Kari Väisänen and Sari Maunula – The Two Faces of Urbanization
“The further into the millennium we’ve progressed, the more we discuss the factors related to urbanization, without forgetting its negative effects. Recently, public discourse has focused on internal segregation within cities and factors related to housing, such as cost of living and, in particular, energy and environmental factors,” write Sari Maunula and Kari Väisänen in their book *Why Do We Need Reputation?*
The COVID-19 pandemic has changed many aspects of people’s daily lives, likely even permanently. Remote work has become more common, and many people have also made changes to their living arrangements. People are taking a more critical look at their own behavior—both their housing choices and their consumption habits—including from a climate perspective.
These changes will inevitably affect cities. Cities must be more responsive than ever to the wishes of their residents, as well as those of potential newcomers. Indeed, many cities have refocused their strategies to be more people-centered and community-oriented.
For example, in the Helsinki metropolitan area, we are seeing a clear trend of people moving toward more spacious and affordable living environments. However, the sharp rise in energy prices—primarily due to Russia’s actions—will affect the entire housing market in the long term.
At the end of August, Tampere, Espoo, Kuopio, Jyväskylä, and Turku led the way in net migration, based on statistics showing net migration between municipalities over the previous 12 months. Helsinki’s population growth, on the other hand, has slowed, mainly due to emigration. In the first half of 2022, the city lost residents to neighboring municipalities and other parts of Uusimaa. People are moving to Helsinki from other parts of Finland less and less frequently.
According to Statistics Finland, in 2021 the Uusimaa region recorded a net migration loss for the first time in 70 years; net migration fell to a deficit of 2,400 people. Pirkanmaa recorded the largest net migration gain in absolute terms, with 3,375 people.
Next in terms of net migration were Southwest Finland and North Savo. It is also worth noting that Lapland recorded a net migration gain for the first time since 1962.
In these cases, the net migration gains are driven by vibrant cities that performed exceptionally well in the Attractiveness & Impact survey: Tampere, Turku, Kuopio, and Rovaniemi.
Multiculturalism is making Finland as a whole increasingly international. In 2021, the number of people speaking Finnish or other domestic languages decreased by about 10,000, while the number of people speaking foreign languages increased by 25,000. Espoo, whose population has just surpassed the 300,000 mark, is a good example of this growing multiculturalism. According to forecasts, by 2034, up to 92 percent of Espoo’s population growth will come from foreign-language-speaking immigrants.
More than one-third of all jobs in Finland are located in Uusimaa; in 2019, there were approximately 831,000 jobs in the region. Pirkanmaa ranked second with 218,000 jobs, and Southwest Finland ranked third with 202,000 jobs.
The importance of genuine appeal and trust is emphasized
A few years ago, we at T-Media wondered whether Reputation&Trust—which had been tested under pressure—could also be adapted for use by cities. The answer was somewhat typical of the Savonia region. The responsibility fell on the listener. Yes, some cities use Reputation&Trust to examine their own operations—primarily their internal reputation—and to develop their municipal organization: for example, does the city’s organization inspire trust, how does the leadership perform, and are the city’s finances in order?
However, something was still missing.
The pieces fell into place when we brought up the concept of “attractiveness” in T-Media’s internal discussion. Why do certain cities attract new residents, even without any specific marketing efforts? What factors influence people’s decisions to move between different cities? What matters most to city residents? Does a city’s living environment—such as safety and community life—play a bigger role than we realize? Is the COVID-19 pandemic changing aspects of people’s daily lives?
We identified a number of factors that we linked to the concept of “attractiveness,” which in turn has a broad impact on people’s perceptions of different cities and their potential actions regarding those cities. Do I want to move to a specific city—and also live there? More and more cities have come to realize that residents are the city’s customers.
The Attractiveness & Impact Model was developed, with its six different components measuring perceptions of a city’s attractiveness among potential residents as well as the city’s own residents. The first two years of research using the Attractiveness & Impact Model show that cities that engage in active, credible efforts to boost their attractiveness also perform well in the study.
A city is its own brand
In 2022, Finland has a total of 309 municipalities, 107 of which refer to themselves as “cities.” The largest city in Finland by population is Helsinki, with 658,457 residents, and the smallest is Kaskinen, with a population of 1,289.
Cities are much more than just numbers. The same goes for city brands. More and more cities have revamped their brand identities, which typically include a new graphic design and a revamped city logo, and often also a catchphrase-like tagline.
Kudos to all the companies, but sometimes city slogans sound, well, at least a bit silly. On the other hand, a good slogan highlights a city’s identity and creates a positive image, which in turn can boost the city’s appeal. Of course, it would be ideal if the slogan stood out from the crowd and fit the city’s character, its present, and perhaps even its history.
Personally, I rate Rauma’s slogan—"Ol niingon gotonas"—very highly. On the other hand, a slogan like "The Best Place to Live" doesn’t really refer to anything specific. In people’s minds, there are thousands of places in Finland that are the best places to live.
Brand experts have praised Seinäjoki’s slogan, “The Capital of Space,” which at first glance evokes associations with outer space. However, it actually refers to the open plains of South Ostrobothnia—a space where there is room to live and pursue one’s dreams.
Less attention has been paid to the most important factors that truly matter for city brands. What is a city’s reputation among its own residents? Or how does the city’s appeal appear to potential new residents?
A city’s reputation leaves a lasting mark. For example, Lahti was long known as the “Chicago of Finland,” which brought to mind crime—or at least things that weren’t viewed in a positive light. The situation has changed, and now Lahti is known even internationally as Finland’s leading eco-city, having been named the European Green Capital in 2021. Lahti’s improved image is reflected in both attractiveness and reputation surveys.
Branding is all the rage these days. The same principles apply to city brands as to corporate brands. First, you have to get people interested in the subject—in this case, the city. You have to think about what message you want the brand to convey.
Many successful brands are human; they are often connected to a community and to people. The most important thing, however, is that a brand must always be grounded in reality. Castles in the air quickly come crashing down.
Communication, communication, communication
Communication is a difficult art form. Many of us are, at least in our own opinion, decent communicators. That may well be true. Or it may not.
First, it’s a matter of the type of communication: are we talking about everyday interpersonal communication, communication by public authorities, or crisis communication? Second, it’s often difficult to assess the quality of communication, and measuring communication isn’t very common.
It is no exaggeration to say that communication is more important than ever before in almost every aspect of life. The same applies to cities. And I’m not referring here to internal communication or communication with public authorities, which municipalities generally handle well, as the COVID-19 pandemic demonstrated.
It is good that the Association of Finnish Local and Regional Authorities, an advocacy group for municipalities, assists municipalities in developing their communications. The Association’s website features numerous examples of communication strategies and guidelines from various municipalities. However, this is not enough. As I noted at the beginning, cities compete for residents, and communication is one of the key factors in that competition. Good, up-to-date, and engaging communication is an effective tool for developing and maintaining a city’s appeal. In line with Tuusula’s communication guidelines, one could put it simply: communication is the art of living.
Many cities have come to realize that communication is one of the most important functions within a city’s organization. Tampere and Kuopio, which rank at the top in terms of attractiveness and reputation, have been carrying out successful communication efforts for years. A successful communication strategy is also the best form of marketing.
In communications, it’s sometimes necessary to push boundaries and shake up traditions. Pori’s open-minded “Fall in Love with Pori” marketing campaign—complete with its “Pori Relationship Advisor”—is attracting attention and admiration everywhere. The campaign is partly based on the character “Luukkone,” a relationship advisor who parodies the city’s former mayor, and it has succeeded in softening Pori’s stiff Satakunta image and shifted the conversation toward the city’s true attractions, without forgetting well-known Pori brands such as Yyteri, Pori Jazz, Suomi-areena, and Ässät.
The “role model” for the Pori Relationship Counselor, Aino-Maija Luukkonen, the recently retired mayor of Pori, commented on the campaign in an interview with YLE Pori:
“Humor is a very difficult genre, but I think this is exactly where Joonas Nordman has succeeded. There’s no denying that the videos are funny. We’re looking forward to more of them. The campaign hasn’t just resonated with people in Pori—it seems to have struck a chord with Finns more broadly. It was worth taking the risk.”
Bold communication and marketing always carry reputational risks, but when professionals are in charge and the communication generates well-deserved attention and interest, the end result is encouraging. Way to go, Pori!
Kari Väisänen
This is how we study the appeal and reputation of cities
What exactly are we studying when we assess the attractiveness and reputation of cities? It is important to understand that these two dimensions—attractiveness and reputation—relate to cities from slightly different perspectives.
Attractiveness & Impact examines the city and its surrounding area as a place to live and call home. The study examines the city’s regional appeal among the target groups under investigation: how vibrant the area is perceived to be, what perceptions and impressions people have of the city as a living environment, and how its sense of community, location, services, and cost of living are viewed.
These perceptions influence the city’s and its surrounding area’s appeal as a place to live. The “Attractiveness & Impact” model is illustrated in the figure accompanying Kari Väisänen’s text above.
Reputation&Trust hand, examines the city’s reputation and its operations as an organization. This research model is used to determine what kinds of perceptions and views the stakeholders under study—such as city residents or potential residents—have regarding the city’s operations specifically as an organization: how openly and transparently the city administration operates, how
the city’s finances are perceived, how well-managed the city appears as an organization, whether it is considered capable of renewal, and so on.
As its name suggests, the Cities’ Attractiveness & Impact Study examines the attractiveness and reputation of Finnish cities. The most commonly surveyed target groups are potential or current residents. In this study, “potential residents” refers to Finns living outside the city being studied. “Residents,” on the other hand, refers to people living in that city. The target group is limited to people aged 15–65, that is, those of school- and working age. Since the study focuses on residents and potential residents, data collection is conducted as a panel survey using an electronic questionnaire.
It is both possible and relevant to study the city’s appeal and reputation not only among current and potential residents but also among other stakeholders.
When a city wants to assess its appeal and reputation, the research typically begins with potential and/or current residents. This provides an overall picture of how the city is perceived from the outside, through the eyes of potential residents, and how current residents, in turn, experience the city’s vitality, sense of community, environment, location, services, and cost of living.
Other key stakeholders for cities include, for example, businesses already operating in the city or new businesses that the city would like to attract to the area—that is, so-called potential businesses. Other key and interesting groups could include, for example, educational institutions and training providers operating in the area, for whom not only their own appeal and reputation but also the appeal and reputation of the locality in which they operate are significant.
By studying and examining different target groups, our understanding broadens and deepens, and we gain a comprehensive picture of the brand’s appeal and reputation among key stakeholder groups. In addition to identifying the perceptions of a specific group, we also gain insight into the potential gaps between the perceptions or experiences of different groups.
Typically, there are differences. City residents themselves and representatives of companies operating there are experts based on their own experiences, whereas the perceptions of potential residents or businesses are based more on impressions and secondhand information.
Although it is important to identify the level of a city’s appeal or reputation, the most important thing is to identify the anseende of anseende or anseende that have the greatest impact on the target group’s trust in the city: the willingness to speak positively about the city, to use its services, to live or work in the area, and—in the case of businesses—the willingness to operate in the area, as well as the willingness to invest, and so on.
By focusing on the most impactful factors, a city can build trust among its stakeholders, increase the willingness to live there or invest, and generate positive word of mouth.
None of the above can be created or developed simply by giving orders. It takes concrete actions to build appeal, which in turn fosters trust, a willingness to live or invest here, and other important factors that support economic activity.
Sari Maunula
This publication is a preview of the chapter “The Two Faces of Urbanization” from T-Media’s book *Why Do We Need Reputation?*, written by Kari Väisänen, Senior Advisor at T-Media, and Sari Maunula, Research Director.
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KARI VÄISÄNEN is a senior advisor and a member of the board at T-Media. Kari has a strong background in communications. He has served as editor-in-chief at STT, Etelä-Saimaa, and Hämeen Sanomat, as well as in various other roles, including at Alma Media. Kari is a geographer by training, and issues related to the development of different regions of Finland—especially cities—
have always interested him. At T-Media, Kari is specifically responsible for the special research project “Urban Attractiveness & Impact.”
SARI MAUNULA is the Research Director at T-Media. She has been involved in developing both Reputation&Trust “Attraction & Impact” and Reputation&Trust. Sari has over 20 years of experience in brand and reputation research.
