Marketing Strategies vs. Government Competitors.

Marketing managers competing with public enterprises face additional and unique problems compared with those which compete with other private firms. State and local government firms competing against private firms are granted a number of tax advantages over privately owned firms. Public firms can be less efficient, yet its price can be lower than the private competitor, often neutralizing price as a weapon in the marketing mix of the private firm in such a competitive milieu. An incentive exits to replace the private competitor with the less productive public one. Estimate herein of such competitive disadvantages for the private competitor in the electrical utilities, gas, water, and telephone industries provide the private marketing manage with a gauge of the disadvantage that must be overcome to compete effectively. [ABSTRACT FROM PUBLISHER]