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Word of mouth communication and opinion leadership

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Word of mouth communication and opinion leadership

  1. 1. Word of Mouth Communication and Opinion Leadership Buzz Marketing Cool Hunting
  2. 2. Word-of-mouth (WOM)  Person-to-person communication between a receiver and a source whom the receiver perceives as non-commercial, regarding a product, service or brand  Highly effective method of communicating information  Particularly effective in communicating negative information  Dissatisfied customer will tell 9 others  13% of unhappy customers will tell >20 others
  3. 3.  WOM can be  In person  Phone  Mail  Internet  WOM can be  Verbal  Visual
  4. 4. Opinion leadership  The process by which one person--the opinion leader--informally influences the actions or attitudes of others who may be opinion seekers or opinion recipients
  5. 5.  Who are opinion leaders?  Can they be recognized by any distinctive characteristics?  Can they be reached through specific media?
  6. 6.  Opinion leadership tends to be category specific  Individual who is an opinion leader in one product category may be an opinion receiver in another product category  Profile of opinion leaders is likely to be influenced by the specific product category
  7. 7. Generalized attributes of opinion leaders  Tend to be consumer innovators  Willing to talk about products and services  Self-confident  Outgoing and gregarious  Same age as opinion seeker  Same social status as opinion seeker
  8. 8. Diffusion of Innovations
  9. 9. Opinion leadership process  Opinion leadership is a very powerful force  Credibility  Particularly credible in negative comments
  10. 10. Overlap of opinion leadership  Opinion leadership tends to overlap across certain combinations of interest areas  Overlap is likely to be highest among product categories that involve similar interests
  11. 11. The motivation of opinion leaders 1. Self-involvement 2. Product involvement 3. Social or ”other” involvement 4. Message involvement
  12. 12. 1. Self-involvement  Satisfies some basic need of their own  Attention  Status  Awareness of expertise  Confirm own good judgment and eradicate post-purchase doubts
  13. 13. 2. Product involvement  The greater a person’s involvement with a particular product, the greater their interest in sharing information
  14. 14. 3. Social or “other” involvement  Opinion leaders motivated by ‘other involvement’ share information as an expression of friendship, neighborliness and love
  15. 15. 4. Message involvement  Pervasiveness of advertising in our society encourages message involvement  Individuals who are bombarded by commercial messages and slogans tend to discuss them and the products they are designed to sell
  16. 16. Marketing implications of W.O.M.  Marketers look for opportunities to encourage word of mouth  Product designers sometimes develop their products to maximize word of mouth potential  Strong, favorable word of mouth minimizes the company’s advertising budget
  17. 17. Stimulating opinion leadership  Teaser campaigns  Ads that disclose just enough information to pique consumers’ interests  the ad itself becomes the basis for discussion, leading to interest in the product  Buzz marketing  Product placement
  18. 18. Simulating opinion leadership  Slice of life commercials where actors portray consumers or professionals discussing a product  Testimonials from celebrities are influential, especially where the celebrity is connected in some way to the product
  19. 19. What is Buzz Marketing?  A form of marketing where the consumer doesn’t know he or she is being marketed to  Generally, a marketing company pays an actor or socially adept person (opinion leader) to use a product visibly and convincingly in locations where target consumers congregate  The actor talks up the product to people they befriend, handing out samples if it is economically feasible
  20. 20. Also known as:  Undercover marketing  Stealth marketing  Under the radar marketing  Diffusion marketing  Ambient marketing  Viral marketing (on the web)  Product seeding  Roach baiting (to its critics)
  21. 21. Diffusion of Innovations
  22. 22.  Influentials  Trend-translators  Connectors  Alphas  Hubs  Sneezers  Bees  Magic people
  23. 23. What are some of the products marketed by “buzz” or “seeding”?  Automobiles  Ford Focus  PT Cruiser  Television shows  Lost  Movies  Blair Witch Project  Vertical Limit  Books  Purple Cow  Beer  Guinness Stout  Clothes  Hush Puppies  Lee jeans
  24. 24. Why is it growing so rapidly? 1. Buzz is cheap 2. The rise of the internet makes contact with millions of consumers possible 3. Appeals to younger consumers skeptical of mass media advertising 4. Presents opportunities for products like cigarettes and alcohol
  25. 25. What are the down sides? 1. Difficult to measure reach and success 2. Backlash when people realize they’ve been deceived 3. May eventually be overdone and become ineffective 4. Less effective for “low-involvement” products
  26. 26. Ethically, what’s wrong with buzz marketing?  Consumers don’t know they’re being subjected to a commercial message  Thus don’t view the message with the suspicion they would ordinarily apply to a commercial message  Marketers often engage children/teens to influence purchase behavior of other children/teens
  27. 27.  Practice is totally unregulated  Word of Mouth Marketing Association has drafted ethics code  Code is voluntary  Criticized for being vague
  28. 28.  Mini Cooper buzz marketing campaign
  29. 29. What is “cool hunting”?  “Reverse marketing”  “Sell-back”  Focuses on teen market  32 million teens in the US  Largest demographic group ever (outnumber baby boomers)  Spend $100 billion per year  Influence $150 billion in spending per year
  30. 30.  Cool hunters are looking for the 20% of the population who influence the remaining 80%  “Culture spies” visit malls and other places where kids hang out  Attempt to identify trends (e.g., clothing) before they develop  Sell the information to marketers  Marketers use the information to design products that appeal to youth market
  31. 31.  Trucker hats  Pabst Blue Ribbon  Miller High Life  Heavy metal music  “the white trash culture” vs. “designer culture”  Lawn bowling  Camping  Knitting
  32. 32.  Frontline, “The Merchants of Cool”
  33. 33. For details and bookings contact:- Parveen Kumar Chadha… THINK TANK (Founder and C.E.O of Saxbee Consultants & Other-Mother ) Email :-saxbeeconsultants@gmail.com Mobile No. +91-9818308353 Address:-First Floor G-20(A), Kirti Nagar, New Delhi India Postal Code-110015

Hinweis der Redaktion

  • What does this term mean in this context?
    key to note “non-commercial” communication
    Examples of products, services or brands where WOM is most effective?
    Professional services (doctor, lawyer, accountant)
    Personal services (hairdresser, personal trainer)
    Home improvements
    College, e.g.
    Movies (success of My Big Fat Greek Wedding due almost exclusively to WOM)
    negative information:
    According to an OCA study:
  • Does the term mean, literally, what it suggests—that it involves one person speaking to another?
    Not necessarily..
    Internet has become a very important source of WOM:
    In some cases sponsored by the brands themselves
    (Go to Saturn.com)
    In other cases by consumers who are “anti-brand,” web sites, chat rooms, etc.
    (E.g., Forbes article linked above: ”Top Corporate Hate Websites”)
    Think about it: one comment, put on a web site, can draw millions of “hits” worldwide!
    Fashion is perhaps the best example of visual WOM;
    as reading points out, a new fashion trend can sweep the country in weeks.
    Cross-cultural aspect as well—look at what young people are wearing even in the most conservative Islamic countries (e.g., Malaysia)
    because of what they see in movies and television Americans are wearing
  • Term is sometimes used interchangeably with WOM.
    What does it mean?
  • Marketers want to know three things about opinion leaders:
    Because it would enable them to design marketing messages that would encourage opinion leaders to influence others about their products
  • Problem is that…
    What does that mean?
  • Does that mean you cannot construct a generalized profile of an opinion leader without considering a particular category of product?
    No. Research suggests the following…
    Think about who you seek out for advice or role modeling, or who your parents and family seek out.
    Do they generally fit this description?
  • Explain how the consumer behavior theory applies to opinion leadership:
    The innovators (the darkest brown 2.5 percent on the far left) are venturesome, the visionaries, the wild-eyed revolutionaries, at least to the others, who feel threatened by change and risk-taking. To the innovators, themselves, the adoption is a no-brainer.
    The early adopters (the darker brown 13.5 percent on the left) are respectable opinion leaders. They can function effectively as evangelists and missionaries.
    Later, when we talk about buzz marketing, these are the folks the marketers are looking for
    The early majority (the 34 percent to the left of middle) is very deliberately ahead of the curve, but willing to make safe investments.
    The late majority (the 34 percent to the right of middle) is skeptical and often part of a backlash.
    The laggards (the lightest brown 16 percent on the far right)
    This concept used by Malcolm Gladwell in The Tipping Point (where the curve gets steep, it’s at a tipping point)
  • Why is it so powerful?
    Because there is no commercial interest, opinions are believed to be in the recipient’s best interests
    Because their comments are usually based on first-hand experience, advice reduces perceived risk/anxiety in buying new products
    Because you never get negative comments from the marketer!
  • Now we turn to some issues in opinion leadership…
    One question commonly asked is this:
    Do opinion leaders in one product category tend to be opinion leaders in other product categories?
    Recall saying earlier that opinion leadership tends to be product-specific.
    Do they?
    TV’s and DVDs
    high fashion clothes and cosmetics
    hunting gear and fishing tackle
    (you wouldn’t ask a person who gave you advice about fishing gear to recommend a lipstick!)
  • What motivates people to give opinions, information or advice about products?
    Research indicates four possible reasons…
  • What does this mean?
    Such as?
  • What’s this motivation all about?
    E.g., I have a friend who loves movies; he always calls me and tells me which ones he likes, etc.
    I’m sure you all know people who go to movies all the time and love to talk about them.
    Other products that may be “high involvement”?
    Cars (one student in class says his father is always looking at cars, even if not buying)
  • What’s this?
    If you have a good experience or bad experience with a product, you want friends and family to know
  • What does it mean?
    What’s your experience? Do you ever discuss commercials?
    What about the “Coors twins” or the “Catfight” ads of the last few years?
    What about the Super Bowl ads?
    Do you discuss the ads you see?
  • As we have seen, wom is very powerful, mainly because of its credibility relative to commercial advertising; as a consequence…
    Products that have succeeded at least in part due to w.o.m. include
    Polaroid camera
    Sony Walkman
    Harley Davidson does minimal advertising but is extremely successful due to wom
    Movies are an example of the power of w.o.m., particularly where critics have do not like a movie but it has become very popular
    (My Big Fat Greek Wedding, e.g.)
  • Where informal wom does not spontaneously emerge from the uniqueness of the product or its marketing strategy, some marketers have deliberately set out to stimulate or simulate opinion leadership
    How does a marketer stimulate discussion about its product?
    What is it?
    Examples of “teaser” ads?
    A year or so ago tv ads for Apple Computers—just a head shot with a person talking about how they switched to Apple from PC
    Today, ads for Ipod shuffle
    Basically no information in the ads (price?)
    Two areas we’ll be discussing in more detail…
    Buzz marketing subject of video
  • How does a marketer simulate wom?
    A couple of ways:
  • Show video now?
    As we’ll see later, paying someone is considered unethical, but it’s common practice
    Though many work for free!
    That’s equally scary—in one article it almost sounded like a cult! (NY Times 12/5/04)
    What’s the connection between “opinion leadership” and “word of mouth”
    and “buzz marketing”?
    They’re inter-related:
    Buzz relies on identifying opinion leaders and consumers’ trust in word of mouth from them
  • Let’s look at this again.
    The “early adopters” are the people buzz marketers are looking for to promote their products.
    Later, when we talk about “Cool Hunting” we’ll see that the Innovators are the targets.
  • Also known as:
  • According to Business Week article, they run from expensive products, like…
    Purple Cow is particularly interesting
    Author used buzz marketing to sell his book about buzz marketing
    (go to bonus chapter 1)
    Hush Puppies mentioned in The Tipping Point
  • How many of you own iPods?
    I put iPod in own category because it’s been so successful
    Minimal advertising
    Marketed in part by giving iPods to opinion leaders, introducing new models at big events, etc.
    Huge WoM response
  • See “The New Buzz in Marketing” reading assignment
  • From the marketer’s perspective…
    (Not the ethical issues yet)
    “Low involvement”--More likely to consider word of mouth for a car than a brand of soap;
    but it’s being used for hot dogs!
  • One of the most criticized buzz campaigns is Tremor, a wom division of Proctor & Gamble
    (link above)
    Teens are particularly vulnerable to buzz marketing
    Cell phones
    Instant messaging
    Peer-driven behavior
    But as we’ve seen before, teens are vulnerable
  • Interesting, recent form of buzz marketing involved the Mini Cooper
    Did this in addition to another great marketing stunt: put them on top of Ford Explorers and drove around country!
    See NY Times article dated May 10, 2004 for details
  • Another marketing practice related to opinion leadership
    Also known as…
  • According to a recent article in the NY Times, the latest trend involves the reappraisal of things traditionally deemed uncool:
    With this is the resurgence in “ironic pastimes”:
  • Show segment 1 (8 minutes) and 2 (5 minutes) if time remains