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Understanding DMUs and Influencers in Decisions

Apr 2, 2025

Lecture Notes: Decision-Making Units (DMUs) and Influencers

Introduction

  • Presenter: Dr. Adam Jae Bok
  • Focus: Attributes of the decision-making unit, role of influencers, and approaches to influence them.

Decision-Making Unit (DMU)

  • Components:
    • End user
    • Broadly includes decision-making unit that generates purchasing process.
  • Roles in DMU:
    • Economic buyer
    • Key champion
    • Primary and secondary influencers
    • Individuals with veto power

Influencers in DMUs

  • Types of Influencers:
    • Belle Cows: Leaders who influence others within the organization.
    • Lighthouses: Influencers whose adoption of a product signals it should be considered by others.
  • Targeting Influencers:
    • Provide key influencers with information needed to favor your product.

Case Studies

  • Bose Model 901 Speaker
    • Influencers: Experts at stereo stores, media experts, and stereo magazines.
    • Strategy: Provided technical information and samples to influencers.
    • Outcome: Favorable reviews and successful product launch.
  • Peter Jackson’s Lord of the Rings Movies
    • Influencers: Movie critics, merchandisers, fans, and peers.
    • Strategy: Released teasers, engaged fans and bloggers, avoided referencing prior failed adaptations.
    • Outcome: Highly successful launch and legacy.

Winning Influencer Referrals

  • Build relationships with key influencers.
  • Target professional reviews and online referrals.
  • Provide influencers with selling tools (e.g., links to theaters for films).
  • Purposeful structured process helps ensure successful influence.

Role of Veto Power in DMUs

  • Examples of Veto Power:
    • IT departments in B2B environments, especially for tech products.
    • Government bodies like the FDA for healthcare product approvals.
  • Importance: Recognizing standards and veto power entities is crucial for market entry.

Purchasing Department Influences

  • Motivations:
    • Lower cost and reimbursement.
    • Risk aversion: Avoid getting fired for risky decisions.
    • Simplify their job tasks and paperwork.
    • Justify their role and enhance reputation within the organization.
  • Challenges for Startups:
    • Risk in shifting from established suppliers to new startups.
    • Importance of aligning with purchasing departments’ goals.

Conclusion

  • Integrate these considerations with the customer acquisition process.
  • Application to entrepreneurial activities and potential complexities in larger DMUs.

Full transcript