That’s that. This week in Madrid, marketing guru Jack Trout examined the effectiveness of “brand Spain” around the world, and his diagnosis is not good. Trout believes Spain must change its message. In his opinion, the country has not put across the image of a product that is anything more than a few wonderfully sunny beaches. In the context of fierce global competition, Spain is virtually non-existent. The most prominent exception: Zara.

It matters that it was Trout who in 1969 invented the concept of “positioning” in marketing. The term translates as consumers’ perception of a brand, what sets it apart from the competition. In a terribly competitive world, where suppliers have to fight over demand every day, positioning is the most effective strategy for keeping the customers you already have, stealing some from other vendors and capturing new markets.

Our top competitor is Italy, a nation that’s always stealing our show where practically every product is concerned, including fashion, food and design. We all know of Spanish products, from olive oil to shoes to marble, that are only sold internationally under Italian brands and at much higher prices. Though that fact is nothing to laugh about, Trout suggested, as an example, a funny message with which to sell ourselves in the world: “More than 2,000 years ago, Romans were our best customers. They still are.”

The key lies in finding a clear and simple concept that will set us apart from competing countries. As exporters, we must differentiate ourselves or die. We must create a difference and get it noticed, dramatizing it as much as possible. Spain meets the requirements of Trout’s strategy by having the credentials to back up a concept and lend it credibility. Business and government must cooperate and invest in a message that impresses that difference on potential customers. Our economic recovery depends on our following those steps.

As in business, where if top management doesn’t get involved in a strategy, failure is virtually assured, we’re going to need the total involvement of government in this image makeover, this new “look” that will enable us to occupy a top spot around the world in those industries in which our products are most competitive. I think it’s a much better idea to spend public funds in this area than on subsidies to businesses certain to disappear sooner or later (more likely, sooner), a strategy of feast today, famine tomorrow.

The American strategist believes that among the nations of the world South Korea and China have been the most energetic in building global brands, and the most conscious of the need to differentiate themselves from others. China is hampered by its limited ability to innovate. Japan he sees as slower, tied to an excessively ancestral culture. Latin America is – to Trout - pure chaos in this respect. North America enjoys the advantage of being a breeding ground of new ideas, the world’s Silicon Valley. Europe? Too tied up in a tradition in which relationships – who you know and who you are – are what count, not what’s new and how you can innovate. It’s trapped in an “old-boy network.”

The world’s new and effective positioning tool is the Internet. The problem is that in that medium it’s difficult to control the message, and we are still in an experimental phase, though it’s undoubtedly the area in which the future battle of business marketing is taking shape. Public relations are no longer so strategic; they’re about how many times your name is mentioned. And advertising is getting more horrendous every day.