Local Economy,
Vol. 20, No. 2, 183–204, May 2005
Marketing Town Centres: Retailing
and Town Centre Management
GARY WARNABY*, DAVID BENNISON** & BARRY J. DAVIESy
*School of Management, University of Salford
**Manchester Metropolitan University Business School
yUniversity of Gloucestershire
ABSTRACT The role of town centre management (TCM) schemes in the UK has
expanded to incorporate a more overt and explicit focus on marketing and promotion.
This paper considers the marketing/promotional activities of TCM schemes in the UK.
TCM schemes operate at the interface of the public and private sectors. The
implications of this are discussed, including the need for a consensual approach by a
wide range of urban stakeholders, and the actual activities undertaken, influenced by
the funding imperative under which such schemes operate (which impacts on the
feasibility of certain activities and the efforts made to evaluate them). Comparisons
are drawn between specific place marketing practice by TCM schemes and wider
place marketing strategies.
KEY WORDS: Town centre management, place marketing, retailing, marketing
communications
Introduction and Context
The concept of town centre management (TCM)1 has become one of the
main ways in which traditional urban retail areas have attempted to counter
Correspondence Address: Gary Warnaby, School of Management, University of Salford,
The Crescent, Salford, Greater Manchester M5 4WT, UK. Email: g.warnaby@salford.ac.uk
1
Synthesising various definitions, Warnaby et al. (1998, pp. 17–18) define town centre
management as, ‘the search for competitive advantage through the maintenance and/or
strategic development of both public and private areas and interests within town centres,
initiated and undertaken by stakeholders drawn from a combination of the public, private
and voluntary sectors’.
ISSN 0269–0942 Print/ISSN 1470–9325 Online ß 2005, LEPU, South Bank University
DOI: 10.1080/13575270500053282
184 Gary Warnaby et al.
the threat from increased retail provision in off-centre2 locations, from
which it is estimated over a third of UK retail sales takes place (Birkett,
2000; Howard, 2000). Over 450 TCM schemes currently exist in the UK
(Hollins, 2004). The impact – economic, social and environmental – of retail
decentralisation has been extensively discussed (see Guy, 1998, for a
review). In response, at the national level, government land-use policy
relating to retail development since the early 1990s sought to protect
the ‘vitality and viability’ (URBED, 1994) of traditional town centres, given
their role in the provision of social infrastructure and cultural heritage
(Guy, 1998). At the local level, it can be argued that TCM schemes are
one of the prime organisational mechanisms for attempting to maintain
the ‘vitality and vitality’ of retailing in the urban core.
In an economic development context, Williams (1992) acknowledges
an important role for retailing (and, in particular, for major retail developments), while acknowledging that in the past it has not been regarded
as a particularly high priority by those responsible for the marketing of
towns and cities (Williams, 1996). In an urban tourism context, retailing
has been conceptualised as a ‘secondary’ element of the place ‘product’
(Jansen-Verbeke, 1986). However, this view has been contested by
various authors (e.g. Getz, 1993; Shaw & Williams, 1994; Page, 1995).
Indeed, Evans states that:
Retailing has recently proved the most dynamic and the most important
town centre activity. Although town centres contain a variety of facilities and
functions, most people go to town to shop (Evans, 1997, p. 17).
Given its importance to urban economies, retailing is perceived as an
increasingly important factor (and even a catalyst) in urban regeneration
(Building Design Partnership, 2002; Henley Centre/British Council
of Shopping centres (BCSC), 2002; Jones et al., 2003). The potential
contribution of retailing to the regeneration of deprived urban areas
(and consequent addressing of the UK government’s ‘social inclusion’
agenda), has been considered by various authors (Guy, 2001a; West,
2002; Wrigley, 2002; Guy & Duckett, 2003; Mitchell & Kirkup, 2003).
The importance of retailing to town centres in particular (Guy, 1998;
URBED, 1994; Experian, 2004) and the extent of retailer provision of
resource – both financial and help-in-kind to TCM schemes (Medway et al.,
1999a, 1999b, 2000) – has led to an inevitable focus on retail-related
issues. Indeed, the role of TCM schemes in taking prime responsibility
for the marketing and promotion of the retail provision within town and city
centres has been identified (Warnaby et al., 2002).
The activities undertaken under the aegis of TCM schemes can be
broadly classified into short-term and long-term functions (Wells, 1991;
Page & Hardyman, 1996; Warnaby et al., 1998). The prime concerns
of many TCM schemes (especially in their early stages) were essentially
2
Guy (1994, p. xiv) defines ‘off-centre’ as ‘any site outside the limits of a town centre or other
established retail area’
Marketing Town Centres 185
‘day to day management for immediate revenue enhancement’ (Henley
Centre/BCSC, 2002, p. 21). This would have an immediate impact on
the ‘shopability’ of an area, in order to remedy some of the perceived
deficiencies in relation to off-centre retail provision (see McGoldrick
& Thompson 1992a, 1992b; Evans, 1997). While still an important
element of TCM activities, this ‘day to day management’ has to operate
in conjunction with a more long term, overtly strategic perspective
(Henley Centre/BCSC, 2002). This role of TCM schemes has long been
recognised (Association of Town Centre Management, 1996; Page &
Hardyman, 1996; Paddison, 2003; Whyatt, 2004). Indeed, the UK Association of Town Centre Management (ATCM, 1997a, 1997b) emphasises the
importance of business planning for the town centre at the inception of
a TCM scheme.
The Henley Centre/BCSC identify two key elements ‘of the strategic
vision that contribute to the long-term competitiveness and differentiation
of the town centre’ – managing occupier mix, and promotional & marketing
activities. They argue that
. . . a successful town needs to have the right mix of social, civil, residential
and leisure facilities. Successful retail destinations, in particular, need the
right mix of outlets and anchor stores (Henley Centre/BCSC, 2002, p. 22).
The increasing homogeneity of town centres, arising from the ubiquity of the
multiple retailer (see O’Brien & Harris, 1991; Brown, 1992; Evans, 1997;
New Economics Foundation, 2004) has meant that the importance
of marketing and promotion in differentiating urban retail provision has
increased. TCM schemes have long been active in this area,3 and the
importance of marketing and promotion is well attested in the literature (e.g.
ATCM n/d a, 1994, 1996, 1997b; ATCM/Oxford Brookes University, 1995;
Page & Hardyman, 1996; Paddison, 2003). Indeed, it can be argued that
competition for individual town centres is not only confined to off-centre retail
provision, but also to those neighbouring town centres that are developing
such strategies themselves, thereby raising the competitive stakes more
generally. Certainly, the already strong town and city centres in the UK
appear to be getting stronger (Hillier Parker 2000, 2001; Experian, 2004).
Consequently, competition for retail spending among towns and cities in the
UK will further intensify, thus making the retail-oriented marketing role of
TCM schemes even more important into the future.
3
Stubbs et al. (2002) identify various promotional and marketing activities that TCMs may
undertake. They divide these activities into three broad categories: ‘footfall builders’
(intended to bring an increased number of customers into the town); ‘awareness builders’
(aiming to improve potential customer awareness of what the town has to offer); and
‘participation building activities’ (designed to increase support for the TCM scheme by
demonstrating the applicability and relevance of the TCM concept to town centre
stakeholders, and retailers in particular). The importance of this latter activity in terms of
marketing the concept of TCM to what may be termed ‘internal’ audiences (comprising
various urban stakeholders) in order to increase participation and minimise ‘free-riding’
is also emphasized by Forsberg et al. (1999).
186 Gary Warnaby et al.
Marketing Urban Places: Theoretical Considerations
In seeking to market the town centre retail provision TCM schemes interact
with other bodies responsible for strategic development and marketing
(Warnaby et al., 1998; 2002). Thus, TCM marketing activities will have to
be planned and implemented within the context of wider place marketing
strategies.
The marketing of urban places over the last 30 years has been
characterised by increased sophistication and professionalism (Wilkinson,
1992; Griffiths, 1998; Ward, 1998) as urban places have had to become
more entrepreneurial in the face of an increasingly competitive environment (Kotler et al., 1993, 1999; Ward, 1998; van den Berg & Braun, 1999).
Ashworth & Voogd (1990a, p. 27) define urban place marketing as:
. . . a process whereby urban activities are as closely as possible related to
the demands of targeted customers so as to maximise the efficient social and
economic functioning of the area concerned in accordance with whatever
goals have been established.
There is a degree of consensus in the literature that the operationalisation
of the marketing concept within this context requires modification of
general marketing theory and techniques if it is to be effective (e.g.
Ashworth & Voogd, 1990a; Ashworth, 1993; Corsico, 1993; van den Berg
& Braun, 1999). This need arises from the specific characteristics of urban
places.
The complexity of the urban place product (and consequent difficulties
in its definition and delimitation), is a key theme in the literature
(e.g. Ashworth & Voogd, 1990a, 1990b, 1994; van den Berg et al., 1990:
Ashworth, 1993; Paddison, 1993; van den Berg & van der Meer, 1993;
Ward & Gold, 1994; van den Berg & Braun, 1999). Van den Berg & Braun
(1999) identify ‘three levels’ of urban place marketing. The first level
comprises the individual urban goods and services. The second level
comprises clusters of related services. The third level constitutes the urban
agglomeration as a whole, which (unlike the previous categories) may not
in itself be a well-defined product and is, consequently, open to various
interpretations. This third level is mainly concerned with identity and image
building for the urban place as a holistic entity (van den Berg & Braun,
1999). The specific activities of TCM schemes in marketing the town centre
retail provision could be regarded as occurring at the second level, and
thus contributing to the third level.
Another distinguishing feature of urban places relates to their governance. Short & Kim (1999) identify a ‘political economy’ perspective as a key
theme in the literature, reflecting the complexities of the organisational
mechanisms for urban place marketing. The most important organisational
mechanism whereby entrepreneurial place marketing activities are planned
and implemented is public–private sector partnership agencies (Peck &
Tickell, 1994; Paddison, 1997; Hubbard & Hall, 1998). TCM schemes
are no different in this regard, with a partnership being the most
Marketing Town Centres 187
common organisational form (URBED, 1997; Warnaby et al., 1998; Whyatt,
2004), with the potential problems that this entails.4
The need for urban place marketing to be informed by a strategic
perspective is a recurring theme (e.g. Ashworth & Voogd, 1990a, 1994;
van den Berg et al., 1990; Ave, 1993; Corsico, 1993; Fretter 1993; Kotler
et al., 1993, 1999; van den Berg & van der Meer, 1993; Fitzsimons, 1995;
van den Berg & Braun, 1999). Figure 1 outlines indicative strategic market
planning processes from two of the key texts – Ashworth & Voogd (1990a)
and Kotler et al. (1999).
A crucial element is the articulation of a vision, which according to Fretter
(1993, p. 165) should provide ‘a clear understanding of what is desirable,
of what you want to achieve’. The development of the vision should
be inclusive and participative (Ashworth & Voogd, 1990a; Fretter, 1993;
Schmidt, 1993), although one of the urban stakeholders may need to take a
lead in the process (Fretter, 1993; van den Berg & Braun, 1999). Linked to
this need for vision is what van den Berg et al. (1997) and van den Berg &
Braun (1999, p. 995) have termed ‘organizing capacity’, defined as
. . . the ability to enlist all actors involved and, with their help, to generate new
ideas and to develop and implement a policy designed to respond to fundamental developments and create conditions for sustainable development.
Van den Berg & Braun state that an effective local government alone is
not enough to develop organising capacity, arguing that ‘strategic networks’ involving both public and private sector actors, are equally
important. The need for integration between these various actors leads
van den Berg & Braun to conclude that an ‘integral vision and strategy’
is crucial in order to eliminate any inconsistencies in policy making.
The iterative and ongoing nature of the strategic planning of urban
place marketing is emphasised by both Ashworth & Voogd (1990a) and
Kotler et al. (1999).
The vision and strategy has to be developed with a view to what is
possible and desirable, hence the importance of the audit process in the
early stages of the process (Ashworth & Voogd, 1990a; Schmidt, 1993;
Kotler et al., 1999). Here, the principles of market segmentation, targeting
and positioning are crucial (Fretter, 1993; Kotler et al., 1993, 1999),
especially if a differentiated market position is to be achieved.
4
There have been a number of critical assessments of the partnership modus operandi.
Partnerships, despite variations in size, number and organisation, usually represent a
narrow range of local interests (Peck, 1995), and in particular the privileging of a businessled agenda (Sadler, 1993). Peck (1995) and Peck & Tickell (1994) have cast doubts on the
longevity of partnership agencies, arguing that many may turn out to be transient in nature
because of the tensions between the various members. Bassett (1996) argues that many
partnerships are built on a rather fragile consensus and continue to exist by avoiding hard
choices that may prove divisive. Thus, the policies and actions of partnership organisations
may be reduced to the level of ‘the lowest common denominator’ (Peck & Tickell, 1994,
p. 261), increasing the potential of ‘overpromising and underdelivering’ (Wilkinson, 1992,
p. 210).
188 Gary Warnaby et al.
PLACE AUDIT
To ‘understand accurately what the community is like and why’ using SWOT analysis
VISION & GOALS
Should consider: (1) the unique combination of attraction factors that the place should
concentrate on; (2) the target markets of the urban place; (3) the long-term and shortterm goals; (4) the operative prerequisites for the vision
Once vision is agreed, specific objectives must be set
STRATEGY FORMULATION
For each potential strategy, two questions must be asked:
‘What advantages do we possess that suggest we can succeed with the strategy?’
‘Do we have the resources required for successful implementation of the strategy?’
ACTION PLAN
To make the strategy meaningful. For each action, must consider: Who is responsible?
How the action is to be implemented? How much the action will cost? The expected
completion date.
IMPLEMENTATION & CONTROL
Set up a ‘planning team’ to convene at regular intervals to review progress against
goals
Source: Adapted from Kotler et al. (1993, 1999).
ANALYSIS OF MARKETS
Functions of the urban place are commodified (i.e. treated as a set of products) &
positioned in relation to competitors
Actual and/or potential users of the place product are segmented & targeted
Accomplished through a process of auditing
FORMULATION OF GOALS & PLANNING STRATEGIES
Various policy goals may exist: Conservational; Stimulational; Integrational
DETERMINATION OF GEOGRAPHICAL MARKETING MIX
Comprising: Promotional measures; Spatial-functional measures; Organisational
measures; Financial measures
ELABORATION & EVALUATION
Phased implementation of geographical mix elements, incorporating both evaluation
and elaboration/refinement
Source: Adapted from Ashworth & Voogd (1990a).
Figure 1.
Indicative planning processes for urban place marketing
Marketing theory states that the market position is a function of the
combination and interaction of the various elements of the marketing mix
(e.g. Jobber, 2001; Doyle, 2002), defined as, ‘the set of controllable tactical
marketing tools that the firm blends to produce the response it wants in
the target market’ (Kotler et al., 2001, p. 97). While a number of different
conceptualisations of the constituent elements of the marketing mix have
Marketing Town Centres 189
been proposed (Baker, 2000, provides a review), the most commonly used
is the 4Ps framework – comprising product, price, promotion and place.
However, the aforementioned need for the modification of general marketing theory to accommodate the specific characteristics of urban places is
nowhere more apposite than the marketing mix. In this specific context
Kotler et al. (1999, 154) identify the following ‘four aspects of place
development’ – urban design, infrastructure, basic services and attractions
– and also emphasise the critical importance of appropriate place image
(i.e. promotion). Ashworth & Voogd (1990a, p. 31) are more explicit in
their use of the term ‘marketing mix’, proposing in this context a ‘geographical marketing mix’ comprising promotional measures, spatial-functional
measures, organisational measures and financial measures. Doyle (1994)
argues that the design of the marketing mix is central to marketing
management as it will determine success (or otherwise) in the chosen
market(s). The determination of success through evaluation and control of
the implementation process comprises the final stage of the urban place
marketing processes for both Kotler et al. (1999) and Ashworth & Voogd
(1990a).
The remainder of this article investigates the perceptions of marketing
and the use of marketing tools by TCM schemes in the UK, considering the
extent to which the practice of marketing in this specific context
reflects urban place marketing practice. The research reported here
is part of a wider study in which various public and private sector
stakeholder types with potential responsibility for the marketing of
urban retail provision were surveyed. As such, it contributes to the
existing literature on both town centre management and retail-related
place marketing by providing a national perspective. Most existing
studies in this aspect of marketing are case-study based, with an
inevitably narrower spatial scope. Results relating to other stakeholders,
and the interaction between stakeholder types with regard to their
participation in retail-related urban place marketing activity are reported
by Warnaby et al. (2002, 2004).
Research Design
The first stage of this research consisted of ‘non-standardised’ semistructured interviews with four town centre managers (see Healey &
Rawlinson, 1994). The managers interviewed represented a variety of
different TCM organisational structures, including private companies
limited by guarantee, public–private partnership agencies, and local
authority dominated schemes. These schemes also ranged from those
that were well established and recognised as demonstrating good practice,
to one that had only just been established at the time of the research.
These exploratory interviews sought to identify (i) the extent of respondents’ knowledge and understanding of marketing concepts; (ii) the
processes by which marketing/promotional activities were planned and
190 Gary Warnaby et al.
implemented; and (iii) the specific activities undertaken. The interviews all
took place in respondents’ offices and were taped and transcribed. The
interview data were analysed using the template analysis technique (see
Crabtree & Miller, 1999; King, 1998). These interviews identified various
themes that were investigated more generally in the second stage of the
research.
The second stage comprised a postal questionnaire administered
to town centre managers in those urban shopping destinations classified
as sub-regional and above in the Management Horizons Europe UK
Shopping Index (MHI) 1998–1999 (MHE, 1998) which had a TCM scheme.
In total, 155 such respondents were identified. Respondent details
were obtained from the UK Retail Directory 2002, supplemented by
the ATCM ‘Directory of Managed Towns’ (ATCM, 1999, which was
somewhat dated at the time of the research), and by personal
knowledge of the locations of individual town centre managers. Of the
155 possible respondents, 53 questionnaires were returned, constituting
a 34% response rate. This compares favourably with the 30% figure that
Saunders et al. (2000) consider to be a ‘reasonable’ response rate for
a postal survey. The data were analysed using SPSS (Statistical Package
for the Social Sciences) software.
Results
Understanding and Perceptions of the Marketing Concept
In the qualitative stage, most respondents freely admitted their ignorance
of many marketing concepts. As one stated:
[Most town centre managers] are not actually from a marketing background,
or if they are, they don’t do just marketing. . . So somewhere along the line, as
well as being an environmental and a regeneration expert, and a funding
expert, and a partnership management expert and all the rest of it, you are
also a marketeer. . . So we often find ourselves in a situation where we have
this responsibility, without actually any professional kind of background at all.
(TCM no. 1)
Indeed, some of the town centre managers interviewed emphasised that
marketing skills and knowledge were not a part of their initial remit, but
have grown in importance as a more ‘strategic’ dimension to their scheme
has developed. The development of marketing in many established town
centre management schemes has been gradual and, as a result, their
marketing remit had often developed in a haphazard way. Notwithstanding
this, town centre managers interviewed appeared to be effective marketers
for their particular schemes and towns. A recurring theme in the interviews
was that fact that lack of specific marketing knowledge could be overcome
by the fact that sophisticated marketing activities were not necessarily
appropriate or desirable. Indeed, the personal qualities of the individual
were often regarded as more important than formal qualifications in
marketing or related areas.
Marketing Town Centres 191
Respondents often regarded themselves as facilitators of marketing
activities: ‘I would be the one who starts off the idea and hopefully other
people will carry it through’ (TCM no. 3). Actual implementation may occur
through the efforts of other town centre stakeholders, especially those
responsible for the management of individual urban goods and services,
such as retailers and shopping centre managers, who comprise the first
level of urban place marketing (van den Berg & Braun, 1999). However,
the town centre manager may retain a coordinating (although not an
executive) role. Thus, there is some evidence of a holistic perspective
occurring not only at the third level of place marketing (i.e. urban place
image strategies etc), but also in relation to the coordination of activities
relating to the ‘cluster of related services’ that constitutes the overall retail
provision within a town centre. Here, it is likely that this will fall within the
remit of town centre managers (Warnaby et al., 2002), who often defined
this remit in terms of its complementarity to the work of other local
agencies:
So, I think what city centre management tends to get left with are the bits that
nobody else does. What we do, is, either identify that there’s a requirement or
fill a gap. You know, we wouldn’t do it if it wasn’t necessary, if it didn’t provide
any long-term benefit. (TCM no. 1)
Thus, a town centre manager may interact with representatives from a
number of other urban marketing stakeholders (such as tourism promotion
organisations, local authority economic development departments and
urban regeneration agencies) in order to market the town or city (Warnaby
et al., 2002). This interaction and cooperation was both formal (through
town centre steering groups etc) and, equally importantly, informal. One
town centre manager (TCM no. 2) articulated that there were ‘unwritten
rules’ governing ‘how far one does and doesn’t go’ in terms of encroaching
on others’ remits. However, all respondents in the research emphasised
the importance and effectiveness of these links. This has resonance with
one of the key themes in the wider city marketing literature – namely
the variety of stakeholders with potential marketing responsibility (e.g.
Wilkinson, 1992; Bassett, 1996; Paddison, 1997; van den Berg & Braun,
1999), and the need for their coordination through an effective urban
administration and/or strategic network in order to develop organising
capacity (van den Berg & Braun, 1999).5 This variety of stakeholders
5
The importance of an effective local public administration identified by van den Berg &
Braun (1999) was borne out in this specific context. Despite the differing organisational
structures of the four urban places in the qualitative stage of the research, in all places the
local authority wielded considerable influence. In two of the partnerships the town centre
manager was formally employed by the local authority, and in the company limited by
guarantee the town centre manager was initially employed by the local authority. In the
schemes constituted as partnerships the local authority had significant representation on
steering groups, and in the TCM scheme constituted as a limited company the local
authority provided ‘heavy support’ in financial terms.
192 Gary Warnaby et al.
stresses the importance of a consensual approach to planning and
implementing place marketing activity (e.g. Ashworth & Voogd, 1990a;
Fretter, 1993; Kotler et al., 1993, 1999; Schmidt, 1993).
The Marketing Planning Process
The importance of interaction between urban stakeholders was highlighted in the quantitative research – 98% of respondents stated that
they worked with other town centre organisations and agencies to
develop marketing activities. Such collaboration is mirrored within TCM
schemes themselves. Town centre managers interviewed generally
report to a steering group comprised of town centre stakeholders
from both private and public sectors (see ATCM, 1997a). The expectations of senior managers and/or the TCM partnership steering
group defined the nature of TCM’s role in marketing the town or city,
with many town centre managers charged with the delivery of specific
activities:
I am more of a co-ordinator. My background is inward investment and dealing
with businesses, so they see me more as establishing strategies, going out
and getting sponsorships, you know, working with businesses on a day-today sort of level. (TCM no. 3)
The quantitative research indicated that TCM scheme steering groups
were intimately involved in planning marketing activities in 46% of
respondent schemes. Even more important were specific marketing
subgroups, usually of 3–6 people charged with the planning of specific
activities such as seasonal promotional campaigns. Fifty four percent of
respondents indicated the involvement of such groups in the marketing
planning and implementation process.
The existing TCM literature stresses the importance of business
planning (ATCM, n/d b, 1996, 1997a, 1997b; Page & Hardyman, 1996;
Whyatt, 2004). This was borne out by respondents in the qualitative
stage, who indicated that the planning of marketing activities was
done on an annual cycle within the context of the wider business planning
process. TCM business plans typically relate to activities such as
infrastructure and streetscape improvements (identified by Paddison,
2003, as an important element of TCM activities), as well as marketing
and promotion.
This formalised approach was substantiated in the quantitative stage,
with 91% of respondents stating that they had a business plan, and all of
these respondents indicated that marketing activities were implemented
as part of the business plan. Moreover, 49% of respondents indicated that
they implemented marketing activities in addition to those included in their
business plan. This is perhaps a reflection of a state of affairs where
efforts at securing funding may be dedicated to specific initiatives
(see Medway et al., 1999), and which may be quite opportunistic
and speculative, as is often the case in urban place marketing more
Marketing Town Centres 193
generally (Harvey, 1987, 1989; Peck & Tickell, 1994; Griffiths, 1998).
Despite this, most respondents in the quantitative research felt that their
planning processes were robust – 68% ‘disagreed’ or ‘strongly disagreed’
with the statement: In my organisation the planning process is ad hoc and
not very systematic.
Funding (or lack thereof) is a perennial problem to town centre
managers. In the quantitative research, 92% of respondents ‘agreed’ or
‘strongly agreed’ with the statement: Financial/budgetary constraints affect
my organisation’s marketing activities. As one respondent stated:
I don’t think anything is actually built into the costs with town centre
management, because its up to you to go out and find the money for it
[TCM activities]. (TCM no. 1).
Indeed, problems of gaining support and funding for marketing activities
have implications for what can and cannot be done. This is a consequence
of the existing voluntary funding mechanisms for TCM. An issue influencing
the effectiveness of marketing activities developed through voluntary
collaboration – which was articulated by most respondents in the qualitative
research – is the problem of ‘free riding’. Organisations who ‘free-ride’ do
not contribute to collective activities, but take the benefits from them (for a
wider discussion of free-riders in TCM schemes see Forsberg et al., 1999).
This was regarded as ‘inevitable’ (TCM no. 2).
Thus, the funding imperative impacts significantly on the process of
planning marketing activities in this specific context, as in urban place
marketing more generally. Ashworth & Voogd (1990a, p. 31) state that
‘financial measures’ are of ‘considerable importance’, thereby warranting
their inclusion as an element of the geographical marketing mix,
and indeed, much of the time of town centre managers is devoted to
increasing funding contributions, particularly from private sector urban
stakeholders (Paddison, 2003). The implications for the actual activities
undertaken (and the methods by which these activities are evaluated) are
discussed below.
Marketing Activities
For all respondents in the qualitative research, there was evidence of
attempts to influence areas of the marketing mix, such as the ‘product’ (in
terms of, for example, developing the retailer mix and other urban services
and amenities) and ‘place’ (in terms, for example, of measures to improve
accessibility to and around the town centre). Paddison (2003) highlights the
role of the town centre manager in lobbying for capital improvements in the
town centre (in the form of infrastructural enhancements) and attracting
inward investment. Such activities are inevitably more strategic in their
orientation (Building Design Partnership, 2002; Henley Centre/BCSC,
2002; Paddison, 2003), as the process of change may be long and drawnout (Paddison, 1993), possibly involving, for example, land use planning
194 Gary Warnaby et al.
processes (see Ashworth & Voogd, 1988). Furthermore van den Berg et al.
(1990) contend that any resulting implications of change for the totality
of the place must be considered. These activities broadly equate to
Ashworth & Voogd’s (1990a) ‘spatial/functional measures’ of the geographical marketing mix, and all of Kotler et al.’s (1999) ‘four aspects of place
development’ to some extent. However, the focus of much ‘marketing’
activity was on the ‘promotion’ element of the marketing mix (using the 4Ps
categorisation).
Fill (2002, p. 11) defines promotion as ‘being responsible for the
communication of the marketing offer to the target market’. This can be
accomplished by a range of techniques, the most important of which
are advertising, sales promotion, public relations, sales force and direct
marketing – referred to collectively as the ‘marketing communications
mix’ (Kotler, 2003). The use of marketing communications by town centre
managers was investigated more generally in the quantitative stage.
Table 1 indicates the most commonly used marketing communications
activities.
The most commonly used marketing communications activities
were leaflets and other promotional literature (a form of direct marketing),
events and festivals and local/regional press advertising. Local/regional
radio advertising, the internet and public relations were also commonly
used. All these activities can be, to a greater or lesser extent, specifically
targeted towards consumers at the local and regional level who are
the potential shoppers in the town centre. There was evidence of
the integration of activities. For example, events and festivals would be
advertised in local media and, moreover, this advertising may be
used to lever editorial coverage in local media vehicles. Indeed, the
Table 1. Use of marketing communications activities by TCM schemes
Marketing communications activity
Leaflets & other promotional literature
Events & festivals
Local/regional press advertising
Local/regional radio advertising
Internet
Public relations
Local/regional outdoor advertising
Direct marketing
Trade shows & exhibitions
National/international press advertising
Local/regional TV advertising
National/international outdoor advertising
National/international TV advertising
Number of respondents using
(n ¼ 53)
51
51
50
44
42
39
28
22
18
14
13
9
6
Marketing Town Centres 195
Table 2. Town centre managers’ perceived importance of target audiences
Target audience
Local/regional general public (n ¼ 51)
Local/regional media (n ¼ 48)
Local/regional large businesses (n ¼ 49)
Local/regional SMEs (n ¼ 48)
Local/regional landlords/property owners
(n ¼ 49)
National/international large businesses
(n ¼ 35)
National/international landlords/ property
owners (n ¼ 33)
National/international media (n ¼ 30)
National/international SMEs (n ¼ 29)
National/international general public
(n ¼ 31)
Very
important
Important
Fairly
important
Not
important
45
38
30
28
26
4
7
14
13
17
2
2
4
6
4
–
1
1
1
2
16
8
4
7
13
8
6
6
9
8
5
8
6
11
8
8
13
5
7
2
importance of the general public (at local/regional spatial scales) is
emphasised when respondents were asked about who they perceived as
the target audiences for their marketing communications activities (see
Table 2).
Table 2 indicates the importance of local/regional audiences generally,
and the most commonly used communications activities are tailored
towards these audiences (particularly the local/regional general public
and media). Communications activities aimed at national/international
audiences are very much of secondary use. The use of direct marketing
and attendance at trade shows and exhibitions is perhaps indicative of
the involvement of town centre managers in the attraction of (particularly
retail) inward investment in conjunction with other urban stakeholders
(for a specific example of this see Warnaby, 2000).
Town centre managers’ perceived importance of these various
marketing communications activities reflects their actual usage and is
shown in Table 3 – here, local/regional press advertising, leaflets &
other promotional literature and events & festivals. Of more secondary
importance were public relations and local/regional radio advertising.
This focus on promotion could be regarded as something of a paradox.
For TCM schemes, the development of ‘marketing’ activities is regarded as
a manifestation of a more strategic orientation (Page & Hardyman, 1996;
Henley Centre/BCSC, 2002; Warnaby et al., 2002), yet the actual activities
undertaken are often overtly promotional, which is regarded as more
tactical in its orientation (Biggadike, 1981). Notwithstanding this, promotional activities can be planned strategically (Betts et al., 1995; Pickton &
Broderick, 2001; Fill, 2002) utilising the concept of integrated marketing
196 Gary Warnaby et al.
Table 3. Perceived importance of marketing communications activities by TCM schemes
(number of respondents indicating an activity as ‘Very important’)
Marketing communications activity
Local/regional press advertising
Leaflets & other promotional literature
Events & festivals
Public relations
Local/regional radio advertising
Internet
Local/regional outdoor advertising
Direct marketing
Local/regional TV advertising
Trade shows & exhibitions
National/international press advertising
National/international outdoor advertising
National/international TV advertising
Number of respondents (n ¼ 53)
33
31
30
23
22
12
12
12
6
5
2
2
1
communications6 (IMC), and as a consequence can contribute to TCM
marketing objectives, as identified by Stubbs et al. (2002). The setting of
objectives is a fundamental element in the urban place marketing planning
processes (Ashworth & Voogd, 1990a; Kotler et al., 1999), outlined in
Figure 1.
Figure 2 highlights how the most commonly used promotional activities
identified in this research can contribute to objectives aimed at what Stubbs
et al. (2002) termed ‘external’ target audiences. External TCM objectives
can be defensively oriented (i.e. retaining existing retail spend) or more
developmental (i.e. attracting new customers to the town centre), and
many of the promotional methods mentioned above can achieve both.
Figure 3 highlights how the most commonly used promotional activities
identified in this research can contribute to marketing to ‘internal’ TCM
target audiences (Stubbs et al., 2002), namely, those stakeholders and
groups within the town who may support the TCM scheme (in order to
minimise the problem of free-riding). Indeed, the fact that a number of
different communications activities can contribute to the same objective
6
While integrated marketing communications has been variously defined (e.g. Betts et al.,
1995; Kotler et al., 2002), Pickton & Broderick (2001, p. 66) simplify the concept by defining
it as ‘the process of integrating all the elements of the promotional mix’. They go on to
identify various characteristics of IMC. These include: (i) clearly identified communications
objectives (which are consistent with other organisational objectives); (ii) a planned
approach which covers the full extent of marketing communications activities in a coherent
and synergistic way; (iii) a focus on a range of target audiences; (iv) the management of all
forms of contact between the organisation and its audiences; and (v) the effective
management and integration of all promotional activities and people involved.
Marketing Town Centres 197
NATIONAL/
INTERNATIONAL
ADVERTISING
LOCAL/REGIONAL
ADVERTISING
INTERNET
ATTRACTING NEW
CUSTOMERS
LEAFLETS & OTHER
PROMOTIONAL
LITERATURE
EVENTS &
FESTIVALS
RETAINING EXISTING
RETAIL SPEND
PUBLIC RELATIONS
TRADE SHOWS &
EXHIBITIONS
DIRECT MARKETING
Figure 2.
Contribution of main marketing communications activities to ‘external’
TCM objectives
suggests the potential for a more integrated approach to the planning
of marketing communications activities in order to optimise their utility
(and minimise duplication). There are, inevitably, specific contextual issues
that exacerbate some of the inherent difficulties in implementing an IMC
approach (which are discussed more generally by Fill, 2002), which include
the coordination of a wide range of urban stakeholders and possible
funding discontinuity, as mentioned above.
Evaluation
The importance of evaluating marketing (and indeed, all TCM activities)
against the objectives and goals set for them was recognised by
respondents. Indeed, the use of key performance indicators (KPIs) by
TCM schemes is widespread (Hogg & Medway, 2000), as an attempt to
indicate their value to urban stakeholders. Eighty-one percent of
respondents regarded the evaluation of marketing activities as an essential
198 Gary Warnaby et al.
NATIONAL/
INTERNATIONAL
ADVERTISING
LOCAL/REGIONAL
ADVERTISING
INTERNET
RAISING AWARENESS
LEAFLETS & OTHER
PROMOTIONAL
LITERATURE
EVENTS &
FESTIVALS
RAISING
PARTICIPATION &
FUNDING
PUBLIC RELATIONS
TRADE SHOWS &
EXHIBITIONS
DIRECT MARKETING
Figure 3.
Contribution of main marketing communications activities to ‘internal’
TCM objectives
part of the planning process.7 Seventy-five percent of respondents claimed
regularly to monitor key performance indicators.8 However, 80% of
respondents felt that evaluative measures could be more rigorously
applied.9
The financial imperative does affect marketing evaluation and, as a
consequence, much of the assessment of the effectiveness of marketing
activities is ad hoc and anecdotal. Lack of resource for evaluation was an
issue for all respondents in the qualitative stage of the research. Of course,
the difficulties of isolating the impact and effectiveness of marketing (and
especially promotional) activity in general is well recognised (e.g. Pickton &
7
That is, ‘agreed’ or ‘strongly agreed’ with the statement: Evaluating marketing activities is
an essential part of the planning process.
8
That is, ‘agreed’ or ‘strongly agreed’ with the statement: We regularly monitor and evaluate
certain key performance indicators.
9
That is, ‘agreed’ or ‘strongly agreed’ with the statement: We need to be more rigorous in
evaluating marketing activities.
Marketing Town Centres 199
Broderick, 2001; Fill, 2002). These difficulties were fully appreciated by
respondents interviewed:
How do you actually, physically measure it? If I were to say, ‘We spent £4000
on that, what did we get back?’ Because this is one of the arguments that
people put up, and they say, ‘Well, we put the festival on, how much more
business did it actually bring in?’ I can’t measure that. (TCM no. 3)
Discussion
The activity scope of TCM schemes is generally conceptualised as
comprising both short-term, janitorially-oriented activities (relating to the
day-to-day management of the town centre), and long-term, more
strategically oriented activities relating to future development (Wells,
1991; Page & Hardyman, 1996; Warnaby et al., 1998; Henley Centre/
BCSC, 2002). Marketing and promotion is regarded as an element of these
more strategic activities. However, this arguably simplifies a more complex
reality.
Taking elements of the marketing mix as identified in the context of urban
places (e.g. Ashworth & Voogd, 1990a; Kotler et al., 1999), and comparing
with the more traditional marketing context – the 4Ps of product, price,
promotion and place – then the issue of the need for modification of
traditional marketing theory (Ashworth & Voogd, 1990a; Ashworth, 1993;
Corsico, 1993; van den Berg & Braun, 1999) becomes very clear.
‘Promotion’ is arguably relatively straightforward, equating to ‘promotional
measures’ (Ashworth & Voogd, 1990a) and developing an appropriate
place image (Kotler et al., 1999). Beyond this however, the picture is more
complicated.
‘Product’ in this context can refer to Ashworth & Voogd’s (1990a) ‘spatialfunctional’ measures and, to a greater or lesser extent, all of Kotler et al.’s
(1999) ‘four aspects of place development’ – urban design, infrastructure,
basic services and attractions. Indeed, it could be argued that in this
context the traditional ‘product’ and ‘place’ elements of the marketing mix
are conflated as some aspects normally associated with ‘place’, such as
accessibility and availability (Jobber, 2001), become ‘product’ issues (e.g.
urban design, infrastructure) when the product is itself a place. As a result
of the attenuated process of product development in this context
(Paddison, 1993), possibly involving the land-use planning system
(Ashworth & Voogd, 1988), and having to take into account the impact of
development on the urban place as a whole (van den Berg & Braun, 1999)
because of its inherent holism (Ashworth & Voogd, 1990b), then the
influence of the town centre manager is constrained. Paddison (2003)
recognises this in emphasising the town centre manager’s role in lobbying
for infrastructural enhancements and inward investment. The town centre
manager’s role is most likely not an executive one, but much more a
facilitating and coordinating one – as was emphasised by respondents in
this research.
200 Gary Warnaby et al.
Indeed, the extent and perceived importance of the interaction between
town centre managers and other urban marketing stakeholders to plan and
implement marketing activities emphasises the importance of Ashworth &
Voogd’s (1990a) ‘organisational measures’ in the marketing mix. This
research highlights the nature of this interaction, which can be at an interagency level (i.e. between the TCM scheme and other urban marketing
organisations) and at an intra-agency level (i.e. where an individual town
centre manager has to work with the TCM scheme steering group, which
most likely is the body that formally sanctions his or her activities, and also
with smaller marketing working parties responsible for the planning of
specific activities). These issues are discussed in more detail by Warnaby
et al. (2002).
The traditional marketing mix element of ‘price’ is, arguably, not relevant
in this context – a TCM scheme has no influence over the price of goods
from/admission to individual urban goods and services (comprising van
den Berg & Braun’s, 1999, first level of urban place marketing). However,
this research has indicated that ‘financial measures’ (Ashworth & Voogd,
1990a) are of critical importance in determining what can and cannot be
achieved.
Referring to the temporal dimension of TCM activities, all these aspects
can be regarded as having short term (tactical) and long term (more
strategic) dimensions. ‘Promotion’ can relate to both specific initiatives (as
noted above), as well as to longer term campaigns focusing more overtly
on image building and developing the market position of the town centre as
a whole. ‘Product’ developments relating to infrastructure development etc
can be very long term and strategic in their orientation, affecting the
fundamental nature of the town centre. However, day-to-day ‘product’
dimensions, such as maintenance of basic services and attractions (Kotler
et al., 1999) still need to be implemented, and these janitorial tasks are
important ongoing aspects of TCM activity. Ashworth & Voogd’s
‘organisational measures’ can refer to both day-to-day working relationships (i.e. intra agency dynamics) as well as relationships between
different urban agencies and organisations relating to the longer term
strategic development of the town centre (i.e. more likely to encompass
inter agency dynamics). ‘Financial measures’ can relate to both long and
short term issues. Funding from TCM schemes can be divided into two
kinds (Medway et al., 1999a) – ‘freestanding’ (i.e. relating to the provision
of core funding, often used to pay salaries and ongoing costs of the TCM
scheme), and ‘ring-fenced’ (i.e. provided for the duration of specific
initiatives only). The search for both types of funding is a significant
element of a town centre manager’s job (Paddison, 2003), and as this
research shows, one which impacts directly on the nature of the marketing
activities undertaken.
However, the recent introduction of legislation to permit Business
Improvement Districts (BIDs) in the UK, could possibly alleviate some of
the problems relating to elements of the marketing mix in this context. A
BID allows for the creation of a town centre company that can levy an
Marketing Town Centres 201
additional tax on businesses within a specific urban boundary in order that
services in that area can be improved in a sustainable manner, 10 and the
ATCM is currently piloting BIDs in 22 locations in the UK (Johnson & Reilly,
2004). Many TCM schemes in the UK are actively considering the
formation of BIDs in their location (Hollins, 2004), and the scope of BIDs for
formalising organisational and funding mechanisms for individual TCM
schemes will, arguably have significant implications for the range of their
activities, including marketing. The potential for TCM schemes to move
from a facilitation/coordination role to more of an executive function within
an urban place has the potential to impact on the scope and effectiveness
of their marketing and promotional activity. As such, it provides a very
fruitful area for further, ongoing research.
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