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Encyclopedia > Word of mouth marketing

Word-of-mouth marketing is a term used in the marketing and advertising industry to describe activities that companies undertake to generate personal recommendations as well as referrals for brand names, products and services. It has been suggested that Product marketing be merged into this article or section. ... Advertising, generally speaking, is the promotion of goods, services, companies and ideas, usually performed by an identified sponsor. ...


Word-of-mouth promotion is highly valued by advertisers. It is believed that this form of communication has valuable source credibility. Research points to individuals being more inclined to believe word-of-mouth promotion than more formal forms of promotion methods because the reciever of word-of-mouth referrals may believe that the communicator is unlikely to have an ulterior motive (ie.: they are not receiving an incentives for their referrals.) Also people tend to believe people who they know. In order to promote and manage word-of-mouth communications, marketers use publicity techniques as well as viral marketing methods to achieve desired behavioral response. Promotion is one of the four aspects of marketing. ... To meet Wikipedias quality standards, this article or section may require cleanup. ... It has been suggested that this article or section be merged with Word of mouth marketing. ...


A very successful word-of-mouth promotion creates buzz. Buzz generates a highly intense and interactive form of word-of-mouth referral that occurs both online and offline. Successful word-of-mouth initiatives do not follow a strictly linear process with information flowing from one individual to another rather successful models leverage subgroup connectivity and relationships by pursuing a Reed's Law hub approach to message distribution. A marketer has successfully created buzz when the interactions are so intense that the information moves in a matrix pattern rather than a linear one. The result is everyone is talking about or purchase the product or service. Buzz may refer to: // General definitions Buzz, a feeling of mild intoxication Buzz, a low, vibrating sound. ... The word linear comes from the Latin word linearis, which means created by lines. ... Reeds law is the assertion of David P. Reed that the utility of large networks, particularly social networks, can scale exponentially with the size of the network. ...

Contents


Examples

  • Gmail - Google did no marketing, they spent no money. They created scarcity by giving out Gmail accounts only to a handful of "power users." Other users who aspired to be like these power users "lusted" for a Gmail account and this manifested itself in their bidding for Gmail invites on eBay. Demand was created by limited supply; the cachet of having a Gmail account caused the word of mouth, rather than any marketing activities by Google.
  • FreshDirect - FreshDirect did no marketing to cause the word of mouth. They did exceed expectations of consumers who used their service. These consumers in turn raved about FreshDirect to their friends voluntarily and even spent time convincing them to try it. Word of mouth resulted from FreshDirect so far exceeding expectations that their customers naturally wanted to share, brag, or talk about it.
  • Chain e-mail about certain product/service can be considered as word of mouth marketing.

Gmail is a free webmail and POP e-mail service provided by Google, known for its abundant storage and advanced interface. ... Google Inc. ... FreshDirect logo FreshDirect is an online grocer that delivers to residences, offices, and commuter rail stops in the New York City metropolitan area that offers next-day delivery to most of Manhattan and parts of Brooklyn and Queens. ... Chain e-mail is a term used to describe e-mails that encourage you to forward them on to someone else, the Internet versions of the chain letters. ...

Contrast with (non-examples)

  • Hotmail - Hotmail "piggybacked" on personal emails from one person to another to publicize their free email service. At a time when few people had email, the first and only free email service in the marketplace was appealing and novel -- hence their rapid adoption and spread. However, the same "piggybacking" technique currently employed by all free email providers (except gmail) no longer works. Furthermore, the Hotmail users did not voluntarily pass it on; they had no choice about Hotmail adding the "sign up" link at the end of their personal emails. Hence this is not a good example of "word of mouth."
  • Burger King's Subservient Chicken - Burger King's marketing program called Subservient Chicken did indeed generate a lot of word of mouth, but the word of mouth was about the marketing campaign instead of the product that was being marketed. Also, those marketing efforts which rely on being edgy or on some kind of stunt often fade quickly when the novelty or edge wears off. Finally, this type of marketing is not reproducible or sustainable since it won't be edgy the second time around.
  • McDonald's LincolnFry - a fake blog was discovered, and it generated lots of negative word of mouth and little participation.
  • American Express' billboard - a fake blog poster who told readers to check out a great Amex billboard was found to be an Ogilvy employee; this violation of trust resulted in massive negative word of mouth which spread around the world.

Hotmail is a free webmail e-mail service, which is accessible via a web browser. ... The Subservient Chicken is a viral marketing promotion by Burger King, originally as part of a promotion for the companys line of chicken sandwiches. ...

See also

It has been suggested that Product marketing be merged into this article or section. ... Marketing 2. ... Promotion is one of the four aspects of marketing. ... To meet Wikipedias quality standards, this article or section may require cleanup. ... It has been suggested that this article or section be merged with Word of mouth marketing. ... Word of mouth is the passing of information by verbal means, especially recommendations, but also general information, in an informal, person-to-person manner, rather than by mass media, advertising, organized publication, or traditional marketing. ... Business marketing is the practice of organizations, including commercial businesses, governments and institutions, facilitating the sale of their products or services to other companies or organizations that in turn resell them, use them as components in products or services they offer, or use them to support their operations. ... It has been suggested that Internet marketing be merged into this article or section. ... Reputation management involves recording a person or agents actions and the opinions of others about those actions. ...

References

  • Rajdeep Grewal, Thomas W. Cline, and Anthony Davies, 'Early-Entrant Advantage, Word-of-Mouth Communication, Brand Similarity, and the Consumer Decision-Making Process,' Journal of Consumer Psychology Vol. 13 No. 3, June 2003.
  • Walter J. Carl. "To Tell Or Not To Tell?: Assessing the Practical Value of Disclosure for Word-of-Mouth Marketing Agents and Their Conversational Partners". 2006. [1]
  • Walter J. Carl. "What's All the Buzz About? Everyday Communication and the Relational Basis of Word-of-Mouth and Buzz Marketing Practices." Management Communication Quarterly, 19(4), 601-634. 2006. [2]

External links


  Results from FactBites:
 
Word of mouth marketing - Wikipedia, the free encyclopedia (742 words)
Word-of-mouth marketing is a term used in the marketing and advertising industry to describe activities that companies undertake to generate personal recommendations as well as referrals for brand names, products and services.
A marketer has successfully created buzz when the interactions are so intense that the information moves in a matrix pattern rather than a linear one.
Word of mouth resulted from FreshDirect so far exceeding expectations that their customers naturally wanted to share, brag, or talk about it.
  More results at FactBites »


 

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