Word of mouth marketing

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It has been suggested that this article or section be merged with Viral marketing. (Discuss)
It has been suggested that this article or section be merged with Word of mouth. (Discuss)

Word-of-Mouth Marketing, or WOMM, is a term used in the marketing and advertising industry to describe activities that companies undertake to generate personal recommendations as well as referrals for brand names, products and services.

Word-of-mouth promotion is highly valued by advertisers. It is believed that this form of communication has valuable source credibility. Research points to individuals being more inclined to believe WOMM than more formal forms of promotion methods; the receiver of word-of-mouth referrals tends to believe that the communicator is speaking honestly and is unlikely to have an ulterior motive (i.e. they are not receiving an incentive for their referrals).[1] In order to promote and manage word-of-mouth communications, marketers use publicity techniques as well as viral marketing methods to achieve desired behavioral response. Influencer marketing is increasingly used to seed WOMM by targeting key individuals that have authority and a high number of personal connections.

A very successful word-of-mouth promotion creates buzz. Buzz generates a highly intense and interactive form of word-of-mouth referral that occurs both online and offline. Successful word-of-mouth initiatives do not follow a strictly linear process with information flowing from one individual to another rather successful models leverage subgroup connectivity and relationships by pursuing a Reed's Law hub approach to message distribution. A marketer has successfully created buzz when the interactions are so intense that the information moves in a matrix pattern rather than a linear one. The result is everyone is talking about or purchase the product or service.

Contents

[edit] Examples

  • Gmail - Google did no marketing, they spent no money. They created scarcity by giving out Gmail accounts only to a handful of "power users." Other users who aspired to be like these power users "lusted" for a Gmail account and this manifested itself in their bidding for Gmail invites on eBay. Demand was created by limited supply; the cachet of having a Gmail account caused the word of mouth, rather than any marketing activities by Google.
  • Chain e-mail about certain product/service can be considered as word of mouth marketing.

[edit] Contrast with (non-examples)

  • Hotmail - Hotmail "piggybacked" on personal emails from one person to another to publicize their free email service. At a time when few people had email, the first and only free email service in the marketplace was appealing and novel -- hence their rapid adoption and spread. However, the same "piggybacking" technique currently employed by all free email providers (except gmail) no longer works. Furthermore, the Hotmail users did not voluntarily pass it on; they had no choice about Hotmail adding the "sign up" link at the end of their personal emails.
  • Burger King's Subservient Chicken - Burger King's marketing program called Subservient Chicken did indeed generate a lot of word of mouth, but the word of mouth was about the marketing campaign instead of the product that was being marketed. Also, those marketing efforts which rely on being edgy or on some kind of stunt often fade quickly when the novelty or edge wears off. Finally, this type of marketing is not reproducible or sustainable since it won't be edgy the second time around.
  • McDonald's LincolnFry - a fake blog was discovered, and it generated lots of negative word of mouth and little participation.
  • American Express' billboard - a fake blog poster who told readers to check out a great Amex billboard was found to be an Ogilvy employee; this violation of trust resulted in massive negative word of mouth which spread around the world.

[edit] See also

[edit] References

  1. ^ Grewal, R., T.W. Cline, and A. Davies, 2003. Early-Entrant Advantage, Word-of-Mouth Communication, Brand Similarity, and the Consumer Decision-Making Process. Journal of Consumer Psychology, 13(3).

[edit] External links

  • Buzzmarketing: Get People To Talk About Your Stuff, Mark Hughes (Penguin/Portfolio) Website
  • Andy Sernovitz, Word of Mouth Marketing: How Smart Companies Get People Talking, Kaplan 2006 Website
  • Word of Mouth Marketing Association
  • Frederick F. Reichheld, 'The One Number You Need to Grow,' Harvard Business Review, December, 2003.
  • Yubo Chen and Jinhong Xie, 'Online Consumer Review: A New Element of Marketing Communications Mix,' http://ssrn.com/abstract=618782, July, 2004.
  • Florian v Wangenheim and Tomás Bayón, 'The effect of word of mouth on services switching: Measurement and moderating variables,' European Journal of Marketing, September, 2004.
  • Paul Marsden, Alain Samson, and Neville Upton, 'Advocacy Drives Growth,' Brand Strategy, December, 2005.
  • César A. Hidalgo, A. Castro and Carlos Rodriguez-Sickert, 'The effect of social interactions in the primary life cycle of motion pictures,' New Journal of Physics, April, 2006.
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