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Getting People Talking Word of Mouth
The Debate  ,[object Object],	-“All consumers are not created equal” ,[object Object]
Instead, there are some consumers who will pick up on information and pass it on to their social network thus acting as powerful brand advocates, or influencers
Word of Mouth Marketing is an attempt to harness this people power and make it work for advertisers and their brands, but how can media be part of this?,[object Object]
Word of Mouth is all about TRUST	-When people feel vulnerable 	-When they’re going through changes in lifestage 	-When they need advice about something from an expert – but 	someone they know, not an impersonal advisor ,[object Object],	-These people are known as Influencers – about 10% of the 	population 	-However Influencers are generally different for each category
Summary of Findings  	The Internet, particularly the rise of User Generated Content, has played a fundamental role in the move towards WOM marketing 	However, magazines can also play a part in generating 	WOM 	-They are seen as close and trusted friends 	-Editorial viewpoints are often taken as the readers own 	-Magazine readers are also more likely to be among the 10% of 	 Influentials who generate WOM
Contents   ,[object Object],       - And the rise of the Internet ,[object Object]
   Influencing the Influencers
   WOM Marketing       - How Media can be used to propagate WOM
In the Beginning About 350,000 years ago, Hominid hearing apparatus was tuned to hear sounds made in speech for the first time Today, Word of Mouth is instrumental in 83% of  purchase decisions
Why Do We Talk? ,[object Object]
So for hundreds of thousands of years, talking was our most important social connector	- Information – danger, food, water 	- Social – history, love, kinship, enmity ,[object Object],	- Provides people with information 	- Reinforces social bonds 	- Builds on oral tradition
How Does Word of Mouth Work?  Spontaneous – sharing an experience “I went to an amazing restaurant on Friday night” Prompted – speaking in response to a need “If you’re looking for a new buggy, I’d recommend the Maclaren” Secondary – relating experience of another person “I’ve never tried it, but my mum has and she  didn’t think it was that great”
What Propagates WOM? ,[object Object]
 Friends
 Colleague
 Trusted Independent
 Aspirational Endorser,[object Object]
Why Is WOM Most Important? Lifestages  Transition = Point of Vulnerability = Need for new information
Why Has The Role of WOM grown? ,[object Object],      - WOM now 1.5 times more important now than it was 25 years ago ,[object Object]
70% of women learn about new products or services from another womanRecommendations Make People Feel Confident And Keep Them Connected
WOM Growth  Where do you get most of your information about new products and services?
Internet 2.0 ,[object Object]
The next phase of web development – “Internet 2.0” sees the consumer taking control:	-Blogging 	-Community sites like MySpace and Face Book 	-User generated content as on You Tube or Flickr 	-Chat Rooms and Forums for consumers to comment on 	 	 anything and everything!  ,[object Object],	-Advertisers want to harness this power  	-(And try and steer it to their benefit)
Why Is WOM So Important? ,[object Object],	- And this includes their advertising ,[object Object],	- Brand choice is huge & often overwhelming 	- Media fragmentation and consumer control means they are 	  also more easily able to edit out advertising they’re not 	  interested in Advertisers must find new ways of connecting and engaging with their consumers, and new channels through which to speak to them
The Road to WOM WORD OF MOUTH MARKETING Need for Breakthrough Grassroots Vehicle Mass Marketing Less Effective Media Environment Fragmentation & Cost Low Credibility of  Conventional Advertising Rise of Internet Marketplace Differentiation Low Established Brands  / Business Models Under Threat Need for Remarkable Brands / Contagious Ideas Financial Pressure Number of Choices / Brands Up Distribution Concentration Low Credibility of  Conventional Advertising Globalisation Pace of Technology Faster Consumer Need for Influential  Consumers Tuning Out Want Authenticity, intimacy Remarkability, edge  Less Time, Attention, Trust Heterogeneous Consumer Rise of Word of Mouth
The Decline of Trust ,[object Object]
This coincided with a period when consumers lost trust in large organisations:	- Government 	- Businesses 	- Brands ,[object Object],	- Offer advice  based on personal experience - NOT marketing spin or hype
Why Do People Trust?
A Person ‘Like Me’
Influencing the Influencers
‘Alphas’and‘Sneezers’: Influencing the Influencers Traditional Advertising Model Communication Audience Consumers are “Passive Receivers”  who are served blanket advertising
‘Alphas’and‘Sneezers’: Influencing the Influencers New Advertising Model Communication 10% 90% Audience Reach Opinion Leaders and they will pass the communication on to Opinion Followers
‘Law of the Few’ ,[object Object]
Brand perceptions shaped by many influences	- Advertising 	- Word of Mouth 	- User imagery (aspirational people using product) 	- Observed behaviour (watching how others do things) ,[object Object],	- Instead influence the influencers and their position in the 	hierarchy will help to position the brand in others’ eyes
Who Are the Influencers? ,[object Object],	- Most affluent 	- Best educated 	- Elected officials 	- CEO’s of major corporations ,[object Object],	- The 10% most actively engaged in social and cultural 	  	  dynamics of their community ,[object Object]
They are also different for every category	- Only approx 5% of people are “Pure” influencers in every 	  walk of life. The rest are influencers in 1, or maybe 	  more categories
Word of Mouth Marketing Today’s marketing world is broken. We must accept there is no “mass” in mass media. We must always remember the consumer is Boss… Consumers today are less responsive to traditional advertising… they are embracing new technologies… and making purchase decisions in environments where marketers have less direct influence.
Emergence of WOM As a Marketing Tool Emerging marketing techniques being used currently, or intended to use in next 6 months Source: MPA
WOM Marketing  How to make it work: Make it mutually beneficial Give them a reason to talk Empower consumers to share experiences
Influence The  Influencer Product Innovation Brand Ambassadors Referral Programmes Measure Product Seeding Listen to Feedback Get a Cause Implementation of WOM
How To Engage Consumers With WOM ,[object Object]
Be relevant and memorable
Be personal
Build a customer journey
Provide support / expert advice
Gain trust
Provide brand experience

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Getting People Talking

  • 1. Getting People Talking Word of Mouth
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  • 3. Instead, there are some consumers who will pick up on information and pass it on to their social network thus acting as powerful brand advocates, or influencers
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  • 6. Summary of Findings The Internet, particularly the rise of User Generated Content, has played a fundamental role in the move towards WOM marketing However, magazines can also play a part in generating WOM -They are seen as close and trusted friends -Editorial viewpoints are often taken as the readers own -Magazine readers are also more likely to be among the 10% of Influentials who generate WOM
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  • 8. Influencing the Influencers
  • 9. WOM Marketing - How Media can be used to propagate WOM
  • 10. In the Beginning About 350,000 years ago, Hominid hearing apparatus was tuned to hear sounds made in speech for the first time Today, Word of Mouth is instrumental in 83% of purchase decisions
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  • 13. How Does Word of Mouth Work? Spontaneous – sharing an experience “I went to an amazing restaurant on Friday night” Prompted – speaking in response to a need “If you’re looking for a new buggy, I’d recommend the Maclaren” Secondary – relating experience of another person “I’ve never tried it, but my mum has and she didn’t think it was that great”
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  • 19. Why Is WOM Most Important? Lifestages Transition = Point of Vulnerability = Need for new information
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  • 21. 70% of women learn about new products or services from another womanRecommendations Make People Feel Confident And Keep Them Connected
  • 22. WOM Growth Where do you get most of your information about new products and services?
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  • 26. The Road to WOM WORD OF MOUTH MARKETING Need for Breakthrough Grassroots Vehicle Mass Marketing Less Effective Media Environment Fragmentation & Cost Low Credibility of Conventional Advertising Rise of Internet Marketplace Differentiation Low Established Brands / Business Models Under Threat Need for Remarkable Brands / Contagious Ideas Financial Pressure Number of Choices / Brands Up Distribution Concentration Low Credibility of Conventional Advertising Globalisation Pace of Technology Faster Consumer Need for Influential Consumers Tuning Out Want Authenticity, intimacy Remarkability, edge Less Time, Attention, Trust Heterogeneous Consumer Rise of Word of Mouth
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  • 29. Why Do People Trust?
  • 32. ‘Alphas’and‘Sneezers’: Influencing the Influencers Traditional Advertising Model Communication Audience Consumers are “Passive Receivers” who are served blanket advertising
  • 33. ‘Alphas’and‘Sneezers’: Influencing the Influencers New Advertising Model Communication 10% 90% Audience Reach Opinion Leaders and they will pass the communication on to Opinion Followers
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  • 37. They are also different for every category - Only approx 5% of people are “Pure” influencers in every walk of life. The rest are influencers in 1, or maybe more categories
  • 38. Word of Mouth Marketing Today’s marketing world is broken. We must accept there is no “mass” in mass media. We must always remember the consumer is Boss… Consumers today are less responsive to traditional advertising… they are embracing new technologies… and making purchase decisions in environments where marketers have less direct influence.
  • 39. Emergence of WOM As a Marketing Tool Emerging marketing techniques being used currently, or intended to use in next 6 months Source: MPA
  • 40. WOM Marketing How to make it work: Make it mutually beneficial Give them a reason to talk Empower consumers to share experiences
  • 41. Influence The Influencer Product Innovation Brand Ambassadors Referral Programmes Measure Product Seeding Listen to Feedback Get a Cause Implementation of WOM
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  • 43. Be relevant and memorable
  • 46. Provide support / expert advice
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  • 52. Targeting Influentials WOM in individual categories varies amongst different consumer groups. The PPA’s Targeting Influentials study identifies who the Influentials responsible for generating it WOM are and how different product categories . Then having identified the Influentials, what do their media consumption habits suggest might be an effective way of engaging with them?
  • 53. Identifying the Influentials Thinking about the following product area, where do you get MOST information about products and services? % Agreeing Clothes Category Source: BMRB Omnibus Survey/PPA Targeting Influentials 2008
  • 54. Mavens Connectors Influentials Sellers Identifying the Influentials Do you talk to lots of people about a category? (Connectors) Do you know a lot about the category? (Mavens) Is your opinion likely to convince others? (Sellers) Key Influentials are Connectors, Mavens and Sellers Clothes Category Source: BMRB Omnibus Survey/PPA Targeting Influentials 2008
  • 55. Reaching Influentials How likely are each of the following types of advertising to influence whether you would talk with others about Clothes? Source: BMRB Omnibus Survey/PPA Targeting Influentials 2008
  • 56. Reaching Influentials Which media do the Influentials in the Clothescategory use? Source : TGI /WOM : Key Influentials and heavy users of medium
  • 57. How Can Media Get People Talking
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  • 60. Magazines contribute more than any other marketing channel to a person’s own recommendations to friends and family
  • 61. This effect is strongest amongst the 10% of the population who are Influentials
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  • 64. But only 1/3rd (32%) are heavy TV viewers
  • 65. So, an Influential is 22% more likely to be a heavy magazine reader, (index 122) and 21% less likely to be a heavy TV viewers (index 79)Source: Roper Reports
  • 66. It’s Good To Talk The heaviest 20% of magazine readers are the most likely group to talk to others about Toiletries, H/hold Products, Clothes, Pharmaceuticals Base: All adults Source: TGI
  • 67. Experts The heaviest 20% of magazine readers know a large amount about many of different topics Base: All adults Source: TGI
  • 68. Talk to Many Different People The heaviest 20% of magazine readers talk to many different people about certain topics Base: All adults Source: TGI
  • 69. Likely to Convince Others The heaviest 20% of magazine readers believe they are likely to convince others about their opinions on a range of different categories Base: All adults Source: TGI
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