1. 1 UNIBO - Introduction to territorial marketing - UNIT 2 - F. Fusco Francesco Fusco

2. 2 UNIBO - Introduction to territorial marketing - UNIT 2 - F. Fusco Introduction Regional development and strategic territorial marketing are becoming major topics in the economic and academic environments to guide public governance in improving overall quality, keeping investments low. In the new economy age enterprises competitiveness is highly related to local social systems where they actually operate. They mutually influence each other and constitute a critical factor of success for the counterpart This unit will introduce to the knowledge based territorial marketing

3. 3 UNIBO - Introduction to territorial marketing - UNIT 2 - F. Fusco The vision The New Public Management represents the change from the classic bureaucratic model to the new profit- based business model of public sector In the next future new skills will be required to support local authorities in the New course of Public Governance Global economy requires new ways of interaction among the social actors Site location managers and general regional promoters will be key professionals within public organisations

4. 4 UNIBO - Introduction to territorial marketing - UNIT 2 - F. Fusco Definition A region is a territorial area ( i.e. connected geographical closed area) where some representative features has a constant value. No restrictions hold for the features under consideration. A region can have a topological decision function, defined on its domain, to judge if a given item is inside or outside the region. In the following region, territorial area, local system are synonyms.

5. 5 UNIBO - Introduction to territorial marketing - UNIT 2 - F. Fusco The equivalence laws 1.In the new economy age, a region must be organised and managed like an enterprise, in order to reach leadership and to create value 2.A region must implement a permanent knowledge trade with its customers to save competitive advantage over time

6. 6 UNIBO - Introduction to territorial marketing - UNIT 2 - F. Fusco Region: a product on sale As a commercial item, the region product can be regarded from two different points of view: 1.Riduzionistic an area is the precise set of its heterogeneous components 2.Holistic an area is the resulting combination of all its interrelating parts, including intangible relationships The latter helps to find out the added value of a region

7. 7 UNIBO - Introduction to territorial marketing - UNIT 2 - F. Fusco Three main conditions 1.be complementary to user needs 2.be focused on vertical sectors 3.have a good territorial marketing plan mustA successful

8. 8 UNIBO - Introduction to territorial marketing - UNIT 2 - F. Fusco What the territorial marketing is … The continuous cooperative process to activate and maintain the virtuous circle Satisfaction – reliance – attractiveness – value starting from the analysis of the needs of stakeholders and customers to develop internal demand, based on reliance, and attract external investors to increase overall value …

9. 9 UNIBO - Introduction to territorial marketing - UNIT 2 - F. Fusco What the territorial marketing is not It is not a simple promotion of regional assets It is not just advertisement or media broadcasting It is not static tourist information

10. 10 UNIBO - Introduction to territorial marketing - UNIT 2 - F. Fusco The territorial marketing plan To trigger and regulate a territorial marketing we need an operational management tool The strategic territorial marketing plan Kick off Actors Analysis Offer Clustering

11. 11 UNIBO - Introduction to territorial marketing - UNIT 2 - F. Fusco How to design a valid marketing plan No single general rule does exist to guarantee a good strategic territorial marketing planning It depends on specific opportunities and conditions The key idea is to put in the pot the most stuff you can and organise it in the best way

12. 12 UNIBO - Introduction to territorial marketing - UNIT 2 - F. Fusco Basic rules A few rules are mandatory for good territorial marketing: 1.To select the best mix of goods and services for an interesting offer to stakeholders 2.To facilitate the access to the area resources 3.To advertise the offer to a broader audience of investors 4.To financially support users to adopt the offer 5.To feedback the implementation of the plan

13. 13 UNIBO - Introduction to territorial marketing - UNIT 2 - F. Fusco Not product based A strategic territorial marketing cannot be only product based but resource and knowledge based, that is stakeholders and investors must rely on resource availability, infrastructure quality, competence skill, laws and regulations, social attitude The dynamics of new economy and the public budget constraints imply

14. 14 UNIBO - Introduction to territorial marketing - UNIT 2 - F. Fusco but resource and knowledge based Infrastructures Financial services Knowledge services Social resources Technological skills

15. 15 UNIBO - Introduction to territorial marketing - UNIT 2 - F. Fusco The networked model The hypercompetitive dynamics of our days requires to evaluate a territorial area not just as a single isolated entity but as a node of a more complex network. The overall value V of a region R can be therefore calculated as Internal resources external resources V R =  i r i +  M σ M  k r k

16. 16 UNIBO - Introduction to territorial marketing - UNIT 2 - F. Fusco The networked model (cont.) V R =  i r i +  M σ M  k r k Where r i is the i-th inner coproducer of value in our region R r k is the k-th outer producer of value of region M σ m is the transfer value factor from region M to our region R

17. 17 UNIBO - Introduction to territorial marketing - UNIT 2 - F. Fusco Dynamic economic model ITC technology shrinks common time and space thus changing the consolidated economic models and generating global interaction New factors play a key role in new digital economy; turmoil is sometime generated by non homogeneity of different local systems Strong dependency of global economy from information is now due to digital technologies Local economy vs global economy is a major issue to improve regional wealth Only innovative flexible systems are expected to survive

18. 18 UNIBO - Introduction to territorial marketing - UNIT 2 - F. Fusco Global economy vs digital economy Product chain is now totally broken down Fragmented sub-chains are spatially distributed, putting new actors in the field able to offer costs reduction and add value Time pace is also altered Time-to-market from idea to sale Throughput time from design to production Subprocess time from start to end of a subprocess Delivery time from order to delivery

19. 19 UNIBO - Introduction to territorial marketing - UNIT 2 - F. Fusco Long term production slopes

20. 20 UNIBO - Introduction to territorial marketing - UNIT 2 - F. Fusco Knowledge is the main resource to improve economy Knowledge is the power for long run development Knowledge adds value to product chain Knowledge can be transmitted at very low cost Knowledge is the key to join global economy Knowledge based territorial marketing

21. 21 UNIBO - Introduction to territorial marketing - UNIT 2 - F. Fusco The new economy spinning circle data information knowledge competence creativity flexibility innovation economy

22. 22 UNIBO - Introduction to territorial marketing - UNIT 2 - F. Fusco How knowledge produce wealthy economy? Learning organisation BusinessGovernment Finance Education

23. 23 UNIBO - Introduction to territorial marketing - UNIT 2 - F. Fusco Public Governance evolution The individual The team The integrated government The open government Internetworked government time

24. 24 UNIBO - Introduction to territorial marketing - UNIT 2 - F. Fusco New paradigm of public organisation Bureaucracy Administrative functions Closed systems Slow decisional processes Formal approvals Strict financial rules Technology islands Occasional democracy Simplifying (Electronic) Services Open systems Fast decisional processes Informal approvals Flexible financial rules Internetworked Technology Real time democracy

25. 25 UNIBO - Introduction to territorial marketing - UNIT 2 - F. Fusco Virtual innovative system Digital information age claims for total independence of economy from time and space An innovative system is a node of a global network Any local system must be based on a learning model The border of the innovative system is thus fuzzy and the territorial system becomes virtual, this allows to improve knowledge without proximity constraint Global systemLocal systemVirtual system

26. 26 UNIBO - Introduction to territorial marketing - UNIT 2 - F. Fusco Performance indicators of local systems 1.Technological productivity level 2.Intermodal infrastructure quality 3.Profit based social attitude 4.Broad (worldwide) scope of business 5.Availability and mobility of managerial skills 6.Efficiency of public institutions 7.Political stability 8.Supplementary financing system 9.Integration degree of education and research 10.Relations network development

27. 27 UNIBO - Introduction to territorial marketing - UNIT 2 - F. Fusco Location marketing Site auditing can use S.W.O.T. analysis to trace the vision of a local system and form the framework for a strategic territorial plan. An intelligent territorial agency (representing policy makers and stakeholders) could play the role to implement the operational plan Site location managers and general regional promoters will be the professionals, charged to steer the overall process

28. 28 UNIBO - Introduction to territorial marketing - UNIT 2 - F. Fusco Conclusions To improve wealth in the new economy age territorial areas must be must be organised and managed like an enterprise To implement a valid territorial marketing a cooperative vision of strategic plan must be shared by local actors. The plan must be resource and knowledge based and the local system must be a virtual (networked) innovative flexible system New public governance can steer the process, using new professional profiles

29. 29 UNIBO - Introduction to territorial marketing - UNIT 2 - F. Fusco Test Exercise Design a local authority organisation to increase (>20%) the value of a small region (<100K inhabitants, <100sme’s) in five years, having a budget of 100M Euros. Hint: Make any assumption you need to sustain your model