Word of Mouth Communication: A Powerful Force in Marketing Strategies

This essay delves into the significance of word-of-mouth (WOM) communication in marketing, recognizing its potency as a catalyst for change while acknowledging its inherent inaccessibility. It examines WOM as a powerful marketing tool, contrasting it with traditional methods and highlighting its higher conversion rates due to personal recommendations. The essay discusses positive and negative patterns of WOM, emphasizing its interpersonal nature, non-commercial motivations, and commercial content. It explores areas like sales and community building where WOM is crucial, providing examples of its effectiveness. The analysis also covers the role of customer loyalty and the influence of WOM across different geographical regions. The report concludes by summarizing the key aspects of WOM and its impact on business strategies.

Individual Essay

Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY..................................................................................................................................1
Word of mouth communication is the most powerful force for change but the least accessible.
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CONCLUSION................................................................................................................................4
REFERENCES................................................................................................................................6
APPENDIX I...................................................................................................................................7

INTRODUCTION
Within marketing, word of mouth is considered as the essential aspects mainly when
attitudes of customers is strongly changing as well as becomes much protected for traditional
means of marketing communications like advertisements (Iyer and Griffin, 2020). Moreover,
word of mouth is often undertaken as the one of the traditional as well as much powerful types of
marketing. Also, this is vital as it provides usually a personal suggestion by someone to whom
individuals knows and also experience that product or services. Therefore, this is also known to
have much higher conversion rates in comparison to any other types of marketing. The marketers
use research evidences such as clients’ valuable feedback their desires and other on consumer
loyalty to enhance customer satisfaction. The main aim of this report is to discuss upon the topic
that is Word of mouth communication is the most powerful force for change but the least
accessible. Along with discussing about the positive and negative pattern of word of mouth as
well as also three future research areas which may help firm to understand word of mouth better.
MAIN BODY
Word of mouth communication is the most powerful force for change but the least accessible.
Word of mouth is considered as the oral, individual to individual communication among
receivers as well as communicators who the receivers considers as non commercial, undertaking
a brands, goods or services. Moreover, the definition of word of mouth incorporates three
aspects. The initial one is word of mouth is essentially interpersonal as well as may be
differentiated from mass communication like advertisements (Ruvio and et. al., 2020). Along
with this, it also highlights that word of mouth is excluded from third party source like social
media content, customer’s report and rating portals as this is not directly conveyed from
individuals to individual. Other one is, word of mouth is provided from sender to receiver is free
of commercial motive as sender is interested to talk related to goods or service without being
incentivised. Furthermore, the last aspect is, content themselves is commercial as sender tells
about their experiences with specific brand or services. In addition to this, this may be explained
that the non commercial communication of information regarding brand is undertaken to be
enormous strength of word of mouth.
As communication among customers’ does not always includes positive messages related to
firm, products or services as well as there are some negative communication also. Additionally,
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the negative word of mouth as interpersonal communication within audiences and focusing on
marketing the goods or firm that denigrates the communication aspects. The negative pattern of
word of mouth communication is as word of mouth but this generates a damage contents along
with the chain of communication as well as have harmful impacts upon organisations.
Furthermore, this does not always incorporate the faiths related to entity. Along with this the
rapid spread of miscommunication as well as rumours among clients is also undertaken as
adverse word of mouth. Additionally, this has been determined those rumours are often
outcomes of anxiety and uncertainty combination within customer market.
Apart from this, the positive word of mouth communication is whole about sharing optimistic
information related to goods, brands or services which are performed among customers.
Respective pattern of word of mouth is much advantageous for entity because of greater faith
which is placed into customer to customer communication. So, this has been determined that the
pattern of positive word of mouth communication generally includes message that are formed as
well as shared which are extraordinary, undesired, barely credible instead of common and
desirable. Some areas which may help firm to understand word of mouth better such as finance,
sales and many others (Vasan, 2020). Sales, it is one of the essential areas which aids entity to
develop sales without spending upon the ads. Such as various brands from hustle to bangs shoes
as well as much utilise word of mouth marketing rather advertisement spend for enhancing sales
and attracting audiences attentions. Other area is developing community not commodity, as word
of mouth communications helps entity to develop various customer base instead of purchase as
well as bolt clients. As the higher involved clients purchase much often as well as suggest its
friends, relatives and others more often, enhance their return on time spending upon tactics as
well as producing higher consumers’ lifetime loyalty. Additionally, this has been undertaken that
that more funding include more freedom, as brand with higher loyalty of consumers as well as
then repeat buys receive much angel and venture funding. As CAC to LTV or clients acquisition
cost to lifetime value is undertaken as one of the vital aspects of health and effective model of
business into earlier times of firm’s life cycle. So, some of the effective example of this is E-
commerce entity are very known for using word of mouth marketing. As most of the individuals
suggest Amazon as trusted online business the term trust come from other person. This is so as
each consumers who are satisfied with their service, communicate to other individuals that it can
purchase from respective brand as well as their services is much efficacious. Therefore, this
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outcomes in affirmative word of mouth marketing or communication for particular brands. While
on other hand when Walmart utilises the tagline “Each day lower prices” so their low prices are
communicated to friends as well as it share with one another regarding latest discounts as well as
offers into local marketplace (Xue and Zheng, 2020).
Instead of this, word of mouth continues for playing an essential role all over the tracked
marketplaces, but in concern of privacy as well as diminishing brand trusts have develop it much
essentially into few places. At present, word of mouth is specifically vital within North America
that is 41% as well as Latin America in which about 4 out of 10 are cited this as main source of
discovery of goods (38%, index 1.21) (Why Word-of-Mouth Marketing is Crucial for a Winning
Brand Strategy). In addition to this, it could highlights meticulous personal privacy uncertainties
into these locations, growing customer for looking much traditional as well as trustworthy types
of brand advocacy. Additionally, these are also markets in which goods reviews plays main role
into discovery of brand. Along with this, the effectiveness of suggestion and reviews, peer to
peer and also explored beyond the customers industry, highlighting the social or cultural aspects.
In addition with this, it is also the marketing strategies which is viewed in favour through
business leaders into America, U.S. decision makers of business cited, discussion with
individuals from firm upon social network’ as the second much influential source for B2B
purchases as well as 62% of marketing executives undertakes that word of mouth is effectual
types of marketing. Beside this, the Middle East as well as Africa is one of the lowest indexing
region with about 23% of digital customers with assistance of WOM communication for
discovering new offerings just as they are less likely for using formal review sites (Appendix 1).
Customer loyalty is a proportion of a client's likeliness to do rehash business with an
organization or brand. It is the after effect of consumer loyalty, positive client encounters, and
the general estimation of the products or administrations a client gets from a business. Example:
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Therefore, this would be beneficial for the brand factors as it enhances profitability, to
appreciate better benefits, brands need to encourage client devotion. Business benefits go up by
25% to 95% when client consistency standards are expanded by just 5%. Moreover, effective
customer services have huge influences upon customer loyalty. As the particular brand provide
quality services to clients and accomplish their needs then they always like to take those services
from respective brand only that directly outcomes in brand development. For example, Starbucks
as they are known for their quality offerings.
CONCLUSION
As per the above report, it has been concluded that word of mouth is one of the traditional as
well as much powerful types of marketing as it provides usually a personal suggestion by
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someone to whom individuals knows and also experience that product or services. Moreover, the
communication among customers includes both messages positive as well as negative. In
addition to this, there are some areas which may help firm to understand word of mouth better
such as finance, sales and many others.
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REFERENCES
Books and Journal
Iyer, R. and Griffin, M., 2020. Modeling word-of-mouth usage: A replication. Journal of
Business Research.
Ruvio, A. and et. al., 2020. Consumer arrogance and word-of-mouth. Journal of the Academy of
Marketing Science, pp.1-22.
Vasan, M., 2020, October. Effectiveness of Word of Mouth Communication: Receiver
Perspectives. In 2020 Fourth International Conference on I-SMAC (IoT in Social,
Mobile, Analytics and Cloud)(I-SMAC) (pp. 246-251).
Xue, H. and Zheng, R., 2020. Word-of-mouth communication, noise-driven volatility, and public
disclosure. Journal of Accounting and Economics, p.101363.
Online
Why Word-of-Mouth Marketing is Crucial for a Winning Brand Strategy. 2021. [Online].
Available through:< https://blog.globalwebindex.com/chart-of-the-week/word-of-mouth-
marketing/#:~:text=The%20importance%20of%20word%20of,re%20more
%20trustworthy%20and%20valuable>
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APPENDIX I
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