What Marketers Misunderstand About Online Reviews

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    12-Aug-2015
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  1. 1. WHAT MARKETERS MISUNDERSTAND ABOUT ONLINE REVIEWS
  2. 2. O P I N I O N S DIFFERENT OPINIONS FROM USERS DIMINISHES Anubhab Mondal , IIT Kharagpur
  3. 3. YOU GET WHAT YOU PAY FOR !!! PREVIOUSLY CONSUMERS PURCHASED BASED ON THE IDEAS OF Anubhab Mondal , IIT Kharagpur
  4. 4. IS PRODUCT A BETTER THAN B!!! PREVIOUSLY CONSUMERS PURCHASED BASED ON THE IDEAS OF Anubhab Mondal , IIT Kharagpur
  5. 5. PREVIOUSLY CONSUMERS PURCHASED BASED ON THE IDEAS OF CELEBRITY ENDORSEMENTS Anubhab Mondal , IIT Kharagpur
  6. 6. BUT Times have changed !! Anubhab Mondal , IIT Kharagpur
  7. 7. Anubhab Mondal , IIT Kharagpur
  8. 8. PRESENT DAY CONSUMERS PURCHASE BASED ON THE INFORMATION FROM Anubhab Mondal , IIT Kharagpur
  9. 9. PRESENT DAY CONSUMERS PURCHASE BASED ON THE INFORMATION FROM USER GENERATED REVIEWS Anubhab Mondal , IIT Kharagpur
  10. 10. PRESENT DAY CONSUMERS PURCHASE BASED ON THE INFORMATION FROM EXPERT ADVICE Anubhab Mondal , IIT Kharagpur
  11. 11. THE GROWTH OF USER GENERATED REVIEWS Anubhab Mondal , IIT Kharagpur
  12. 12. THROUGH VARIOUS Anubhab Mondal , IIT Kharagpur
  13. 13. THROUGH VARIOUS Anubhab Mondal , IIT Kharagpur
  14. 14. THROUGH VARIOUS Anubhab Mondal , IIT Kharagpur
  15. 15. BUT MOST MARKETERS IGNORE ONLINE REVIEWS Anubhab Mondal , IIT Kharagpur
  16. 16. THERE HAS TO BE A STRATEGIC SHIFT Anubhab Mondal , IIT Kharagpur
  17. 17. TWO TOOLS WERE CREATED FOR MARKETERS Anubhab Mondal , IIT Kharagpur
  18. 18. 1 INFLUENCE MIX 2 THE 0 CONTINUUM Anubhab Mondal , IIT Kharagpur
  19. 19. INFLUENCE MIX1 Anubhab Mondal , IIT Kharagpur
  20. 20. (p)Rior beliefs, thoughts and experiences Anubhab Mondal , IIT Kharagpur
  21. 21. INFORMATION FROM (M)ARKETERS Anubhab Mondal , IIT Kharagpur
  22. 22. INFORMATION FROM (O)THER USERS Anubhab Mondal , IIT Kharagpur
  23. 23. THE INFLUENCE MIX IS A ZERO SUM GAME INCREASE IN THE IMPACT OF ONE REDUCES THE IMPACT OF OTHERS Anubhab Mondal , IIT Kharagpur
  24. 24. THE 0 CONTINUUM Anubhab Mondal , IIT Kharagpur
  25. 25. The closer the product is to the O dependent end the greater is the shift in consumers buying strategy Anubhab Mondal , IIT Kharagpur
  26. 26. STRATEGIC IMPILCATIONS can be considered once firms understand where a product falls on the O continuum Companies can consider the strategic implications in: Competitive position Communication Market Research Product Segmentation Anubhab Mondal , IIT Kharagpur
  27. 27. COMPETITIVE POSITION Anubhab Mondal , IIT Kharagpur
  28. 28. WHEN CUSTOMERS DEPEND MAINLY ON O, BRANDING BECOMES LESS IMP. COMPETITIVE POSITION Reviews at sites like zomato and flipkart decrease barriers for new comers Anubhab Mondal , IIT Kharagpur
  29. 29. COMMUNCATION Anubhab Mondal , IIT Kharagpur
  30. 30. These companies should promote ongoing flow of positive content Weight of trusted reviews overrides ads and Endorsements !! Anubhab Mondal , IIT Kharagpur
  31. 31. MARKET RESEARCH Anubhab Mondal , IIT Kharagpur
  32. 32. Usually aims to measure P As dependence on O increases impact of P decreases Marketers should redirect resources to systematic tracking, coding of information from review sites, etc. Anubhab Mondal , IIT Kharagpur
  33. 33. a market research study conducted in early 2007 before the release of the first iPhoneconcluded that U.S. consumers would not be interested in a convergent device that combined the functionality of a cell phone, an MP3 player, and a camera BUT AS SOON AS IT WAS RELEASED IN THE MARKET IT WAS AN INSTANT HIT!!! Anubhab Mondal , IIT Kharagpur
  34. 34. WHAT ACTUALLY WENT WRONG ?? Anubhab Mondal , IIT Kharagpur
  35. 35. The study had measured P, but as soon as the iPhone hit the market and early adopters began gushing over it, people became influenced by O. Anubhab Mondal , IIT Kharagpur
  36. 36. PRODUCT SEGMENTATION Anubhab Mondal , IIT Kharagpur
  37. 37. A products location on the O continuum often varies across customer segments and from country to country. Anubhab Mondal , IIT Kharagpur
  38. 38. Shoppers in brick-and-mortar stores are often more susceptible to M than online shoppers are Anubhab Mondal , IIT Kharagpur
  39. 39. Anubhab Mondal , IIT Kharagpur
  40. 40. Anubhab Mondal , IIT Kharagpur
  41. 41. Yelp, TripAdvisor, and others are becoming increasingly sophisticated at weeding out fake reviews, and consumers are developing a better sense of which sites they can trust Anubhab Mondal , IIT Kharagpur
  42. 42. 30% of U.S. consumers say they begin their online purchase research by going to Amazon for product information and reviews Studies commissioned by Google have found that shoppers consult 10.4 sources of information, on average, before making a purchase. Anubhab Mondal , IIT Kharagpur
  43. 43. As the influence mix evolves, companies will be SUCCESSFUL which closely track sources of information their customers turn to and find the combination of marketing channels and tools best suited to the ways those consumers decide Anubhab Mondal , IIT Kharagpur
  44. 44. Anubhab Mondal , IIT Kharagpur
  45. 45. www.google.com www.slideshare.net www.yahoo.com www.freeimages.com www.tedx.com www.EverythingisaRemix.com m CREDITS Anubhab Mondal , IIT Kharagpur
  46. 46. Created by ANUBHAB MONDAL, IIT KHARAGPUR, during an Internship under Prof.Sameer Mathur, IIM Lucknow www.IIMInternship.com DISCLAIMER