Study Notes on Power Types and Marketing Concepts
Referent Power
Definition: Power that comes from being admired or respected.
People comply because they identify with the person wielding this power.
Example: A charismatic leader who inspires followers; this type of power is often seen in influential figures who have the ability to motivate and engage others through their personal qualities and vision.
Coercive Power
Definition: Power based on the ability to punish or impose negative consequences.
This type of power relies on fear and the threat of adverse outcomes to compel compliance.
Example: A manager threatening demotion for poor performance; the authority of the manager creates a situation where employees feel compelled to act in accordance with expectations to avoid negative repercussions.
Expert Power
Definition: Power derived from knowledge, skills, or expertise in a particular area.
This power is based on the perception of an individual as having superior skills or knowledge that others respect and trust.
Example: A tech specialist who is trusted for system decisions; the expert’s knowledge influences others' decisions regarding technical matters due to acknowledged expertise.
Legitimate Power
Definition: Power that comes from a formal position or role within an organization.
Individuals holding this power are recognized and accepted as having the right to make directives based on their official role.
Example: A CEO making strategic decisions because of their title; the authority stems from the recognized position within the organizational hierarchy, underscoring the legitimacy of their power.
Porter's Generic Value Chain
Definition: A model that breaks down a company’s activities into primary and support activities to analyze competitive advantage and operational efficiency.
The model assists companies in identifying areas where value is added in the production process.
Primary Activities:
Inbound logistics
Operations
Outbound logistics
Marketing & Sales
Service
Support Activities:
Infrastructure
Human Resource Management
Technology Development
Procurement
Owned Media
Definition: Marketing channels that a company controls, such as its website, blog, social media accounts, and other proprietary communications.
These channels are leveraged to engage with customers and promote the company’s brand or products directly without reliance on external parties.
Example: A company’s official Instagram page; through this medium, the company directly interacts with customers and showcases its products, thus maintaining control over its marketing narrative.