Effective Marketing for Renewable Energy Companies Dr John Thomson

A DEFINITION OF STRATEGY Strategy is the direction and scope of an organisation 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’ ‘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 of new marketing thinking CharacteristicsConsequences The 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

Marketing Orientation Integrated customer focus Long run profits through customer satisfaction Sales Orientation Push! Sell! by promotion Short term gains in profit via sales increases Evolution of the Marketing Concept Production Orientation Production & assembly line refinement Profits through production controls

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 the customer expects What the customer buys (functions & benefits) Where value is added

Toyota Toyota’s Optimal Drive technology provides customer benefits of enhanced performance, lower emissions and better fuel economy.

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 Performance Availability Reliability Durability Productivity Self-image Quiet life Pleasure Convenience Risk reduction

Customer needs Key customer requirements Competitive advantage Marketing mix Marketing Mix and Customer Needs Product Price Promotion Place 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.

The life cycle model

Date Comments Day 1 Introduction to Marketing and Marketing Orientation Coffee / Tea Understan ding Consumer Behaviour in the Renewable Energy Industry Product / services developm ent and marketing LunchCreating 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 31 st MAY 2013 MARKETING FOR THE RENEWABLE ENERGY SECTOR Dr John R Thomson Paolo Buoni Director European Energy Centre E.E.C. – United Kingdom Mob: +44 (0) Tel +44 (0) / Fax +44 (0)

Questions