Water Utilities and Society
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Water Utilities and Society

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Overview presentation about the role of water utilities from a macromarketing perspective

Overview presentation about the role of water utilities from a macromarketing perspective

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Water Utilities and Society Water Utilities and Society Presentation Transcript

  • Water Utilities & Society
  • Water utilities & Society What is a water utility?
  • What is a water utility? ● Whole set of – Organization, processes, activities, means and resources ● necessary for – Abstracting, treating, distributing or supplying drinking water – Collecting, treating and disposing of wastewater – Providing the associated services Water utilities in Monopoly board game.
  • Coliban Water
  • Water Utility Value Chain Water Services Sanitation DistributionRetail Ocean, rivers and groundwater (natural environment) Raw Water Distribution Customers Drinking WaterDistribution Harvest Treatment Recycled Water Distribution Treatment Waste Water NaturalWaterCycle CollectionTreatment Treatment
  • Water Services ● Core – Water supply – Sewerage services ● Enhancing ● Billing & payment ● Information provision ● Facilitating ● Developer support ● Complaint handling ● Information provision Core service for water utilities is the supply of safe drinking water
  • Porter's Five Forces ● New entrants ● Supplier power ● Customer power ● Substitute services Porter, M. (1979). How competitive forces shape strategy. Harvard Business Review, 57(2).
  • Water utilities & Society Sustainability
  • Environmental Sustainability ● Nature as an economic externality ● Ecosystem services ● Water as commodity ● Tragedy of the commons Economics Ecology Equitable Viable Bearable Sustain- able Society Source: World Conservation Union
  • Sustainability in water “sustainable use of water requires the development and maintenance of a required flow of benefits to a particular group or place, undiminished over time without reducing benefits to other groups or ecosystems” Gleick, Peter (1998), Water in Crisis: Paths to Sustainable Use, Ecological Applications 8 (3), 571–579.
  • Climate Change Source: CSIRO
  • Victoria's Water Crisis 2000 to 2011 overall annual water consumption in Melbourne dropped by approximately 30 per cent. Source: Office of Living Victoria 2000 to 2011 overall annual water consumption in Melbourne dropped by approximately 30 per cent. Source: Office of Living Victoria Dramatic reduction of reservoir inflows.. Source: Coliban Water
  • The Utility Death Spiral Source: freese.com
  • Water: ᾿need᾽ or ᾽want᾽? ● Needs – State of felt deprivation – Innate ● Wants – Shaped by society – Learned Source: timvandevall.com
  • Beyond Needs & Wants
  • Demarketing ● Lowering demand through marketing – Social marketing – Price increase – Restrictions
  • Water utilities & Society Social Corporate Responsibility
  • Social Responsibility The one and only obligation of business is to maximise is profits while engaging in open and free competition without deception or fraud” Milton Friedman, Capitalism and Freedom
  • Affordability ● Financial hardship ● Empathy ● No total disconnection Vulnerable customers require protection.
  • Public Health ● Walkerton Tragedy – E.coli contamination from farm run-of – 2500 people ill – 7 deaths p Walkerton Tragedy: E.coli contamination from farm run-of. 2500 people ill. 7 deaths.
  • Is water a public good? Excludable Non-excludable Rival Private Common-pool Non-rival Club Public
  • Water utilities & Society Summary