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 Caroli
Full Professor of Management, Luiss Guido Carli University
mcaroli@luiss.it
Bologna, 14 maggio 2014
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
1. The issue of attracting productive investments
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
Prof. Matteo G. Caroli
1. The issue of attracting productive investments
The virtuous cycle of place competition
Competitive advantage
of firms located in the
place
Strengthening place’s
competitiveness
conditions
Investments and companies’
value for the place’s
sustainable development
Prof. Matteo G. Caroli
1. The issue of attracting productive investments
Conditions of place’s competitiveness from the firms’ point of view
Material and Immaterial Resources
Intangible
assets
Innovation
Capacity
•
•
•
•
Relations
Competences
Image
Cost Advantage
Knowlegde
spillover
Efficiency
•
•
Cost of
inputs
Productivity
Differentiation
Advantage
Competitive Advantage
Internal
Market
•
•
Relevance
Market control
opportunities
Market position
reinforcement
New Markets
•
•
Logistics
“Made
in”effect
New market
development
Market Relationship
Prof. Matteo G. Caroli
1. The issue of attracting productive investments
A place from firms’ point of view
A context where
material and immaterial
conditions, essential to
achieve a competitive
advantage, are
dynamically created
An “inactive” box
of attributes
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
3. Marketing for Eco-Industrial Parks
The marketing strategy of Eco-Industrial parks is aimed to:
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
Prof. Matteo G. Caroli
4. Demand Targets
Direct Demand
Indirect Demand
Firms
Local Stakeholders
Involved Firms
Local Authorities
Potential newcomers
Other stakeholders
Prof. Matteo G. Caroli
4. Demand Targets
Main Needs
Firms
Locate productive
activities in a place
where to achieve
competitive
advantage and
sustainable
devolepment
Key Success Factors
•
•
•
•
•
Local
Stakeholders
Attract productive
activities that can
improve place
sustainable
development
•
•
Economic Aims
Availability of high quality
services
High price/quality ratio of
inputs
Improvement of
environmental impact
Low settlement costs
• Achieve a strategic position
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
Prof. Matteo G. Caroli
•Buy advanced services
• Add value to the place
• Improve the attractiveness
of the place
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
Key success
factors for firms
EIP creates value through
The increase of efficiency and the reduction of environmental
externalities
Availability of high
quality services
High price/quality
ratio of inputs
The improvement of environmental sustainability of involved
firms with a positive effect on their image
The presence of a unique and high-skilled actor that manages
environmental, administrative, and technical issues
Financial incentives and benefits
The web of interactions between firms and stakeholders
Low settlement costs
The sharing of knowledge, infrastructures, and costs
The involvement in the implementation of local policies for the
sustainable development of the place
Prof. Matteo G. Caroli
5. Value Proposition
Combined
management to
achieve collective
benefits
mechanisms to strengthen firms’ cooperation
Shared trust
Impacts of collective benefits on each actor
Status of EIP (standards, requirements, and
qualified actors)
EIP as a tool to
improve place quality
and image
Contents of EIP status
Promotion of EIP status
Prof. Matteo G. Caroli
5. Value Proposition
The importance of EIP brand for market
The location of firm in
an EIP as a way to
achieve competitve
advantage
The location of firm in
an EIP as a way to
improve its social
capital
The impact on firm competitive advantage
(differentiation/costs)
The impact on firm operative effectiveness
Role of managing authority
Shared trust
Prof. Matteo G. Caroli
6. Place as a product
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
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
Prof. Matteo G. Caroli