International Workshop Sustainable development: Products, consumption, promotion and place marketing T HE ATTRACTIVENESS OF SMART AND GREEN COMMUNITY IN.

International Workshop

Sustainable development:Products, consumption, promotion and place marketing

THE ATTRACTIVENESS OF SMART AND GREEN COMMUNITY IN THE PROMOTION OF FIRM

SETTLEMENT AND THE ROLE OF GREEN MARKETING

Matteo CaroliFull Professor of Management, Luiss Guido Carli University

[email protected]

Bologna, 14 maggio 2014

Prof. Matteo G. Caroli

Agenda

1. The issue of attracting productive investments

2. Eco-Industrial Parks as a factor of local competitiveness

3. Marketing of Eco-Industrial Parks– Demand Targets– «Value proposition»– Place as a product

Prof. Matteo G. Caroli

A place competes to achieve two main aims:

–Create or attract and keep inside investments and other factors (human resources, flagship projects) which strengthen its sustainable development

–develop the best conditions for these factors to compete in their markets

1. The issue of attracting productive investments

Prof. Matteo G. Caroli

The virtuous cycle of place competition

1. The issue of attracting productive investments

Prof. Matteo G. Caroli

Conditions of place’s competitiveness from the firms’ point of view

1. The issue of attracting productive investments

Prof. Matteo G. Caroli

A place from firms’ point of view

An “inactive” box of attributes

A context where material and immaterial conditions, essential to achieve a competitive

advantage, are dynamically created

1. The issue of attracting productive investments

Prof. Matteo G. Caroli

2. Eco-Industrial Park as a factor of local competitiveness

“… a community of manufacturing and service firms located together in a common property. Member businesses seek enhanced environmental, economic and social performance through collaboration in managing environmental and resource issues. By working together, the community of businesses seeks a collective benefit that is greater than the sum of individual benefits each company would realize by only optimizing its individual performance” (Lowe, 1995).

A complex territorial product and a factor of place’s competitiveness

Prof. Matteo G. Caroli

3. Marketing for Eco-Industrial Parks

Cognitive FunctionAcquisition of knowledge about place offer and attributes of potential target demands

Planning Functiondevelopment of projects and activities to enhance place attractiveness

Political FunctionIdentification of the main interests of stakeholders and development a shared vision and strategy

Managerial FunctionImplementation of actions and projects to attract investment

Communication FunctionReinforcement of place image, place strategic positioning, and its main attributes

Prof. Matteo G. Caroli

Achieve the environmental and competitive standards of the best European Eco-industrial Parks

Reach an optimal level of occupancy of available areas through investments which strengthen the local sustainable development

Develop cooperation among firms and among them and local authorities and other stakeholders

The marketing strategy of Eco-Industrial parks is aimed to:

3. Marketing for Eco-Industrial Parks

Prof. Matteo G. Caroli

4. Demand Targets

Firms Local Stakeholders

Involved Firms

Potential newcomers

Local Authorities

Other stakeholders

Direct Demand Indirect Demand

Prof. Matteo G. Caroli

Main Needs Key Success Factors Economic Aims

Firms

Locate productive activities in a place where to achieve competitive advantage and sustainable devolepment

• Availability of high quality services

• High price/quality ratio of inputs

• Improvement of environmental impact

• Low settlement costs

• Achieve a strategic position •Buy advanced services

• Add value to the place

Local Stakeholders

Attract productive activities that can improve place sustainable development

• High quality of involved firms

• The availability of involved firms to create shared value with local actors

• The integration mechanisms between involved firms and local actors

• Finance or co-finance infrastructures/facilities

• Improve the attractiveness of the place

4. Demand Targets

Prof. Matteo G. Caroli

5. Value Proposition

• The value proposition explains the reason why the demand would choose a specific product and be available to pay the required price.

• Looking at EIP specific case, the value proposition explains why customers (potential newcomers and involved firms) would settle their productive activities within the park, and local stakeholders would support financially and strategically park development.

• To better develop an effective value proposition for EIP, the starting point is to understand the main needs of demand targets and how competitors’ offers satisfy them.

• The definition of “value proposition” is also at the basis of communication

Prof. Matteo G. Caroli

5. Value Proposition

Availability of high quality services

High price/quality ratio of inputs

Low settlement costs

Key success factors for firms

The increase of efficiency and the reduction of environmental externalities

The presence of a unique and high-skilled actor that manages environmental, administrative, and technical issues

The web of interactions between firms and stakeholders

Financial incentives and benefits

The improvement of environmental sustainability of involved firms with a positive effect on their image

The sharing of knowledge, infrastructures, and costs

EIP creates value through

The involvement in the implementation of local policies for the sustainable development of the place

Prof. Matteo G. Caroli

Combined management to

achieve collective benefits

mechanisms to strengthen firms’ cooperation

Impacts of collective benefits on each actor

Shared trust

EIP as a tool to improve place quality

and image

Status of EIP (standards, requirements, and qualified actors)

Contents of EIP status

Promotion of EIP status

5. Value Proposition

Prof. Matteo G. Caroli

The location of firm in an EIP as a way to

achieve competitve advantage

The importance of EIP brand for market

The impact on firm competitive advantage (differentiation/costs)

The location of firm in an EIP as a way to improve its social

capital

Role of managing authority

The impact on firm operative effectiveness

5. Value Proposition

Shared trust

Prof. Matteo G. Caroli

EIP should be considered as a broader territorial offer, composed by:

EIP system within the same region

Territorial attractiveness’ factors

• EIP has to be designed and promoted as an element of the broader territorial offer at regional level

• Marketing strategy of each EIP has to be integrated with the marketing plan of EIP regional system and with the regional strategic plan

6. Place as a product

Prof. Matteo G. Caroli

6. Place as a product

• EIP product is composed by 3+1 main elements

• Infrastructure

• Common services for companies localized within EIP

• Economic advantages reserved to firms localized within EIP

• The set of localized firms