Word-of-Mouth Marketing Strategies

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Definition: product information transmitted by individual consumers on a informal basis.  ^[2]

"Because we get the word from people we know, WOM tends to be more reliable and trustworthy than messages from more formal marketing channels," ^[3]

More powerful: It influences 2/3 of all consumer-goods sales 

The more positive information consumers get about a product from peers the more likely they will be to adopt the product. 

"Buzz"

Mountain Dew's caffeine element was made famous by word-of-mouth

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Talk about products for several reasons:

1. Have a high interest in something so conversations tend to turn that way.

2. May have some knowledge about a product so you let others know about it through conversation. 

3. Might initiate a conversation with someone you care about because we want what's best for them. ^[5]

Negatives:

Can make or break a product.

Consumers weigh negative WOM more than they do positive 

90% of unhappy customers will not do business with a company again, and each of these people is likely to share the issue with at least 9 other people! Even worse, 13% of these people will tell at least 30 people if not more! ^[6]

Dunkin' Donuts:

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3 Basic Themes of Negativity 

1. Injustice: Attempts when contacting the company 

2. Identity: Posters characterize the violator (usually top management) as evil, instead of incompetent.

3. Agency: Create websites/groups that share the same feelings and try to change the status quo of the company.  ^[8]

Information changes like a game of telephone from when we were little. This is called serial reproduction. Often times the most recent message is far from what the original message was. ^[9]

Strategies: 

Old Strategy: Marketers would have a toy unveiled around holiday time, as well as a television ad that saturated the commercials during cartoons for kids. Then the marketers would just watch as parents scrambled to the stores to get the latest and greatest. 

Now: Internet has changed this whole concept. One person can buy a product, then post something about it. A few weeks later their friends are raving about it, and posting as well. Next thing you know its all over the internet. ^[10]

Social Networking: 

Defined: A growing practice whereby Web sites let members post information about themselves and make contact with others who share similar interests and opinions or who want to make business contacts 

1 in 3 consumers consider themselves media "broadcasters" instead of just passively taking everything in, they are now actively contributing to online conversations through all sorts of types. ^[11]

Hallmark's RED Campaign

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R.E.M. Acceleration Album released to iLike before the rest of the consumers. 

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DiGiorno put their new flatbread pizza on Twitter offering a free pizza to their followers who came in. 

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Crowd Power:

Marketing strategy by committee

Wisdom of crowds: a perspective that argues under the right circumstances, groups are smarter tan the smartest people in them; implies that large numbers of consumers can predict successful products 

Shopmob: strangers organize online around a specific product or service and arrange to meet at a certain date and time in a real-world store to negotiate a group discount. ^[18]

Guerrilla Marketing:

Defined: promotional strategies that use unconventional means and venues to push products. 

Often engage in some kind of street theater or other activity to convince others to use the product or service.

It's a great way to snag the younger consumers who are harder to reach with traditional advertising. ^[19]

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