WOM Presentation Upd

7/29/2019 WOM Presentation Upd

1/14


2/14

Word of Mouth Marketing

Word-of-mouthmarketing (WOMM, WOM marketing),also called word of mouth advertising,

is an unpaid form of promotionoral orwrittenin which satisfied customers tellother people how much they like abusiness, product, service, or event.

-Wikipedia


3/14

Advantages :- Free- Cuts through noise quickly- Effective : 20 to 50 percent of all the purchasing

decisions

Influence :Greatest when consumers are buying a product for the

first timeOr

when products are relatively expensive, factors thattend to make people conduct more research, seekmore opinions, and deliberate longer than theyotherwise would.

one-to-many basis: product reviews are posted onlineand opinions disseminated through social networks.

WOMM Contd..


4/14


5/14

Impact : Not only positive(recommendation) but it can be the mostdisruptive factor as well (Dissuasion)- It can increase the market share by10 percent or even reduce it by 20 percent over a 2 year time period (allother things being same)

Three forms of Word of Mouth :

1. Experiential : most common and powerful formaccounts for 50 to 80 percent of word-of-mouth activitye.g : airlines lose luggage are a classic example of experiential word of mouth

2. Consequential : spread through the marketing activitiesoccurs when consumers directly exposed to traditional marketing campaigns

Learning for marketers : consider both direct and pass-oneffects of it

3. Intentional : A less common form of word of mouthe.g : when marketers use celebrity endorsements to trigger positive buzzfor product launches.

Word of Mouth Marketing


6/14

an index of a brands power to generate messages that influence

the consumers decision to purchase.

2 types of word-of-mouth that change behavior :1. Recommendation : 2 kinds :

a) by trusted friends/ relatives

b) by strangers

research shows that a high-impact recommendationfrom a

trusted friend conveying a relevant message, for exampleis upto 50 times more likely to trigger a purchase than is a low-impactrecommendation.

2. Dissuasion

Word of Mouth Equity


7/14

To assess the impact of the recommendation , we can calculate theWOM equity :

It represents the average sales impact of a brand message multiplied by thenumber of word-of-mouth messages.


8/14

1. What is said primary driver of WOM impact . the contentMUST address the product/ service features which have WOMpotential.E.g in mobile phone category , design is more important thanbattery life

2. Who says it identity of the person who sends themessage- About 8 to 10 percent of consumers are what we callinfluentials, whose common factor is trust and competence.- Influentials typically generate three times more word-of-

mouth messages than noninfluentials do, and each messagehas four times more impact on a recipients purchasingdecision-About 1 percent of these people are digital influentialsmostnotably, bloggerswith disproportionate power.

3. Where it is said - environment where word of mouthcirculates

Dimensions of WOM


9/14

Word-of-mouth equity EMPOWERS companies by allowing themto understand word of mouths relative impact on brand andproduct performance.

APPLEs iPhone in Germany share of word-of-mouth volume was about 10 percent, or a

third less than that of the market leader

Yet the iPhone buzz was about five times more powerful thanaverage Implication => meant the iPhones word-of-mouth equity score

was 30 percent higher than that of the market leader, withthree times more influential recommending the iPhone overleading handsets.

sales directly attributable to the positive WOMoutstripped Apples paid marketing sixfold

RESULT : Within 24 months of launch, the iPhone was selling almost one

million units a year in Germany.

UNDERSTANDING :

WOMM contd.


10/14

Harnessing Word of mouth

Rewards are huge, yet many avoid it.

Concerns immature as a marketing discipline

difficult to draw on extensive data or elaborate marketing

tools fine-tuned over decades. The potential upside is exponentially greater

Word of mouth equity analysis detail the precise nature of a categorys

influentials pinpoint the highest-impact messages,

contexts and networks.

Insights + forms of word ofmouth(exponential, consequential and intentional)= positive word of mouth


11/14

Harnessing experiential word ofmouth

Providing customers with an opportunity to share positive

experiences and make the story relatable and relevant to theaudience. Involving customers during product development

Buzz can also be sustained after launch. Eg. Appstore

To create an impactful positive word of mouth, customer

experience must deviate from expectations and ondimensions that a consumer is likely to talk about. Eg batterylife for a mobile-handset consumerManaging consequential word of

mouthInvolves using the insights provided by word-of-mouth equity to maximize

the return on marketing activities.

Marketing induced C2C word of mouth generates more than twice thesales of paid advertising in categories as diverse as skincare and mobilephones.

Two things supercharge creation of positive word of mouth

InteractivityCreativity Phil Collins Gorilla Drummer Cadbury Ad (Dairy Milk).mp4


12/14

Intentional word of mouth

Identifying influentials who become brand and product advocates

Ambitious marketers use word-of-mouth equity insights to shiftfrom consequential to intentional campaigning.

Most effective for marketers capable of undertaking One-to-onemarketing Leads to exponential word-of-mouth; impact similar to ripple effect

Red Bull - used celebrities and other opinion makers to seed the

right message, through events.


13/14

Conclusion

Marketers have always been aware of the effect of word of mouth.

Word-of-mouth equity helps reveal how to hone and deploy thatart

These insights are essential to harness the potential of word ofmouth and to realize higher ROI


14/14

THANK YOU

Documents

WOM Presentation Upd