004 and
2009, with at least one year of expansion over
the last two recession years.
Higros accounted for 2,322 of the 757,556 business
establishments operating in the state at the end of
2009. Together these higros created a total of
60,850 net new jobs between 2004 and 2009, or an
average of 26.2 new jobs each.
The other 755,234 businesses in PA created a
total of 100,713 net new jobs over the same
period, or an average of just 0.1 jobs each.

18. Most Job Gains Continue to Come from Smaller Firms

19. And new changes on the way….

20. Manufacturing
1850s – 1950s (100 Years)
Advanced Manufacturing
1950s – 1980s (30 Years)
Technology Development
1980s to early 2000s (20 Years)
BUT – Most Economic
Development Marketing Digital Generations
Strategies are Stuck Here 2010s to 2020s (10 Years)
The Virtuals
2020s + (Every 5 Years)

21. Product vs. Economic
Development Marketing
Board Education Is Required

22. I never knew
I needed so
much crap…
Happy
Holidays!!

23. Product Marketing
Impulse Option – I need That!!
Broad Consumer Base
Product Duplicity is OK
It is Expected to Wear Out (Short-term/Small Investment)
Advertising Works – Immediacy
Relatively Quick and Easy Product Changes
Central Control of Product and Process (Design/Manufacturing/Distribution)
Cost Often Tops Value

24. Economic Development Marketing
Very Narrow/Specific Consumer Base
Big Investments for the Long Term
Cultural and Community Implications
Human Element / Variable Impressions / Tomato Vs.
Tomawto
Sophisticated Modeling and Research Behind The
Scenes Without Your Awareness or Control of the Process
Your Product Improvements Are A Long-term Proposition
Value Factors Increasingly Top Cost Factors

25. Stapleton, CO
Effective Economic Development
Marketing Strategies and Services
will…
Help Clients Connect & Collaborate
Enhance The Corporate Brand
Attract and Retain Talent Oakland City, CA
Attract Capital
Provide Live-Work-Play Settings
Offer Quality Housing Diversity
Access Knowledge Centers
Southside Works
Pittsburgh, PA

26. Yes, Continue to Market your Sites and Buildings, put a map on our home
page, but also take on New Roles as Economic Development Intermediaries
Land Use Planning Transit Linkages / Options
Design Guidelines Green Space Development
Technology Transfer Housing Options
Risk Capital Recreation
Knowledge Network Management Education & Training

27. Modern Definitions and Goals
Create Good Jobs Attract and Sustain Investment
Expand Tax Base Effectively Manage Growth
Keep Our Children Local Attract and Grow Talent
Family Sustaining Wages Strengthen Community Appeal
Land Development Community Development

28. Big Picture Take-A-Ways
 Recognize Your Customer
 Identify What Sets you Apart
 Align Your Assets
 Make Sure You Can Deliver
Tactical Level Take-A-Ways
 Maps on Home Page
 Clear Contact Information
 Sites and Buildings
 Communicate Challenges

29. Thank you!
Stephen McKnight
Vice President
Community & Market Assessments
Fourth Economy Consulting
steve.mcknight@fourtheconomy.com
www.fourtheconomy.com