WORD OF MOUTH MKTG

WORD OF MOUTH MKTG

TRANSCRIBED TEXT

Page I-5 — SUMMARY

Since the exploding array of new products and services is causing more and more confusion in the marketplace, and in the minds of early buyers of industrial or consumer goods, we should:

1. Organize more deliberate efforts to coordinate the product’s field experience, buyer selection, installation, and results.
2. Purchasers buy the new model principally upon the recommendations of others who have used a prior model, and through advertising. Buyers of this product are often influenced by word-of-mouth communications.
   The trend is toward more sophisticated professional purchasing on the part of trained buyers in both industrial and household consumption.
3. If this product is truly revolutionary and “uniquely useful,” advertising must be used to inform both old and new customers of immediate availability, and counter competitors who may attempt to imitate the product. Generally, as the product life cycles decrease dramatically, influencing the early buyers becomes more important and will greatly affect success.

Use systematic word-of-mouth strategies as the keystone for introducing new products and services. The campaign should include specially selected, reliable customers to trial-perform and generate product and selling strategies.

 

Under Project EGO, I want the 6,000 (College) job seekers to talk to their friends / ex-classmates,

for “publicity” version of the program. 

Each recommends one friend → 12,000 members. 

The chain-reaction will start → 3 lakh → 30 lakhs.

 

Under Project CYBER, I can enlist Bombay Rotarians

to start contacting > thousands > on the subject 

of Recruiting Managers – who are our ultimate 

potential clients for our web service.

 

Right Page — “Make Word-of-Mouth Marketing Systematic”

Because of personal involvement? Trying to figure your way through the complexities of using personal influence? The writer will help you do so in a more systematic way. The “best way to sell a new product”—as far back as anyone can remember—has been by word-of-mouth.

Certainly word-of-mouth has never been more widely used than today.
Practically all new consumer products—and particularly the so-called highly technical products—have required word-of-mouth communication for success. And in fact, most new products which are highly technical require it as a principal method of gaining acceptance. Even when they are relatively simple, the use of word-of-mouth is critical.

The need for systematic application is obvious. Each year possibly several thousand new products are introduced. To expect advertising alone to move all of them into mass acceptance is highly unrealistic. Word-of-mouth is clearly important. But the firm should not rely upon accidental or uncontrolled, casual word-of-mouth communication.

A much broader use of other types of mass media advertising and the help of professionals must be coordinated.

McKinsey, in fact, recommends:

1. Highly deliberate communication can take many different forms.
   In many industries, performance trails or demonstrations by key professional buyers are used. In others, the testimonials of users are brought in.
2. Viral effect — where one user tells another — must be tapped.
3. Word-of-mouth cannot be left to chance.
   The more complex the product, the more structured the campaign needs to be.

The page also emphasizes that many companies fail because they rely too heavily on advertising. They ignore that the first users of complex products must be carefully selected, informed, and supported.

The firm should realize that:

• Product performance must be properly measured.
• The communication of such performance must be equally managed.
• The right people must be approached in the right sequence.
• The firm must decide whether word-of-mouth will be accidental or directed.
• Management must decide who within the company should deliver it and how.

 

- 01/05/2003 

+ This is my writings in 1993 – Not 66 

+ Pursuing Fast-Track Innovation in 2003, will need to refer to it.

 

PURSUING FAST-TRACK INNOVATION

It is said, “There is no such thing as word-of-mouth advertising.”
Actually, there is no need to. Word-of-mouth is generated by the relationships a company builds through its quality, its service, and its product’s usefulness. It is governed by the unwritten law of “the truth as seen by the user.” Word-of-mouth is trust. Word-of-mouth is more efficient than most sales techniques.

Word-of-mouth as a word-of-mouth campaign falls into several categories.

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The Financial Community

When today a company is either innovating on the new model much more behind it or operating at the cutting edge, the business world of today is quick to react.
A company’s image with bankers and financial analysts spreads by word-of-mouth just as quickly as consumer opinion does.

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Consumer Goods

Word-of-mouth depends on user trial and public testimony, on their personal confidence.
Consumers want word-of-mouth to reach them from dependable sources.
Testimonies must come from people they trust.

Television, newspapers, radio, and glossy magazine ads cannot completely replace word-of-mouth recommendations of family and friends.

Industrial Buyers

More than 50 percent of them regard customer service histories as reliable.
They want proof before they experiment.
Word-of-mouth testimonials from other industrial buyers are critical.

It is valuable to know that a lot of this word-of-mouth is not spontaneous.
It is the result of companies deliberately planning specific experiences and supplementing word-of-mouth with well-chosen communications materials.

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The Innovators

Dr. Rogers of the University of Southern California is the leading exponent of the “diffusion of innovation.”
He has searched for years for ideas and product innovations most worth implementing.

He identifies that “innovators” are usually people of high intelligence and income.
They actively seek out new ways to improve efficiency.
They are somewhat isolated from social relationships.
They bear most of the responsibility for picking up new ideas; almost 2.5% of consumers follow innovators.
These innovators develop public confidence.
Once impressed, they pass their ideas on to other receptive people.

Most companies concentrate solely on gaining the attention of the buyers.
Encouraging innovators ensures rapid acceptance.
The product is given added momentum by people who understand it well, and can help sell it.

94 → 05/2003

 

I am aiming for RELIANCE (Sury for 20 members Mar 2003)

All India: 30 million customers / Employment Exchange of 100 college job seekers

Each tells 10 million call centres (below C.I. – Phone no)

 

MAKE WORD-OF-MOUTH MARKETING SYSTEMATIC (cont’d)

Study after study that Dr. Rogers reviews reveals that it is impossible to ignore the significance of properly motivating the best possible word-of-mouth information.

The important thing is that a lot of word-of-mouth communication is no accident.
It can be planned.

Word-of-mouth travels fast when accompanied by the proper sequence of communications campaigns.
A 12-year-old boy won acceptance of his low-calorie soft drink because he used proper word-of-mouth strategy: starting with opinion leaders and then letting it spread.

There are several limitations of relying solely on the first users to spread the word.
People seldom have the methods of communicating the required information themselves.
Advertising becomes necessary merely to accelerate the process.

A concerted word-of-mouth campaign involving the right people in the right order will bring you acceptance.
It should involve introducing the product by testimonials of selected users, followed by advertising support, creating a snowballing effect.

One of the best word-of-mouth campaigns gained net profits of $1.5B by letting the early users become the campaign’s base.

The message is: get the right people first.
Use knowledgeable, respected people.

GETTING WORD-OF-MOUTH ORGANIZED

The most important point of which McKinsey speaks so persuasively is that the campaign must be organized.

• First: Carefully planned performance-verification tests can be conducted.
• Second: Testimonials can be gained from respected authorities.
• Third: Advertising and public relations must be timed to support highly reputable testimonials.
• Fourth: After sufficient testimony is obtained, advertising can be staged to boost user support.
• Fifth: Word-of-mouth must be channeled through organized media users.
• Sixth: The product should be designed so opinion leaders find it truly distinct and worth talking about.
• Seventh: Local word-of-mouth campaigns can be piloted in a detailed, written, structured fashion.

(All these produce a large multiplier effect.)

We can launch Resumey / Credential / Employment Records

We can crowd-source “Opinion Leaders” = Recruiters!

THE SEARCH FOR SMALL, PROGRESSIVE BUYERS

The most critical word-of-mouth activity begins with small, progressive buyers.
They actively seek information.
They have the unique ability to recognize innovation.
They have the financial backing of education and intelligence.

It is these small buyers who will experiment and lead the way to full acceptance.

At Job Fair: 200–300 Colleges (all IP?) 

Job Fairs 2002–2003: Coimbatore / Lloyd’s / MEPZ

 

Page I-6 / PURSUING FAST-PACED INNOVATION

products and services. Therefore, you’d be wise to look for those key individuals with experience, or associations, that make them more likely to become early adopters.
Pouring a small bit of your energy into getting a couple of these leaders on board is usually a worthwhile strategy.

FIRST STEPS

Take one new product and ask these questions:

1. Am I designing for 2.5 percent of my market, plus others who can respond* to innovations before the rest?
2. Am I aware of my salespersons’ background, education, financial reward (in time and money), job tenure, network development and appreciation?
   Are they compensated for doing so?
   Do they vigorously use a consistently active network developed during his (or her) college years?
3. Based upon the answers, develop a step-by-step word-of-mouth plan, targeted very precisely at a few key (appropriate customers) to assure or enhance product/service acceptance.

01/05/2003

 

MENTORS?