Introduction
This chapter addresses two key market domains within the Six
Markets model – referral markets and influence markets. In Chapter
1 of the book, the roles of referral markets and influence markets
within the six markets framework were introduced. These two
market domains can be described as follows.
● Referral markets. The ‘referral’ market domain consists of two main cat-
egories – customer and non-customer referral sources. Frequently, the
best marketing is that done by an organization’s existing customers;
which is why the creation of positive word-of-mouth referral, through
delivery of outstanding service quality, is critical. Non-customer referral
sources, which recommend an organization to prospective customers,
are described by a number of terms. These include networks, multipli-
ers, connectors, third party introducers, agencies and so on. It should be
noted that these referral sources are also sometimes referred to as
intermediaries. However, this can be a confusing term when applied to
referral markets as it is more appropriately used in describing the role
of channel members (see Chapter 2 of this book) in the delivery of a
product or service to the final consumer.
● Influence markets. The nature of the ‘influence’ market domain is such
that it usually has the most diverse range of constituent groups.
Illustrative of the wide range of constituent groups which comprise the
influence market domain are: shareholders, financial analysts, stockbro-
kers, the business press and other media, user and consumer groups,
environmentalists and unions. Each of these constituent groups has the
potential to exert significant influence over the organization and the
relationships an organization has with them can be managed through
the application of a strategic marketing approach.
The distinction between these two market domains is that referrals
(when they are successful by generating a sale) have a direct impact
on customers purchasing goods or services from an organization.
For example, an existing satisfied customer from a motor car deal-
ership may recommend an acquaintance to this dealership. Here the
referral market directly impacts on the customer market. On the
other hand, influence markets have a more indirect impact on a
diverse range of groups who are usually not customers. For
example, a company may develop a marketing programme aimed
The referral and influence market domains 221