1. Digital and Social Media
Word of Mouth Marketing
Word of Mouth
 Interpersonal communication among consumers concerning their
personal experiences with a firm or product
 Influences consumer attitudes and judgments
WOM in purchasing process
 47% of the readers of Surfing magazine say that the biggest
influences on their decisions about where to surf and what to
purchase come from a friend
 Friends and relatives are the #1 source for information (43%)
about places to visit or about flights, hotel or rental cars (Travel
Industry Association)
The Secrets of WOM Marketing
 Marketing Communications ----Time----Action
Sales Materials Trial
Sales calls Recommendation
Advertising Prescription
Direct mail Specification
Marketing -- Word of Mouth -- Action
Experts/prospects/customers
talk about your product
E-word of Mouth
E-word of Mouth
 From interpersonal communication to broadcasting
 Beyond immediate social circle
 Creative and engaging
 Visible for marketers
E-word of Mouth Types
 User ratings & reviews
 Web pages/spaces

2.  Wikis
 Blogs
 Podcasts
 Photo postings
 Video
 Social networks
The Persuasiveness of Contents Generated by other Consumers
 First-hand knowledge
 Similar sources
 Vivid
 Unbiased
 Current
 Narrative form
State of WOM Marketing
WOM Marketing is NOT yet a major Budget Item for Most Companies
 Customer service and traditional digital marketing ranked well
above online social media and offline WOM marketing
Big growth anticipated in online social media
 Online social media marketing: growing=70%, stable=26%,
declining=4%
 Digital advertising: growing=59%, stable=34%, declining=6%
 Email marketing: growing=53%, stable=41%, declining=5%
 CRM: growing=47%, stable=49%, declining=4%
 Customer service: growing=40%, stable=57%, declining=3%
 PR: growing=34%, stable=57%, declining=10%
 Offline WOM marketing: growing=29%, stable=63%, declining=8%
 Print: growing=16%, stable=54%, declining=30%
 Product sampling: growing=14%, stable=61%, declining=26%
 TV: growing=9%, stable=55%, declining=36%
*64% of marketers believe that social marketing is more effective vs.
traditional marketing

3. Objectives for WOM Marketing
 Increase brand awareness, increase brand equity and perception,
create consumer engagement and drive recommendations
Satisfaction with WOM Marketing
 Broad satisfaction with WOM marketing tactics, although most are
“somewhat” rather than “very” satisfied
Obstacle for WOM Marketing
 The difficulties of measuring WOM is an obstacle for a majority of
companies
Opinion Leaders (Stakebrokers)
Who is the Stakebroker?
 http://prfirms.org/voice/2013/who-is-the-stakebroker
 tend to skew toward developing markets
 engage very differently with companies than general public
 investors, labor and environmental activists and social media
leaders
 holistic nature active approach in shaping brands
 not traditional opinion leader or influencer who reads the news and
talks to people about their opinions; they are highly engaged group
that look at companies through a truly 360-degree perspective
Stakebroker
 In WOM marketing, the new opinion leaders plays an important role
The Characteristics of Stakebrokers
 Active engagement in shaping brands
 Younger than general audiences (Gen. X or Y)
 Fewer walls between professional and personal
 More adept and comfortable using social media
 Active offline

4. Example: SUBWAY targets younger women with fitness campaign
 January 2012: SUBWAY identified women between the ages of 18
and 24 as advocates for a social media initiative focused on health
and wellness. SUBWAY hosted Fresh Fit Fridays, with weekly
wellness tips posted on Facebook, and a live, cross-platform chat
with fitness trainer Monica Vazquez
Tips for Engaging Stakebrokers:
 Don’t label them
o They aren’t defined by a job or a single interest. They are
defines by attitude and relationship to your company
o Don’t try to relate to them through only one lens
 Engage don’t preach
o They are interested in a relationship, not just information.
Find ways to engage them in dialogue.
 Find common purpose
o Identify the problems and work toward finding solutions that
benefit you both
Credibility & Trust
Trust in WOM & eWOM
 One of the big questions from WOM marketers: How can we
leverage trust online and offline? The recent rise of social media has
reinforced the importance of trust
Discussion Questions
 Is the size of a person’s(or organizations) network of connections
important to evaluate his/her/its credibility? The bigger the size
does not necessarily make something credible. You need to use
good judgment to decide what seems legitimate and what does not
 What role does word-of-mouth play in shaping brand perceptions
and buying decision? It helps because people generally will listen to
people who have used it (i.e family members and friends)

5.  What are the possible ways to leverage trust for WOM marketing?
Having the ability to discuss with a company ways to improve
brands and products, having a personal connections
*Users have grown skeptical of social media’s trustworthiness
*A large social network contact base does not necessarily indicate influence
*For inspiring trust in social media, an open dialogue is more important than
the number of fans
*Quantity and authenticity key to trust in customer reviews

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