Few marketers are trained in the art of politics and are this unaccustomed to using power to achieve favorable transactions. Most marketers think that value, not power, wins in the marketplace.
The growth of protected markets, however, requires marketers to incorporate the notion of power into their strategies. Marketing is increasingly becoming the art if managing power.
What do they need to know about power? They need to know that power in the ability of one party to get another party to do what it might not otherwise have done. It is the party’s ability to increase the probability of another party taking an action. A party can draw on at least five bases of power to influence another party.
The part offers to reward to another party for engaging in the desired behavior, the reward might be recognition, entertainment, gifts or payments. Marketers are expert in the use of rewards.
Coercion
Party threatens to harm another party in the absent of compliant behavior. Party may threaten physical, social or financial harm. Marketers have been loath to use coercive power because of its doubtful ethical status, because it does not square with the marketing concept, and because it can create hostility that can backfire on the marketer.
Expertise or information
Party offers another party expertise, such as technical assistance or access to special information, on exchange for another party compliance.
Legitimacy
Party seen to have a legitimate right top make certain requests of another party. An example would be the Japanese premier asking Nippon Electric Company to put on its approved supplier list.
Prestige
Party has prestige in another party’s mind and draws on this to request another party’s compliance. An example would be Chrysler president requesting a meeting with officials in a foreign country present argument for opening a Chrysler plant in that country.
Power is key to mega-marketers. Companies that find themselves blocked from a market must undertake a three step process for creating an entry strategy:
- Mapping the power structure
- Forging a grand strategy
- Developing a tactical implementation plan
