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the presentation looks at the role of Magazine to trigger WOM
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Getting People Talking
Word of Mouth
The Debate
• To paraphrase George Orwell:-“All consumers are not created equal”
• It seems that consumers are not an amorphous mass whom we can blanket bomb with commercial messages that they will all meekly respond to, as traditional advertising models would have us believe
• Instead, there are some consumers who will pick up on information and pass it on to their social network thus acting as powerful brand advocates, or influencers
• Word of Mouth Marketing is an attempt to harness this people power and make it work for advertisers and their brands, but how can media be part of this?
Summary of Findings
• The need for Word of Mouth has risen as the belief in traditional forms of advertising have declined
• Word of Mouth is all about TRUST-When people feel vulnerable-When they’re going through changes in lifestage-When they need advice about something from an
expert – but someone they know, not an impersonal advisor
• Certain consumers are more likely to be conveyors of WOM
-These people are known as Influencers – about 10% of the population
-However Influencers are generally different for each category
Summary of Findings
The Internet, particularly the rise of User Generated Content, has played a fundamental role in the move towards WOM marketing
However, magazines can also play a part in generatingWOM
-They are seen as close and trusted friends-Editorial viewpoints are often taken as the readers own-Magazine readers are also more likely to be among the 10% of Influentials who generate WOM
Contents
• The Spread of “Word Of Mouth” (WOM) - And the rise of the Internet
• Why is WOM so important?
• Influencing the Influencers
• WOM Marketing - How Media can be used to propagate WOM
In the Beginning
About 350,000 years ago, Hominid hearing apparatus was tuned to hear sounds made in speech for the first time
Today, Word of Mouth is instrumental in 83% of purchase decisions
Why Do We Talk?
• Before we could write, the only way for humans to communicate was via speech
• So for hundreds of thousands of years, talking was our most important social connector
- Information – danger, food, water- Social – history, love, kinship, enmity
• Word of Mouth today fulfils the same role- Provides people with information- Reinforces social bonds- Builds on oral tradition
How Does Word of Mouth Work?
Spontaneous – sharing an experience“I went to an amazing restaurant on Friday night”
Prompted – speaking in response to a need“If you’re looking for a new buggy, I’d recommend the Maclaren”
Secondary – relating experience of another person“I’ve never tried it, but my mum has and she didn’t think it was that great”
What Propagates WOM?
• Family
• Friends
• Colleague
• Trusted Independent
• Aspirational Endorser
Different Types of WOM
• Word of Mouth is deemed to be all communication which takes place about brands on a Consumer to Consumer basis
-This can be split into two main types: Buzz and Advocacy
• BUZZ - Talking about something new, cool, different,
provocative - Something to be passed on to gain social currency- This can have a positive effect on a brand but not necessarily lead to sales
• ADVOCACY- Focused on the brand and its merits
(positive or negative)
This is more likely to have a greater short-term sales effect
Why Is WOM Most Important?
Lifestages
Transition = Point of Vulnerability = Need for new information
Why Has The Role of WOM grown?
• As life becomes more complex and choice proliferates, people are relying more than ever before on recommendations
- WOM now 1.5 times more important now than it was 25 years ago
• 89% of women believe recommendations by friends and family• 70% of women learn about new products or services from
another woman
Recommendations Make People Feel Confident And Keep Them Connected
WOM Growth
Where do you get most of your informationabout new products and services?
Late 70's Late 90's0
10
20
30
40
50
60
70
80
90
100
Friends & Fam-ilyAdvertisingEditorial
Internet 2.0
• The internet has caused a seismic shift in people’s ability to find information and communication with each other
• The next phase of web development – “Internet 2.0” sees the consumer taking control:
-Blogging-Community sites like MySpace and Face Book-User generated content as on You Tube or Flickr-Chat Rooms and Forums for consumers to comment on anything and everything!
• Suddenly anyone can get their voice heard and air their opinions to millions of others
-Advertisers want to harness this power -(And try and steer it to their benefit)
Why Is WOM So Important?
• Trust for big businesses is at an all-time low- And this includes their advertising
• Consumers are more ad-savvy than ever – they are no longer passively waiting to be told which products to buy
- Brand choice is huge & often overwhelming- Media fragmentation and consumer control
means they are also more easily able to edit out advertising they’re not interested in
Advertisers must find new ways of connecting and engaging with their
consumers, and new channels through which to speak to them
The Road to WOM
WORD OFMOUTH
MARKETING
Need for BreakthroughGrassroots Vehicle
Need for Remarkable Brands /Contagious Ideas
Need for Influential Consumers
Mass Marketing Less Effective
Low Credibility of Conventional Advertising
Established Brands / BusinessModels Under Threat
Number of Choices / BrandsUp
Low Credibility of Conventional Advertising
Tuning Out
Want Authenticity, intimacyRemarkability, edge
Rise of Word of MouthHeterogeneous Consumer
Distribution Concentration
Pace of Technology Faster
Less Time, Attention, Trust
Media Environment
Marketplace
Consumer
Fragmentation & Cost
Rise of Internet
Differentiation Low
Financial Pressure
Globalisation
The Decline of Trust
• Growth in WOM occurred during mid-90’s
• This coincided with a period when consumers lost trust in large organisations:
- Government- Businesses- Brands
• Instead they turned to family and friends as trusted sources
- Offer advice based on personal experience- NOT marketing spin or hype
Why Do People Trust?
A Person ‘Like Me’
Influencing the Influencers
‘Alphas’and‘Sneezers’: Influencing the Influencers
Traditional Advertising Model Communicati
on
Audience
Consumers are “Passive Receivers” who are served blanket advertising
‘Alphas’and‘Sneezers’: Influencing the Influencers
New Advertising Model
Communication
Audience
Reach Opinion Leaders and they will
pass the communication on to Opinion Followers
10%
90%
‘Law of the Few’
• Consumers aren’t a collection of isolated individuals but a community of interconnected people
• Brand perceptions shaped by many influences- Advertising- Word of Mouth- User imagery (aspirational people using
product)- Observed behaviour (watching how others do
things)
• Paid for communications can’t reach everyone- Instead influence the influencers and their
position in the hierarchy will help to position the brand in others’ eyes
Who Are the Influencers?
• Who they’re NOT:- Most affluent- Best educated- Elected officials- CEO’s of major corporations
• They ARE:- The 10% most actively engaged in social and
cultural dynamics of their community
• They are twice as likely than average to be asked their opinion on products and services
• They are also different for every category- Only approx 5% of people are “Pure” influencers
in every walk of life. The rest are influencers in 1, or
maybe more categories
Word of Mouth Marketing
Today’s marketing world is broken. We must accept there is no “mass” in mass media. We
must always remember the consumer is Boss… Consumers today are less responsive to
traditional advertising… they are embracing new technologies… and making purchase
decisions in environments where marketers have less direct influence.
Emergence of WOM As a Marketing Tool
Emerging marketing techniques being used currently, or intended to use in next 6 months
Email Market-ing
Word of Mouth
Search Marketing
Product Placement
Branded En-tertainment
0
10
20
30
40
50
60
70
80
%
Source: MPA
WOM Marketing
How to make it work:
Make it mutually beneficial
Give them a reason to talk
Empower consumers to share
experiences
Implementation of WOM
InfluenceThe
InfluencerProduct
InnovationBrand
Ambassadors
ReferralProgrammes
ProductSeeding
Get aCause
Listen toFeedback
Measure
How To Engage Consumers With WOM
• Keep it real and/or simple
• Be relevant and memorable
• Be personal
• Build a customer journey
• Provide support / expert advice
• Gain trust
• Provide brand experience
• Build connectivity
• Above all, show respect, and listen to feedback
The Honesty ROI: Honesty and Relationship, Opinion and Identity
• Honesty of Relationship- Be open about any relationship between marketer
and endorser
• Honesty of Opinion- Never tell consumers what to say
• Honesty of Identity- Disclose identity of origination of any
communication
• Research shows that being open about involvement in WOM marketing leads to better results than deception
Targeting the Influentials
Targeting Influentials
WOM in individual categories varies amongst different consumer groups.
The PPA’s Targeting Influentials study identifies who the Influentials responsible for generating it WOM are and how different product categories .
Then having identified the Influentials, what do their media consumption habits suggest might be an effective way of engaging with them?
Identifying the Influentials
Total (Existing Product) Total (New Product)
19
27
16
2221
19
Editorial/Programme Advertising
Friends and Family
Thinking about the following product area, where do you get MOST information about products and services?
% Agreeing
Source: BMRB Omnibus Survey/PPA Targeting Influentials 2008
Clothes Category
Identifying the Influentials
• Do you talk to lots of people about a category? (Connectors)
• Do you know a lot about the category? (Mavens)
• Is your opinion likely to convince others? (Sellers)
• Key Influentials are Connectors, Mavens and Sellers
Sellers
ConnectorsMavens
Influentials
Clothes Category
Source: BMRB Omnibus Survey/PPA Targeting Influentials 2008
Reaching Influentials
How likely are each of the following types of advertising to influence whether you would talk with others about Clothes?
Magazines TV Radio Newspapers Internet
70 70
40 42
51
Source: BMRB Omnibus Survey/PPA Targeting Influentials 2008
Reaching Influentials
Which media do the Influentials in the Clothes category use?
Magazines TV Radio Nat. News-papers
Outdoor Internet
190
132
57
110
127
165
Source : TGI /WOM : Key Influentials and heavy users of medium
How Can Media Get People Talking
A Reminder
• Who do people turn to for WOM recommendations?- Family- Friends- Colleague- Trusted Independent- Aspirational Endorser
• Media has the potential to act as either of these
How Readers Relate To Magazines
Magazines are in the centre of “My World”, the same placeas close family and friends – the place where trust is highest
Me
Nuclear
Family
Extended
Family
Local
Community
City, countyNation
Super-RegionWorld
Magazines
Return on Involvement
• Readers are so involved with the opinions of the magazine that they are often adopted as their own
• Magazines contribute more than any other marketing channel to a person’s own recommendations to friends and family
• This effect is strongest amongst the 10% of the population who are Influentials
• So not only do magazines influence their readers purchase decisions, they also have an indirect impact on the readers circle of influence
Return on Involvement
Ma
ga
zin
es
In-s
tore
Te
levis
ion
Ne
wsp
ap
er
Co
up
on
Ra
dio
We
b
25
35
45
55
65
General Population Influentials sm
Magazines have more influence than any other marketing channel
% Saying Which Marketing Elements Contributed to Recommendations of Theirs in Past Year
Source: Roper Reports
Just How Influential Are Magazine Readers
• Almost half of Influentials in the USA (49%) are heavy magazine readers
• But only 1/3rd (32%) are heavy TV viewers
• So, an Influential is 22% more likely to be a heavy magazine reader, (index 122) and 21% less likely to be a heavy TV viewers (index 79)
Source: Roper Reports
It’s Good To Talk
The heaviest 20% of magazine readers are the most likely group to talk to others about Toiletries, H/hold Products, Clothes,
Pharmaceuticals
Toiletries H/hold products Clothes Pharmaceutical/Chemist products
90
100
110
120
130
Magazines Cinema Outdoor Internet Radio TV Newspapers
Talked to others about
Index
Base: All adults
Source: TGI
Experts
The heaviest 20% of magazine readers know a large amount about many of different topics
Toiletries Clothes Alcohol H/hold products50
100
150
200
250
Magazines Cinema Outdoor Internet Radio TV Newspapers
Know a large amount about
Ind
ex
Base: All adults
Source: TGI
Talk to Many Different People
Toiletries H/hold products Clothes Home furniture/furnishing
75
100
125
150
175
200
Magazines Cinema Outdoor Internet Radio TV Newspapers
Talk to many different people about
Ind
ex
The heaviest 20% of magazine readers talk to many different people about certain topics
Base: All adults
Source: TGI
Likely to Convince Others
The heaviest 20% of magazine readers believe they are likely to convince others about their opinions on a range of different
categories
Toiletries H/hold products Alcoholic drinks Food for home75
100
125
150
175
200
225
250
Magazines Cinema Outdoor Internet Radio TV Newspapers
Very likely to convince others about
Ind
ex
Base: All adults
Source: TGI
But What About the Internet?
• Recent Millward Brown research suggests that though Online WOM is more visible, offline is more powerful:
- Online WOM works best for certain products or services e.g. car insurance, digital cameras
- However, consumers are starting to seek expert recommendations using online sources
- Furthermore, offline is more often used to spread negative WOM
• Personal contacts are far more important for seeking advice - they are a trusted source who understands what is needed
- Online WOM is diminished by lack of knowledge about who’s giving the advice, and by lack of knowledge about who wants the advice
Summary of Findings
• The need for Word of Mouth has risen as the belief in traditional forms of advertising have declined
• Word of Mouth is all about TRUST-When people feel vulnerable-When they’re going through changes in lifestage-When they need advice about something from an
expert – but someone they know, not an impersonal advisor
• Certain consumers are more likely to be conveyors of WOM
-These people are known as Influencers – about 10% of the population
-However Influencers are generally different for each category