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Word of mouth

 

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Word of mouth



 
 
Word of mouth is a reference to the passing of information
Information

Information as a Conveyed concept has a diversity of meanings, from everyday usage to technical settings. Generally speaking, the concept of information is closely related to notions of constraint, communication, control system, data, form, instruction, knowledge, Meaning , stimulation, pattern, perception, and knowledge representation....
 from person to person. Originally the term referred specifically to oral
Speech

Speech is the human faculty of speaking.It may also refer to:* Public speaking, the process of speaking to a group of people* Manner of articulation, how the body parts involved in making speech are manipulated...
 communication (literally word
Word

A word is a unit of language that represents a concept which can be expressively communication with Meaning . A word consists of one or more morphemes which are linked more or less tightly together, and has a phonetic value....
s from the mouth
Mouth

The mouth, buccal cavity, or oral cavity is the first portion of the alimentary canal that receives food and begins digestion by mechanically breaking up the solid food particles into smaller pieces and mixing them with saliva....
), but now includes any type of human communication, such as face to face, telephone, email, and text messaging
Text messaging

File:Texting.jpgText messaging, or texting is the common term for the sending of "short" text messages from mobile phones using the Short message service ....
.

Word of Mouth Marketing
Word-of-mouth marketing, which encompasses a variety of subcategories, including buzz, blog, viral, grassroots, cause influencers and social media marketing, as well as ambassador programs, work with consumer-generated media and more, can be highly valued by product marketers.






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Encyclopedia


Word of mouth is a reference to the passing of information
Information

Information as a Conveyed concept has a diversity of meanings, from everyday usage to technical settings. Generally speaking, the concept of information is closely related to notions of constraint, communication, control system, data, form, instruction, knowledge, Meaning , stimulation, pattern, perception, and knowledge representation....
 from person to person. Originally the term referred specifically to oral
Speech

Speech is the human faculty of speaking.It may also refer to:* Public speaking, the process of speaking to a group of people* Manner of articulation, how the body parts involved in making speech are manipulated...
 communication (literally word
Word

A word is a unit of language that represents a concept which can be expressively communication with Meaning . A word consists of one or more morphemes which are linked more or less tightly together, and has a phonetic value....
s from the mouth
Mouth

The mouth, buccal cavity, or oral cavity is the first portion of the alimentary canal that receives food and begins digestion by mechanically breaking up the solid food particles into smaller pieces and mixing them with saliva....
), but now includes any type of human communication, such as face to face, telephone, email, and text messaging
Text messaging

File:Texting.jpgText messaging, or texting is the common term for the sending of "short" text messages from mobile phones using the Short message service ....
.

Word of Mouth Marketing


Word-of-mouth marketing, which encompasses a variety of subcategories, including buzz, blog, viral, grassroots, cause influencers and social media marketing, as well as ambassador programs, work with consumer-generated media and more, can be highly valued by product marketers. Because of the personal nature of the communications between individuals, it is believed that product information communicated in this way has an added layer of credibility. Research points to individuals being more inclined to believe WOMM than more formal forms of promotion methods; the receiver of word-of-mouth referrals tends to believe that the communicator is speaking honestly and is unlikely to have an ulterior motive (i.e. they are not receiving an incentive for their referrals).

In order to promote and manage word-of-mouth communications, marketers use publicity techniques
Publicity

Publicity is the deliberate attempt to manage the public's perception of a subject. The subjects of publicity include people , product and services, organizations of all kinds, and works of art or entertainment....
 as well as viral marketing
Viral marketing

Viral marketing and viral advertising refer to marketing techniques that use pre-existing social networks to produce increases in brand awareness or to achieve other marketing objectives through self-replicating Viral phenomenon processes, analogous to the spread of virus and computer viruses....
 methods to achieve desired behavioral response. Influencer marketing
Influencer marketing

Influencer marketing is a form of marketing that has emerged from a variety of recent practices and studies, in which focus is placed on specific key individuals rather than the target market as a whole....
 is increasingly used to seed WOMM by targeting key individuals that have authority and a high number of personal connections.

Marketers place significant value on positive word-of-mouth, which has historically been achieved by creating products or services that generate such "buzz" naturally. The relatively new practice of word of mouth marketing attempts to inject positive "buzz" into conversations directly. While marketers have always hoped to achieve positive word-of-mouth, deliberate efforts to generate beneficial consumer conversations must be transparent and honestly conducted in order to meet the requirements of Section 5 of the Federal Trade Commission
Federal Trade Commission

The Federal Trade Commission is an Independent agencies of the United States government, established in 1914 by the Federal Trade Commission Act....
 Act that prohibits "unfair or deceptive acts or practices." In order to help marketers understand the difference between legitimate and unfair practices, a number of professional organizations have put forward recommendations for ethical conduct..

Word-of-mouth effects in the life cycle of cultural goods has been mathematically modelled. For evidence as to the conditions under which word-of-mouth communication is effective, see Grewal et al. 2003.

With the emergence of Web 2.0
Web 2.0

The term "Web 2.0" refers to a perceived second generation of web development and web design, that aims to facilitate communication, secure information sharing, interoperability, and collaboration on the World Wide Web....
, many web start-ups like Facebook
Facebook

Facebook is a free-access social network service website that is operated and privately held company by Facebook, Inc. Users can join networks organized by city, workplace, school, and region to connect and interact with other people....
, YouTube
YouTube

YouTube is a Video hosting service website where users can upload, view and share video clips. Three former PayPal employees created YouTube in February 2005....
, MySpace
MySpace

MySpace is a social network service website with an interactive, user-submitted network of friends, personal profiles, blogs, groups, photos, music, and videos for teenagers and adults internationally....
, and Digg
Digg

digg is a social news website made for people to discover and share content from anywhere on the Internet, by submitting links and stories, and voting and commenting on submitted links and stories....
 have used buzz marketing by merging it with the social networks that they have developed. With the increasing use of the Internet as a research and communications platform, word of mouth has become an even more powerful and useful resource for consumers and marketers.

In October 2005, the advertising watchdog group Commercial Alert petitioned the FTC to issue guidelines requiring paid word-of-mouth marketers to disclose their relationship and related compensation with the company whose product they are marketing. The FTC stated that it would investigate in which the relationship between the word-of-mouth marketer of a product and the seller is not revealed and could influence the endorsement, and said that it would pursue violators on a case-by-case basis. Consequences for violators may include cease-and-desist orders, fines, or civil penalties.

Word of Mouth Marketing Association (WOMMA)

WOMMA is the official trade association for word of mouth marketing. The organization has more than 380 corporate members who have created a word of mouth profession based on best practices and measurable ROI. WOMMA offers its members the latest knowledge, research, and training through webinars.

Society for Word of Mouth (SWOM)

SWOM is a social network and educational resource for people who want to build word of mouth into the DNA of their organizations. Over 1,800 members from around the world share word of mouth ideas and challenges with each other. SWOM provides education through online and offline events.