Thoughts in Time

Here’s an idea that I have had that I haven’t seen expressed clearly. WOMMA had the “word of mouth vs. advertising” conference in New York, and there has been debate amongst advertisers and agencies about how to weigh one versus the other. My idea is that advertising and marketing function at different parts of the buy cycle. Consider a very simple buy cycle for a consumer and simple hi-tech product - say a digital camera.

1. The consumer sees an article in a magazine, a print ad, or an ad on TV
2. The consumer decides that they would like to purchase a digital camera
3. The consumer starts to research their purchse
4. The consumer talks to a friend or trusted source who they think is knowledgable about the product to get recommendations
5. The consumer buys the recommended product (he or she might or might not confirm the friend’s recommendation).

Of course, the 1. could also be initiated by a friend talking about a product, or seeing a friend or colleague use a product.

The key point is that advertising creates interest in a product or product segment, but WOM will have a greater impact on the exact product that the consumer ultimately chooses. It’s about where you want to create leverage. It’s also a great way that entrepreneurs can use WOM to enter established markets and gain market share. Make a product that consumers love - and you’ve essentially taken the market created through the mainstream players advertising spend, and then captured the consumers desire and converted them to a customer through your happy customer’s advocacy.

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