International Workshop Sustainable development :

1. International Workshop Sustainabledevelopment: Products, consumption, promotion and place marketing The attractiveness of smart and green community in the promotion of firmsettlement and the role of green marketing Matteo Caroli Full Professor of Management, Luiss Guido CarliUniversity mcaroli@luiss.it Bologna, 14 maggio 2014

2. Agenda • The issue of attracting productive investments • Eco-Industrial Parks as a factor of local competitiveness • Marketing of Eco-Industrial Parks • Demand Targets • «Value proposition» • Place as a product

3. 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

4. 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

5. 1. The issue of attracting productive investments Material and ImmaterialResources Conditions of place’s competitiveness from the firms’ point of view Intangibleassets Relations Competences Image InnovationCapacity Knowlegdespillover Efficiency Cost of inputs Productivity Internal Market Relevance Market control opportunities New Markets Logistics “Made in”effect DifferentiationAdvantage CostAdvantage Market position reinforcement New market development Competitive Advantage Market Relationship

6. 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

7. 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

8. 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

9. 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

10. 4. Demand Targets IndirectDemand Direct Demand Firms Local Stakeholders Involved Firms Potential newcomers Local Authorities Otherstakeholders

11. 4. Demand Targets

12. 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

13. 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 Low settlement costs 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 The sharing of knowledge, infrastructures, and costs The involvement in the implementation of local policies for the sustainable development of the place

14. 5. Value Proposition Combined management to achieve collective benefits mechanisms to strengthenfirms’ cooperation Shared trust Impacts of collective benefits on each actor 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

15. 5. Value Proposition 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 impact on firm operative effectiveness The location of firm in an EIP as a way to improve its social capital Role of managing authority Shared trust

16. 6. Place as a product EIP should be considered as a broader territorial offer, composed by: Territorial attractiveness’ factors EIP system within the same region • 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

17. 6. Place as a product • EIP product is composed by 3+1 mainelements • Infrastructure • Common services for companies localized within EIP • Economic advantages reserved to firms localized within EIP • The set of localized firms