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Saransh Pal

This document discusses digital word-of-mouth marketing. It begins by explaining that people trust recommendations from friends and family more than traditional marketing. Now with social media, word-of-mouth exchanges occur publicly online through blogs, tweets, forums and reviews. It then describes several types of digital word-of-mouth marketing like referral programs, influencer marketing, brand ambassadors, affiliate marketing and user-generated content. The benefits are discussed like lower costs than other strategies and quick spread among audiences. Downsides include lack of message control and unpredictability. An example is given of how Instant Pot grew through sending products to influencers who published content, leading to the creation of Facebook groups where users shared recipes.

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DWM.pptx
2 MBA-205 Digital Word-of-Mouth Marketing When it comes to making buying decisions, people trust information from their family and friends more than any other form of information. They turn to their community for recommendations before purchasing any kind of good or service. Consumers will default to the opinions of their friends, family, colleagues and social peers with far greater frequency than they’ll listen to even the most polished or compelling marketing pitch. However, the evolution of the internet coupled with the meteoric rise of social media use in the last decade has catapulted traditionally private word-of-mouth exchanges into the public domain. Now instead of picking up the phone to call a colleague or going to get coffee with a trusted friend, consumers are hitting up blogs, firing out Tweets, creating threads on Reddit or accessing consumer-advocacy websites to get purchase-related questions answered.
Types of Digital Word-Of-Mouth Marketing
1. Referral programs (Refer-a-friend programs) Referral programs encourage happy customers to share your brand directly with friends who would benefit from your products or services. They also reward customers when a friend they refer makes a purchase from you. Rather, a referral program is a streamlined program run with the help of referral software. It makes sharing easy for your customers, tracks each referral, and instantly rewards customers with free gifts when they successfully make referrals. All the while, it keeps advocates’ and friends’ information secure. Partner programs can be a great growth strategy. A channel partner can help you boost sales, as well as give you access to other markets that you might not reach on your own. Many partner programs operate similarly to referral programs. The main difference is the referrer is not a customer, but rather a partner business or other third-party distributor.
3. Influencer marketing Influencer marketing is another way of increasing word of mouth. Some would say this type of marketing is the modern day word-of-mouth marketing and focuses heavily on brand awareness. It involves content creators who post what they love about your product on a short-term basis. When celebrities, expert advocates, or top internet famous individuals post about a product, the reach can be pretty impressive. 4. Brand ambassador marketing While influencer marketing is short-term, brand ambassadors are hand-selected representatives who promote your brand over a longer period. These ambassadors authentically share why they love your brand and how they use your products, both online and offline. And since they focus on building relationships with their audiences rather than selling as many units as possible, their recommendations are especially trusted.
5. Affiliate marketing Affiliate marketing is similar to referral marketing in that it places a focus on new customer acquisition. But in affiliate programs, people don’t promote products only to people they know. Instead, bloggers, social media personalities, and other content creators promote your brand to everyone who visits their channels. These content creators (called affiliates) place links to your site on their channels, and earn a commission every time someone makes a purchase via that link. This means the audience reach is expanded, but the product is promoted to everyone who lands on the affiliate site, even if they are not a good fit. 6. Customer reviews and testimonials (Reputation management) Reviews create digital word of mouth, all on their own. Though many businesses send links to the customer asking for their feedback, customers oftentimes will write a review willingly on their own. This, however, doesn’t always shine a positive light on a business. It also doesn’t offer the business as much control as other types of word-of- mouth marketing.
7. User-generated content User-generated content (UGC) refers to any content your audience creates on social media that portrays your brand in a positive light. When they share this UGC, your customers instantly recommend your brand to all of their followers at once. A single social media post could get shared far and wide, possibly creating exponential brand awareness. Although most UGC is created spontaneously, you can encourage UGC by crafting branded hashtags, running contests and creating opportunities where you feature UGC on your own account. UGC is a type of peer-to-peer marketing, and is sometimes called consumer generated marketing.
Benefits of Word-Of-Mouth Marketing
1. You Build a Good Relationship with Your Customers Building trust between your brand and your customers is important for your business’s success. This boosts their confidence as they conduct business with you. Selling products will be harder if you don’t build trust with existing customers. A good word-of-mouth marketing strategy involves getting personal with your customers. Talking to the owner of the business often makes customers feel special. It also makes them think the owner cares more about its customers than making a profit. 2. It Costs Less than Other Marketing Strategies Most businesses jump into social media marketing because it’s cheap. It’s all about posting something and hoping it goes viral. Businesses hope their latest post, meme, or video becomes the next hot thing in social circles. It’s a huge long shot and if it’s a dancing cat – and you don’t train cats to dance – it’s suddenly worthless when the next dancing cat video pops up.
3. Quick to Spread Among Your Audience A great perk with word-of-mouth marketing is that it can boost traffic to your business, helping you grow faster. This can happen in as short as two to three days depending on how active your customers are. Word-of-mouth marketing is most effective in small, local or even virtual communities. This is because people in these areas mostly know and trust each other. 4. It Offers Amazing Short-Term Scalability Once the word gets around about your business, you’ll see more opportunities open up. Businesses know that jumping in on a popular trend is a great move to increase profits. This could entice other businesses to approach you for partnerships. You might also get sponsorship deals pushing you to launch or host an event. Some of these may even come from an area outside your business’s reach. Consider some type of partnership with a complementary business. Choosing the right partnerships can boost your business to levels you never expected as your service or product delights the partner’s existing clients and their client base discovers you.
Downside of Word-of-Mouth
1. You Can’t Control What People Say Even when you accommodate your customers, what they say is still up to them. There’s no guarantee that they will say anything about your business to their peers. The problem is that they may still say something negative about your brand. They may have found something unpleasant in your business. This can get your brand in a lot of trouble depending on how they spin their stories. 2. Results Are Unpredictable The results of word-of-mouth marketing are always unpredictable. This makes them non-viable as a launch strategy. The fate of your business is too important to rely on just customer word-of-mouth as a launch strategy. Better strategies include Kickstarter and similar platforms, social media ads, etc.
3. It’s Easy to Get Bad Press Another bad aspect of this marketing method is that it’s hard to trust people with your business. They can praise your business as fast as they can ruin it. Some people can give your business some bad press for no reason. This is even harder because of the internet. Popular review websites like Yelp are places where word-of-mouth marketing rules the day. Some people know this and use these websites as weapons against businesses. 4. Even Employees Can Turn Against You Even your employees can give your business a bad reputation. This often happens when they’re displeased with something like their pay check or how you micro- manage them. They often post their complaints on popular social media platforms to make sure people see it.
CASE STUDY INSTANT POT
Instant Pot – Become one of the most favourite pressure cooker brands with free ads. Instant Pot is a Canadian brand of kitchen appliances. The brand’s original and primary products are electronically controlled, combined pressure cookers and slow cookers. After completing the commercial products, founder of Instant Pot, Robert Wang promptly contacted and sends freely more than 200 Instant Pot cookers to food blogger, celebrities who are passionate about cooking. Then, without spending any extra money, a series of articles, videos, cookbooks were published; forming a “fever” all over the Internet and Instant Pot brand became famous “instantly” as its name. Robert Wang jumped at the chance, he instructed his staff to create groups on FB in order that the company is able to share how to use Instant Pot usefully,… It’s a good method to easily reach to customers, not only show the product’s functions but also contribute to customer service in case they get any consider or question, they could search themselves directly. In the presents, more than 200 different groups on Facebook are created to users share their owned recipes of cooking with Instant Pot and possess millions of members.
This brand marketing also works in the same way in Vietnam. ‘We understand well that only one group could not serve for all people, and that they create many different groups prove it.”, Robert Wang said. And each post is a chance to advert freely for Instant Pot. Customers interact together better than business pushes information to customers is what Robert Wang perceived. Robert claimed that “The Facebook group is a very risky decision and fortunately we have made the right choice, Instant Pot doesn’t know if it exists if we decide to use email marketing. Instant Pot only applies what is said “abundantly” on books: “Owning a good product, taking good customer care, and encouraging them to share. That’s all. “Robert confidently shared his secret of success.
CONCLUSION
Without knowing the advantages and disadvantages of digital word of mouth marketing any marketing strategy will not work accurately. Every marketing strategy comes with its own drawbacks. Digital Word of mouth also can sometimes be a bit harmful to your brand image. However, that doesn’t cancel the immense scopes of success that you can have in your business once you are done with your word of mouth marketing perfectly. It also shows in the case of instant pot that they use influencers for their digital word of mouth marketing where influencers helped in creating a buzz for the pressure cookers and instant pot rode on that band wagon by creating different Facebook groups to further increase their popularity among the people. So gather all your resources, put in your creative efforts and start making your brand famous among people.
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DWM.pptx

  • 2. 2 MBA-205 Digital Word-of-Mouth Marketing When it comes to making buying decisions, people trust information from their family and friends more than any other form of information. They turn to their community for recommendations before purchasing any kind of good or service. Consumers will default to the opinions of their friends, family, colleagues and social peers with far greater frequency than they’ll listen to even the most polished or compelling marketing pitch. However, the evolution of the internet coupled with the meteoric rise of social media use in the last decade has catapulted traditionally private word-of-mouth exchanges into the public domain. Now instead of picking up the phone to call a colleague or going to get coffee with a trusted friend, consumers are hitting up blogs, firing out Tweets, creating threads on Reddit or accessing consumer-advocacy websites to get purchase-related questions answered.
  • 3. Types of Digital Word-Of-Mouth Marketing
  • 4. 1. Referral programs (Refer-a-friend programs) Referral programs encourage happy customers to share your brand directly with friends who would benefit from your products or services. They also reward customers when a friend they refer makes a purchase from you. Rather, a referral program is a streamlined program run with the help of referral software. It makes sharing easy for your customers, tracks each referral, and instantly rewards customers with free gifts when they successfully make referrals. All the while, it keeps advocates’ and friends’ information secure. Partner programs can be a great growth strategy. A channel partner can help you boost sales, as well as give you access to other markets that you might not reach on your own. Many partner programs operate similarly to referral programs. The main difference is the referrer is not a customer, but rather a partner business or other third-party distributor.
  • 5. 3. Influencer marketing Influencer marketing is another way of increasing word of mouth. Some would say this type of marketing is the modern day word-of-mouth marketing and focuses heavily on brand awareness. It involves content creators who post what they love about your product on a short-term basis. When celebrities, expert advocates, or top internet famous individuals post about a product, the reach can be pretty impressive. 4. Brand ambassador marketing While influencer marketing is short-term, brand ambassadors are hand-selected representatives who promote your brand over a longer period. These ambassadors authentically share why they love your brand and how they use your products, both online and offline. And since they focus on building relationships with their audiences rather than selling as many units as possible, their recommendations are especially trusted.
  • 6. 5. Affiliate marketing Affiliate marketing is similar to referral marketing in that it places a focus on new customer acquisition. But in affiliate programs, people don’t promote products only to people they know. Instead, bloggers, social media personalities, and other content creators promote your brand to everyone who visits their channels. These content creators (called affiliates) place links to your site on their channels, and earn a commission every time someone makes a purchase via that link. This means the audience reach is expanded, but the product is promoted to everyone who lands on the affiliate site, even if they are not a good fit. 6. Customer reviews and testimonials (Reputation management) Reviews create digital word of mouth, all on their own. Though many businesses send links to the customer asking for their feedback, customers oftentimes will write a review willingly on their own. This, however, doesn’t always shine a positive light on a business. It also doesn’t offer the business as much control as other types of word-of- mouth marketing.
  • 7. 7. User-generated content User-generated content (UGC) refers to any content your audience creates on social media that portrays your brand in a positive light. When they share this UGC, your customers instantly recommend your brand to all of their followers at once. A single social media post could get shared far and wide, possibly creating exponential brand awareness. Although most UGC is created spontaneously, you can encourage UGC by crafting branded hashtags, running contests and creating opportunities where you feature UGC on your own account. UGC is a type of peer-to-peer marketing, and is sometimes called consumer generated marketing.
  • 9. 1. You Build a Good Relationship with Your Customers Building trust between your brand and your customers is important for your business’s success. This boosts their confidence as they conduct business with you. Selling products will be harder if you don’t build trust with existing customers. A good word-of-mouth marketing strategy involves getting personal with your customers. Talking to the owner of the business often makes customers feel special. It also makes them think the owner cares more about its customers than making a profit. 2. It Costs Less than Other Marketing Strategies Most businesses jump into social media marketing because it’s cheap. It’s all about posting something and hoping it goes viral. Businesses hope their latest post, meme, or video becomes the next hot thing in social circles. It’s a huge long shot and if it’s a dancing cat – and you don’t train cats to dance – it’s suddenly worthless when the next dancing cat video pops up.
  • 10. 3. Quick to Spread Among Your Audience A great perk with word-of-mouth marketing is that it can boost traffic to your business, helping you grow faster. This can happen in as short as two to three days depending on how active your customers are. Word-of-mouth marketing is most effective in small, local or even virtual communities. This is because people in these areas mostly know and trust each other. 4. It Offers Amazing Short-Term Scalability Once the word gets around about your business, you’ll see more opportunities open up. Businesses know that jumping in on a popular trend is a great move to increase profits. This could entice other businesses to approach you for partnerships. You might also get sponsorship deals pushing you to launch or host an event. Some of these may even come from an area outside your business’s reach. Consider some type of partnership with a complementary business. Choosing the right partnerships can boost your business to levels you never expected as your service or product delights the partner’s existing clients and their client base discovers you.
  • 12. 1. You Can’t Control What People Say Even when you accommodate your customers, what they say is still up to them. There’s no guarantee that they will say anything about your business to their peers. The problem is that they may still say something negative about your brand. They may have found something unpleasant in your business. This can get your brand in a lot of trouble depending on how they spin their stories. 2. Results Are Unpredictable The results of word-of-mouth marketing are always unpredictable. This makes them non-viable as a launch strategy. The fate of your business is too important to rely on just customer word-of-mouth as a launch strategy. Better strategies include Kickstarter and similar platforms, social media ads, etc.
  • 13. 3. It’s Easy to Get Bad Press Another bad aspect of this marketing method is that it’s hard to trust people with your business. They can praise your business as fast as they can ruin it. Some people can give your business some bad press for no reason. This is even harder because of the internet. Popular review websites like Yelp are places where word-of-mouth marketing rules the day. Some people know this and use these websites as weapons against businesses. 4. Even Employees Can Turn Against You Even your employees can give your business a bad reputation. This often happens when they’re displeased with something like their pay check or how you micro- manage them. They often post their complaints on popular social media platforms to make sure people see it.
  • 15. Instant Pot – Become one of the most favourite pressure cooker brands with free ads. Instant Pot is a Canadian brand of kitchen appliances. The brand’s original and primary products are electronically controlled, combined pressure cookers and slow cookers. After completing the commercial products, founder of Instant Pot, Robert Wang promptly contacted and sends freely more than 200 Instant Pot cookers to food blogger, celebrities who are passionate about cooking. Then, without spending any extra money, a series of articles, videos, cookbooks were published; forming a “fever” all over the Internet and Instant Pot brand became famous “instantly” as its name. Robert Wang jumped at the chance, he instructed his staff to create groups on FB in order that the company is able to share how to use Instant Pot usefully,… It’s a good method to easily reach to customers, not only show the product’s functions but also contribute to customer service in case they get any consider or question, they could search themselves directly. In the presents, more than 200 different groups on Facebook are created to users share their owned recipes of cooking with Instant Pot and possess millions of members.
  • 16. This brand marketing also works in the same way in Vietnam. ‘We understand well that only one group could not serve for all people, and that they create many different groups prove it.”, Robert Wang said. And each post is a chance to advert freely for Instant Pot. Customers interact together better than business pushes information to customers is what Robert Wang perceived. Robert claimed that “The Facebook group is a very risky decision and fortunately we have made the right choice, Instant Pot doesn’t know if it exists if we decide to use email marketing. Instant Pot only applies what is said “abundantly” on books: “Owning a good product, taking good customer care, and encouraging them to share. That’s all. “Robert confidently shared his secret of success.
  • 18. Without knowing the advantages and disadvantages of digital word of mouth marketing any marketing strategy will not work accurately. Every marketing strategy comes with its own drawbacks. Digital Word of mouth also can sometimes be a bit harmful to your brand image. However, that doesn’t cancel the immense scopes of success that you can have in your business once you are done with your word of mouth marketing perfectly. It also shows in the case of instant pot that they use influencers for their digital word of mouth marketing where influencers helped in creating a buzz for the pressure cookers and instant pot rode on that band wagon by creating different Facebook groups to further increase their popularity among the people. So gather all your resources, put in your creative efforts and start making your brand famous among people.