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MARKETING COMMUNICATION INTEGRATING ONLINE AND OFFLINE WITH SOCIAL MEDIA Heidi Hellström Master of Economic Sciences, Senior Lecturer University of Applied Sciences, Vaasa

Word of mouth (WOM)

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Page 1: Word of mouth (WOM)

MARKETING

COMMUNICATIONINTEGRATING ONLINE AND OFFLINE WITH

SOCIAL MEDIA

Heidi HellströmMaster of Economic Sciences, Senior Lecturer

University of Applied Sciences, Vaasa

Page 2: Word of mouth (WOM)

WORD OF MOUTH

Page 3: Word of mouth (WOM)

• Passing information from person to person

orally

• Can take place also in social media

• Is an extension of promotional mix

• Technology has increased the consumers

impact and power to use Word of Mouth

WHAT IS WORD OF MOUTH?

Page 4: Word of mouth (WOM)

• It is natural for people to listen other

individuals opinion over the company

opinion

• Having other peoples acceptance gives you

comfort to buy/get the product

• People who provide info to their peers gain

status and credibility in their communities

WHY PEOPLE USE IT AND

RELY ON IT?

Page 5: Word of mouth (WOM)

• No advertising can compete with words of

an influencer: collegue, friend or relative

• 30-50% of brand swithching happens to a

recommendation (compared 20% happens

due to advertising)

PEOPLE TALK!

Page 6: Word of mouth (WOM)

WEB COMMUNICATION MODEL

Page 7: Word of mouth (WOM)

Ref: http://4.bp.blogspot.com/-Rb6dBc8qsrE/UTvoY2iqY-I/AAAAAAAABuU/6bKZeKmNuIo/s1600/10_iceberg-for-web-650-copyright.jpg

Page 8: Word of mouth (WOM)

• Companies used earlier 90% of their

marketing budget on outbound marketing,

even when the studies showed that 79% of

people switch channels during commerial

brakes.

• Word of Mouth is the most effective low-

cost marketing tool (?)

• People trust other people’s opinions more

than companies’

CONCLUSIONS