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groups and other research tools as part of our efforts to determine and respond
to customer needs. We believe that all of this improves the overall quality of
our services and the reliability of our systems, resulting in fewer service
calls from customers.
     We are also committed to fostering strong community relations in the towns
and cities our systems serve. We support many local charities and community
causes in various ways, including marketing promotions to raise money and
supplies for persons in need and in-kind donations that include production
services and free air-time on major cable networks. Recent charity affiliations
include campaigns for "Toys for Tots," United Way, local theatre, children's
museums, local food banks and volunteer fire and ambulance corps. We also
participate in the "Cable in the Classroom" program, whereby cable television
companies throughout the United States provide schools with free cable
television service. In addition, we install and provide free basic cable service
to public schools, government buildings and non-profit hospitals in many of the
communities in which we operate. We also provide free cable modems and
high-speed Internet access to schools and public libraries in our franchise
areas. We place a special emphasis on education, and regularly award
scholarships to employees who intend to pursue courses of study in the
communications field.
     PERSONNEL RESOURCES.  We have a centralized team responsible for
coordinating the marketing efforts of our individual systems. For most of our
systems with over 30,000 customers we have a dedicated marketing manager, while
smaller systems are handled regionally. We believe our success in marketing
comes in large part from new and innovative ideas, and good interaction between
our corporate office, which handles programs and administration, and our field
offices, which implement the various programs. We are also continually
monitoring the regulatory arena, customer perception, competition, pricing and
product preferences to increase our responsiveness to our customer base. Our
customer service representatives are given the incentive to use their daily
contacts with customers as opportunities to sell our new service offerings.
     MARKETING STRATEGY.  Our long-term marketing objective is to increase cash
flow through deeper market penetration and growth in revenue per household. To
achieve this objective and to position our service as an indispensable consumer
service, we are pursuing the following strategies:
     - increase the number of rooms per household with cable;
     - introduce new cable products and services;
     - design product offerings to enable greater opportunity for customer
     - create a variety of service packages to promote the sale of premium
       services and niche programming;
     - offer customers more value through discounted bundling of products;
     - increase the availability of advanced digital services within the home;
     - target households based on demographic data;
     - develop specialized programs to attract former customers, those that have
       never subscribed and illegal users of the service; and
     - employ Charter branding of products to promote customer awareness and