Effective Marketing for Renewable Energy Companies Dr John Thomson.

Effective Marketing for Renewable Energy Companies

Dr John Thomson

A DEFINITION OF STRATEGY

Strategy is the direction and scope of anorganisation over the long term which

achieves advantage for the organisation

through its configuration of resources within

a changing environment to meet the needs

of markets and to fulfil stakeholder

expectations.

‘‘Strategic intent’Strategic intent’

• ‘Desired future state or aspiration of the organisation’ (Johnson & Scholes).

• ‘A dream that energises the company’.• It implies:

– ‘stretch’– sense of direction– sense of discovery

• It provides coherence to strategies.

Source: Hamel & Prahalad

Elements ofnew marketing thinking

Characteristics ConsequencesThe future is very uncertain

There is no place today for detailed and long term strategies

Almost all markets today are international or global

Firms have to take into account international competitors even if they are not seeking international customers

Customers expect more and more for less and less

Companies have to find new ways to create customer preference at a price customers are prepared to pay

Strategies & propositions have to be sustainable

Organisations have to keep innovating to get ahead and stay ahead

Environments are so complex

Organisations can no longer afford the luxury of consensus on all the issues

Evolution of the Marketing Concept

The Marketing Concept

Marketing Concept

The achievement of corporate goals through meeting and exceeding customer needs better than the competition

Customer orientation

Corporate activities are focused upon providing customer satisfaction

Integrated effort

All staff accept the responsibility for creating

customer satisfaction

Goal achievement

The belief that corporate goals can be achieved

through customer satisfaction

Marketing concept

The achievement of organisational goals through meeting and exceeding

customer needs and expectations better than the competition

Customer orientation

Organisational activities are focused upon

providing customer satisfaction

Integrated effort

All staff accept the responsibility for

creating customer satisfaction

Goal achievement

The belief that organisational goals

can be achieved through customer

satisfaction

Marketing Orientated Businesses

Marketing Orientation

Customer needs

Potential market

opportunities

Marketing products and

services

Customers

Creating a superior offer to achieve customer preference

Potential

Augmented

Expected

Core

What thecustomer expects

What the customer buys(functions & benefits)

Where valueis added

Toyota

Toyota’s Optimal Drive technology

provides customer benefits of enhanced

performance, lower emissions and

better fuel economy.

Creating Customer Value

Creating Customer Value

Product benefits

Service benefits

Relational benefits

Image benefits

Monetary costs

Time costs

Energy costs

Psychological costs

Customer value

Perceived benefits

Perceived sacrifice

Positive Negative

The Marketing Mix

• Product• Price• Promotion• Place• People• Process• Physical Evidence

Marketing Mix and Customer Needs

Customer needs

Key customer

requirements

Competitive advantage

Marketing mix

Customer needs

Key customer

requirements

Competitive advantage

Marketing mix

Marketing Mix and Customer Needs

PsychologicalEconomic

Customer needs

PerformanceAvailabilityReliabilityDurabilityProductivity

Self-imageQuiet lifePleasureConvenienceRisk reduction

Customer needs

Key customer

requirements

Competitive advantage

Marketing mix

Marketing Mix and Customer Needs

ProductPricePromotionPlace

Marketing mix

An Effective Marketing Mix

Effective marketing

mix

Matches customer needs

Creates a competitive advantage

Well balanced

Matches organisational

resources

Apple: iPod

Apple has extended the iPod brand to cater for diverse customer requirements.

Development Growth Shakeout Maturity Decline

User/buyers

Competitiveconditions

Few:trial ofearly

adopters

Few:competitors

Growing adopters:trial of

product / service

Entry of competitors

Attempt to achievetrial

Fight for share

Undifferentiatedproducts / services

Growing selectivityof purchase

May be many

Likely price-cuttingfor volume

Shakeout of weakestcompetitors

Saturation of users

Repeat purchasereliance

Fight to maintainshare

Difficulties ingaining / taking share

Emphasis onefficiency / low cost

Drop-offin usage

Exit of somecompetitiors

Selective distribution

The life cycle model

Date 9.00-10.00 10.00-10.30

10.30-11.30

11.30-12.30

12.30-1.00

1.00-2.00 2.00-3.00 3.00-3.30

3.30-5.00 Comments

Day 1 Introductionto Marketing and Marketing Orientation

Coffee / Tea

Understanding Consumer Behaviour in the Renewable Energy Industry

Product / services development and marketing

Lunch Creating Value and Competitive Advantage in the Renewable Energy Industry

Selling and the Marketing Mix

Coffee / Tea

Case Study / Group Work on Renewable Energy

ONE DAY PROGRAMME – FRIDAY 31st MAY 2013 MARKETING FOR THE RENEWABLE ENERGY SECTOR

Dr John R Thomson

Paolo BuoniDirector European Energy Centre E.E.C. – United Kingdom E.mail:[email protected]: +44 (0)798 9186691Tel +44 (0)131 4469 479 /+39 0142 452 403Fax +44 (0)20 3300 7541

Questions