conversation_and_word_of_mouth_marketing-louise_rijk.ppt

Integrating Word of Mouth into the Advertising Mix

November 2008

Louise RijkVice-President Marketing and Sales

Advanced Media Productions, Inc.

www.AdvMediaProductions.com

Overview

Word of Mouth Marketing

• What is Word of Mouth (WOM)?

• What is Word of Mouth Marketing (WOMM)?

• The Rising Influence of Word of Mouth

• The Return of Conversation in the Social Order

• Big Brands and Word of Mouth

• WOM and Advertising are Working Together

• Marketing/Advertising-driven Word of Mouth

• Integrating WOMM with Advertising



What is Word of Mouth (WOM)?

Word of Mouth is the act of consumers providing honestinformation to other consumers

Word of Mouth is driven by “influencers” with large socialnetworks who are inspired to talk positively about a brand, product or service

Organic WOM – Occurs naturally when people becomeadvocates because they are happy with a product or service

Amplified WOM – When marketers launch campaigns toaccelerate organic WOM (WOMM)



What is Word of Mouth Marketing (WOMM)?- Word of Mouth Marketing

- WOMM happens when people are given a reason to talk about a product(s) or service(s) – online and offline

- WOMM is based on driven customer satisfaction, two-way dialog and transparent communications

- Online Word of Mouth Marketing

- Online WOMM includes online consumer activities using Internet tools that allow the exchange of ideas about products, services and brands through social networks

- Online WOMM does not dissipate after a conversation as in the offline world

- Online WOMM’s share is relatively small, but growing- Approximately 20 percent of all WOM is currently happening online



The Rising Influence of Word of Mouth

Fragmentation of Media Consumption, More Consumer Control over Media, Declining Consumer Trust, New Internet Technologies



© 2008 Advanced Media Productions, Inc.www.AdvMediaProductions.com

The Return of Conversation in the Social Order



Big Brands and Word of Mouth

http://www.ebay.com/

http://twitter.com/



WOM and Advertising are Working Together



Marketing/Advertising-driven Word of Mouth

Source: Keller Fay TalkTrack ™

Email Marketing

2%

Promotion 6%

Point of Sale 6%

Web Sites 4%

Other 1%Direct Mail

2%

No

Media/ Marketing

Referenced

50%

Advertising 18%

Editorial/ Programs

11%


Source: Keller Fay TalkTrack ™www.AdvMediaProductions.com

Organic WOM is Most EffectivePeople on the “receiving side” of WOM are more impressed by advice give by a

true user of a brand



People are More Inclined to Recommend After Exposure to Marketing/Advertising

Source: Keller Fay TalkTrack ™



Integrated WOMM and Advertising Campaign




Thank You!

http://www.advmediaproductions.com/

conversation_and_word_of_mouth_marketing-louise_rijk.ppt

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