The Source - Fall 2008 - (Page 33)

marketing matters What you don’t know CAN really hurt you By Ken Cuccinelli It’s critical to long-term success for every business to be mindful of its strengths and weaknesses. However, having a comprehensive understanding of these strengths and weaknesses in comparison to your competitors is even more important than simple self-awareness. Tackling today’s tough questions Years ago, natural gas was the better, faster, cheaper energy source, and the industry didn’t have to sell itself. Today the market landscape has changed dramatically. Natural gas is not as prevalent as it once was due to our dependence on electricity, the rise in gas prices, the first-cost premium of most gas appliances, reduced brand awareness and loyalty, and a generation of new purchasers who have not grown up with gas. So, how can the industry regain its momentum? By reintroducing the high value of gas to the marketplace. Consumers must be willing to pay a premium for natural gas in the same way they’re willing to pay a premium for gourmet food or a luxury car. Value is defined as a function of benefits and price, and if consumers accept the value associated with a certain commodity, they are more willing to create room in their budgets for that good or service. propane), what motivates them to buy, and who makes and influences the buying decision. Bringing the answers into focus What will it take to acquire and keep the customers of today and tomorrow? Let’s look at a real-life example in which the right research helped one company determine exactly where it stands and in which direction it should be moving. In Valparaiso, Fla., Okaloosa Gas District’s load per customer was dropping faster than could be reasonably expected from normal conservation trends. By surveying the market, the company determined that electric water heaters were getting a larger share than was previously recognized. It also was determined that the benefits of gas were not as well known as previously assumed. With this information, an aggressive program was established to help restore market share and improve the net profitably on the company’s investment. gathering market intelligence is easier than ever. Using the right tools Smaller organizations on tight budgets may feel unable to apply formal market research techniques, but by using online surveys, focus groups, and APGA’s MarketMetrics, every utility, regardless of size, can improve upon the intelligence it gathers. The core of MarketMetrics is its state-of-the-art, computerized voice-recognition telephone-calling component. It can deliver five times the completion rate of mail questionnaires cheaper and more quickly than direct mail. (For more information on MarketMetrics, go to www.apga.org.) Every utility should be tuned in to its customers and the marketplace. Consider a program that addresses the following: • • • • • • new customer identification; customer satisfaction; new product introduction; market needs research; competitive analysis; and brand awareness. Where Should I Be? Brand Name Logo/Graphic System Marketing Communications However, customers’ expectations and perception of value are influenced not just by electricity, but by everything else in the marketplace. New technologies–iPods, high-definition televisions, smart phones– all have an effect on the customers’ view of what has value. To thrive, the natural gas industry must learn about its customers and what trends they are embracing. In addition, gas systems must understand how consumers view their competitors (electricity and Brand Essence Brand Petitioning Strategic Personality Failing to identify trends, customer satisfaction issues, and competitor initiatives can be extremely costly. Much like termites destroying your home, before you know it, the damage is already done. Ken Cuccinelli is chairman of Quest Fore Inc., a strategic marketing company headquartered in Pittsburgh, Penn. He may be contacted at kenc@questfore.com. For more information on market research, please see APGA’s newsletter articles written by Gary Long, Shannon Gooden, Linda Wiggins, and Rodney Dill at www.apga.org. THE SOURCE | FALL 2008 , VOL. 1, ISSUE 1 33 Selling Strategies Promotion/ Merchandising Product/Service Performance If we do not keep up with our customers, they will be someone else’s customers before we know it. Luckily, http://www.apga.org http://www.apga.org

Table of Contents Feed for the Digital Edition of The Source - Fall 2008

The Source - Fall 2008 Contents First Person APGA Awards APGA Events Overview Up Next in THE SOURCE Grassroots Connections Climate Change Legislation Market Transparency: An Insider's View Legislative Outlook The Pipeline Marketing Matters Advertisers' Index At Last

The Source - Fall 2008

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