Marketing: Today's imperative. Marketing must be seen as the process by which a company creates, satisfies, and keeps customers. at a profit
While utilities are now much more market-oriented than in the past, marketing and sales budgets are still under attack at many gas and electric companies. Moreover, the marketing process is not being organized or managed for optimal effectiveness. To make the changes necessary to improve their competitive position, most utilities still need to address a variety of issues, such as: (1) Taking a more integrated, holistic approach to managing the various elements of the marketing process and achieving a position of competitive advantage; (2) Understanding customer/segment and product/service profitability; (3) Linking marketing plans and budgets with the utility's financial and strategic plans, and using this to drive appropriate resource allocation decisions based on fact rather than guess; (4) Making the Marketing Department accountable for profit, not just sales; (5) Developing information-gathering capabilities and databases on customers, markets, and competitors that can be used to shape marketing strategies and tactics; and (6) Developing the analytical skill needed to understand differences in customer needs, buying economics, and ways a utility can effectively, efficiently, and profitably serve its customers. In the past, changes of this type would have been seen as unnecessary, perhaps even dangerous. However, until these actions are taken it will be difficult, if not impossible, for utilities to implement the new marketing imperative. Companies in other industries that have experienced similar regulatory changes have had to adapt in these ways to compete successfully, In general, the companies that took the lead have fared better than those that found themselves playing catch-up. It will be no different for utilities.
- OSTI ID:
- 7200359
- Journal Information:
- Fortnightly; (United States), Vol. 132:6
- Country of Publication:
- United States
- Language:
- English
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