Index of Paper Presentations for the Parallel Sessions - Academy of ...

Deighton 2009) from the marketer to the consumer. Mobile communication forms have allowed customers to gathermarketplace information anywhere at any time, thus breaking the tether of the broadcast signal, the cable wire andthe computer cord (Krause and Magedanz 1996). In short, the Web, search and, more recently, mobile devices havegiven customers fingertip access to massive amounts of information, available anytime and anyplace desired. Whatis most interesting about this new marcom model is that the tools and technologies are today, often moresophisticated in emerging markets than in established ones. For example, today, Facebook has more users outside theU.S. than domestically. (Internetworldstats.com 2012) Thus, the increasing use of technology, particularly inemerging markets, plays a critical role in the new marcom model we propose.Note the proposed model is still a customer-oriented communication system. Two new elements have been added,however. One is the network concept, where it is assumed that all marketers, customers, channels, etc. are or will beconnected electronically. In other words, the system is no longer linear and direct, from marketer to customer. It isnetworked where multiple voices, using multiple communication channels are all interconnected and cancommunicate in multiple dimensions. This network model changes the entire marcom system, which has historicallybeen based on a linear ―stimulus-response‖ model, as found in the Lavidge and Steiner (1961) Hierarchy of Effectsmodel previously described. The marketer sent out stimuli, in the form of messages and incentives, and consumersresponded. In a network model, there are few loci of control. That simple change obviates many of the traditionalmarketing concepts and approaches.This dramatic change is largely due to social media (Scott 2007). With the rise of electronic systems such asFacebook, YouTube, Twitter and the like, customers can now talk back to marketers, ask questions, challenge claimsand the like. Historically, marketers spoke and customers were supposed to listen and respond. Now customers cancommunicate with other, like-minded customers all over the world. That is, customers can create their ownmarketing and brand contact systems, either positive or negative, and share them with others, or indeed, the world. Itis a system marketers can‘t control. More loss for the marketer, more gains for the customer.The second major change is negotiation. That means when customers gain control of marketplace information, as isthe case in many emerging markets, they have the capacity to negotiate channels, pricing, terms, and incentives – inshort, the whole range of formerly marketer-controlled activities that determined the marketplace value of offers andproduct bundles (Tuli et al. 2007). Today, it is not unusual for a consumer to walk into an electronics store, armedwith a mobile device, view the retailer‘s offerings and prices, and immediately compare and contrast them with whatis available across the street (Shankar et al. 2010). In these instances, which are becoming more and more common,particularly in emerging markets, the seller must either negotiate with the buyer or lose the sale. Interestingly, it isnot just the communication that is being negotiated, but, the entire relationship between the marketer and thecustomer.Another important difference between the emerging markets model and the traditional approach developed in theestablished markets is that the continual pushing of controlled brand messages at customers and prospects is nolonger as effective as it was in the past. Consumers, now armed with technologies such as DVRs and spam filters,can shut out messages at will (―Stop‖ sign impeding the flow through arrow E). Instead, they now commonly seekout relationships with marketers of their choice through search or other interactive means.Clearly, the traditional approaches used in the current established market model will continue to be useful andrelevant, particularly in markets where information technology is less developed or where consumers are stilllearning how to be consumers. The ability of makers/sellers to direct information to specific groups of customers andprospects, thus moving them out of the mass market and into identifiable segments to which relevant marketingmaterials can be delivered, will continue to evolve over time.These are the major changes which increasingly are found in emerging markets and which we believe will continueto grow and evolve. When consumers have interactive capabilities, they quickly learn to use them to level theplaying field with even the most sophisticated marketing organizations. Examples where this is occurring abound in