The main objective of manufacturing companies is
to achieve profit, after which they seek growth and expansion. To achieve these
efforts, organisations must communicate at all times their product benefits to
customers and prospects. The benefits must not only be satisfying, but be
unique to the product and company.
Why do organisations communicate product
information to consumers all the time? This is because consumer is the king. That is why advertising is constantly used
among other promotional tools to reach out to consumers especially through the
mass media. Word-of-mouth advertising is one of the least used forms of advertising
but very effective. This research work will examined the various ways word of
mouth advertising work and how organisations can effectively use it.
Regular advertising cost money because of the
stages it goes through, which are from concept origination to final exposure. With
these efforts, sometimes it is not effective because it appeal to mass audience
without any readily available means for immediate response to enquiry from
consumers. Word-of-mouth advertising on the other hand is less expensive but
more effective because the advocate give details while making recommendation.
What is Word-of-mouth advertising? This is a
process in which satisfied customers recommend used products to others through
the word of mouth.
1.1 STATEMENT OF THE
PROBLEM: Word of mouth
advertising as effective tool in achieving marketing objectives.
1.2 OBJECTIVE
OF THE STUDY: Purpose of the study
is to investigate the importance of word of mouth advertising as effective tool
in achieving marketing objectives with
emphasis on the food industry in Lagos.
·
To
find out if word of mouth advertising is
an effective way of advertising
·
To
establish if satisfied customers tell others to buy the product
·
To
see if incentive to satisfied customers will encourage them to recruit others
for the product
1.3 SIGNIFICANCE OF THE STUDY:
This research
work will be of great significance to food manufacturing companies, especially
as it concerns the use of advertising in general and word of mouth advertising
in particular. It will also come up with a strategy that will enable them perfect
the effective way to enable them use effectively word of mouth advertising
campaign.
1.4 SCOPE OF THE STUDY: The study will cover the use of creativity within the advertising industry in terms of
message creation and dissemination, and the combination of word of mouth with
other advertising media to achieve marketing objectives.
1.5 RELEVANCE OF THE STUDY:
This proposal
will give insight into the importance of word of mouth among other advertising media
like Press, Radio, Television and Outdoor, as well as how these elements help
achieve marketing objectives, especially among food manufacturing companies in
Lagos.
1.6 LIMITATION OF THE
STUDY: This study
will focus more on the importance of word of mouth advertising among other
advertising media. Future proposal can look at its monitoring and evaluation.
1.8 RESEARCH QUESTION
The research questions for this work are:
1 How does word-of-mouth
advertising contribute to marketing objective?
2 How does customer
perceive word-of-mouth advertising about a product?
3 Does word-of-mouth
advertising influence consumers to buy?
1.7 HYPOTHESES
H0: word of mouth advertising does not contribute
to making advertising effective in achieving marketing objectives.
H1: word
of mouth advertising plays a major role among advertising media in achieving
marketing objectives
H0: Other advertising media do not contribute to
achieving marketing objectives.
H1: Other advertising media do contribute to
achieving marketing objectives.
H0: Word of mouth and other advertising media do
not contribute to achieving marketing objectives.
H1: Word of mouth and other advertising media do
contribute to achieving marketing objectives
OPERATIONAL DEFINATION OF
TERMS
Advertising: A form of communication used to encourage or
persuade an
audience (viewers, readers or listeners) to continue or take some new action.
audience (viewers, readers or listeners) to continue or take some new action.
Word-of-mouth, Marketing (WOMM): Also known as word of mouth
advertising, it is an
unpaid form of promotion—oral or written—in which satisfied customers tell other to buy a particular product.
unpaid form of promotion—oral or written—in which satisfied customers tell other to buy a particular product.
Consumer preference: Consumer preference for a product means the
choice of a particular product or brand instead of similar one.
How Companies Find Consumer Preferences
Companies routinely test the market to find out what
customers like and dislike about their products and competitors' products. This
is usually done by an internal marketing department or outsourced to a market
research firm. Phone interviews, paper surveys, electronic surveys, focus
groups and consumer samplings are common methods for gathering information.
Direct marketing is a channel-agnostic form of advertising. This mean that target audience or customer will put their faith and believe on human recommendation than all other advertising media. This type of advertising allow businesses and non-profit organisations to communicates straight to the customer, with advertising techniques such as mobile messaging, email, interactive consumer websites, online display ads, fliers, catalog distribution, promotional letters, and outdoor advertising.
Consumer Behaviour: The study
of when, why, how, and where people do or do not buy product. It blends
elements from psychology, sociology, social anthropology and
economics. It attempts to understand the buyer decision making process, both
individually and in groups. It studies characteristics of individual consumers
such as demography and behavioural variables in an attempt to understand
people's wants. It also tries to assess influences on the consumer from groups
such as family, friends, reference groups, and society in general.
Testimonial: This is a statement in support of a particular
truth, fact or claim. It is an indication that makes something evident. It is a
recommendation of the character ability of consumer product or service.
Word-of-mouth
advertising: word of mouth advertising is more influential
than any other form of advertising. This is because people believe what their
friends and neighbour says about a company or product and they remember it for
a long time. Based on this, favourable decision is taken in favour of the
product when buying within the product category.
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