Word of Mouth Communication and Opinion LeadershipWord-of-mouth (WOM)Slide 3Opinion leadershipSlide 5Slide 6Generalized attributes of opinion leadersDiffusion of InnovationsOpinion leadership processOverlap of opinion leadershipThe motivation of opinion leaders1. Self-involvement2. Product involvement3. Social or “other” involvement4. Message involvementMarketing implications of W.O.M.Stimulating opinion leadershipSimulating opinion leadershipWhat is Buzz Marketing?Slide 20Slide 21Slide 22What are some of the products marketed by “buzz” or “seeding”?Slide 24Why is it growing so rapidly?What are the down sides?Ethically, what’s wrong with buzz marketing?Slide 28Slide 29What is “cool hunting”?Slide 31Slide 32Slide 33Word of Mouth Communication and Opinion LeadershipBuzz MarketingCool HuntingWord-of-mouth (WOM)Person-to-person communication between a receiver and a source whom the receiver perceives as non-commercial, regarding a product, service or brandHighly effective method of communicating informationParticularly effective in communicating negative informationDissatisfied customer will tell 9 others13% of unhappy customers will tell >20 othersWOM can beIn personPhoneMailInternetWOM can beVerbalVisualOpinion leadershipThe process by which one person--the opinion leader--informally influences the actions or attitudes of others who may be opinion seekers or opinion recipientsWho are opinion leaders?Can they be recognized by any distinctive characteristics?Can they be reached through specific media?Opinion leadership tends to be category specificIndividual who is an opinion leader in one product category may be an opinion receiver in another product categoryProfile of opinion leaders is likely to be influenced by the specific product categoryGeneralized attributes of opinion leadersTend to be consumer innovatorsWilling to talk about products and servicesSelf-confidentOutgoing and gregariousSame age as opinion seekerSame social status as opinion seekerDiffusion of InnovationsOpinion leadership processOpinion leadership is a very powerful forceCredibilityParticularly credible in negative commentsOverlap of opinion leadershipOpinion leadership tends to overlap across certain combinations of interest areasOverlap is likely to be highest among product categories that involve similar interestsThe motivation of opinion leaders1. Self-involvement2. Product involvement3. Social or ”other” involvement4. Message involvement1. Self-involvementSatisfies some basic need of their ownAttentionStatusAwareness of expertiseConfirm own good judgment and eradicate post-purchase doubts2. Product involvementThe greater a person’s involvement with a particular product, the greater their interest in sharing information3. Social or “other” involvementOpinion leaders motivated by ‘other involvement’ share information as an expression of friendship, neighborliness and love4. Message involvementPervasiveness of advertising in our society encourages message involvementIndividuals who are bombarded by commercial messages and slogans tend to discuss them and the products they are designed to sellMarketing implications of W.O.M.Marketers look for opportunities to encourage word of mouthProduct designers sometimes develop their products to maximize word of mouth potentialStrong, favorable word of mouth minimizes the company’s advertising budgetStimulating opinion leadershipTeaser campaignsAds that disclose just enough information to pique consumers’ intereststhe ad itself becomes the basis for discussion, leading to interest in the productBuzz marketingProduct placementSimulating opinion leadershipSlice of life commercials where actors portray consumers or professionals discussing a productTestimonials from celebrities are influential, especially where the celebrity is connected in some way to the productWhat is Buzz Marketing?A form of marketing where the consumer doesn’t know he or she is being marketed toGenerally, a marketing company pays an actor or socially adept person (opinion leader) to use a product visibly and convincingly in locations where target consumers congregateThe actor talks up the product to people they befriend, handing out samples if it is economically feasibleAlso known as:Undercover marketingStealth marketingUnder the radar marketingDiffusion marketingAmbient marketingViral marketing (on the web)Product seedingRoach baiting (to its critics)Diffusion of InnovationsInfluentialsTrend-translatorsConnectorsAlphasHubsSneezersBeesMagic peopleWhat are some of the products marketed by “buzz” or “seeding”?AutomobilesFord FocusPT CruiserTelevision showsLostMoviesBlair Witch ProjectVertical LimitBooksPurple CowBeerGuinness StoutClothesHush PuppiesLee jeansWhy is it growing so rapidly?1. Buzz is cheap2. The rise of the internet makes contact with millions of consumers possible3. Appeals to younger consumers skeptical of mass media advertising4. Presents opportunities for products like cigarettes and alcoholWhat are the down sides?1. Difficult to measure reach and success2. Backlash when people realize they’ve been deceived3. May eventually be overdone and become ineffective4. Less effective for “low-involvement” productsEthically, what’s wrong with buzz marketing?Consumers don’t know they’re being subjected to a commercial messageThus don’t view the message with the suspicion they would ordinarily apply to a commercial messageMarketers often engage children/teens to influence purchase behavior of other children/teensPractice is totally unregulatedWord of Mouth Marketing Association has drafted ethics codeCode is voluntaryCriticized for being vagueMini Cooper buzz marketing campaignWhat is “cool hunting”?“Reverse marketing”“Sell-back”Focuses on teen market32 million teens in the USLargest demographic group ever (outnumber baby boomers)Spend $100 billion per yearInfluence $150 billion in spending per yearCool hunters are looking for the 20% of the population who influence the remaining 80%“Culture spies” visit malls and other places where kids hang outAttempt to identify trends (e.g., clothing) before they developSell the
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