Presentation on theme: "Interpersonal Influence MKT 750 Dr. West. Agenda Multi-Step Flow Model Role of gatekeepers and opinion leaders Understanding how WOM works and managing."— Presentation transcript:
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 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 Its 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 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 ones own choice Reciprocity Increase 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 Hills 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 its 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?