Service Management (part two) - unicas.it Management (part two) FIRST PRESENTATION. INFO: ... (IBM) 4. Mission and vision ... Swot matrix 7. Kraljic matrix 8. Just in time concept

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


The firm have to be effective and efficient andhave to satisfy context and market requirementsoptimizing the resources use.

*

Synthesis

OBJECTIVES&

FINALITIESRESULTSACTIONSDECISIONS


*

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


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


*

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


*

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


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.


NEW SOURCES:

- Relationships with:

partners, actors inside thecompany, customers;

different contexts;

- Customer orientation andsatisfaction;

-Using digital technologies.

- High level of services


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.


*

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!


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


THE SYSTEM OF RESOURCES AND SKILLS


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

Documents

Service Management (part two) - unicas.it Management (part two) FIRST PRESENTATION. INFO: ... (IBM) 4. Mission and vision ... Swot matrix 7. Kraljic matrix 8. Just in time concept