What is word of mouth marketing PDF

Preview

Summary

it is the first assignment in managing organisations and people...

Description

What is word of mouth marketing? Word of mouth marketing also called word of mouth advertising, is the social media era’s version of simple word of mouth.  Traditionally, word of mouth marketing was spread from one person to another based on recommendation.  Modern word of mouth marketing, describes both targeted efforts and naturally occurring instances where users share their satisfaction with a brand In today’s hyper-connected world, a single recommendation can have far greater impactleading to word-of-mouth marketing or word of mouth advertising strategies to capitalise on the opportunity. Many best practices and marketing tactics encourage natural word of mouth, but campaigns particularly on social media, can have explicit aim of promoting an online business social exposure. According to Nielsen, 92% of people trust recommendations from friends and family over any other type advertising. Even academic research into word-of-mouth marketing has proven its effectiveness in conversion. In the international journal of market research, M. Nick Hajili wrote; ‘Trust encouraged by social media, significantly affects intention to buy. Therefore, trust has a significant role in ecommerce by directly influencing intention to buy and indirectly influencing perceived usefulness’. organic word of mouth vs. amplified word of mouth word of mouth marketing happens in two ways: organically and through the use of marketing and advertising. The two have inherent overlaps, and over a good word of mouth marketing strategy will cause increased organic word of mouth. Vice versa, if you already have a decent amount of organic word of mouth, your word-of-mouth marketing campaigns will be much more successful. Organic word of mouth, organic word of mouth occurs naturally when people become advocates because they are happy with a product and have a natural desire to share their support and enthusiasm. Amplified word of mouth, amplified word of mouth occurs when marketers launch campaigns designed to encourage or accelerate word of mouth in existing or new communities. Word of mouth marketing statistics Nielsen report, that 92% of consumers believe suggestions from friends and family more than advertising. Beyond friends and family, 88% of people trust online reviews written by other consumers as much as they trust recommendations from personal contacts. 74% of consumers identify word of mouth as a key influencer in their purchasing decisions.

But only 33% of businesses are actively seeking out and collecting reviews. Despite that fact that a little can do a lot. When specific case studies were analysed, researchers found a 10% increase in word of mouth translated into sales lift between 0.2 -1.5%. BUT THERE IS MUCH MORE TO WORD-OF-MOUTH ADVERTISING AND MARKETING THAN JUST DO A GOOD JOB AND HOPE FOR A REFERRAL. Why care about word-of-mouth marketing? Tactics such as setting up a cool social media ad or experimenting with AI in ecommerce may sound more exciting. A strong word of mouth strategy at the heart of your business can lay the foundation on which to build everything else from. The advantages of word-of-mouth marketing Grows sales without the ad spend, many brands from The Hustle to Bangs Shoes and more use word of mouth marketing instead advertising spend to increase sales and fanbase. Build a community not a commodity, word of mouth marketing works to build an engaged fan base rather than a buy and bold customer. Higher engaged customers buy more often and recommend their friends more often, extended your return on time spent on the strategy and generating a high customer lifetime loyalty. More funding, more freedom, brands with high customer lifetime loyalty and therefore repeat purchases receive more angel and venture funding. Why? Because CAC to LTV, or customer acquisition to cost to lifetime value, is considering one of the most important aspects of a healthy business model in the early days of a company’s lifecycle. In fact, there are three crucial factors a quality word of mouth marketing strategy can affect: 1- Brand loyalty According to the national law review, it can cost five times more to acquire a new customer than keep a current one. And Bain & Co estimate that a 5% increase in customer retention can boost a company’s profitability by 75%. And think about this, a positive word of mouth advertising and marketing strategy keeps customers coming back. And referring to other customers. Who also keep coming back and referring more customers? All of a sudden you have got a machine that’s pumping out new customers who are all loyal to your brand 2- Brand Trust HubSpot show that 75% of people do not believe adverts, yet 90% trust suggestions from family and friends and 70% trust consumers reviews. In other words, people trust friends, (and even strangers) more than they do ads. Word of mouth marketing means your brand is being recommended in the most trustworthy context possible. And first-time browsers are much more likely to take that crucial extra step of handing over their payment details. 3- Creating a buzz It’s great to have ad budgets and perfect sales funnels. But the only way to create a genuine buzz about your brand is to have impartial people shouting about you in the media and on social networks. And a good word of mouth marketing strategy severely increases the likelihood of this happening. Impress the right person and you might even end up getting featured in something like the New York times. In fact, this is exact strategy flash tattoos

used when they nabbed a promotion and collaboration with Beyonce. The brand was able to earn the star’s interest at festivals and through natural word of mouth promotion on Instagram of their products. Next thing you know, Beyonce is knocking down their door to get a custom collaboration. The collaboration made national headline, including: Buzzfeed, Time, Mashable, Marie Claire, Entrepreneur. For flash tattoos sales increased 1100% following the collaboration. Create word of mouth beats ad unit economics Word of mouth is becoming increasingly and a must have component of any ambitious brand’s marketing strategy. Paid acquisition through channels such as Facebook, Instagram, and google have become significantly more competitive, which is putting increase pressure on brands’ gross margin. Brands thus have to focus on alternative marketing tactics, which have more cost-efficient unit economics and simply requires less of a monetary investment. One of the most recent examples is Patagonia’s ‘the president stole your land’ campaign. Their tweet about this got more than 60000 retweets. The overall campaign, which Patagonia targeted at their own customers, generated worldwide publicity and contributed greatly to their marketing efforts. DON’T LOOK UP Don’t look up might be the funniest movie of 2021. It’s the most depressing too, and that odd combination makes for a one-of-a-kind experience. Writer-director gives you over two hours of laughs while convincing you that the world is coming to an end. The movie is a satire that targets anti-science, anti-intellectual and anti-logic Americans who are gullible in the extreme and brainwashed by social media. McKay’s humour is so pointed and dead-on here that its bracing. You almost feel like this is a movie that might change things. People might see this and realise… but no. McKay knows, he is lampooning a segment of the public that is beyond the reach of satire. The story is remarkably prescient, in that it plays like a parable about pandemic, even though the concept was announced in the media well ahead of covid-19 and was originally scheduled to go before the cameras in April 2020. Jennifer Lawyrence and Leonardo DiCaprio play a pair of astronomers who discover that a huge comet is going to crash into the earth in six months, wiping out all forms of life on the planet. They assume that that scientific certainty will rouse the government and the people into emergency action and they were wrong. If only Morgan Freeman were president. He knew what to do in deep impact. But no, this time its Meryl Streep in the white house, and she is incompetent demagogue. Jonah Hill plays her son, who is also her chief of staff, a case of nepotism that a half-dozen years ago would have been considered inconceivable. Essentially, McKay presents a Cassandra-like situation, in which the two scientists know exactly what is going to happen, but they cannot get enough people in power to do something about it. In the hands of another filmmaker, that might not be enough to fill a 145 mins movie. But McKay devises lots of turns and surprises and introduces various characters, such as billionaire with his own private sector solution to the crisis.

McKay’s screenplay ideally combines rigor with freedom and inspiration. He knows going in that he has criticisms to make of tv news, newspapers, social media, government and business. All very specific and accurate and yet don’t look up never feels on the nose or programmatic. His main characters, the ever-hopeful Randall and the realistic Kate, remain people, not concepts, and the movie stays playful with touches of absurd humour, as when Kate keeps speculating about general who swindled $20 from her. Often, McKay is most funny in presenting what is most horrible, for example, the morning tv show, hosted by a pair of lightweights who insist on keeping it upbeat, even when scientist tells them the world is going to end in six months. Such tv that the fate of the world depends not on the facts that DiCaprio’s astronomer presents, but on his ability to communicate through a camera. McKay captures the precise tone and cadence of modern-day stupidity, as when the president, riding a populist wave of science deniers, tells the crowd, they want you to be afraid. They want you to look up so they can look down on you. On the other side, there is a vapid pop star singing a nonsense power ballad telling people to look up. McKay even finds time to skewer the vanity of self-styled reasonable people, who think that finding a middle position between rationality and stark-raving lunacy represents moderation. Some people would much rather blow up than admit that they were wrong. That’s what McKay is saying, and when he wrote the screenplay two years ago, he probably thought he was exaggerating. Now, extreme though it may be, don’t look up looks like a close portrait of contemporary world....