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Selling Power - Marketing Energy Under Deregulation

by Jim Drummond and Fred Hanna

74 pages; quality trade paperback (softcover); catalogue #01-0253; ISBN 1-55212-853-9; US$15.00, C$23.00, EUR15.00, £10.40

A comprehensive look at the challenges and issues facing energy providers as they enter the era of open competition.

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about the book      about the authors      Table of Contents and Introduction      catalogue info

About the Book Selling Power - Marketing Energy Under Deregulation is a comprehensive look at the issues confronting energy companies preparing marketing strategies. Specific marketing solutions are provided with case studies.

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About the Authors Jim Drummond is Managing Director of Drummond Consulting, Ltd., an international management advisory firm based in Atlanta, Georgia. Prior to the establishment of his consulting practice Jim spent 20 years directing sales and marketing strategy for several international companies including Canon USA and Sony Corporation. As a consultant Drummond has created highly successful campaigns for consumer and business-to-business clients both in the United States and Great Britain. He serves as an advisor to senior management on the challenges of open competition, speaks to trade associations on marketing tactics and strategy and is on the invited faculty at Purdue University's Center for Customer Driven Quality. Contact Jim at jimd@drummondconsulting.net Fred Hanna is Senior Consultant, Customer Service for Drummond Consulting. His career spans over two decades in the utilities industry, most recently as Vice President of Customer Service for SCANA Energy. Hanna has extensive experience in all facets of customer service, strategic planning, process improvement, systems implementation, project and change management. He has been voted the industry's "Outstanding Manager" by Gas Industries Magazine. Hanna designed the process improvement system which led to SCANA's selection as recipient of the J.D. Power Award for Customer Satisfaction in 1999. Contact Fred at fredh@drummondconsulting.net

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Table of Contents and Introduction

Table of Contents

1. Introduction
2. The Goals of Deregulation
3. Strategic Marketing Choices
   Branding
   Advertising & Promotion
   Strategic partnerships & Bundling Services
4. Relationship Marketing/CRM
5. The Role of Customer Service
6. The Question of Outsourcing
7. Final Thoughts and Observations
i. endnotes
ii. list of resources and additional reading

  Introduction

    Energy providers face difficult choices as they work to develop marketing strategy in newly deregulated environments. Few products are more generic in the mind of consumers than basic utility services such as electricity and natural gas.

    Under the previous scenario of controlled monopolies marketing efforts were primarily focused on pubic relations and retail sales. Most energy providers worked to insure positive public perception of the company through a combination of advertising and public service activities. A basic level of customer service was provided to whatever standard the utility chose to provide. Some companies also offered retail goods either through company run stores or through billing insert promotions.

    These programs and strategies were appropriate to the time and in varying degrees were successful in accomplishing the stated objectives. Marketing energy in a deregulated environment is an entirely different matter. With consumer choice comes the ability to change from one provider to another. The experience of companies in previously deregulated industries, such as long distance telephone service, gives clear evidence that historical dominance is no guarantee of future success. Customer loyalty is by no means a sure thing. New brands are introduced and capture significant market share, usually at the expense of the previous dominant player. Consumers have repeatedly shown that they will change suppliers for any number of reasons with price being but one of the factors prompting that change.

    Given the technology and resources of 21st century business, competition may come, not only from established players in other markets but from those who want to enter the arena for reasons totally unrelated to selling energy. Tomorrow's competitor may well be a major supermarket chain, the local cable company, a discount retailer or a "generation X'er" with a laptop whose name we don't even know yet.

    Old rules and practices do not bind new competitors. They perceive energy as just another product to add to their offerings and a tremendous opportunity to build a database of customers. Among the challenges faced by marketing executives preparing for open competition is to remain aware that the business will look very different tomorrow than it does today.

    The strategic solution is to build the brand. That is, to develop significant market share and create customer retention programs that are so effective; customers will remain loyal regardless of enticements offered by new, unforeseen competitors.

    What elements can the energy marketing professional utilize to maintain and increase share without product differentiation as a potential strategy? How can energy providers effectively and efficiently attract and retain customers over the long term while at the same time keeping marketing and service delivery costs at a minimum? Can smaller players compete with the growing strength of regional providers and newly created alliances between larger, better-financed energy conglomerates?

    We will address these issues, suggest a new paradigm for the marketing professional and suggest strategies for succeeding in this new, highly competitive environment.

A Deregulation Proverb
"When the lion and the lamb lay down together it is better to be the lion."

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Catalogue Information

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