Word of Mouth Marketing and Paid Advertising

 Smart business owners know that advertising is a great source for generating new customers (KQV) and engaging current customers to return again and again. But when it comes to a return on investment, many small business owners especially fall into the trap of trusting their customers to do all of their advertising, a type of free marketing known as Word of Mouth Marketing, or Word of Mouth Advertising. After all, if a business treats their customer right, building a strong relationship that is mutually beneficial over time, then surely customers will be the only form of marketing a business needs, right? In a perfect world, yes, Word of Mouth Marketing would be the only type of advertising a business would need. Until that perfect world arrives, a land of fruitful prosperity for all in which customers remember everything about a business, know what image the business wants to project, is aware of every special in the past, present and future, and never have a bad day, paid advertising will be there for business owners. Word of Mouth Marketing is a great way to spread your brand around town, yet even the most knowledgeable customer knows only a small portion of your business.

Business owners are also consumers, and understand, from their own experience of the human condition, that memory alone is not as reliable as we all wish it could be. Vital details of a business, such as its phone number, address and website can be easily forgotten. A study conducted by Professor Ian Robertson of Trinity College Dublin revealed that too much reliance on technology, cell phones especially, has reduced our brain power in a measurable way (Cotter). Additionally, “…memories can be biased by the questions asked at the time of retrieval. Several famous studies have shown that the question can supply information that the eyewitness will incorporate into the answer. The question can easily supply information that helps fill in gaps in the respondent's memory.” (Green) If, as Green suggests, memory was fallible before the invention of cell phones and, as the study by Professor Robertson suggests, has gotten worse since cell phones have become common place, can a business owner who wants to succeed truly rely on their customer’s memory alone? A paid advertisement, on the other hand, can list the physical location of a business, the phone number and the website, putting this information readily available to future and current customers through a number of media. A print ad, such as one placed in a newspaper, mailer, flier or magazine, can be carried by the consumer. Adding a QR code to the ad, which can be scanned by certain types of ‘Smart’ cell phones, can ensure that the customer always has a business’ vital details, so long as their cell phone remains with them.

Along with the business’ vital details, a paid ad can create a consistent message. “In the world of advertising, consistency is like a scorecard on the wisdom of crowds. People know that advertising is expensive, so the more a company advertises, the more successful it must be. And the more successful it is, the more it means that other people are choosing it. Which means that it may be a good idea for you and I to choose it as well.” (McKee) Customer experience varies along a number of factors, including the customer’s mood. A customer in a foul mood is more likely to have a negative shopping experience, even when visiting one of his or her favorite stores. Positive Word of Mouth marketing can then turn to the negative very quickly. Customers may also not know all of the specials, sales, deals, and products a business offers. A paid ad can send the message a business needs it to send, and give customers a clear reason to buy.

Finally, paid advertising is meant to work for a business. A business is designed to work for the consumer. When a customer says to one of his or her friends or relatives, “I bought X for Y” there’s a good chance he or she is missing the key element of a product: it’s benefit to the consumer, rather than it’s features, such as the price point. “Only $499.99 is not as meaningful as save $50” (NDN Advertising).

The common saying, “You get what you pay for,” presupposes paying. Giving a business control over what details get out into the public, what message is sent, and all of the products/services offers is the point of paid advertising, and where Word of Mouth Marketing fails. If your business could be doing better, look at your marketing before blaming the economy, your employees, your consumers, your products, or even the President, to find a solution to the problem. Word of Mouth marketing is a great way to get new customers, but you’ll get even more when you spend your money wisely, and invest in paid advertising.

Works Cited

Cotter, Chris. "Cell Phones Affect Memory." 2012. Heads Up English. Report. 19 May 2013. <http://www.headsupenglish.com/index.php/advanced-english-students/advanced-news-lessons/advanced-science-and-technology-lessons/350-cell-phones-affect-memory>.

Green, Marc. "Eyewitness Memory is Unreliable." 2009. Visual Expert. Report. 19 May 2013. <http://www.visualexpert.com/Resources/eyewitnessmemory.html>.

KQV. "10 Reasons to Advertise." 2013. KQV.com. Document. 19 May 2013. <http://www.kqv.com/viewcontent.asp?sectionID=%7B290A645F-908F-4683-9B48-1FCDB9A1E7DD%7D&subsectionID=%7B08C30D3A-4B4F-4D9C-AACD-6E97711F82AA%7D>.

McKee, Steve. "In Advertising, Consistency Pays Off." 15 May 2009. BloombergBusinessweek. Document. 19 May 2013. <http://www.businessweek.com/smallbiz/content/may2009/sb20090515_045876.htm>.

NDN Advertising. n.d. Ten Ways To Improve Your ROI. 16 May 2013. <http://www.ndnadvertising.com/10reasons/Ten-Ways-To-Improve-Your-ROI.pdf>.