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The Recommender Revolution - A book on Word-of-mouth marketing by Jan van den Bergh
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The Recommender Revolution - A book on Word-of-mouth marketing by Jan van den Bergh

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Take a look at this presention of Jan van den Bergh, author of "The Recommender Revolution". He shows you how to leverage word-of-mouth marketing and what the impact can be for mayor brands.

Take a look at this presention of Jan van den Bergh, author of "The Recommender Revolution". He shows you how to leverage word-of-mouth marketing and what the impact can be for mayor brands.


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  • 1. This is how “marketing and advertising”work these days. Through Word ofMouth.
  • 2. That’s why we should all becomerecommenders of “The RecommenderRevolution.”
  • 3. And that’s the reason why I amhere
  • 4. Recommenders influence 20-50% of allpurchasing decisions.
  • 5. Positive reviews influence 90% ofconsumers’ buying decisions.
  • 6. Recommenders recommend more andmore.
  • 7. Recommendersrecommend,repurchase and…forgive.
  • 8. Recommenders do it mainly online
  • 9. While retailers were initially terrified of what bad reviews could do to their bottom line,theyve since witnessed the power of a rave review and embraced the practice. Despite initialfears, says Craig Berman, Amazons vice president of global communications, productreviews have only served to increase their customer loyalty. "It helped us build customertrust," he says. "It put us in a special place with customers in that they could come to the siteand get honest and comprehensive — and over time, very substantial — firsthand knowledgefrom other customers." Berman says the company has some reviewers who take onlineshopping to heart. "There are some customers who are extraordinarily proud of being one ofour top reviewers — they take their job really seriously." Some of Amazons customers arevoracious readers who consider it their duty to review one or two books every single week.While the company may have come a long way from its roots, the companys originalspecialty has not been forgotten.Read more: http://www.time.com/time/business/article/0,8599,2004089,00.html#ixzz2TvUHmQBFJuly 16, 1995““
  • 10. Reviews do the job!
  • 11. Recommenders buy and sellsimultaneously
  • 12. In China recommenders influencemore than wherever else in the world.
  • 13. In which field do recommenders count?
  • 14. Why do they recommend?
  • 15. Why has advertising lost its influencingpower?“Don’t trust it. Nothing but lies. I’ll ask my friends or colleagues”“I don’t care. Will search when I needsomething.”“Haven’t even seen it.”“Nice ad, but so what?Not relevant for me.”“So stupid”.“Too many ads.I avoid them”“Not for me. I just bought my stuff”
  • 16. 1980-1990:Advertising +10% = +2.2% marketshare2008:Advertising +20% = +2.2% marketshare“ …. the authors conduct a meta-analysis of 751 short-term and 402 long-term direct-to-consumer brand advertising elasticities estimated in 56studies published between 1960 and 2008. the study finds several newempirical generalizations about advertising elasticity. the most importantare as follows: the average short-term advertising elasticity is .12, whichis substantially lower than the prior meta-analytic mean of .22; there hasbeen a decline in the advertising elasticity over time.”Gerard Tellis, PhD Michigan, is Professor of Marketing, Management, and Organization, Neely Chair of American Enterprise, and Director ofthe Center for Global Innovation, at the USC Marshall School of Business. He is Distinguished Visitor of Marketing Research, ErasmusUniversity, Rotterdam and has been Visiting Chair of Marketing, Strategy, and Innovation at the Judge Business School, Cambridge University,UK. Tellis specializes in the areas of innovation, advertising, global strategy, market entry, new product growth, promotion, and pricing.Prof. Dr. Gerard Tellis
  • 17. US-market 1997 >< 2007
  • 18. Up and up it goes.(Except for a dip in Europe)
  • 19. Why do these costs continue to grow?+7% +3,8% +3,8% +4,6% +5,2% YOY-growth20102011201220132014Amazon spent$500 million $557 billion in 2012
  • 20. It continues to grow because advertising hasbeen an important pillar in profitmaximisation.* Produce @lower cost.* Sell in more markets@lower cost @highersalesprice/-volume &@higher margin.
  • 21. The difference between a “recommendedbeer” and an “advertising beer”.http://www.ratebeer.com/
  • 22. The difference between the fortuneearned with each of the 2 beers ishuge.€ 270 million$11 billion
  • 23. Correlation between defence(war-) industry,advertising spending and inequality.0.474 or 0.61?0.469
  • 24. Greece. The end of advertising.Winter 2013-De MorgenThanks for listening. Mail questions to jevedebe@gmail.com