Marketing Strategies in a Downturn Economy

Abstract

The economic activity in an area may affect electric utility sales more than other retailers. Statistics show that the KWH consumption per customer is in direct proportion to effective buying income, number of jobs and plant operating levels. Unlike other businesses, the utility service area (sales territory) is restricted by law, the product cannot be put in inventory, and with current regulatory treatment the price is difficult to raise. These unique problems, which are compounded in a declining economy, have caused utilities to abandon traditional marketing techniques and develop new strategies to cope with this changing market. This paper deals with some of these new concepts being used by utilities in a downturn economy.