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WORD OF MOUTH MARKETING
                  CREATING   BUZZ
                                                    1
NAPA CONSULTING GROUP
HOW TO USE WORD-OF-MOUTH
MARKETING (WOMM) TECHNIQUES
AND SOCIAL MEDIA TO DRIVE
GROWTH BY CREATING A POSITIOVE
BUZZ AROUND YOUR PRODUCT OR
SERVICE.



                                 2
TO APPRECIATE WOMM: FIRST YOU
HAVE TO UNDERSTAND WHAT’S
BROKEN WITH TRADITIONAL
MARKETING.


                                3
IS YOUR CAMPAIGN HAVING A
NEGATIVE IMPACT ON YOUR
BRAND?



                            4
ONLY 18% OF TV ADS
GENERATE POSITIVE ROI




                        5
84% OF B2B CAMPAIGNS
RESULTED IN LOWER SALES




                          6
100% INCREASE IN AD SPENDING
 JUST TO ADD 1% - 2% IN SALES




                                7
ONLY 14% TRUST ADS




                     8
69 % INTERESTED IN AD
BLOCKING TECHNOLOGIES




                         9
TRADITIONAL MARKETING & ADVERTISING


      ADVERTISING CLUTTER
      MEDIA FRAGMENTATION
      CONSUMERS TUNED OUT
      LESS EFFECTIVE
      MORE EXPENSIVE
      LESS TRUSTED
      LOWER ROI

                                  10
1.            2.
     …the      ..i got to
     JESUS     have an
     PHONE     iPhone
     rocks!




WOMM POWER

                            11
TWO THIRDS OF U.S. ECONOMONY
       DRIVEN BY WOM




                           12
POSITIVE CORRELATION TO
   BUSINESS GROWTH



                          13
BRAND ADVOCACY DRIVES
   BUSINESS GROWTH




        Harvard study   14
BRAND ADVOCACY EVEN MORE
IMPORTANT THAN BRAND IMAGE
   OR BRAND SATISFACTION



          Harvard study      15
LAW OF FEW

 10% INFLUENCE PURCHASING
   BEHAVIOR OF OTHER 90%




                            16
91% LIKELY TO BUY ON
  RECOMMENDATION




                       17
92% PREFER WOM
RECOMMENDATION




                 18
BRAND ADVOCATES




                  AVERAGE
                  CUSTOMERS,
                  CLIENTS,
                  CONSUMERS


                               19
WOMM CHARACTERISTICS

HOMOPHILY
HAWTHORNE EFFECT
CONVERSATION: DIALOGUE
EXPRESSION
INVISIBLE NETWORKS
LINKS
SIX DEGREES OF SEPARATION
DIGITAL MEDIA
MUCH HIGHER LEVEL OF TRUST
HUMILITY                     20
WOMM = C2C CONVERSATION




     Consumer-to-consumer conversation
                                         21
NOT …




TRADITIONAL MARKETING
          &
     ADVERTISING


                        22
BUZZ = INFECTIOUS CHATTER
       WHAT’S HOT
       WHAT’S ATTRACTIVE




                            23
VEHICLE FOR CONTAGION

  PERSON-TO-PERSON TALKING
  TALKING BY PHONE
  SOCIAL MEDIA TOOLS
  SMS
  E-MAIL
  IM
  BLOGGING
  VBLOG
  WRITING
                             24
WHO ARE
NETWORK
HUBS




          CONNECTORS
          ALPHAS
          OPINION LEADERS
          SNEEZERS
          PEERS
                        25
LINKS OR NODES SPREAD BUZZ




                NODE
NETWORK                     NETWORK
   A                           B


          TRUSTED CHANNEL




                                      26
CORRELATION BETWEEN
NETWORK HUBS AND EARLY
ADOPTERS.


                         27
LINKS FUEL DIFFISUION




A NETWORK OF 100 PEOPLE = 4,950 POSSIBLE LINKS

A NETWORK OF 1,000 PEOPLE = 500,000 POSSIBLE
LINKS




 Six degrees of separation concept (a/k/a small world phenomenon)
                                                                    28
AVERAGE PERSON HAS …


11 TO 12 INTIMATE CONTACTS
150 SOCIAL CONTACTS
500 TO 1,500 WEAK TIES



                             29
HOMOPHILY




      BIRDS OF A FEATHER
      FLOCK TOGETHER
   The term homophily stems from study of social networks.   30
CLUSTERS




Interests hobbies beliefs age gender
social class ethnicity religion values
politics geography education occupation
                                          31
ALL ABOUT…


 INTERACTION IN & AMONG
 INVISIBLE NETWORKS




                          32
LEAPFROGGING TECHNIQUES                                                                                 Aqua Teen

                                    WOMM umbrella term
• Buzz marketing
     –   Special hook, event, promotion. Aqua Teen Hunger Force
         Boston Bomb Scare


• Viral marketing
     –   Branded material, websites, blogs, advergames, widgets,
         bligets, videos, utilities, collaboration tools etc. that
         sneezers spread. ParkRidge47, Vote Different

• Influencer marketing
     –   Identifying and finding the influencers

• Evangelist marketing
     –   Turning most loyal customers into citizen marketers

• Street marketing
                                                                                                              Buzz Oven


     –   Interacting at popular offline places like Buzz Oven

• Stealth / Undercover marketing
     –   Bree, lonelyGirl15                                              Bree


Source: Justin Kirby, & Paul Marsden (2006). Connected marketing. Oxford, UK: Butterworth-Heinemann. 198
                                                                                                                   33
YouTube
WIDGET & BLIDGET




                   34
SOCIAL MEDIA




Social media describes the online technologies and practices that people use to share opinions, insights,
experiences, perspectives and media itself. Social media can take many different forms, including text,
images, audio, and video. These sites typically use technologies such as blogs, message boards, podcasts,
wikis, and vlogs to allow users to interact. Source: Wikipedia                                            35
BUZZ MARKETING WITH BLOGS…



                             BLOGVERTORIAL

                             BUSINESS BLOG

                             FAUX BLOG



 70 million blogs in just 4 years. 120K blogs being added each day.
                                                                      36
SEEDING…


STIMULATING DISCUSSION
PROMO EVENT
REDUCED PRICING
FREEWARE
GAME
DEMO
TRIAL
BETA

                         37
ASK YOURSELF…

How does information flow in my industry?
Where do people get their information?
Does information flow in a centralized way?
How do consumers interact in my industry?
Do they hangout in networks?
How big are these networks?
Is my industry conservative?
What influences my customers?
Who influences my customers?
Is my product risky?
                                              38
BUZZ MISTAKES…


FOCUSING JUST ON OPINION LEADERS
(1%)

NARROWLY PROFILING CONNECTORS

NO STORY

OVERSELLING

                                   39
BUZZ GUIDELINES

     SUPERIOR EXPERIENCE
     CONTAGIOUS PRODUCT
     SUPERIOR QUALITY
     UNDERPROMISE
     OVERDELIVER
     ANTICIPATION
     REACH 10% - 15%
     TRUTH
                           40
IDEAL BUZZ CANDIDATES…


 REQUIRE NO ADVERTISING
 LEAVE A TRACE
 NETWORK EXTERNALITY
 INCREASE COMPATABILITY
 INCREASE TRANSPARENCY
 SELF CONTAINED


                          41
e-marketing & strategy consultant
                        Kameran Ahari


                http://gotastrategy.typepad.com




Napa Consulting Group                                                   42

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[Viral marketing];[Resources]_2

  • 1. WORD OF MOUTH MARKETING CREATING BUZZ 1 NAPA CONSULTING GROUP
  • 2. HOW TO USE WORD-OF-MOUTH MARKETING (WOMM) TECHNIQUES AND SOCIAL MEDIA TO DRIVE GROWTH BY CREATING A POSITIOVE BUZZ AROUND YOUR PRODUCT OR SERVICE. 2
  • 3. TO APPRECIATE WOMM: FIRST YOU HAVE TO UNDERSTAND WHAT’S BROKEN WITH TRADITIONAL MARKETING. 3
  • 4. IS YOUR CAMPAIGN HAVING A NEGATIVE IMPACT ON YOUR BRAND? 4
  • 5. ONLY 18% OF TV ADS GENERATE POSITIVE ROI 5
  • 6. 84% OF B2B CAMPAIGNS RESULTED IN LOWER SALES 6
  • 7. 100% INCREASE IN AD SPENDING JUST TO ADD 1% - 2% IN SALES 7
  • 9. 69 % INTERESTED IN AD BLOCKING TECHNOLOGIES 9
  • 10. TRADITIONAL MARKETING & ADVERTISING ADVERTISING CLUTTER MEDIA FRAGMENTATION CONSUMERS TUNED OUT LESS EFFECTIVE MORE EXPENSIVE LESS TRUSTED LOWER ROI 10
  • 11. 1. 2. …the ..i got to JESUS have an PHONE iPhone rocks! WOMM POWER 11
  • 12. TWO THIRDS OF U.S. ECONOMONY DRIVEN BY WOM 12
  • 13. POSITIVE CORRELATION TO BUSINESS GROWTH 13
  • 14. BRAND ADVOCACY DRIVES BUSINESS GROWTH Harvard study 14
  • 15. BRAND ADVOCACY EVEN MORE IMPORTANT THAN BRAND IMAGE OR BRAND SATISFACTION Harvard study 15
  • 16. LAW OF FEW 10% INFLUENCE PURCHASING BEHAVIOR OF OTHER 90% 16
  • 17. 91% LIKELY TO BUY ON RECOMMENDATION 17
  • 19. BRAND ADVOCATES AVERAGE CUSTOMERS, CLIENTS, CONSUMERS 19
  • 20. WOMM CHARACTERISTICS HOMOPHILY HAWTHORNE EFFECT CONVERSATION: DIALOGUE EXPRESSION INVISIBLE NETWORKS LINKS SIX DEGREES OF SEPARATION DIGITAL MEDIA MUCH HIGHER LEVEL OF TRUST HUMILITY 20
  • 21. WOMM = C2C CONVERSATION Consumer-to-consumer conversation 21
  • 22. NOT … TRADITIONAL MARKETING & ADVERTISING 22
  • 23. BUZZ = INFECTIOUS CHATTER WHAT’S HOT WHAT’S ATTRACTIVE 23
  • 24. VEHICLE FOR CONTAGION PERSON-TO-PERSON TALKING TALKING BY PHONE SOCIAL MEDIA TOOLS SMS E-MAIL IM BLOGGING VBLOG WRITING 24
  • 25. WHO ARE NETWORK HUBS CONNECTORS ALPHAS OPINION LEADERS SNEEZERS PEERS 25
  • 26. LINKS OR NODES SPREAD BUZZ NODE NETWORK NETWORK A B TRUSTED CHANNEL 26
  • 27. CORRELATION BETWEEN NETWORK HUBS AND EARLY ADOPTERS. 27
  • 28. LINKS FUEL DIFFISUION A NETWORK OF 100 PEOPLE = 4,950 POSSIBLE LINKS A NETWORK OF 1,000 PEOPLE = 500,000 POSSIBLE LINKS Six degrees of separation concept (a/k/a small world phenomenon) 28
  • 29. AVERAGE PERSON HAS … 11 TO 12 INTIMATE CONTACTS 150 SOCIAL CONTACTS 500 TO 1,500 WEAK TIES 29
  • 30. HOMOPHILY BIRDS OF A FEATHER FLOCK TOGETHER The term homophily stems from study of social networks. 30
  • 31. CLUSTERS Interests hobbies beliefs age gender social class ethnicity religion values politics geography education occupation 31
  • 32. ALL ABOUT… INTERACTION IN & AMONG INVISIBLE NETWORKS 32
  • 33. LEAPFROGGING TECHNIQUES Aqua Teen WOMM umbrella term • Buzz marketing – Special hook, event, promotion. Aqua Teen Hunger Force Boston Bomb Scare • Viral marketing – Branded material, websites, blogs, advergames, widgets, bligets, videos, utilities, collaboration tools etc. that sneezers spread. ParkRidge47, Vote Different • Influencer marketing – Identifying and finding the influencers • Evangelist marketing – Turning most loyal customers into citizen marketers • Street marketing Buzz Oven – Interacting at popular offline places like Buzz Oven • Stealth / Undercover marketing – Bree, lonelyGirl15 Bree Source: Justin Kirby, & Paul Marsden (2006). Connected marketing. Oxford, UK: Butterworth-Heinemann. 198 33 YouTube
  • 35. SOCIAL MEDIA Social media describes the online technologies and practices that people use to share opinions, insights, experiences, perspectives and media itself. Social media can take many different forms, including text, images, audio, and video. These sites typically use technologies such as blogs, message boards, podcasts, wikis, and vlogs to allow users to interact. Source: Wikipedia 35
  • 36. BUZZ MARKETING WITH BLOGS… BLOGVERTORIAL BUSINESS BLOG FAUX BLOG 70 million blogs in just 4 years. 120K blogs being added each day. 36
  • 37. SEEDING… STIMULATING DISCUSSION PROMO EVENT REDUCED PRICING FREEWARE GAME DEMO TRIAL BETA 37
  • 38. ASK YOURSELF… How does information flow in my industry? Where do people get their information? Does information flow in a centralized way? How do consumers interact in my industry? Do they hangout in networks? How big are these networks? Is my industry conservative? What influences my customers? Who influences my customers? Is my product risky? 38
  • 39. BUZZ MISTAKES… FOCUSING JUST ON OPINION LEADERS (1%) NARROWLY PROFILING CONNECTORS NO STORY OVERSELLING 39
  • 40. BUZZ GUIDELINES SUPERIOR EXPERIENCE CONTAGIOUS PRODUCT SUPERIOR QUALITY UNDERPROMISE OVERDELIVER ANTICIPATION REACH 10% - 15% TRUTH 40
  • 41. IDEAL BUZZ CANDIDATES… REQUIRE NO ADVERTISING LEAVE A TRACE NETWORK EXTERNALITY INCREASE COMPATABILITY INCREASE TRANSPARENCY SELF CONTAINED 41
  • 42. e-marketing & strategy consultant Kameran Ahari http://gotastrategy.typepad.com Napa Consulting Group 42