Interpersonal Influence MKT 750 Dr. West
Interpersonal Influence MKT 750 Dr. West. Agenda Multi-Step Flow Model Role of gatekeepers and opinion leaders Understanding how WOM works and managing.
Mar 31, 2015
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Interpersonal Influence
MKT 750Dr. West
Agenda
Multi-Step Flow Model Role of “gatekeepers” and “opinion leaders” Understanding how WOM works and “managing” it
“Selling the Dream” Discussion of Enterprise Case
Multi-Step Flow of Communication
Followers
Gatekeepers
Mass Opinion Media Leaders
Creating “Buzz”
“Viral Marketing” leverages the word-of-mouth channel of information Not a new approach…we have known a lot about the power of word-of-mouth
It’s twice as effective as radio advertising Four times as effective as personal selling Seven times as effective as newspapers and magazines
Benefits of WOM
Receiver:Reduces riskIncrease confidenceIncrease likelihood of social acceptanceHigh credibilitySaves timeEnhanced relationship
Sender:Prestige and powerEnhanced position within a groupReduce doubt about one’s own choiceReciprocityIncrease the cohesion within a group
WOM is Likely to Occur When…
An individual lacks information to make an informed choice
A person cannot evaluate options
The individual has a high need for social approval
Strong social ties exist between sender and receiver
The product is complex or highly visible
Firms may stimulate WOM by giving away or loaning products to opinion leaders to use or display
Ford Focus
Organizations may hire opinion leaders to influence consumers
Home Depot Music Companies
How to Influence WOM and Create Opinion Leaders
Firms can create opinion leaders by providing incentives for customers to attract others
Referral programs
Companies can encourage consumers to “ask a person who knows” or “tell a friend”
Hill’s “Science Diet”
How to Influence WOM and Create Opinion Leaders
Managing WOM
Bad news travels much more rapidly than good, therefore…
Monitor this channel and try to do damage control to prevent bad news from spreading
Strategically Managing WOM
WOM works because it is credible, authentic, and informative
You run the risk of damaging this channel if we “abuse” it by contaminating the credibility of information
Enterprise:
“Selling the Dream”
“Selling the Dream”
How are the buyer decision processes different for someone renting a replacement car, a leisure/vacation car, and a business travel car?
“Selling the Dream”
What are the bases for segmenting the rental car market?
What marketing recommendations would you make to Enterprise to improve it’s marketing strategy?
“Selling the Dream”
How do college graduates go about looking for a job? What is their decision process like?What marketing recommendations would you make to Enterprise to improve its recruiting?
“Selling the Dream”
Situation Analysis: Company: Competitors: Consumers: Collaborators: Environmental Factors
“Selling the Dream”
Marketing Strategy: Segmentation Targeting Positioning
“Selling the Dream”
Tactical Decisions: Product Price Promotion Place
“Selling the Dream”
Overall Rent-a-Car Market $14.62 billion (1996) Needs-based segmentation
Leisure33%
Business40%
Replacement27%
“Selling the Dream”
“Selling the Dream”
Company: Strengths
Weaknesses
“Selling the Dream”
Competition: Strengths
Weaknesses
“Selling the Dream”
Consumers:Business Traveler
ReplacementCustomer
Leisure Traveler
Need Recognition
Search
User needs
Price Sensitivity
“Selling the Dream”
Collaborators:
“Selling the Dream”
What market should Enterprise target?
Small business travel
Leisure travel
“Selling the Dream”
Small Business TravelerPros:
Cons:
Leisure TravelerPros:
Cons:
“Selling the Dream”
Recommendations:
Assignment
Work on your team project!
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