1. Individual Presentation
K.Nirushan - MS 1087

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. 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. Example : Benz

5. Example : Film Review

6. Word of Mouth
Positive Negative
Example
WOM

7. Word of Mouth
Positive Negative
Example
WOM

8. Importance of Word of Mouth

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. 4
3
2
1
Negative Word of Mouth

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. 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. 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. 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. 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. 5T’s of Word of Mouth
Marketing

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. 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. 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. 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. 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. Real Examples For impact of Word of Mouth
Coca-Cola

23. Real Examples For impact of Word of Mouth
Anchor Fontera

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. Video Example Link
I:WOMMA defines WOMM

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