Word of MouthIndividual PresentationK.Nirushan - MS 1087

© K.NirushanFaculty of Commerce & Management

Eastern University, Sri Lanka

Contents…

In this Presentation, you will learn to:

Explain What is Word of mouth

Explain Types of word of mouth

Describe importance of word of mouth

Word of mouth marketing

5T’s of word of mouth marketing

Determinants of word of mouth

New trends of word of mouth marketing

Conclusion

Word of Mouth

“Interpersonal communication between

individuals within networks that either

explicitly or subconsciously identify

preferences about brands, products or

services that may be either positive or

negative ”

WOM

Example : Benz

Example : Film Review

Word of Mouth

Positive Negative

ExampleWOM

Word of Mouth

Positive Negative

ExampleWOM

Importance of Word of Mouth

Importance of Positive Word of Mouth

Free of cost:Compare with advertisements word of mouth can take place without any charges. Because satisfied customer, non commercially try to say something about the product or company or brand themselves

Increase Good-will: With out any cost a positive word of mouth can increase a company’s good will. In service sector it is most important because services are intangible. Therefore based on the customers words people will decide the level of quality of a particular service.

Make New Customer:People, for their purchasing decision mostly trust on recommendation. If a person say some good things about a certain product, another person who relay on him may tend to buy that product.

Save time & Reduce wrong decision making:A reliable recommendation give more information to the consumer so the can make best purchasing decision.

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1

Negative Word of Mouth

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2

1

Destroying Company Image:More than the benefits of positive word of mouth, a negative word of mouth can give more disadvantages to the company.

Negative Word of Mouth

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1

Destroying Company Image:More than the benefits of positive word of mouth, a negative word of mouth can give more disadvantages to the company.

Spread quickly:Dissatisfied customer tell to 11 people but satisfied customer share the positive word of mouth with only 4 people

Negative Word of Mouth

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3

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Destroying Company Image:More than the benefits of positive word of mouth, a negative word of mouth can give more disadvantages to the company.

Spread quickly:Dissatisfied customer tell to 11 people but satisfied customer share the positive word of mouth with only 4 people

Difficult to get back the market place : If any negative word of mouth spreaded people give up their trust on that particular company

Negative Word of Mouth

4

3

Destroying Company Image:More than the benefits of positive word of mouth, a negative word of mouth can give more disadvantages to the company.

Spread quickly:Dissatisfied customer tell to 11 people but satisfied customer share the positive word of mouth with only 4 people

Difficult to get back the market place : If any negative word of mouth spreaded people give up their trust on that particular company

Exaggerete by persons:Dissatisfied customer may build-up the negativeness more than perceived.

Negative Word of Mouth

Word of Mouth Marketing

(WOMM) “Giving people a reason to talk about your products and

services, and making it easier for that conversation to

take place. It is the art and science of building active,

mutually beneficial consumer-to-consumer and

consumer-to-marketer communications ”

Talkers

Topics Tools

Taking Part

Tracking

5T’s of Word of Mouth Marketing

Determinants of Word of Mouth

Quality

Satisfaction of the

customer depends

on the quality of

product.

Customer care

Best customer care

service make the

customer feel

comfort with the

organization

Willingness

Some people don’t

want to share

information with

others

New Trends of Word of Mouth Marketing

Marketing Buzz

Marketing buzz is the interaction of consumers and users of a product or service which serves to amplify the original marketing message. Buzz marketing involves cultivating opinion leaders and getting them to spread information about your product or service to others in their communities. Positive buzz is often a goal of viral marketing, public relations, and of advertising on Web 2.0 media

New Trends of Word of Mouth Marketing

Cause Marketing

Cause or 'Charity' marketing is when you support social causes to earn respect and support from people who feel strongly about the cause. So they will spread good word of mouth and be a part of your company

New Trends of Word of Mouth Marketing

Blog marketing

Web 2.0 facilitates the internet users to have their own blogs. It is look like a simple web site. Through the blogs customer can share their words. Mostly customer talks about the products and brands on the blogs. Anyone can leave a comment on the blog.

www.nirushan.blogspot.com

New Trends of Word of Mouth Marketing

Social media marketing

By using the social media networks people share information about products, company and brands. A social media network is generally a Web site that people visit frequently and consistently to connect with people that they wouldn't normally connect with

Real Examples For impact of Word of MouthCoca-Cola

Real Examples For impact of Word of MouthAnchor Fontera

Conclusion!!

“People influence people. Nothing influences people more than a recommendation from a trusted friend. A trusted referral influences people more than the best broadcast message. A trusted referral is the Holy Grail of advertising.” – Mark Zuckerberg

Video Example Link

I:\WOMMA defines WOMM

References:

• Megan Williams. WORD-OF-MOUTH : A Definition of Communication, 1-5

• Francis A. Buttle. Word of mouth: understanding and managing referral marketing, JOURNAL OF STRATEGIC MARKETING 6 241–254 (1998), 241-254

• http://searchcrm.techtarget.com/definition/buzz-marketing, Retrieved on 18.10.2013

Questions?