Engagement

Ties that Bind

--------------------------------------Leveraging consumer participation

Consumer shape the market place ??

Through their choice they make The action they take The rights they claim The opinion they make about company The opinion they make about product

Marketers have learned that its human element that molds market. Dry economic calculation of benefits V/s Cost, demand V/s supply, or even extensive market research and testing are not very good at explaining why product like NEW COKE failed, and other offering like HUSH PUPPIES or BEANIE BABIES unexpectedly take off. Reviewing consumer survey or Nielsen retail sales data provides only partial picture of Consumer behavior. Adopt democratic view of engaging consumers like meet consumer individually, observe them on group or engage them in conversation

Consumer are like Hunter and gatherer.

Susan Fournier described 15 type of relationship with consumer have with brand.. - Best friendship. Eg(with jogger and his trusted Reebok running shoes) - Causal friends/buddies. Eg(between consumer and household cleaning brand) - Enslavements. Eg(Consumer forced to subscribe cable television absent any other brand)

Consumer Experts
Opinion LeaderOpinion leadership in marketing resembles opinion leadership in public affair, a few highly committed individual.

They gather information and people who are undecided seek and rely on information from them, rather than media. Mainly in automobiles , film, running shoes

Word of mouth-(Word of Mouse via internet)

Influence is not limited to experts. Phrases like Kodak moment, or echoes of Nikes just do it passes from consumer to consumer. Survey shows- nine out of 10 trust recommendation from other consumer. Word of mouth is democratic. Helps small companies who cannot afford marketing. Eg. Starbucks from one store in 1986 to 84 store in 1990 with virtually no advertising, only word of mouth endorsement from consumer. The flip side of word of mouth is spread of neagtive information.

Buzz marketing
In Buzz marketing, which is a form of Informational cascade, it is not necessarily a products functional attributes that make it a hit. Rather, interaction among people are the force that charges and align their collective desires. Consumer participation culminates in the explosion of demand that constitutes a hit. Eg. Low Budget film in India like Gangs of Wasseypur. The atmosphere in markets before launch of Apple products or before launch of Tata Nano.

Brand Communities
These are people who concentrate their energy on particular brand. Loyal to brand, live the brand, love the brand, feel the brand, worship the brand. Eg. Apple, Harley-Davidson

Social Sharing
Helping people get to know people or businesses outside their immediate social circle. Consumer participation Consumer to consumer conversation Eg- facebook, youtube, shaadi.com, etc.

Implication for Intellectual Property

Due to computers & internet, consumers are becoming self-reliant innovators. Consumers can develop what they want and need. Share & freely exchange innovative ideas & products It liberates other consumers & entrepreneurs from constraints. Reducing patents & other restrictions, open up competition that eventually benefit consumer Eg- Big pharmaceuticals & software companies.

The lessons of eBay

Online auction consumer driven New democratic marketplace connecting buyers and sellers around the world Consumers can find anything Eg. Old kitchen spoon, used automobile, etc. Participation - low cost o Buyers free registration o Sellers minimal listing fees Open information about product, bidding history, prices of similar item previously sold 100 million registered users & $1billion operating profit.

Why Weak Ties Are Strong

Weak social ties among individuals are actually strong cohesive force in society. Strong ties- family, religion, ethnic group. Strong ties bond only people within group; weak ties needed to bridge the various groups within the society. Individuals having many weak ties with others are well placed to spread information, innovations and a broader sense of community. Eg. Insurance and mutual funds companies share risk with consumers.

Democratization of Business
eBay engages customer in running its marketplace; Wiki community relies on consumers to supply information content; Skypes technology platform Internet telephone calls is nothing but spare capacity f customers personal computers. People want the convenience, affordability and choice provided by manufacturer. They wants thing to be Simply Better.

Free-for-All?
Consumers participating in peer-to-peer production an social sharing are not seeking monetary rewards but sometime end up making money as a result of their participation. Linus Torvalds now works for an open-source software consortium.

Non-Monetary Motives
If money is not primary motivator, then why do people participate in peer production and social sharing? Consumer feedback, complaint management Consumer who take time and trouble to complain to marketers invariably want the marketer to do better . They dont want to be let down in the relationship and they want to receive better performance the next time they use the marketer.

New Norms
Widespread access to digital information and communications technology allows consumers to share more visibly and on a larger scale than before. Anything on the Web is free for sharing; that sentiment is, more or less, the norm among internet users. But it is at odds with laws and customs giving ownership of content to creators and publishers. Eg. Wikipedia has been going strong for almost five years as a free, collaborative and open project, but it has experienced problems and controversies.

Continued
Eg. Piracy decline in music sales. New norms : 1. Music companies sued consumers who used peer-topeer networks to download music for free 2. They offered expensive subscription services hemmed in with restrictions on how consumers could use the music they paid for. Eg. Apple iTunes service.