Word of mouth advertising is a valuable and cost-effective way for businesses to promote their products or services. It is based on personal recommendations and can be more effective than traditional advertising. Companies can encourage word of mouth advertising through referral bonuses, contests, and public service events.
Whenever someone recommends a product to a friend, they engage in word of mouth advertising. This type of advertising is based on personal recommendations to promote a product or service. Businesses usually rely heavily on it to sell a product or service because it produces good results at a very low cost.
Businesses value word-of-mouth advertising for a variety of reasons. First of all, if a consumer tells someone how much he likes a company, that endorsement doesn’t cost the company money. Magazine, television, radio, and Internet ads can be expensive, but word-of-mouth advertising is usually free. The less money the company spends on advertising, the more profit it can make.
Word of mouth advertising is also valuable because it tends to produce good results. Sometimes people are skeptical of standard advertising. Maybe the ad doesn’t appeal to them personally, or they feel like the company is trying to get them to buy a product they don’t want. A friend’s testimonial can be trusted and is more likely to yield results.
Even more valuable are the word of mouth recommendations given by people who are presumed to be experts. Companies often offer free products or services to experts in an effort to get free word-of-mouth publicity. Reviewers receive merchandise or advance tickets to a movie, for example, and the publicity generated when they write a review more than pays expenses to the company.
It is often said in business that any publicity is good publicity. That’s because advertising is essentially word of mouth. If someone hears something about a company, even a bad one, they will remember the name. They will likely be curious about the business because of the news. Whenever someone hears about a company and what it sells from a friend or the news, word of mouth publicity helps the company get familiar with people.
Sometimes companies encourage word of mouth advertising from their current customers. They can offer referral bonuses to current customers who bring in new customers. They can run contests that get people talking about prizes that can be won. Other companies hold charity events or other acts of public service. All that gets people talking about a company is free publicity, and all successful companies know that free publicity can’t be beat.
Asset Smart.
Protect your devices with Threat Protection by NordVPN
