Word of mouth can be either positive or negative. When a company is mentioned negatively, it can also affect the company negatively. People may share their bad experiences with others. In addition, they may stop buying products from that company. Ed Keller and Brad Fay discuss negative word of mouth in Chapter 8 of The Face-to-Face Book.
In 2005, Dell suffered from negative word of mouth. Jeff Jarvis, a well-known blogger, explained the bad service he received from Dell about his "lemon," (p. 186) or bad computer. He blogged for a few weeks and was never satisfied about Dell's lack of a reaction. Finally, he wrote to Dell's Chief Marketing Officer and received a refund, which satisfied him. He selected to receive a refund because the company took so long to respond to his issue. While he was waiting for a response, he decided to buy an Apple computer.
Dell was not listening to what Jarvis wrote. At first, the company did not know that people were becoming unhappy with the company. The posts by Jarvis reached many people and the unhappiness with Dell skyrocketed. Other people began to share their negative experiences with the company. Eventually, when people searched "Dell Sucks" (p. 187) on Google, Jarvis's posts were ranked fifth. When Dell found out about the negative posts and the dissatisfaction, they were not impressed. The company had a focus on being direct with customers. This idea of being direct also applied to relationships with customers. If a customer had a problem, Dell wanted to fix it as soon as possible. This did not happen with Jarvis.
Jarvis did not want to continue his business with Dell. He went and bought a new computer from a different company. When people write about a bad experience, they want it fixed as soon as possible. They don't want to wait for days and weeks for a response from the company. If people have to wait, they will likely follow Jarvis's example and lose faith in the company. Also, they may decide to not buy anything else from the company.
It is very common for people to write negative reviews of a product or company. When a negative review is posted, it can be a catalyst for others to share their thoughts. Dell is one example on how a flood of negative word of mouth can hurt a company. It is also important for companies to keep track on what is being said about them. If a company does not do that, they may become unaware of negative feedback.
Thursday, April 24, 2014
Thursday, April 17, 2014
Word of Mouth Helps House Party
Word of mouth is one way people can talk about a product or brand. By talking directly to other people, people can ask and receive answers to their questions quickly. One way word of mouth works is by hosting events. Ed Keller and Brad Fay discuss word of mouth in Chapter 8 of The Face-to-Face Book.
Gene DeRose was one of the first people hired to work at Jupiter Communications. After being promoted to the head of research, he eventually became the Chief Executive Officer for the company. However, Jupiter was sold when the company's value quickly dropped. However, DeRose was not discouraged. The Internet's role in marketing kept his spirit up. His new goal was to start a company where marketers could acsess in-home brand experiences for consumers, courtesy of the Internet. He wanted social people to have the chance to entertain others by hosting events in the comfort of their home.
DeRose's goal came true in 2005, when House Party was created. House Party allows people to host in-home events for friends and family. Interested people can fill out a survey so they can potentially host events they are interested in. A House Party client sponsors every event. Some of their well-known sponsors include Kraft, McDonald's, and Ford. There is a new thing shared at each party, whether it is a new item, a worthy cause, or even a television show. The goal is to build up conversation before, during and after the party, and that is exactly what happened.
Thanks to word of mouth, House Party has been successful for nearly ten years. There is the possibility for discussion about an event in every stage: before, during and after. People can build up hype about an event and make it sound like a fun thing to attend. There can be discussions and questions at the event. Afterwards, people can discuss their thoughts on the event on social media or through face-to-face conversations. The post-event discussion can make other people want to attend a party or even host their own party.
Gene DeRose was one of the first people hired to work at Jupiter Communications. After being promoted to the head of research, he eventually became the Chief Executive Officer for the company. However, Jupiter was sold when the company's value quickly dropped. However, DeRose was not discouraged. The Internet's role in marketing kept his spirit up. His new goal was to start a company where marketers could acsess in-home brand experiences for consumers, courtesy of the Internet. He wanted social people to have the chance to entertain others by hosting events in the comfort of their home.
DeRose's goal came true in 2005, when House Party was created. House Party allows people to host in-home events for friends and family. Interested people can fill out a survey so they can potentially host events they are interested in. A House Party client sponsors every event. Some of their well-known sponsors include Kraft, McDonald's, and Ford. There is a new thing shared at each party, whether it is a new item, a worthy cause, or even a television show. The goal is to build up conversation before, during and after the party, and that is exactly what happened.
Thanks to word of mouth, House Party has been successful for nearly ten years. There is the possibility for discussion about an event in every stage: before, during and after. People can build up hype about an event and make it sound like a fun thing to attend. There can be discussions and questions at the event. Afterwards, people can discuss their thoughts on the event on social media or through face-to-face conversations. The post-event discussion can make other people want to attend a party or even host their own party.
Thursday, April 10, 2014
Using Social Media in Moderation
In advertising, social media has been used modestly with most companies. A brand that primarily focuses on social media for advertising, such as PepsiCo, is not very successful. However, brands that use social media modestly, such as Zappos and Old Spice, have had more success. These brands understand social media is only one medium for advertising and there are other available channels. Ed Keller and Brad Fay discuss how social media should be used in moderation in Chapter 6 of The Face-to-Face Book.
Keller and Fay begin their discussion with Facebook. Dan Rose, Facebook's vice president for partnerships, is a regular speaker for the company. In 2011, Rose spoke at a marketing event to explain the impact Facebook has on culture and business. He stated while Facebook is a took to record your activities, Facebook is also an activity in itself. Rose also discussed how people are more likely to remember an ad if a friend's name pops up in the ad. By including a name in the advertisement, it is more likely someone will remember the ad and purchase the item in the ad. The person who saw the ad would be more likely to remember the friend's name, and then the ad. Then, the person may tell others about the ad.
Apple is considered to be a great brand from the word-of-mouth perspective. The company did not have a Facebook page in summer 2011. Also, they had a light Twitter presence with two feeds. One feed focused on the App store, while the other was dedicated to the iTunes music store. These feeds mainly promote apps and music and do not have a strong focus on engaging with consumers. Apple relies a lot on the retail stores, not social media. By relying on stores, they want potential customers to come into a store and check out their products. Apple is a successful company because of the marketing and design of their products. Apple shows how a company can be successful and not use social media on a frequent basis.
Later in the chapter, Keller and Fay explain how brands use social media correctly. These brands use social media as a way to learn what people say about them. They do not try to learn what people say about them in real life. Social media is a supplement to other channels to share news and promotions. Also, social media is used as a way to help with customer service, but it is not the only way to get assistance. While successful brands have a social media presence, they do not rely solely on social media. They use a variety of channels to get their advertisements out to the public.
I agree with the idea of using social media in moderation. Social media has to be used in conjunction with other mediums, such as television and print advertisements. Not everyone is glued to social media. Some people prefer a print or television ad to check out. Those types of advertising should still exist. When social media and other mediums are used in advertising, it has the potential to reach the maximum number of potential customers.
Keller and Fay begin their discussion with Facebook. Dan Rose, Facebook's vice president for partnerships, is a regular speaker for the company. In 2011, Rose spoke at a marketing event to explain the impact Facebook has on culture and business. He stated while Facebook is a took to record your activities, Facebook is also an activity in itself. Rose also discussed how people are more likely to remember an ad if a friend's name pops up in the ad. By including a name in the advertisement, it is more likely someone will remember the ad and purchase the item in the ad. The person who saw the ad would be more likely to remember the friend's name, and then the ad. Then, the person may tell others about the ad.
Apple is considered to be a great brand from the word-of-mouth perspective. The company did not have a Facebook page in summer 2011. Also, they had a light Twitter presence with two feeds. One feed focused on the App store, while the other was dedicated to the iTunes music store. These feeds mainly promote apps and music and do not have a strong focus on engaging with consumers. Apple relies a lot on the retail stores, not social media. By relying on stores, they want potential customers to come into a store and check out their products. Apple is a successful company because of the marketing and design of their products. Apple shows how a company can be successful and not use social media on a frequent basis.
Later in the chapter, Keller and Fay explain how brands use social media correctly. These brands use social media as a way to learn what people say about them. They do not try to learn what people say about them in real life. Social media is a supplement to other channels to share news and promotions. Also, social media is used as a way to help with customer service, but it is not the only way to get assistance. While successful brands have a social media presence, they do not rely solely on social media. They use a variety of channels to get their advertisements out to the public.
I agree with the idea of using social media in moderation. Social media has to be used in conjunction with other mediums, such as television and print advertisements. Not everyone is glued to social media. Some people prefer a print or television ad to check out. Those types of advertising should still exist. When social media and other mediums are used in advertising, it has the potential to reach the maximum number of potential customers.
Thursday, April 3, 2014
Word of Mouth and the Internet
Ed Keller and Brad Fay explain how a brand's successful advertising results in conversation. When an advertisement is done correctly, it makes people curious to learn more about a particular item or brand. Advertising makes people talk about a brand. People want to talk about brands for a number of reasons. They can share their experiences with a particular brand. Also, they can learn more information about a brand they do not know. Chapter 5 of The Face-to-Face Book discusses the importance of word of mouth and how the Internet plays a huge role in creating word of mouth.
Good advertising has the ability to create a good amount of word of mouth, one factor in determining the success of advertising. Word of mouth is not generated through one medium. However, the Internet has become the channel that creates the most conversation. Keller and Fay's research explains how the Internet creates offline conversations to help make successful advertising. When a persons views an online advertisement, it can become a conversation starter, such as, "Did you see that soap commercial?" The other person may or may not have watched that commercial. If the other person did, there would be a discussion about the commercial and the brand. If not, the person who watched the commercial could share the information with the other person.
There are three categories of messages that are delivered online: paid, brand-owned and earned. In word of mouth conversations, the Internet is referred to 16 percent of the time. A company website follows at 5.2 percent, while an Internet ad is mentioned 4.5 percent of the time. Other websites are talked about in 3.1 percent of the conversations. Online consumer reviews and social media are mentioned 2.9 percent and 2.6 percent, respectively. While the elements do not surprise me, the percent of social media reference does surprise me. I thought social media would be mentioned in at least 10% of conversations. There are blogs and social networking sites where people share their thoughts and opinions about products and brands, both positive and negative. With the growth of social media, I expected it to be referenced more than 2.6 percent.
The Internet also plays a role before, during and after conversation. Keller Fay did a study for Google in 2010 that determined the role of the Internet in conversation, compared to television and print. The study found that the Internet and television play equal roles before conversation, while the Internet takes a higher role during and after conversation. The Internet was found to be a leader in each phase. Before a conversation, a person may find an interesting item or brand online, which can become a conversation starter. During a conversation, if an item or brand is mentioned, a person can do a search for that item or brand. Once a conversation ends, a person can look online for more information about that brand or item.
The Internet has a large impact on creating word of mouth for brands and items. There is creative advertising online that sparks interest and conversation. There are a number of ways to refer to an online advertisement, such as an Internet ad or social media. The Internet also leads the way in the conversation process. While there are other mediums out there, the Internet is leading the way for word of mouth conversations.
Good advertising has the ability to create a good amount of word of mouth, one factor in determining the success of advertising. Word of mouth is not generated through one medium. However, the Internet has become the channel that creates the most conversation. Keller and Fay's research explains how the Internet creates offline conversations to help make successful advertising. When a persons views an online advertisement, it can become a conversation starter, such as, "Did you see that soap commercial?" The other person may or may not have watched that commercial. If the other person did, there would be a discussion about the commercial and the brand. If not, the person who watched the commercial could share the information with the other person.
There are three categories of messages that are delivered online: paid, brand-owned and earned. In word of mouth conversations, the Internet is referred to 16 percent of the time. A company website follows at 5.2 percent, while an Internet ad is mentioned 4.5 percent of the time. Other websites are talked about in 3.1 percent of the conversations. Online consumer reviews and social media are mentioned 2.9 percent and 2.6 percent, respectively. While the elements do not surprise me, the percent of social media reference does surprise me. I thought social media would be mentioned in at least 10% of conversations. There are blogs and social networking sites where people share their thoughts and opinions about products and brands, both positive and negative. With the growth of social media, I expected it to be referenced more than 2.6 percent.
The Internet also plays a role before, during and after conversation. Keller Fay did a study for Google in 2010 that determined the role of the Internet in conversation, compared to television and print. The study found that the Internet and television play equal roles before conversation, while the Internet takes a higher role during and after conversation. The Internet was found to be a leader in each phase. Before a conversation, a person may find an interesting item or brand online, which can become a conversation starter. During a conversation, if an item or brand is mentioned, a person can do a search for that item or brand. Once a conversation ends, a person can look online for more information about that brand or item.
The Internet has a large impact on creating word of mouth for brands and items. There is creative advertising online that sparks interest and conversation. There are a number of ways to refer to an online advertisement, such as an Internet ad or social media. The Internet also leads the way in the conversation process. While there are other mediums out there, the Internet is leading the way for word of mouth conversations.
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