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Getting People Talking


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the presentation looks at the role of Magazine to trigger WOM

the presentation looks at the role of Magazine to trigger WOM

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  • 1. Getting People Talking
    Word of Mouth
  • 2. The Debate
    • To paraphrase George Orwell:
    -“All consumers are not created equal”
    • It seems that consumers are not an amorphous mass whom we can blanket bomb with commercial messages that they will all meekly respond to, as traditional advertising models would have us believe
    • 3. Instead, there are some consumers who will pick up on information and pass it on to their social network thus acting as powerful brand advocates, or influencers
    • 4. Word of Mouth Marketing is an attempt to harness this people power and make it work for advertisers and their brands, but how can media be part of this?
  • Summary of Findings
    • The need for Word of Mouth has risen as the belief in traditional forms of advertising have declined
    • 5. Word of Mouth is all about TRUST
    -When people feel vulnerable
    -When they’re going through changes in lifestage
    -When they need advice about something from an expert – but someone they know, not an impersonal advisor
    • Certain consumers are more likely to be conveyors of WOM
    -These people are known as Influencers – about 10% of the population
    -However Influencers are generally different for each category
  • 6. Summary of Findings
    The Internet, particularly the rise of User Generated Content, has played a fundamental role in the move towards WOM marketing
    However, magazines can also play a part in generating
    -They are seen as close and trusted friends
    -Editorial viewpoints are often taken as the readers own
    -Magazine readers are also more likely to be among the 10% of Influentials who generate WOM
  • 7. Contents
    • The Spread of “Word Of Mouth” (WOM)
    - And the rise of the Internet
    • Why is WOM so important?
    • 8. Influencing the Influencers
    • 9. WOM Marketing
    - How Media can be used to propagate WOM
  • 10. In the Beginning
    About 350,000 years ago, Hominid hearing apparatus was tuned to hear sounds made in speech for the first time
    Today, Word of Mouth is instrumental in 83% of
    purchase decisions
  • 11. Why Do We Talk?
    • Before we could write, the only way for humans to communicate was via speech
    • 12. So for hundreds of thousands of years, talking was our most important social connector
    - Information – danger, food, water
    - Social – history, love, kinship, enmity
    • Word of Mouth today fulfils the same role
    - Provides people with information
    - Reinforces social bonds
    - Builds on oral tradition
  • 13. How Does Word of Mouth Work?
    Spontaneous – sharing an experience
    “I went to an amazing restaurant on Friday night”
    Prompted – speaking in response to a need
    “If you’re looking for a new buggy, I’d recommend the Maclaren”
    Secondary – relating experience of another person
    “I’ve never tried it, but my mum has and she
    didn’t think it was that great”
  • 14. What Propagates WOM?
  • Different Types of WOM
    • Word of Mouth is deemed to be all communication which takes place about brands on a Consumer to Consumer basis
    -This can be split into two main types: Buzz and Advocacy
    • BUZZ
    - Talking about something new, cool, different, provocative
    - Something to be passed on to gain social currency
    - This can have a positive effect on a brand but not necessarily lead to sales
    - Focused on the brand and its merits
    (positive or negative)
    This is more likely to have a greater
    short-term sales effect
  • 19. Why Is WOM Most Important?
    Transition = Point of Vulnerability = Need for new information
  • 20. Why Has The Role of WOM grown?
    • As life becomes more complex and choice proliferates, people are relying more than ever before on recommendations
    - WOM now 1.5 times more important now than it was 25 years ago
    • 89% of women believe recommendations by friends and family
    • 21. 70% of women learn about new products or services from another woman
    Recommendations Make People Feel Confident And Keep Them Connected
  • 22. WOM Growth
    Where do you get most of your information
    about new products and services?
  • 23. Internet 2.0
    • The internet has caused a seismic shift in people’s ability to find information and communication with each other
    • 24. The next phase of web development – “Internet 2.0” sees the consumer taking control:
    -Community sites like MySpace and Face Book
    -User generated content as on You Tube or Flickr
    -Chat Rooms and Forums for consumers to comment on anything and everything!
    • Suddenly anyone can get their voice heard and air their opinions to millions of others
    -Advertisers want to harness this power
    -(And try and steer it to their benefit)
  • 25. Why Is WOM So Important?
    • Trust for big businesses is at an all-time low
    - And this includes their advertising
    • Consumers are more ad-savvy than ever – they are no longer passively waiting to be told which products to buy
    - Brand choice is huge & often overwhelming
    - Media fragmentation and consumer control means they are also more easily able to edit out advertising they’re not interested in
    Advertisers must find new ways of connecting and engaging with their consumers, and new channels through which to speak to them
  • 26. The Road to WOM
    Need for Breakthrough
    Grassroots Vehicle
    Mass Marketing Less Effective
    Media Environment
    Fragmentation & Cost
    Low Credibility of
    Conventional Advertising
    Rise of Internet
    Differentiation Low
    Established Brands / Business
    Models Under Threat
    Need for Remarkable Brands /
    Contagious Ideas
    Financial Pressure
    Number of Choices / Brands
    Distribution Concentration
    Low Credibility of
    Conventional Advertising
    Pace of Technology Faster
    Need for Influential
    Tuning Out
    Want Authenticity, intimacy
    Remarkability, edge
    Less Time, Attention, Trust
    Heterogeneous Consumer
    Rise of Word of Mouth
  • 27. The Decline of Trust
    • Growth in WOM occurred during mid-90’s
    • 28. This coincided with a period when consumers lost trust in large organisations:
    - Government
    - Businesses
    - Brands
    • Instead they turned to family and friends as trusted sources
    - Offer advice based on personal experience
    - NOT marketing spin or hype
  • 29. Why Do People Trust?
  • 30. A Person ‘Like Me’
  • 31. Influencing the Influencers
  • 32. ‘Alphas’and‘Sneezers’: Influencing the Influencers
    Traditional Advertising Model
    Consumers are “Passive Receivers”
    who are served blanket advertising
  • 33. ‘Alphas’and‘Sneezers’: Influencing the Influencers
    New Advertising Model
    Reach Opinion Leaders and they will
    pass the communication on to Opinion Followers
  • 34. ‘Law of the Few’
    • Consumers aren’t a collection of isolated individuals but a community of interconnected people
    • 35. Brand perceptions shaped by many influences
    - Advertising
    - Word of Mouth
    - User imagery (aspirational people using product)
    - Observed behaviour (watching how others do things)
    • Paid for communications can’t reach everyone
    - Instead influence the influencers and their position in the hierarchy will help to position the brand in others’ eyes
  • 36. Who Are the Influencers?
    • Who they’re NOT:
    - Most affluent
    - Best educated
    - Elected officials
    - CEO’s of major corporations
    • They ARE:
    - The 10% most actively engaged in social and cultural dynamics of their community
    • They are twice as likely than average to be asked their opinion on products and services
    • 37. They are also different for every category
    - Only approx 5% of people are “Pure” influencers in every
    walk of life. The rest are influencers in 1, or maybe
    more categories
  • 38. Word of Mouth Marketing
    Today’s marketing world is broken. We must accept there is no “mass” in mass media. We must always remember the consumer is Boss… Consumers today are less responsive to traditional advertising… they are embracing new technologies… and making purchase decisions in environments where marketers have less direct influence.
  • 39. Emergence of WOM As a Marketing Tool
    Emerging marketing techniques being used currently, or intended to use in next 6 months
    Source: MPA
  • 40. WOM Marketing
    How to make it work:
    Make it mutually beneficial
    Give them a reason to talk
    Empower consumers to share experiences
  • 41. Influence
    Listen to
    Get a
    Implementation of WOM
  • 42. How To Engage Consumers With WOM
    • Keep it real and/or simple
    • 43. Be relevant and memorable
    • 44. Be personal
    • 45. Build a customer journey
    • 46. Provide support / expert advice
    • 47. Gain trust
    • 48. Provide brand experience
    • 49. Build connectivity
    • 50. Above all, show respect, and listen to feedback
  • The Honesty ROI: Honesty and Relationship, Opinion and Identity
    • Honesty of Relationship
    - Be open about any relationship between marketer and endorser
    • Honesty of Opinion
    - Never tell consumers what to say
    • Honesty of Identity
    - Disclose identity of origination of any communication
    • Research shows that being open about involvement
    in WOM marketing leads to better results than
  • 51. Targeting the Influentials
  • 52. Targeting Influentials
    WOM in individual categories varies amongst different consumer groups.
    The PPA’s Targeting Influentials study identifies who the Influentials responsible for generating it WOM are and how different product categories .
    Then having identified the Influentials, what do their media consumption habits suggest might be an effective way of engaging with them?
  • 53. Identifying the Influentials
    Thinking about the following product area, where do you get MOST information about products and services?
    % Agreeing
    Clothes Category
    Source: BMRB Omnibus Survey/PPA Targeting Influentials 2008
  • 54. Mavens
    Identifying the Influentials
    Do you talk to lots of people about a category? (Connectors)
    Do you know a lot about the category? (Mavens)
    Is your opinion likely to convince others? (Sellers)
    Key Influentials are Connectors, Mavens and Sellers
    Clothes Category
    Source: BMRB Omnibus Survey/PPA Targeting Influentials 2008
  • 55. Reaching Influentials
    How likely are each of the following types of advertising to
    influence whether you would talk with others about Clothes?
    Source: BMRB Omnibus Survey/PPA Targeting Influentials 2008
  • 56. Reaching Influentials
    Which media do the Influentials in the Clothescategory use?
    Source : TGI /WOM : Key Influentials and heavy users of medium
  • 57. How Can Media Get People Talking
  • 58. A Reminder
    • Who do people turn to for WOM recommendations?
    - Family
    - Friends
    - Colleague
    - Trusted Independent
    - Aspirational Endorser
    • Media has the potential to act as either of these
  • World
    City, county
    How Readers Relate To Magazines
    Magazines are in the centre of “My World”, the same place
    as close family and friends – the place where trust is highest
  • 59. Return on Involvement
    • Readers are so involved with the opinions of the magazine that they are often adopted as their own
    • 60. Magazines contribute more than any other marketing channel to a person’s own recommendations to friends and family
    • 61. This effect is strongest amongst the 10% of the population who are Influentials
    • 62. So not only do magazines influence their readers purchase decisions, they also have an indirect impact on the readers circle of influence
  • Return on Involvement
    Magazines have more influence than any other marketing channel
    % Saying Which Marketing Elements Contributed to Recommendations of Theirs in Past Year
    Source: Roper Reports
  • 63. Just How Influential Are Magazine Readers
    • Almost half of Influentials in the USA (49%) are heavy magazine readers
    • 64. But only 1/3rd (32%) are heavy TV viewers
    • 65. So, an Influential is 22% more likely to be a heavy magazine reader, (index 122) and 21% less likely to be a heavy TV viewers (index 79)
    Source: Roper Reports
  • 66. It’s Good To Talk
    The heaviest 20% of magazine readers are the most likely group
    to talk to others about Toiletries, H/hold Products, Clothes, Pharmaceuticals
    Base: All adults
    Source: TGI
  • 67. Experts
    The heaviest 20% of magazine readers know a large amount about many of different topics
    Base: All adults
    Source: TGI
  • 68. Talk to Many Different People
    The heaviest 20% of magazine readers talk to many different people about certain topics
    Base: All adults
    Source: TGI
  • 69. Likely to Convince Others
    The heaviest 20% of magazine readers believe they are likely to convince others about their opinions on a range of different categories
    Base: All adults
    Source: TGI
  • 70. But What About the Internet?
    • Recent Millward Brown research suggests that though Online WOM is more visible, offline is more powerful:
    - Online WOM works best for certain products or services e.g. car insurance, digital cameras
    - However, consumers are starting to seek expert recommendations using online sources
    - Furthermore, offline is more often used to spread negative WOM
    • Personal contacts are far more important for seeking advice - they are a trusted source who understands what is needed
    - Online WOM is diminished by lack of knowledge about who’s giving the advice, and by lack of knowledge about who wants the advice
  • 71. Summary of Findings
    • The need for Word of Mouth has risen as the belief in traditional forms of advertising have declined
    • 72. Word of Mouth is all about TRUST
    -When people feel vulnerable
    -When they’re going through changes in lifestage
    -When they need advice about something from an expert – but someone they know, not an impersonal advisor
    • Certain consumers are more likely to be conveyors of WOM
    -These people are known as Influencers – about 10% of the population
    -However Influencers are generally different for each category