Word of Mouth (WOM)

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Word of Mouth (WOM)

  1. 1. Individual Presentation K.Nirushan - MS 1087
  2. 2. 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
  3. 3. 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
  4. 4. Example : Benz
  5. 5. Example : Film Review
  6. 6. Word of Mouth Positive Negative Example WOM
  7. 7. Word of Mouth Positive Negative Example WOM
  8. 8. Importance of Word of Mouth
  9. 9. 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.
  10. 10. 4 3 2 1 Negative Word of Mouth
  11. 11. 4 3 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
  12. 12. 4 3 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. 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
  13. 13. 4 3 2 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
  14. 14. 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
  15. 15. 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 ”
  16. 16. 5T’s of Word of Mouth Marketing
  17. 17. 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
  18. 18. 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
  19. 19. 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
  20. 20. 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
  21. 21. 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
  22. 22. Real Examples For impact of Word of Mouth Coca-Cola
  23. 23. Real Examples For impact of Word of Mouth Anchor Fontera
  24. 24. “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
  25. 25. Video Example Link I:WOMMA defines WOMM
  26. 26. 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

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