Word of Mouth
The act of consumers providing information to
other consumers.
Word of Mouth Marketing
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.
Positive WOM usually results for
a good brand experience and is
spread by ‘Brand Ambassadors’.
Negative messages are spread by
‘saboteurs’ or ‘detractors’.
What Is Word Of Mouth
Advertising?
Word of Mouth Advertising
Word of mouth is difficult to control and measure
Can spread quickly and be highly influential in purchase decisions
Personal recommendation from a friend or trusted acquaintance
What is Word of Mouth?
Who are we listening to?
When asked what communication
was used after purchase, 63% said
face-to-face.
78% say consumer
recommendations most credible
form of advertising.
Why Word of Mouth?
Shift In Power From Media To Consumer
26% of consumers trust advertising
68% trust peer driven WOM
67% of all decisions are driven by WOM
90% trust their spouse
65 % trust friends
27% trust manufactures
14% trust advertisers
57 % of people have stopped doing
business with companies that don’t
“respect” them.
Sell products
Industrial Revolution
Mass Buyers with
Physical Needs
Product
development
Product
specification
Functional
One-to-Many
Transaction
Satisfy and retain
the consumers
Information
Technology
Smarter Consumer
with Mind and Heart
Differentiation
Corporate and
Product Positioning
Functional and
Emotional
One-to-One
Relationship
Make the world
a better place
New Wave
Technology
Whole Human with
Mind, Heart and Spirit
Values
Corporate, Vision,
Values
Functional, Emotional,
and Spiritual
Many-to-Many
Collaboration
MARKETING 1.0 MARKETING 2.0 MARKETING 3.0
Product-centric
Marketing
Consumer-oriented
Marketing
Value-driven
Marketing
Objective
Enabling Forces
How companies see
the market
Key marketing
concept
Company marketing
guidelines
Value propositions
Interaction with
consumers
Rethinking Marketing
Customer 4.0
HUMAN
Marketing 4.0
SUPER HUMAN
Business 4.0
ROBOTIC
Customer 3.0
PERSONAL
Marketing 3.0
DIGITAL
Business 3.0
ELECTRONIC
Customer 2.0
ASPIRATIONAL
Marketing 2.0
INTEGRATED
Business 2.0
INNOVATIVE
Customer 1.0
DEMANDING
Marketing 1.0
COMMUNICATING
Business 1.0
MECHANICAL
The New Customer Path
1. Increased mobility and
connectivity
2. Limited time to consider and
evaluate brands
3. Attention customers experience
difficulty in focusing.
4. Multiple channels Online and Offline ( O2O)
5. Too much of everything: Product features, Brand
promises, and Sales talk.
6. Confused by too-good-to-be-true advertising
messages
7. Trustworthy sources of advice: their social circle of
friends and family.
Understanding How People Buy: From 4 A’s to 5 A’s
One of the earliest and widely the customer path is AIDA:
Attention ( Grap Attention )
Interest ( Initiate Intrest )
Desire ( Strength Desire )
Action ( Ultimately Drive & Action)
4A’s
1. Aware (Customer learn about a brand)
2. Attitude (Like or dislike the brand)
3. Act (decide whether to purchase it)
4. Act again (Decide whether the brand is
worth a repeat purchase )
Eg. TV advertising at the Aware phase,
Consumer like or dislke the brand the
Attitude phase, salesperson at the Act
phase, service center at the Act again phase
AWARE APPEAL ASK ACT ADVOCATE
AWARE ATTITUDE ACT ACT AGAINCustomer Path
Pre-Connectivity
Era
Customer Path in
Connectivity Era
In the pre-connectivity era, an individual
customer determines his/her own attitude
toward a brand; in the connectivity era, the
initial appeal of a brand is influenced by the
“community” surrounding the customer to
determine the final attitude
In the pre-connectivity era, loyalty is often
defined as retention and repurchase; in the
connectivity era, loyalty is ultimate’s defined
as willingness to advocate a brand.
With it comes to understanding brands,
customers now actively connect with one
another, building ask and advocate
relationship depending on the bias during the
conversation, the connection either
strengthens or weakens the ran appeal.
Shift #1
Shift #2
Shift #3
A1 A2 A3 A4
A1 A2 A3 A4 A5
Figure: The Shifting Customer Path in a Connected World
Mapping Customer Throughout Five A’s
AWARE APPEAL ASK ACT ADVOCATE
Customers passively
expose to long list of
brands from past
experiences,
marketing
communications
and/or advocacy of
others
Customers process
messages exposed to
and attracted to short
list of brands
Customers research for
more information from
friends & family, media
& brands
Customer interact
deeper through
purchase & usage
Retention,
re-purchase &
advocacy
• Learn about brand
from others
• Expose to
advertising
• Recall past
experience
• Attracted to brands
• Create consideration
set of brands
• Call friends for advice
• Search for product
review online
• Contact call center
• Compare prices
• Try out products
• Buy in store or online
• Use product for first
time
• Complain
• Get service
• Keep using brand
• Repurchase brand
• Recommend
brand to others
KeyCustomer
Impression
Possible
Customer
Touchpoints
Customer
Behaviour
I
Recommend
I’m
Busying
I’m
ConvincedI LikeI Know
A1 A2 A3 A4 A5
Figure: Mapping the Customer Path throughout the Five A’s
Driving from Awareness to Advocacy:
The O Zone (O3)
OWN OTHER OUTER
Figure: The O Zone of Driving Customers from Awareness to Advocacy
The O Zone of Driving Customers
from Awareness to Advocacy
The Outer influence comes from external
sources, through advertising and other
marketing communications.
Come from Other customer interfaces
such as sales force and customer service
staff.
Comes from Own a close circle of friends
and family as word of mouth.
Customers may be influenced by conversations they
heard on Social Networking Platforms
The Youth, Women, and Netizens (YWN) are the most
influential.
Others’ influence coming from them is often the major
driver of purchase.
Other hand, Own influence comes from within oneself.
Past experience and interaction with several brands,
personal judgment and evaluation of the brands, and
ultimately individual preference toward the chosen
brand(s).
The O Zone of Driving Customers
from Awareness to Advocacy
The O Zone across the Customer Path
1. Outer influence is more important than the rest, marketers can focus more
on marketing communications activities.
2. Others’ influence is the most important, marketers should rely on
community marketing activities.
3. Own influence is the most important, marketers should put more emphasis
on building the post-purchase customer experience.
Human-Centric Marketing for Brand Attraction
Customers are the most Powerful Players.
They build communities to strengthen their
positions.
In Marketing 3.0, Human-Centric Marketing
In Marketing 2.0, Customer-Centric Marketing
In Marketing 1.0, Product-Centric marketing
In Human-Centric Marketing, marketers approach
customers as whole human beings with Minds,
Hearts, and Spirits.
Understanding Humans Using
Digital Anthropology
Digital Anthropology focuses on
between Humanity and Digital
Technology.
Humans interact with digital
interfaces, technologies
How technologies are being used
by humans to interact with one
another.
To understand how people perceive
brands in their digital communities
and what attracts people to certain
brands.
More and more, brands are adopting human
qualities to attract customers in the human-
centric era.
The brands should be Physically attractive,
Intellectually compelling, Socially engaging, and
Emotionally appealing while at the same time
demonstrate strong personability and morality.
When Brands Become Humans
Magnetic Marketing
- Attracting customers: (Stand for something)
- Connecting with customers (Engage customers)
- Motivating customers (Stimulate action)
Marketing the Future
Do we need to market the future?
The way marketing used to be
Future-based Marketing:
1) Understand online customers’ profiles, behaviors, and
perceptions.
2) Inspire customers to think (different) about the future
3) Allow customer to be part of the future
4) Create a new lifestyle not a technology
"Nearly overnight, we went
from a world of face to face
commercial transactions to a
world that was simultaneously
more connected and further
apart."
Dev Patnaik, author of "Wired to Care"
Product-based marketing
Companies sold commodities / Customer bought products
Mass Marketing
Mass media-based marketing
Companies sold goods / Customers bought benefits
Product-based marketing
Companies sold commodities / Customers bought products
Mass media-based marketing
Companies sold goods / Customers bought benefits
Product-based marketing
Companies sold commodities / Customers bought products
Customer-based marketing
Companies sold brands / Customers bought Emotions
Mass Customization
Mass media-based marketing (Informing)
Companies sold goods / Customers bought benefits
Product-based marketing
Companies sold commodities / Customers bought products
Customer-based marketing (Persuading)
Companies sold brands / Customers bought Emotions
Market-based marketing (Inspiring)
Companies sold Ideas / Customers bought Experiences
“Marketing is all about spreading ideas.” Seth Godin
Welcome to the Digital Age
Websites are available 24 hours and sell unlimited products.
The internet transform from a primarily transactional medium to
relationship building.
The internet transformed the power from companies to consumers
and made them as much producers as consumers.
The internet allowed customers to be connected at anytime and
approximately for free.
1. The market is
continually changing.
2. People forget
quickly.
3. Your competition
won’t quit.
4. Marketing
strengthens your
identity.
9. Marketing allows
your business to
continue operating.
8. Your marketing
program gives you an
advantage over
competitors who have
ceased to market.
7. Marketing
maintains morale.
6. Marketing enables
you to keep your
customers.
10. You stand to lose
out on the money,
time, and effort
you’ve invested.
5. Marketing is
essential to survival
and growth.
Why You Should
Continue To Market.
Focusing on Mobile
Commerce in the
“Now” Economy
As more and more
customers make purchases
on mobile phones – mobile
commerce was 30 percent of
the total U.S. E-commerce in
2015