Declining and Recovery of Places Dr.-Ing. Jo Santoso (Introduction to Kotler’s Marketing Places) Magister Teknik Perencanaan Urban Development March 2006.

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1 Declining and Recovery of Places Dr.-Ing. Jo Santoso (Introduction to Kotler’s Marketing Places) Magister Teknik Perencanaan Urban Development March 2006

2 Definition Places are more than Budgets and businesses. They are people, cultures, historical heritage, physical assets and opportunities. Fiscal and economic measurements can be use to define the healthiness of places

3 The Indicators & The Problems The Indicators: (i) Quality of Life of Places (ii)The quest for livable, investible and visitable characters of places Why do places fall into trouble? What can be done to solve the problems?

4 The City Development Cycles City Growth Dynamics (Figure 1-1) City Decay Dynamics (Figure 1-2) The leading role of “External Forces”: (i) Technological Development (Table 1-1, page 11) (ii) Emerging of “Free Market”/Global Competition (iii) Policy of Governments (State, City)

5 Key Challenges Of Places 1.Places are increasingly at risk as a result of the accelerating pace of change in the global economic, political, and technological environment. 2.Places are increasingly at risk as a result of normal processes or urban evolution and decay/degeneration 3.Places are facing a growing number of competitors by attracting scare resources 4. Places have to rely increasingly on their own local resources to face the growing competition.

6 The Strategic Market Planning Process Conducting The Place Audit Setting The Vision and Objectives Formulating The Strategy Developing Action Plan Implementing And Controlling The Marketing Plan

7 The Place Audit The Place Audit is tool to understand accurately what the community is like and why. The Place Audit contents > Examination of Place’s Economic and Demographic Characteristics > Identifying the Place’s Main Competitors > Identifying the Major Trends and Developments > Analyzing the Place’s Strength and Weaknesses > Identifying Place’s Opportunities and Threats

8 Setting Vision and Objectives What the community want to be in the next 10-20 years from now. Two or more alternative visions should be developed and debated. Each vision should carry some promise as well as risk. Vision regarding residents/migration, mix of industries, housing patterns, public services, financing models, etc. Examples of San Diego, Singapore, KL, etc. Follow by developing The Action Plan, Implementing and Controlling.

9 On Characters of Place 1.A Place (as character) needs a sound design that enhances its attractiveness and its aesthetic qualities and values 2.Places ( as fixed environment) needs to develop and maintain a basic infrastructure that moves people and goods 3.Place (as service provider) must provide basic services that meet bisiness and public needs. 4.Place (as entertaintment and recreation) need a range of attractions for their own people and visitors.

10 Strategies For Place Improvement Place marketing means designing a place to satisfy the needs of its target market. How to improve livability, investibility and visitability The main components of improvements are urban design, infrastructure, services and attraction. Question: Are these components internal or external factors of City Positioning Analysis?

11 Strategic Programms Designing the Place’s Image Attracting the Tourism an Hospitality Business Markets Attracting, Retaining, Expanding, and Starting Businesses Expanding Exports and Stimulating Foreign Investment Attracting Residents

12 (Place’s) Respond to the Challenges (1)Need to establish a strategic vision (2)Need to establish a market-oriented strategic planning process (3)Must adopt a genuine market perpective toward their products and customers (4)Have to build quality into their programms and services (5)Need skill to effectively communicate and promote their competitive advantages

13 Respond (cont.) (6) Need to diversify their economic base and develop mechanisms for adapting changing conditions (7)Must develop and cultivate (nurture) entrepreneurial characteristics (8)Must rely more on the private sector to accomplish their tasks (9)Need to develop its own unique change processes as a result of differences in the place’s culture, politics, and leadership processes

14 Comment on (1) Theoretical Framework of “Marketing Places” Kotler cs. menggunakan “Strategic Management Approach”: >City dianggap sebagai sebuah kesatuan subyek (entity) yang dinamakan “Community” > Sebagai “external factors” adalah “rapid technological change”, “global competition” dan “intergovernmental shifts” Pertanyaannya ialah bukankan di dalam “ Urban Community” sendiri terdapat unsur government?

15 Comment on (2) Theoretical Framework Pendekatan teoretis ini hanya berlaku pada kondisi sbb.: >bahwa para pelaku yang duduk di Pemda maupun partisan di Daerah mampu bertindak “indipendent” dari pemerintah nasional atau partai politik. > Bahwa semua unsur “komunitas kota” yaitu partisan, pemerintah dan swasta bertindak sebagai sebuah kesatuan dalam bentuk “city incorporated”

16 Comment on (3) Bila demikian, maka masalah utama dalam mempraktekan konsep “Marketing Places” tersebut terletak pada kemampuan para stakeholder kota untuk bekerja sama menyusun dan menjalankan sebuah program yang terintegrasi.

17 Comments on Pendekatan “startegic management” adalah pendekatan “micro”, atau paling tidak berasal dari usaha mencari tools untuk menyelesaikan maslah-masalah korporasi. Masalah pengembangan kota tidak bisa selesai dengan menganggap kota sebagai “sebuah korporasi”.

18 Masalah pengembangan kota adalah masalah yang multidimensi dan komplex. Komplexsitas misalnya muncul bila kita menganggap penduduk kota yang ada sebagai faktor internal sedangkan penduduk yang migrasi kekota sebagai faktor external, maka muncul masalah bagaimana mereka bisa hidup bersama, siapa yang dirugikan siapa yang diuntungkan. Bila penduduk yang masuk adalah mereka yang bekerja di multinasional dengan tingkat penghasilan yang tinggi maka mereka akan membuat harga tanah perumahan/ sewa dan harga rumah menjadi naik maka ini malah akan mempertajam masalah perumahan yang sudah ada dengan bertambahnya penduduk kota yang tidak mampu menyewa/membeli rumah.

19 Develop-Underdevelop Sistem ekonomi kapitalistik selalu menimbulkan “development” disatu tempat tapi “underdevelopment” ditempat lain. Banyak kota yang “declining” karena basis ekonomi kotanya rusak sebagai akibat persaingan dengan kota/negara lain. Hal ini berakibat munculnya masalah sosial dan kultural, bahkan menghancurkan “wajah” kota dalam bentuk area- area yang terlantar karena ditinggal penghuninya.

20 Pertanyaan Bagaimana kota-kota tersebut bisa melakukan “recovery”. Yang tidak terjawab ialah bagaimana dengan mereka yang tidak mampu menjalankan program recovery tersebut?