January 8, 2015

Communications in the transformer market

Introduction The goal of each player in the market is to grow their business. However, due to competition not every company is equally successful in...

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Introduction

The goal of each player in the market is to grow their business. However, due to competition not every company is equally successful in this. While some companies grow, others face problems, undergo restructuring or get acquired by another company. Some businesses are even forced to shut down. At any rate, a successful business goes hand in hand with successful marketing communications.

In a fiercely competitive market, even small differences in product price, technical features, quality and delivery time can rise to the surface and drive purchase decisions. Since all these factors play a role in buying decisions, the question is whether customers are able to differentiate your company from your competition in the market. If your goal is to offer products at lowest cost, is there a competing company that can sell products at an even lower price? If your goal is to provide a technically perfect product, how likely is it that this will not be beaten by a better product which might soon appear in the market? It is also vital to know how much the market knows about your product and what is the customer perceived value of your product.

Analysing business behaviour of growing companies, one can recognise that their strategy is not only to communicate to their customers, but also to the whole market. While it is reasonable to think it necessary to communicate high value products such as tap changers, bushings and similar, should we also communicate products of lower value to the market?

Transformers are long lasting infrastructure equipment. Their reliability and longevity are of the utmost value for all of us who profit from their service; and this includes the whole society. Therefore, if there is a product which has a significant influence on the reliability of a transformer or its components, it should be systematically communicated to the market, regardless of its complexity, price or size. Effective communication will help the user select the most appropriate product, which will eventually lead to increased infrastructure reliability. To illustrate, a piece of insulation can be a relatively simple and cheap insulation part which can lead to a power transformer breakdown causing damage that tremendously exceeds its own value. There are plenty of other products used in transformers which produce similar effects. All these products are worth being systematically communicated to the market; in turn, this should help grow the business.

Preparing effective communication

Similar to many other areas, a key to successful communication lies in dedication of the management and availability of necessary funds. People often avoid communication because it is traditionally believed that this requires significant funds. However, communication can be cost-effective even in the transformer industry.

Targeting the audience

Your target audience encompasses your current and your potential clients. While it is easy to target current clients, it is important to find a strategy that will work when targeting potential clients. Although the popularity of digital communications is on the rise, when selecting the communications platform you need to make sure that you are communicating to the right population. Some digital platforms offer communication targeting audience by using tags or key words which people use on the internet. However, is this the most effective way of communicating niche products such as products in the transformer market?

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