Luis Valsecchi speaks about Marketing and Growth Opportunity for SMEs

Lean production is not enough to guarantee the success of a company without an integrated approach to marketing and value creation. In this interview Luis Valsecchi talks about marketing and the opportunity which the right approach to marketing may provide to SMEs growth.

Luis, how do you see the present situation of small and medium sized enterprises in our region?

Even our mythical SMEs after a long period of high growth have experienced two years of recession. The crisis has emphasized some basic organizational deficiencies which spurred them to look for methods and tools capable to make them more efficient and competitive. Many companies have resorted to “in fashion” theory or methods as if they were magic wands capable of miraculously starting a new era of success and prosperity. These methods are normally based on the elimination of wastes especially in manufacturing and logistics, but sometimes also in purchasing, finance, sales. The results of these actions aimed at eliminating wastes are definitely positive, but often they are not enough to revive the business. The company becomes leaner, capacity is freed, everything works like a clock, but sales don’t go up!

So what must be done to start a new phase of success and growth?

What is needed is a different “cultural” approach based on the concept that a company is an organized system aimed at creating value. This value comes from production processes, from technological investments, from the cooperation with vendors, from the competence and creativity of personnel, from their capability to understand customers’ needs. All this becomes value to be offered to customers. Value is the true secret for success and competitiveness. An integrated approach to marketing based on this concept is what makes companies competitive in today’s global and highly turbulent market.

Don’t you think that the first reaction of our entrepreneurs to the word “marketing” is one of distrust?

That is definitely true and let me add that this attitude is fully justified: very often marketing is perceived as something abstract or evanescent in sharp contrast with the practical attitude characteristic of our SME. A real integrated approach to marketing is a culture that involves the whole company and is built day after day. Very seldom a company thinks of an integrated marketing approach; it is more common for consultants to be called to implement a change process in manufacturing, logistics, management control or to be asked to propose something to increase sales. But, whatever the reasons why a company approaches us we always focus our attention on the company’s capability to create value. Even before examining performances or economic results we try to understand whether the company is capable to create value for all its stakeholders. This approach makes it possible to reflect on all the value chain and to understand where and how it is possible to increase value and as a consequence competitiveness. What we do is similar to what a good physician does: before prescribing any specific treatment he checks his patient’s general conditions. It is not different with a company. Specific actions risk to have very limited effects if they are not part of a general comprehensive strategy.

How would you define GC&P’s approach?

Thanks to the experience of its specialists GC&P can provide innovative solutions in many areas such as operations, finance, product development, human resources management etc. But the success of our actions is guaranteed by our global approach: whatever the aspect we are dealing with we never forget the global picture of the whole organization and we always look at what is for us the “pole-star”: creating value!

What are the company’s aspects that you deal with personally?

I work on the company’s culture and beyond that I deal with market researches, competition analyses, communication plans and tools, selection and management of sales force, integration of Marketing with other areas and in particular with R&D. and Technical Design.

Luis Valsecchi. Thanks and good work!