service management (part two) - unicas.it management (part two) first presentation. info: ... (ibm)...
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COMPANY, COMPETITIVE ADVANTAGEAND MARKETING
Roberto [email protected]
Service Management(part two)
FIRST PRESENTATION
INFO:
• Roberto Bruni• [email protected]• Office hour: Wednesday and Tuesday (after the
lectures)• Exam: written (closed and opened ended questions) and oral• Books:• GOLINELLI G.M. 2010 - Viable Systems Approach
(VSA). Governing Business Dynamics. Padova: Kluwer(Cedam).
• JONES G.R. – Introduction to Business, HowCompanies Create value for People,(InternationalEdition) McGraw Hill, 2007 (in particular: Elements ofBusiness Strategy)
KEY POINTS FROM PART ONE
• Organize the class in teams (5 studentsper team)
• Brainstorming on Service Management(part one) topics (without devices!)
• Define the teams' list order• Identify the definitive list, merging the
different lists
Key points from SM1 (brainstorming)
Team 11. Difference between system and network (Survival
= Openness)2. Viable System Approach3. From GD Logic to SD Logic4. Concept of Value – Value Co-creation5. SMART Logic6. Business Organisation - models7. JIT production process8. Concept of Marketing, evolution9. The Purchase Function and Kralijc Matrix
Team 21. Value-system-service-network basic concepts
of S-D logic2. Co-creation and co-production topics included
in the concept of value3. G-D logic to S-D logic and Service science (IBM)
4. Mission and vision as project and target5. Business organization6. Swot matrix7. Kraljic matrix8. Just in time concept9. Viable system approach
Team 41. Network & System – Viable system – open and
close2. Service Dominant Logic – Transaction Service
from traditional to new3. Organization models (Functional, Divisional and
Matrix)4. Supply Chain management – Concept of value –
Value Co-creation – Communication- Kraljicmatrix – Just in Time
5. Production & Services6. Marketing & Sale Department- Target marketing
& Segmentation – Customers – 4&7 Ps – Fittingstrategies
7. Quality management – Quality certifications- ISO8. R & D
Team 31. GD Logic/ SD Logic2. Organizational models3. Supply chain management4. Concept of value5. Co-creation6. Production in the market7. Viable System Approach8. Production cycle9. 7 P’s
Key points from SM1 (final)
Class1. Network and System2. Viable System Approach3. From GD Logic to SD Logic4. Concept of Value5. Marketing management6. A7. A8. A9. a
…SOME KEY POINTS IN SM2…
• Business management and strategies• Competitive advantage• The concept of value in marketing• The marketing philosophy• The service management in relational marketing• Internet and social network sites
Every business/company is a structure composedby many resources, organized in various parts inorder to realize, through value creation processes,objectives (quantitative goals) and finalities (qualitative goals)
*
The mission of the firm defines:• Its own social role;• The system boundaries;• The ethic principles of its behavior (mission).
who we are? what do we do? why we do it?
Premise
Business management and strategiesStrategic Planning
The fulfillment of institutional interests maybe realized only if business is capable toachieve economic equilibrium(when revenues aremore than costs and, in long run, when revenues pay theinvestment in risk capital ).
*
Objectives
The sustainability of this equilibrium, in long run,depends from value creation.
Strategic Planning
Business management and strategies
The economic balance and the principle of valuerepresent what stakeholders expect and needfrom firm management and thus affect everyproduction and business strategy.
*
These principles affect firm relationships with its context.
This implies that decisions and actions performed by top government have tomix:
•production efficiency;
•stakeholders expectations
•clients satisfaction.
Principles
Business management and strategiesStrategic Planning
The firm have to be effective and efficient andhave to satisfy context and market requirementsoptimizing the resources use.
*
Synthesis
OBJECTIVES&
FINALITIESRESULTSACTIONSDECISIONS
Business management and strategiesStrategic Planning
*
VISION(future goals)
MISSION(principles)
OBJECTIVES(quantitative goals)
Profits
FINALITIES’(qualitative goals)
Technology
Dimensional growth
Know how, cohesion and motivation
Relational and informative capacity growth
Business management and strategiesStrategic Planning
Toward the “value creation”
*
Systematic activities
Strategic elements Formalism
Time perspective:medium-long run
Connection withorganization
Business Planning
Platform for operative decisions
Relevant conceptual elements in BusinessPlanning
Business management and strategiesStrategic Planning
*
The contents
The business planning:
• Formalizes business strategic orientation;
• Defines the middle and long run objectives and finalities analyzing internal andexternal conditions to develop strategic actions and operative tasks;
• Represents a platform for operative decisions and for the evaluation of their efficacy.
• Functions and effects of the strategy
Business management and strategiesStrategic Planning
*
Functions
Effects
Razionalization ofstrategic problems
Internal integrationAction options Communication tool Control tools
integrated behaviorsin the operative
structure
Long term orientationand results evaluation
Identification andintegration of
Business Units
Business management and strategiesStrategic Planning
Searching forpriority amongproblems
Alternativeplanning
Information sharingamong the functions
**
Company OrganizationThemes
Functions
Production QualityMarketingLogistics R&DSupply
Definition
Marketing Process
Focus
Strategies
Politics
*Critical factors
Relational Marketing
Limits
DEFINITION OF MARKETING BY: AMERICANMARKETING ASSOCIATION (AMA)
Marketing is the activity, set of institutions, andprocesses……for creating, communicating, delivering, andexchanging offerings …
…that have value for customers, clients, partners, andsociety at large. (Approved July 2013)
THE CONCEPT OF VALUEo The word “VALUE” from Old French value "worth, price, moralworth”; from Latin valere "be strong, be well”;
(from Company side)VALUE in marketing is
:
- Not economic concept (all that a company can create and develop toachieve the goal to «be strong» and survive during the time)- Economic concept (in general when revenues are more than costs and,in long run, when revenues pay the investment in risk capital)
(from Customer side)VALUE in marketing is:- Not economic concept (all that a customer can have from theCompany/Product/service/Brand to be satisfied during his relationwith the Company)-Economic concept (in general when the customer is satisfiedto sacrifice himself and his finance to obtain a benefit from theoffering)
Value is something that is connecting with the satisfaction
*
An enterprise has a competitive advantage if the spread offered isperceived by customers as a greater benefit.
So, we can deliver competitive advantage:
Clients will prefer the offer which gives them a DBp > 1.
DBp =DSp
DVp DBp = Differential benefit perceivedDVp = Differential value perceivedDSp = Differential sacrifice perceivedto acquire the product offered
Benefit, Value and Sacrifice
*
• The competitive advantage is the result of a strategythat leads enterprises to gain and maintain a favorableposition in the market (in which they operate).
• This position enables it to achieve higher sustainableprofitability than its average direct competitors.
• The competitive advantage comes from the companyability to do something, or manage a specific functionsbetter than its direct competitors.
• Today competitive advantage comes from the ability toco-create value
• The C.A. starts its definition inside the company andcontinues its construction with the relations in theeconomic environment
Competitive advantage
*
THE SOURCE OF COMPETITIVE ADVANTAGE
How do companycreate thecompetitiveadvantage?
External sources of exchange
Consumer demand
Prices
Technology
Internal sources ofexchange
The heterogeneity ofresources amongenterprisesleads to different results
Some enterprises are able toadapt more rapidly to externalexchange
Some enterprises aremore creative andinnovative
Business management and strategiesCompetitive advantage
not alwaysdepend fromthe market
*
SOURCES OF COMPETITIVE ADVANTAGE
TRADITIONAL SOURCES:
- Technological innovation ofproduct;
- Product promotion;
- Research and Development;
- Brands;
- Dimensional advantages;
- Production techniques;
- Privileges availability;
- Adapt to demand fluctuations.
Business management and strategies
NEW SOURCES:
- Relationships with:
partners, actors inside thecompany, customers;
different contexts;
- Customer orientation andsatisfaction;
-Using digital technologies.
- High level of services
Competitive advantage
Inside… …Outside and co-creation
*
Ability to identify and exploitinnovative opportunities better than
competitors
Ability to produce a value forcustomers
higher than the one provided bycompetitors
Critical resourcesand expertises
Strategy, organizationand environmental fits
Competitive advantage is understood asprofitability
above the average of competitors and comesfrom the ability to co-create value
Business management and strategiesFrom strategy and resources to competitive advantage
*
MANAGEMENT OF COMPETITIVE ADVANTAGE
The competitive advantage must be:
- PROTECTABLE: not easily reproducible;
- DURABLE: to maintain for a certain period of time.
Steps to creating a competitive advantage:
1. Identification of the possible and actual advantage;
2. Identification of sources;
3. Management of the advantage.
The consolidation of a competitive advantage and itsdevelopment involve a continuous flow of"investments" in critical areas and a major effort of topmanagement.
Business management and strategies
*
Building competitive advantage starting from inside the company
At first, in the past, the analysis focused on the external environment and onbusiness competitive choices compared to competitors. In this view, the analysis ofsystem resources and skills is seen like as an internal business system adjustment.
The problem is always out of there!
The actual trend in literature, instead, focuses on the analysis of system resourcesand skills (internal environment), because the ability to exploit opportunities andsustain the competitive advantage depend on the quantity and quality of availableresources.
Something of relevant inside!
Business management and strategies
The Resource Based Theory (RBT)
The RBT says that the source of the sustainable competitiveadvantage comes from the ability of the company to exploit abundle of resources that the company has inside or have thepossibility to use
Some of these resources are rare and inimitable (Wernerfelt, 1984;Barney, 1991). The role of the organization is to organize and managethe exploit of the resources, defending the uniqueness and workingon the company culture and on the internal relationships.
As the RBT says, could be relevant also the recognition of company’external elements (economic environment and context) (Wernerfelt,1984; Amit, Schoemaker, 1993; Barney, 2007) for example, to build, buy orgain new resources that the company needs, it is possible in 3 ways:acquisition of resources from outside the company; internalgeneration of resources; sharing resources with othercompanies.
*
The competitive advantage directly depends on the whole of individual resources andskills expressed by the enterprise.
A) Tangibles
RESOURCES (classification of Grant, 1991):
PhysicalFinancial
B) Intangibles
Organizational
C) Human factors
Management capacityand employees
Reputational
Business management and strategies
THE SYSTEM OF RESOURCES AND SKILLS
Competitive advantage
Intangibles and human factors contribute to thecompetitive advantage: it is difficult to buy theseresources
It is something thatcompany can “buy”
*
THE SUSTAINABILITY OF COMPETITIVE ADVANTAGE• The sustainability of the competitive advantage of a business
depends on:● durability of distinctive resources/skills (it depends by the
company and by the competitors);● structural variables:
• business size;• privileged access to resources or market;• limits to the strategies of competitors;
● defense strategies (if the company needs):• hide the superior performance;• moral persuasion;• first niche conquest;
● Ability to co-create a recognizable VALUE to share andexchange with the market
Business management and strategiesCompetitive advantage
Marketing orientations
Maximize profits (and valueshared) through increasedconsumer satisfaction,creating value and, in the sametime, increase market share.
“ what can we do that will makeproduct/service better thancompetitors in the customermind”….this is the concept ofPOSITIONING
Sellings orientations
Maximize profits throughsales maximization“ we must somehowhook the customer, todayand now”
The Selling and MarketingConcepts Contrasted
What is a Market?
▪ The set of actualand potential buyersof a product/service.
▪ These people sharea need or want thatcan be satisfiedthrough exchangerelationships.
For an exchange to occur….• There are at least two parties.• Each party has something that might be of value to the
other party.• Each party is capable of communication and delivery.• Each party is free to reject the exchange offer.• Each party believes it is appropriate or desirable to deal
with the other party.
With the growing of the information exchange, thevalue co-creation grows
What is Marketed?
Goods
Services
Events & Experiences
Persons
Places & Properties
Organizations
Information
Ideas
This Is a Need
Needs – Basic humanrequirements includingphysical, social, andindividual needs.
TYPES OF NEEDS
• Physical:● Food, clothing, shelter, safety
• Social:● Belonging, affection
• Individual:● Learning, knowledge, self-expression
THIS IS A WANT (DESIRES)
Wants - form thata human needtakes, asshaped byculture andindividualpersonality.
THIS IS DEMAND
“Demand”
Wants Buying Power
DEMAND STATES
• Negative Demand – dislike the product, may even pay a price toavoid it
• Nonexistent Demand – Unaware or uninterested in theproduct/service
• Latent Demand – Share a strong need cannot be satisfied by anyexisting product; some customers have a strong need but there is notany offering that can satisfy this need
• Declining demand – Buy the product less frequently or not at all.• Irregular demand – Purchases vary on a seasonal, weekly, daily or
even hourly basis.• Full demand – Buy all products put into the marketplace• Overfull demand – larger number of consumers would like to buy the
product than can be satisfied. Demand is greater than offering
ProductsAnything that can be Offered to a Market to Satisfy a Need or Want
Persons Places Organizations
IdeasInformation
What Satisfies Consumers’ needs and wants?
ServicesActivity or Benefit Offered for Sale That is Essentially
Intangible and Does Not Result in the Ownership of Anything
The Company’s Macro environment
Actors in the Microenvironment and the role of themarketing as “filter” to define the strategies of the Company
Simple Marketing System
SWOT ANALISYS
S (strengths)Characteristics of thebusiness or team that give itan advantage over others inthe industry---
W (weaknesses)Characteristics that place thefirm at a disadvantage relativeto others---
O (opportunity)External chances to makegreater sales or profits in theenvironment---
T (threats)External elements in theenvironment that could causetrouble for the business---
Marketing Situation Analysis• market analysis• market segmentation• competitive analysis.
Marketing Strategy Design• Target marketing• positioning• New product/service planning
Marketing Program development• Product/service decisions• Pricing decisions• Integrated Marketing communications• Distribution decisions
Situation research efforts• Opportunity assessment• Benefit and lifestyle studies• Descriptive studies• Importance performance analysis
Program-Driven Research Efforts• Target Market Analysis• Perceptual mapping• Concept and product/service Testing• Test Marketing
Program-Driven Research Efforts• Customer satisfaction studies• Service quality studies• Cycle time research• Retailing research• Logistic assessment• Demand analysis• Sales Forecasting• Promotional effectiveness studies• Sales tracking
Marketing Decision Making and related marketing researchtasks
OperationalMKTG
1. Locate and identify new market
opportunities for a company (opportunity
assessment)
2. Identify groups of customers in a
product/market who possess similar needs,
characteristics and preferences (benefit and
lifestyle studies);
3. Identify existing and potential competitors’
strengths and weaknesses(importance-
performance analysis)
Marketing Situation AnalysisA situation analysis includes three decision areas: marketanalysis, market segmentation and competitive analysis.To organize a Situation Analysis the Company has:
Market analysis
Market segmentation
Competitive analysis
Market analysisThe research task connected with market analysis isopportunity assessment that involves collectinginformation on product markets for the purpose offorecasting how they will change.
Market segmentationA major component of market segmentation research isbenefit and lifestyle studies that examine similarities anddifferences in consumers’ needs. Researchers use thesestudies to identify two or more segments within themarket for a particular company’s products.
Competitive analysisCompetitive analysis involves importance-performanceanalysis, a research approach for evaluating competitors’strategies, strengths, limitations, and future plans.
Marketing Strategy DesignThe company can design the marketing strategy using theinformation collected during the Marketing SituationAnalysis. The Company can identify:- Target markets/segmentation- positioning strategies for products/brands- test new products/services- asses market potential
Target markets/segmentationTaking information for identifying those people (or companies) thatan organization wishes to serve. It helps management determine themost efficient way of serving the targeted group. Target market analysisattempts to provide information on the following issues:- New product opportunities- Demographics, including attitudinal or behavioural characteristics- User profiles, usage patterns and attitudes- The effectiveness of a firm’s current marketing program
PositioningPositioning or perceptual mapping, is a process in which aCompany seeks to establish perceptions of its productoffering that are consistent with customers’ needs andpreferences. Companies position their products/services bycombining elements of the marketing mix in a manner thatmeets or exceeds the expectations of targeted customers.
Test new products/servicesResearch tasks related to new product/service planningare concept and product testing or test marketing, whichprovide information for decision on product/serviceimprovements and new product/service introductions. Thegoals of test marketing is to collect research information fordecisions on product improvements and new productintroductions.
Segmentation and Target Marketing
Market Segmentation:Divide the market intosegments of customers
Target Marketing:Select the segment /or
segments mix to cultivate
#1 #2
The operational marketingSchemes Levers Comments
4 Ps (McCarthy,1964)
Product, Price, Promotion,Place,
The necessity of a model to define the market proposal
6 Ps (Kotler,1986)
Product, Price, Promotion, Place,Public Relations, Politics.
Over the 4Ps, public relations and politics have arelevant influence on the markets (e.g.: opinionleaders, politicians, etc.)
7 Ps (Booms &Bitner, 1981)
Product, Price, Promotion, Place,People, Physical Evidence,Process
Service industries approach that highlights: the relevanceof people that build the service proposal; the packaging ofthe product/service and the building process of the service
4 Cs(Lauterborn,1990)
Consumer, Cost,Communication, Convenience
Company goes toward the customer side searching forvalue creation and exchange
McCarthy, Jerome E. (1964). Basic Marketing. A Managerial Approach. Richard D, Irwin, Homewood. ILKotler, P. (1986). Megamarketing. Harvard Business Review, March – AprilBooms, B., & Bitner, M. (1981). Marketing strategies and organization structures for service firms. In J. Donnelly, & W.George, Marketing of services (p. 47- 51). Chicago, IL: American marketing AssociationLauterborn, B. (1990). New marketing litany: four P passe: C-words take over. Advertising age, 61 (41), 26
4 Cs focus…Consumer: the relevance of the focus on the consumer perception and satisfaction instead of theproduct/serviceCost: not only a price but a mix of sacrifices and investments
Communication: not only something that help too understand that the “product is in the market”but a strategy that have different goals (e.g.: brand equity, customer loyalty, …)
Convenience: Place or mix of places or situations in which the customer can find satisfaction
*
Traditional Marketing limits
Marketing
Traditional marketing is too much focused on product, interpretingclients as consumers (just capable of giving input for strategiesdefinition).Marketing Mix (4P) doesn’t grant enough importance to clients and tostable relationships with them, thus missing to consider clients as a pillarof value creation process (Value Constellation, Relational Marketing), as astrategic resource for competitive advantage.
This has been referred to as Marketing Mix “Miopia”.
Company Organization
Internet and Social Network Sites asmarketing and communication tools:the relevance of services
On the SNSs definition
Boyd and Ellison (2007) studying social network sites say that:Social network sites are web-based services that1. allow individuals to construct a public or semi-public profile
within a bounded system2. articulate a list of other users with whom they share a
connection,3. and view and traverse their list of connections and those
made by others within the system. The nature andnomenclature of these connections may vary from site to site
Boyd, D. M., & Ellison, N. B. (2007). Social network sites: Definition, history,and scholarship. Journal ofComputer-Mediated Communication, 13(1), 210-230.
Question
• How we can understand if SNSs are useful to supportmarketing and communication actions?• We have to define the “MARKETING” role in the
company• We have to search, define and deliver our meaning of
the word VALUE• We have to understand strengths and weaknesses of
each SNS• We have to highlight the role of the service
management in the Company
Relevant topics
Social Network Sites as marketing and communication tools
• What is the trend on the relationship among SMEs and Internettools? A focus on Italian SMEs
• SNSs management: “make or buy”?
• Could SNSs influence the purchase choices of potential customers?
• Could be helpful for Companies to use SNSs as tool forInternationalization of activities?
Next steps
• Internet use• Web sites and Social Network Sites• Web Site applications• Obstacles in the online activities development/improvement
• Relevant questions on SNSs• Internationalization
• Ways to contact the foreigner markets• What the companies can do?
• How do SNSs to influence the purchase choices?• Make or buy the Social Media Management?
The use of internet in the business development is connected with the attitude of the enterpriseto use the right tool for the business development
In Italy 74% of Small Enterprises and 96% of Medium Enterprises are OnLine, sometime witha broadband connection: the use of this connection concerns, in particular, the bank servicesand the relations with clients and suppliers.
The 34% of italian SMEs is online with a website that in a lot of cases is a«brochure website» (static website) within: contacts, privacy information,products/services catalogue, price list, etc.
The lack on the use of advanced technics in online accountability and relationshipwith the Public Administration, recruiting and the activity of markets research or businessdevelopment
Internet use
Internet use:Web sites and Social Network Sites
Source: Osservatorio Cloud & ITC 2012, Duepuntozero, 2012.
Low level in the use of application reserved to Recruiting, product customization, ordertracking, interactive programs reserved to the customers
Low level of presence in specific social network sites (social media tools)Embrional level in the development of e-commerce.
Only the 21% of the SMEs use the Cloud Computing and Mobile DevicesThe 25% say that Cloud Computing Services are unknownOnly the 30% of SMEs chose to invest in mobile solutions
Only the 25% of SMEs have a Mobile Business AppThe 47% think that this IT solution is useless for the everyday business activity and for thebusiness development
Privacyinformation
Price List
Online Orders
Aftersalesassistance
Productcustomization
Online trackingorder function
Small Enterprises MediumEnterprises
Internet use:Web sites applications
• Online sales locked by regulatory requirement• Complex regulatory requirement on customer privacy• Legal and commercial troubles from online sales• Control the online relationships• Investments in managers’ training and in time taken away from the
regular business management• Management alignment among digital marketing, e-commerce and
normal company activity• Adaptation and improvement of technology structure and
infrastructure• CHANGE!
Internet use:Obstacles in the online activities development/improvement
Internet use:What the companies can do?• To modify the organizational culture: openness toward
international markets and new ways to analise the markets• Structural organization: give new responsibility to the managers in
the on-line distribution and communication channels• Training investments: introducing skills in different languages, in
international law, sentencies and in digital marketing• Cooperation with digital marketing advisors: cooperate with
agencies and digital marketing managers to develop projects ininternational marketing before to acquire the specific knowledge.
• To stimulate a continuous sense of “need of change”
Relevant Questions on SNSs theme
• What are the relevant strengths and weaknesses in the Company useof SNSs?
• Could be relevant the use of SNSs as a strategic tool?• There is a problem of make or buy in the company's use of SNSs• What are the relevant elements that influence the customer
purchase?
Situation in companies that believe in SNSs
• In the last years, also in Italy, (and among SMEs) managers use tomanage social media marketing to improve the interaction withcustomers and, for example, to increase sales, loyalty, and brandequity.
• With the increase of the relevance of these tools and strategies,some SMEs have known the power of these tools; they have chosen:
• a direct management of social network (expensive activity that give results inmedium-long run)
• the investment in online advertising using SNSs (this tool contributesprincipally to the strengthening of brand value)
Using the social networking as marketing tools: commitments andopportunity 1/2
• SNSs can be used as strengthening support to the communicationactions toward the inner and external side of the company;
• SNSs can be used as technical support to the marketing strategy –collection of data, analysis and development of medium and long termsrelationship -;
• SNSs can be used to the strengthening of the identity and relationshipdynamics of the brand and to the mutual relationship between thecompany and the customer.
• The diagnostic use (support to the marketing strategy) of the data collection andthe elaboration of statistic involve
• a specific knowledge of the web and the main social network tools;• destination of time and resources (both the economic and human ones) in
case these resources are some way taken on from the companies;
• The communicative use allow better chances to outsource thetools management.
Using the social networking as marketing tools: commitments andopportunity 2/2
Strengths and weaknesses in the use of SNSs
Strengths Weaknesses
Know Difficulties in the qualitative performance measurement
Connect Management and control difficulties
Communicate Difficulties in the choose of the appropriate social (ormix of SNSs) for the right communication
Brandenhancement(probably)
Brand demolition (probably) (wrong information, misunderstandings,problems between customer and company orientations, ….)
SNSs selection for a professional use
SNS Reasons to choose the SNS
Facebook Mainly used for the development of relations with customers and consumers and for sharinginformation and news
Twitter Mainly used for direct and continuous interlocutors stimulation; contributes to building brandawareness
Linkedin Used, in the various thematic sections and discussion areas, as a tool for the professionalnetwork building, in particular for managers and, in general, for companies
YouTube It is a powerful tool with a minimum economic impact; also used to convey the corporatecommunication
Google Plus In the last year for a professional use, this SNS become a way to distribute content to clients,consumers and to have more opportunity in a SNSs not very crowded as the others
The current situation from a research in Italy
• Social media observatory in IULM (2013). The panel is on 720 companies(benchmark years:2011-2013) http://www.osservatoriosocialmedia.com - L’uso dei Social Mediada parte delle aziende italiane
• Percentage of companies that use at least one SNS for marketing andcommunication activity, from 50% (2011) to 64% (2013).
• In 2011 - 43% of Small Enterprises ----------------- in 2013 is 50%• In 2011 - 47% of Medium Enterprises --------------- in 2013 is 53%• In 2011 - 57% of Big Enterprises ----------------- in 2013 is 81%• The number of companies that select the correct SNS to have an exactfeedback and data from the market is increasing• Become relevant to select the correct tools (SNSs) to achieve thedevelopment goals of marketing activities in the network
Internationalization
The 12% of the Italian Small Enteprises and the 48% of Medium Enterpriseshave exchanges with foreigner countries (not only in commercial exchange andexport but, in general, business activities)
The 12% of the Italian Small Enterprises organize the business working inforeigner countries. Of these companies:• The 20% manages abroad the production in outsourcing• The 14% uses the structures that find in foreigners country• The 46% builds new structures to produce
Ways to contact the foreigner markets
For the Italian Companies the best ways are the “traditionalways”:• The 43% the singular and personal action (for example an action
that come from the owner)• The 33% take contacts from specific fairs/exibitions• The 20% prefer the Word-Of-Mouth• Only the 13% use a internet online researchThe web tools are only secondary supports to other relevantstraditional activities
Internationalization:
How do SNSs to influence the purchase choices? Someconsiderations on US analysis
Analyzing a research of the CivicScience organization it is possible torecognize:
• the influence on purchase of the SNSs recommendations, Ads on TV, Adson internet and the comments and recommendations found online
CivicScience, Inc. - Powering the World's OpinionsCivicScience provides the leading intelligent polling and real-time insights platform, partnering withhundreds of premier websites to survey millions of people daily. Its proprietary technology rapidlyanalyzes consumer opinions, discovers real-time trends, and accurately predicts market outcomes.CivicScience is used by leading enterprises in marketing research, advertising, digital media, financialservices, and political polling.
SocialMediaNow RivalsTVAdvertising inConsumerInfluence- US - Mkt
Make or buy the Social Media Management?
The meaning of “make or buy”
• Make: invest (time and economic resources) in the internalmanagement of the SNSs
• Buy: give the responsibility of the social media strategy toexternal professionals or advisors
The strategic approach to the use of SNS have a sense when atotal marketing strategy is defined; this is the reason thatbring to decide and choose on the “make or buy”
Make or buy the Social Media Management?Managerial implications 1/2
To understand if the company have to hold inside the SNSs management it is necessaryto study the alternatives and the strategic connections among marketingstrategies and SNSs opportunities.
The management have to reflect on the relevance of the data detection fromthe SNSs referring to the core business of the company but also on the level ofrelevance of the communication exchange among Company and other stakeholders.
The strategic role of the internal management of the SNSs activity is connected withthe level of relevance of the connection among Company and stakeholders.
Probably, with the development of different and new SNSs, the company in thefuture will have more possibility to take different data and informationfrom different SNSs; this one, in the future, will give to the management theopportunity to use some SNSs directly and give in outsourcing other activities.
In particular, the activities of advertising for example, as in the past,could be managed by specialized and specific agencies. Sure, insideor outside, it is necessary to have a management plan to organize the activities on SNSsbecause the trend, in the future, will not only “to be” on SNSs but will be necessary toanalize and manage the actions to understand the exact action to activate.
Make or buy the Social Media Management?Managerial implications 2/2
ConclusionsSocial Network Sites as marketing and communication tools
• The trend on the relationship among SMEs and Internet tools:• In Italy it is necessary to develop the markets of services and the
“internet culture” for marketing• Could be helpful for Companies to use SNSs as tool for
Internationalization of the activities• The SNSs influence the purchase choices:
• Could be relevant to manage the SNSs channel in thecommunication activities of the companies
• SNSs “make or buy”?• It depends on the strategic role of the SNSs in company