why use network marketing
Post on 24-Jan-2015
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Here Comes the Next Wave of Marketing & Media…
Crisis requires radical shifts in thinkingIn this recession economy smart marketers are now
rethinking traditionally held views...
The Fastest Growing Marketing/Media Segments
Expected 5 year Compound Annual Growth Rate
Word of Mouth (Network Marketing) 27%Internet/Mobile 14%Branded Entertainment 13%Custom Publishing 11%Out of Home 10%
Source: Veronis Suhler Stevenson
12 Reasons Why
Word of Mouth
(Network Marketing)
Deserves Your
Consideration
In This Economy
Reason #2 – Word of Mouth Taps The Values of New, Customer Participation Culture
Mass Media Word of MouthCustomers Now Want:FreedomCustomization ScrutinyIntegrityCollaborationEntertainmentSpeedInnovation
Participation Values Grade2/102/103/102/101/108/105/102/10
Participation Values Grade9/108/109/109/10
10/108/108/109/10
Evaluation Score 25/80 70/80
-93% of people believe word of mouth is the most reliable way to find out information about products and services (up +26 pts. Vs. 25 years ago)
Source: NOP World
Reason #1 – Word of Mouth Gets Noticed
Reason #3 – Word of Mouth Stimulates Action- 90% - proportion of people who can skip ads, do skip ads and- 69% - percentage of people who are interested in skipping ads completely
Source: Yankelovich
- 70% - percentage of people affected by word of mouth conversations- 37% buy it/try it - 24% consider it - 9% avoid it
Source: Keller Fay
BUT
Reason #4 – Word of Mouth is More Trusted
- 61% of people claim to buy the same brands as their friends (+28 pts. Vs. 4 years ago) - 90% trust their spouse - 82% trust their friends
Sources: Keller Fay/Yankelovich/Henley Centre
Reason #5 – Word of Mouth is a Competitive Advantage
Reason #6 – Word of Mouth Has Longevity- Over 30% of the broadcast content we see in mass media is advertising or promotion
How much is consciously & attentively well-received and retained in memory? Low to Virtually nil
- Average people have 17 word of mouth conversations each day
How much is interactive, spoken, internalized, retained and behavior altering? High
Reason #7 – Word of Mouth Costs Less Per ImpactNational Ad campaign low
impact splatter focus
82% of community members refer more people to a brand after joining
Face to face or on the phone high intensity Bull’s eye focus
Verses
Reason #8 – Word of Mouth Targets Influence
- 70% of Wikipedia’s content is produced by 1.7% of its audience
- Top ranked Influencer belief – “I love talking to others about things I’ve just discovered”
- Influencers are 2x more active, conversational and/or brand-involved than the mainstream consumer
Sources: Agent Wildfire, Keller Fay
Reason #10 – Word of Mouth is Consumer Driven
Entertainment Value Information Value
Entertainment Value Informational Value Explicit value (rewards) Intrinsic value (feeling of belonging) Extrinsic value (ego/reputation) Experiential value (immersion) Social value (making connections) Talent value (expressing skills/creativity) Service value (adds to the product) Collaborative value (1+1=3)
Mass Media Provides: WOM Provides:
Reason #9 – Word of Mouth is More Measurable and Linked to Growth
- Word of mouth activities have much better measurement ability because of their digital nature and opportunity to mine relationship with customer/member
- The #1 factor linked to business growth is word of mouth referral
- Word of mouth measures the key business drivers of engagement and advocacy
Sources: Agent Wildfire, Bain
Reason #12 – Word of Mouth is the Now & the Future
58% of marketers agree that word of mouth influence will overtake traditional media influence within a generation
73% of marketers believe marketers will become much more important in an organization by leveraging word of mouth strategies and tactics
Source: Agent Wildfire
Reason #11 – Word of Mouth Simply Provides More
Advocacy Ambassadorship BuzzCommunication Insight InnovationOperational Improvements Real world feedback SolutionsSupport User Generated Content
Don’t skate to where the puck is , skate to where it is going to be
In hockey, football or life, you have to be ahead of the pack
to receive the pass so you can score the goal. Don’t wait to run after the pass is begun.
By then it is too late.
Basic Slide Presentation Source: Agent Wildfire, Toronto, Canada
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