CHAPTER 1 EXECUTIVE SUMMARY
Hot topic
The future decoded
Action points
CHAPTER 2 THE FUTURE DECODED
Putting viral and word of mouth marketing into context
Distinguishing between viral and word of mouth marketing is important
Four core factors account for the growing relevance of viral and word of mouth marketing
TREND: consumers suffer from information overload
TREND: consumers are connecting with friends and family more frequently
TREND: consumers increasingly seek connoisseurship
TREND: consumers continue to lack trust in institutions and specifics of product claims
Trust and satisfaction are key determinants for positive word of mouth
TREND: consumers rely on interpersonal recommendations more frequently
Viral related communication is gaining greater attention
INSIGHT: message diffusion is influenced by different consumer groups
Opinion Formers are the smallest group affecting referrals
Adopters play a more crucial role as ‘Trend Connectors’
Regulars act upon information gained from the Adopters
INSIGHT: product type influences the message diffusion process
Product format determines consumers’ influence levels
Viral and word of mouth marketing is more conducive to certain products
Brand familiarity and customer loyalty are also important factors
INSIGHT: age and gender do not significantly affect campaign success and relevance
…but viral and word of mouth advertising is deemed particularly relevant to younger consumers
Women are more likely to share opinions about gender neutral products
INSIGHT: attitudes towards viral and word of mouth marketing are changing
Consumers are becoming more skeptical and aware of new tactics
Consumers respond particularly well to four key factors
Conclusions
The benefits must be analyzed on a brand by brand basis
Trendsetters and Trend Connectors possess important differences and must be targeted accordingly
Products must surpass consumer expectations
CHAPTER 3 ACTION POINTS
Adapt strategy depending on product or positioning
Target Opinion Formers for products seeking a cool positioning
Target the Adopters for products with mainstream positionings
Research consumers to identify the message connectors
Integrate viral and WOM efforts into your marketing strategy
Don’t underestimate advertising’s importance in creating buzz
Recognize the importance of packaging design in creating buzz
Use blogs to supplement research activities
Embark on a ‘seeding’ targeting initiative
Strategically seed products within target market clusters
Target influential consumers who can act as brand ambassadors
Talk to the people who talk to the customers
Ration information supply, or the product itself, to create buzz
Pursue ways of increasing consumer involvement
Embrace an ‘experiential marketing’ philosophy
Embrace the notion of customer-made marketing
Ensure that product offerings are “on-trend”
Use humor and simplicity to increase message ‘stickiness’
Use V&WOM marketing to distribute humorous, edgy messages
Make use of rewards and tempting incentive mechanics
Ensure the concept is simple, minimizing potential for distortion
CHAPTER 4 APPENDIX
Definitions
Research methodology
References
News Sources
LIST OF TABLES
Table 1: The % of European and US consumers who feel that “there is now too much choice when making most purchase decisions”, 2004
Table 2: New domestic products by industry, 1999 and 2004
Table 3: The % of European and US consumers who feel that “there is now too much advertising”, 2004
Table 4: Percentage of Europeans who “do not trust” the press, radio, television, political parties, big companies and religious institutions, 2003
Table 5: Levels of trust towards differing forms of corporate institutions, by country, 2004
Table 6: The level of trust consumers have in various claims made by packaged goods manufacturers, by country, 2004
Table 7: European and US consumers’ frequency of engaging in some form of word of mouth related communication, 2004
Table 8: The number of Opinion Formers, by country, 2004-2009
Table 9: The number of Adopters, by country, 2004-2009
Table 10: An analysis of mainstream media that contributed to recommendations made by Americans, 2005
Table 11: The number of Regulars, by country, 2003-2008
Table 12: Perceptions of media effectiveness in making a consumer packaged goods products appear cool, EU and US consumer vs. EU and US industry respondent perceptions, %, 2003
Table 13: Age and gender variances regarding the frequency with which European and US consumers listen to and provide product recommendations, 2004
Table 14: Methods for identifying the category vanguard
Table 15: Examples of increasing consumer involvement by making consumers active participants in marketing and product development
Table 16: Definitions of terms and abbreviations used in this report
LIST OF FIGURES
Figure 1: Seven compelling factors justify the use of viral and word of mouth marketing
Figure 2: Four core factors account for the growing relevance of viral and word of mouth marketing
Figure 3: Despite demanding more personalized products and services, consumers feel there is too much choice when making most purchase decisions
Figure 4: European and US consumers feel there is too much advertising
Figure 5: Viral and word of mouth mediums are potentially important solutions to the expanding number of consumers seeking a less complicated lifestyle
Figure 6: Attitudinal insight shows that consumers place considerable importance on interpersonal interaction with family and friends and see their home as a place facilitating connectivity
Figure 7: In 2003-04 European and US consumers spent more time with family and friends including in the home
Figure 8: Consumers perceive that the recommendations of others are important and are showing a greater likelihood to rely on such communication when choosing products and services
Figure 9: Viral and word of mouth marketing is applicable to more than 90% of consumers
Figure 10: Virtual channels such as online forums are equally popular sources of information in Europe and America
Figure 11: Messages and products diffuse between the consumer groups
Figure 12: The three consumer groups influencing product and message diffusion have distinct characteristics 30
Figure 13: The limited number of consumers who demonstrate individualistic, status preserving consumption patterns will be predominately Opinion Formers
Figure 14: One major insight from P&G's Tremor research is that Tremor's connectors exist throughout the product adoption curve
Figure 15: The importance of coolness and conspicuous consumption varies by product category within the package goods industry
Figure 16: The relative importance and frequency with which consumers made word of mouth recommendations differed little between genders in 2003-2004
Figure 17: Two phases characterize successful viral and word of mouth campaigns
Figure 18: Different targeting strategies should be implemented for aspirational and mainstream brands
Figure 19: Marketers can identify which consumer adoption group to target using the following matrix which is applied to consumer packaged goods
Figure 20: Stonyfield Farm uses blogs to show it is concerned with top-of- mind consumers
Figure 21: Products that are aligned with the 10 mega-trends guiding consumer behavior are more likely to benefit from positive word of mouth
