197 BRANDING THE STATE AND THE NATION (THE CASE OF THE REPUBLIC OF SERBIA) Assistant Professor Nenad Perić 1 1 FIT-Metropolitan University (Trg Republike 3, Belgrade, Serbia), Accademia del Lusso (Studentski trg 5, Belgrade, Serbia) and Vocational High School for Propaganda and Public Relations (Budimska 11a, Belgrade, Serbia) ABSTRACT The paper deals with brands and branding at the highest level-the level of countries and people. It shows the parallels and differences that appear in the classical marketing process of products branding or services and those related to the state, in this case with the analysis of the potential of Serbia to become a brand. The paper examines the strategy of brand building of the state and its people, including politics and diplomacy, economy, culture, sports, etc. In this regard, an example of the Republic of Serbia is very attractive for the analysis, because of the actuality – it’s beginning now, as well as the bad reputation and complicated heritage of Serbia and the entire Balkan region. Key words: brand, branding, country, nation, strategy. 1. INTRODUCTION – BRAND AND BRANDING (OF STATE) There are many definitions of brand product. The problem with the older definitions is their preoccupation with the the physical element, that is their orientation to the product, which physically exists for itself, while the brand exists in the air. The product comes first, and brand makes a little more than explanation which a company has made the product and where. "The brand thus becomes the idea, attitude, emotion or concept that has become an active part of the consciousness of consumers." 1 The idea that the most important marketing feature is a brand-creation and branding is more and more present. Even more, many of the world's leading marketing experts believe that the basic function of a marketing is only brand creation. Today, if you want to be involved in marketing, you will deal more with psychological terms than the statistical formulas and charts. The most 1 Presentation of the Agency Profile at the 1. international conference on trade mark management – Branding of Serbia. frequently used words in contemporary marketing literature are: positive reaction, emotion, feeling, rather than: product, price, quality, etc. (Kostic: 2003, 84) One of the new concepts that are most associated with this change of paradigm in the field of economics and marketing is a branding concept. This situation should not bluff the marketer and experts dealing with brand and branding: a low quality brand, even with the best marketing moves can not stay long on the market, or it would require an enormous financial and organizational investments (those that exceed the business logic). Therefore, the process of branding could be defined as adding of non-physical attributes and values of products, services, ideas, people, etc. The expanded definition is comprehensive, it applies to the states and peoples. However, the quality is not, by itself, sufficient for success. It is conditioned by the fact whether the others perceive it that way and do they know the substance/the truth about it. In this sense, Serbia is a country with great potentials, in some areas with a high quality and success expressed, talented people and indestructible spirit but with a bad image,