Table Of Contents
CONCEPTS IN MARKETING
Traditional routes to market are well established but also very costly. What is their future in the face of the Internet?
New routes to market altered the marketing sphere but rather than replacing traditional channels, have offered an alternative
What makes people spend is key to marketing experts
Energy is a homogenous commodity and as such can only be sold on its branding
Advertising does NOT generate value; it merely attracts peoples’ attention. Companies need a proposition to seal the deal
The energy market has never faced the level of comparison that it does now. Individuals expect to be informed about the market and suppliers' differentiating qualities before making any conclusive decisions
Cost per mille may no longer be a sound metric to calculate the cost benefit of advertising channels, but the industry is unable to replace it
ANALYSIS OF THE MARKETING TACTICS OF EUROPEAN ENERGY SUPPLIERS
Methodology of case study
Calculation of effectiveness
Traditional channels of advertising have seen a remarkable range of quality from Europe’s top suppliers, from exceptional to poor
New channels have huge potential but few suppliers have drawn any value from this, as the rules of best practice have not been explored
"Below the line" channels
Below the line advertising is the most intrusive form of marketing but is by far the most effective, according to Datamonitor's survey
Brand consolidation channels
Advertising corporate responsibility is expensive and its benefits are the least evident
ANALYSIS – PART 1
Results of Datamonitor's survey
European suppliers scored well in Datamonitor's survey. There is not much to separate the top five suppliers, as each has uncovered new ways to win over struggling customers
ANALYSIS – PART 2
Analysis of traditional channels
TV and cinema
Radio and newspapers
Analysis of new channels
Traditional channels vs new channels
How do traditional channels compete against the cheaper new marketing channels in the European energy sector?
TV advertising is resisting the growth of the Internet
The European energy sector lacks experience in the online sector. A more targeted strategy is required to obtain convincing results
ANALYSIS – PART 3
Analysis of below the line channels
Billboards and viral campaigns
Analysis of brand/CSR channels
Community projects and joint ventures
Sponsorship and brand penetration
Hi-tech vs lo-tech channels
Does marketing need to be hi-tech in our electronic age or do European customers feel alienated by the adoption of technology?
The European energy sector does not necessarily need to spend a lot to ensure a successful advertising campaign.
Is there a most effective channel?
All channels have value if used well
Do the benefits of marketing justify the cost?
Do suppliers need to market their company? Is this actually the most valuable way to invest their business development funds?
Advertising coverage does not equate to advertising effectiveness, calling into question where the value derives from
Supplier scores by channel
Below the Line
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