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Interpersonal Influence

Interpersonal Influence. MKT 750 Dr. 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. Gatekeepers

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Interpersonal Influence

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  1. Interpersonal Influence MKT 750 Dr. West

  2. 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

  3. Multi-Step Flow of Communication Gatekeepers Mass Opinion Media Leaders Followers

  4. 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

  5. Receiver: Reduces risk Increase confidence Increase likelihood of social acceptance High credibility Saves time Enhanced relationship Sender: Prestige and power Enhanced position within a group Reduce doubt about one’s own choice Reciprocity Increase the cohesion within a group Benefits of WOM

  6. 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

  7. How to Influence WOM and Create Opinion Leaders • 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

  8. 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”

  9. 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

  10. 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

  11. Enterprise: “Selling the Dream”

  12. “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?

  13. “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?

  14. “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?

  15. “Selling the Dream” • Situation Analysis: • Company: • Competitors: • Consumers: • Collaborators: • Environmental Factors

  16. “Selling the Dream” • Marketing Strategy: • Segmentation • Targeting • Positioning

  17. “Selling the Dream” • Tactical Decisions: • Product • Price • Promotion • Place

  18. “Selling the Dream” • Overall Rent-a-Car Market • $14.62 billion (1996) • Needs-based segmentation

  19. “Selling the Dream”

  20. “Selling the Dream” • Company: • Strengths • Weaknesses

  21. “Selling the Dream” • Competition: • Strengths • Weaknesses

  22. “Selling the Dream” • Consumers:

  23. “Selling the Dream” • Collaborators:

  24. “Selling the Dream” • What market should Enterprise target? • Small business travel • Leisure travel

  25. Small Business Traveler Pros: Cons: Leisure Traveler Pros: Cons: “Selling the Dream”

  26. “Selling the Dream” • Recommendations:

  27. Assignment • Work on your team project!

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