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E-word-of-mouth. A study of the strategies and theories underlying social media, viral marketing and branded communities By Ming Zhao. WORD OF MOUTH. Personal source Positive, and especially negative WOM have the ability to quickly become wide spread - PowerPoint PPT Presentation
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E-word-of-mouth
A study of the strategies and theories underlying social media, viral marketing and branded communities By
Ming Zhao
WORD OF MOUTH
Personal source
Positive, and especially negative WOM have the ability to quickly become wide spread
Such effect is multiplied with online interactions
words can travel to many in a very short amount of time
Cost effective
http://www.sas.upenn.edu/~jgasper/courses/ABM/ViralMarketing.html
Currently Practiced Forms of Word of Mouth
Social media: blogs and podcasts (45%)
Social networks (42%)
Buzz/Guerrilla Marketing (25%)
Influencer Programs - 23%
Brand Experience Initiatives (21%)
Viral Ads (18%)
Brand Communities (16%)
Source: Agent Wildfire Research 2008
Brand/Customer Community-building WOM
Social Media Production/Outreach WOM (i.e. blogs, podcasts)
Social Network Production/Outreach WOM
Viral Marketing/Advertising WOM
What is social media? Wikipedia says: Social media are primarily internet-and
mobile-based tools for sharing and discussing information among human beings. The term most often refers to
activities that integrate technology, telecommunications and social interaction, and the construction of words, pictures, videos and audios. The interaction, and the
manner in which information is presented, depends on the varied perspectives and “building” of shared meaning among communities, as people share their stories and
experiences. Businesses also refer to social media as user-generated content or user-generated media.
Common social media applications
Social media marketing
SM Marketing relies on the audience to distribute and engage in the dialogue and sometimes the creation of additional content.
Its about engaging, communicating via a dialogue and interacting with people. More so customers.
Increasing traffic to a site by links, brand awareness and well attention.
You pay attention to what your customer/user wants and needs!
You do this by listening, interacting, chatting.
One does this by having a presence on social networking sites and channels.
http://wiki.beingpeterkim.com/
What is viral marketing ?
“Viral marketing refers to marketing techniques that use pre-existing social networks to
produce increases in brand awareness or to achieve other marketing objectives (such as
product sales) though self-replicating viral processes…It can be word-of-mouth delivered or
enhanced by the network effects of the internet” ---Wikipedia
Viral marketing
Simply relies on the audience to distribute the objective-Uses social networks like Facebook, MySpace, Linkedin, Twitter to help achieve an objective…i.e sales, brand awareness, etc
This objective is obtained by a “Viral Action”. This action is people passing on the content such as video, picture, an application, banner, heck even just word of mouth.
Bottom Line: Viral relies on the audience to spread the message with little or no interaction. Its a one time interaction.
Framework for viral marketing—M.R.Subramani and B.Rajagopalan, 2003HIGH: benefits to all users depend on size of user base
SIGNALING USE, GROUP MEMBERSHIPNormative influence
MOTIVATED EVANGELISMNormative influence
EXTERNALITY
AWARENESS CREATION, BENEFITS SIGNALINGInformational influence
TARGETED RECOMMENDATIONInformational and normativeInfluence
LOW: benefits to users only
RECOMMENDATIONROLE
PASSIVE ACTIVE
Three factors making things go viral
According to the “tipping point”
The law of few: the connector; the maven and the salesmen
The stickiness factor
The power of context
What is brand community?“Brand community is a specialized,
non-geographically bound community, based on a structured
set of social relations among admirers of a brand.”
(ALBERT M. MUNIZ, JR. THOMAS C. O’GUINN, 2001)
Advantages of building a brand community
DIRECT BENEFIT
Better insight and quicker feedback
Competitive intelligence / market needs
Prepare launches/market introductions
Runaway word of mouth/evangelism
Reduce customer support costs
INDIRECT BENEFIT
New distribution/selling/customizing channel
Superior innovation/solutions
Galvanize employee/vendor
Organizational wide costumer-centricity
Power of the community
Among community members:
91% believe community enables them to give candid feedback
82% were more likely to recommend the company to others
76% felt more positively about the company
Community users remain customers 50% longer than non-community users. (AT&T, 2002)
56% percent of online community members log in once a day or more (Annenberg, 2007)
Customers report good experiences in forums more than twice as often as they do via calls or mail. (Jupiter, 2006)
Categories of E-WORD-OF-MOUTH actions--John Eaton
Viral marketing refers to the practice of a marketer creating an internet promotional vehicle to draw attention to a brand, most often in the form of an email or website address link that is distributed online by consumers.
Brand community refers to a specific classification of a social network that revolves around a particular brand.
TWO MODELS OF INFLUENCE normative influencing
Where recipient behavior is based on interpreting the information provided by the influencer as an implied expectation to confirm.
Underlying mechanism influencing actions are:
Identification and compliance
Informational influencing
Where recipient behavior is based on a personal evaluation f the information provided by the influencer.
Underlying mechanism influencing actions are:
Internalization
other underlying theories
The law of the social few
Social information processing theory
Social presence theories
The 50-20-10-1 rule
50% of people will passively participate
20% will actively and frequently consume/trade content
10% chime in opinion/rate and vote on content
1%develop and innovate content
Conclusion and some questions for discussion
E-word-of mouth is more effective and persuasive than traditional marketing
There are disadvantages too:
negative e-word of mouth can snow ball more quickly than positive e-word-of-mouth
Is e-WOM marketing better for creating awareness for a brand or for inducing consumers toward purchase?
If you are the salesman for the “smart“ car, when consider social media marketing, will you prefer viral marketing to branded community strategy? And why?
In general, what is the context in which these strategies work and the characteristics of products and services for which they are most effective?|