This document discusses word-of-mouth marketing (WOMM) and its advantages over traditional marketing. WOMM involves positive or negative person-to-person communication about products and services. It is a highly effective marketing method because people trust recommendations from other consumers more than commercial messaging. The document then explores electronic word-of-mouth on the internet and defines opinion leadership, before examining case studies of successful WOMM campaigns and providing statistics on the impact and prevalence of WOMM.

1. Effect on Word of Mouth and e Word
of Mouth on CB
Rajeev K
MBA FT
Roll no. 35
SMS
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2. Word-of-mouth (WOM)
• Person-to-person communication between a
receiver and a source whom the receiver
perceives as non-commercial, regarding a
product, service or brand
• Highly effective method of communicating
information
• Particularly effective in communicating
negative information
– Dissatisfied customer will tell 9 others
– 13% of unhappy customers will tell >20 others
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3. • WOM can be
– In person
– Phone
– Mail
– Internet
• WOM can be
– Verbal
– Visual
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4. E – Word of mouth
• The most well-defined and extensive definition of
electronic word-of-mouth (eWOM) to date is by
Hennig-Thurau, Qwinner, Walsh and Gremler
(2004), who define the complex term as follows:
"Any positive or negative statement made by
potential, actual, or former customers about a
product or company, which is made available to a
multitude of people and institutions via the
Internet."
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5. Opinion leadership
• The process by which one person--the opinion
leader--informally influences the actions or
attitudes of others who may be opinion
seekers or opinion recipients
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6. • Who are opinion leaders?
• Can they be recognized by any distinctive
characteristics?
• Can they be reached through specific media?
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7. • Opinion leadership tends to be category
specific
• Individual who is an opinion leader in one
product category may be an opinion receiver
in another product category
• Profile of opinion leaders is likely to be
influenced by the specific product category
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8. ”
“
Giving people a reason to talk about your stuff, and
making it easier for that conversation to take place.
-Andy Sernovitz
Art and science of building active, mutually beneficial
customer-to-customer and customer-to-marketer
communication.
What Is Word Of Mouth Marketing?
The trick of getting your customers to talk
about you. One of the most inexpensive and
effective ways of marketing.
C2C communication happening online/offline
by phone conversations, gossips, blogs, social
media tools, emails, etc.
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9. Word Of Mouth Communication Pattern
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10. Traditional Marketing VS WOMM
Word Of Mouth Marketing Traditional Marketing
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11. U.S WOMM Statistics
Few more facts..
•Two thirds of the U.S Economy driven by WOM
•Law of FEW: 10% influence purchasing behavior of other
90%
•85% prefer buying on WOM recommendation
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12. WOM is MORE EFFECTIVE !!!
1955 Word-of-Mouth (WOM) is 7x more effective than
newspaper advertising, 5x stronger than a personal sales
pitch and 2x as effective as radio advertising
1967 36% of surveyed consumers reported learning of an
innovation through word-of-mouth, while 48% reported
being influenced by WOM when making a purchase
decision
2001 Diffusion studies found that WOM is 10x more effective
than media advertising
2006 61% trust other people like themselves (as media) -
Edelman Trust Barometer, 2006
Data taken from FUTURELAB
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13. ADVANTAGES
• The Consumer is In Control
•Comparatively Economical Method of Marketing.
• Word Of Mouth is more Credible.
•Strengthens Brand Image
• Ripple Effect On Other Advertising Efforts
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14. DISADVANTAGEs
• Marketers fear that message may not be delivered as
they desire.
• Untrackable Results
• Informal way of communication
• Negative Customer Feedback
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16. 1- The consumer doesn’t believe anymore
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17. 2- Media Saturation
Buzz Marketing
More than 4000 Ads impacts per day
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18. 3-The loss of Mass Media efficiency
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19. 4- The Pull Strategy
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20. 5-Social brokers
Trust, referrals play an important role in insurance policy
sales, Investments made, Real Estate.
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21. 6-Stimulates Action
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22. 7-MOST Trusted
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23. MORTEIN CAMPAIGN
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24. Mortein Jala Re Jala Re
Louie Dahan campaign.
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25. “Duniya ka sabse khatarnaak janwar, Louie”.
Louieshasur Kaand
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26. KURKURE EXPRESS
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27. Nokia N8
Nokia Urban Spree and and N8
Mystery Tour
•Explorers with Nokia N8, click pictures and
upload on twitter with the hashtag
#N8UrbanSpree
•Build anticipation and tempt active picture takers
•Gave an opportunity to Heavy Flickr users and
travel enthusiasts to explore the N8 for mobile
photography and videos.
•Generated positive word of mouth and 8000
referrals.
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28. Case Study: Obama Campaign
• Repeatable messages
• Multiple occasions
• 332 electoral votes
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29. The WOMM Umbrella Term
8 main types of WOMM:
 Buzz marketing
 Cause Marketing
 Conversation
Marketing
 Community Marketing
 Evangelist Marketing
 Grassroot Marketing
 Influencer Marketing
 Viral Marketing
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30. VIRAL MARKETING
•Creating entertaining or
informative messages that are
designed to be passed along in
an exponential fashion, often
electronically or by email.
• Kolaveri Di
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31. How Does WOMM Work?
WOMM is based on the principle that uses influencers to spread a
message- online and offline. Activating online word-of-mouth is
not free any more than activating word-of-mouth in the offline
media. Key to WOMM is how many important influencers the
company reaches not how many people/customers.
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32. CREDIBILITY
SKEPTICISM
TRUST!
Effective
WOMM
Key Ingredients in WOMM
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33. Reference
• Consumer Behavior – Leon G. Schiffman,
Lesile Lazar Kanuk
• http://wikipedia.org
• http://electronic-word-of-mouth.blogspot.in/
• www.iiste.org
• International Journal of Computer
Applications
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