Social media marketing is becoming an increasingly important part of companies’ marketing strategies. Hundreds of millions of users use social media daily which makes it an appealing way of getting the company and the products to the wider audience. This blog will take a look on word-of-mouth marketing and why it is important.
Word-of-mouth marketing (WOMM) has become even more effective through social media as the posts can reach a wider audience with a much faster pace (Whitler, 2014; Patton, 2015). WOMM is triggered when a customer experiences something positive or something more than expected (Entrepreneur, 2017). Social connectivity has increased with technological improvements therefore making it easier than ever for consumers to do your marketing for the company (Whitler, 2014; Patton, 2015). WOMM can be more effective than one-time viral marketing campaigns (Patton, 2015). By building trust with their customers, the companies can create brand ambassadors, who are excited of their products. By building a brand around trust and good customer service, companies can save in paid advertising and rely more on the customers doing the marketing through WOMM. Since 92% of consumers believe in the recommendations of their friends and families, WOMM is a powerful engine.
By studying marketing, you must have heard about the 4Ps of marketing. The 4Ps that are crucial in helping to understand what the products and services offer and how to plan for the next successful product offering. Whitler (2014) suggests that with WOMM, marketers should focus on the three E’s: Engage, Equip, Empower. By mastering the 3Es, the products can become the most talked about products in the industry. This will then ultimately lead to increase in sales and profits. Ikea has differentiated itself from its competitors as it has a strong brand awareness created around people’s abilities, or the lack of abilities, to build stuff. As mentioned above, the Ikea effect is one of a kind in its industry.
Ikea has build its brand around offering products that are affordable. The products come in a packaging of tens of different pieces that need to be assembled in order to get the wanted product. This can cause irritation in people but it also creates the so-called “Ikea effect” (Norton et al, 2011). When people are a part of creating or building a certain product, they can value the product more highly. It is suggested that successfully completing a tasks like that will create positive attributes of the product therefore create emotional attachment to it (Norton et al., 2011). Because people will be more proud of the products, they will be more likely to post about them to social media. This is cost-effective for Ikea since it relies on WOMM (Whitler, 2014). By a more proactive use of social media, Ikea could improve its engagement levels. By a more effective use of creativity in competitions, use of hashtags and humor, Ikea could improve their social media presence. Interacting with followers and using interactive hashtags could be a ways to improve the situation (Long, 2016).
References:
Entrepreneur (2017) Word-of-mouth advertisin (Online) <https://www.entrepreneur.com/encyclopedia/word-of-mouth-advertising> (Accessed 28th of February 2017)
King, C. (2015) 13 Instagram marketing tips from experts (Online) <http://www.socialmediaexaminer.com/13-instagram-marketing-tips-from-the-experts/> (Accessed 28th of February 2017)
Long, J. (2016) 7 Marketing tips to help grow your brand on Instagram <https://www.entrepreneur.com/article/280964> (Accessed 28th of February 2017)
Norton, M. & Mochon, D. & Ariely, D. (2011) The IKEA effect: When labour leads to love. Harvard Business School. https://contently.com/strategist/2014/11/07/how-ikea-became-kings-of-content-marketing. [Online] <http://www.hbs.edu/faculty/Publication%20Files/11-091.pdf>(Accessed 28th of February 2017)
Patton, T. (2015) 3 reasons why word-of-mouth marketing is important for your brand. (Online) <https://www.getambassador.com/blog/3-reasons-why-word-of-mouth-marketing-is-important-for-your-brand> (Accessed 28th of February 2017)
Whitler, A. (2014) Why word of mouth marketing is the most important social media (Online) <https://www.forbes.com/sites/kimberlywhitler/2014/07/17/why-word-of-mouth-marketing-is-the-most-important-social-media/#72b6933f54a8> (Accessed 28th of February 2017)