International Workshop Sustainable development: Products, consumption, promotion and place marketing T HE ATTRACTIVENESS OF SMART AND GREEN COMMUNITY IN THE PROMOTION OF FIRM SETTLEMENT AND THE ROLE OF GREEN MARKETING Matteo Caroli Full Professor of Management, Luiss Guido Carli University 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 Material and Immaterial Resources Cost Advantage Market Relationship Efficiency Cost of inputs Productivity Innovation Capacity Knowlegde spillover Intangible assets Relations Competences Image Internal Market Relevance Market control opportunities New Markets Logistics “Made in”effect Differentiation Advantage Competitive Advantage Market position reinforcement New market development 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 Function Acquisition of knowledge about place offer and attributes of potential target demands Planning Function development of projects and activities to enhance place attractiveness Political Function Identification of the main interests of stakeholders and development a shared vision and strategy Managerial Function Implementation of actions and projects to attract investment Communication Function Reinforcement 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 NeedsKey Success FactorsEconomic 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