Statistics Marketing and Promotional Events

Question: Discuss about the Statistics Marketing and Promotional Events. Answer: Introduction: The word of mouth marketing is very popular form of marketing and promotional events nowadays. The words of mouth marketing refers to the way by which information passes from one person to another through simple conversation (Yeoh, Othman and Ahmad 2013). This is a very popular form of marketing that are used nowadays. In the 20th century, different social media sites like Facebook, Youtube uses this technique for advertising and marketing of the product (Groeger and Buttle 2014). The word of mouth marketing has become even more popular due to the increasing use of internet for research and marketing of products (Groeger and Buttle 2014). In this assignment, the growth of the words of mouth marketing in the current years is being studied. A detailed description about the methods of data collection is given in the assignment. The analysis of the data and the interpretation of the results of the analysis is also given in the assignment. The assignment will help the people and concerned authority of the country Australia to have a deeper look into the growing trends of word of mouth marketing and take necessary steps to improve the process. Problem statement The problem statement in this research work is to understand the growing trends of words of mouth marketing and analyze the factors that affects the form of the marketing. Research question The research questions in this problem are: What is the rate of growth of words of mouth marketing? What are the different methods of words of mouth marketing? Which method is most popular for word of mouth marketing? Does the use of internet have improved words of mouth marketing? What is the effect of social media in this form of marketing? Variables and Hypothesis The variables involved in doing the research work are use of internets, blogs for words of mouth marketing, expenditure of the company in this process of marketing. The expenditure of the companies on word of mouth marketing will depend on the popularity of the marketing process. The popularity of the marketing is measured with the help of customers use of reviews in the internet and other blogs for this marketing process. Therefore, the expenditure will be the dependent variable in the research study and the other factors the independent factors. The hypotheses involved in this research are stated as below: H0: The words of mouth marketing has not shown any change in its development. H1: The words of mouth marketing has shown significant development in the recent period. Literature review: Words of mouth marketing is one of the earliest and traditional forms of marketing used for many years. The words of mouth marketing involves passing information from one person to another. There are different methods of words of mouth marketing process used in the early period like storytelling, oral history and others. In the present days, internet and telephones are used for this form of marketing (Yeoh, Othman and Ahmad 2013). According to a recent study by Journal of Advertising research, 75% of the conversations happen through direct interaction, 15% through telephone and the remaining 10% through internet (Abendroth and Heyman 2013). The word of mouth marketing started during 1970 when a psychologist named George Silverman created a group of physicians to promote pharmaceutical products. There are three methods of this marketing process. The first method is where there is no influence of the company in the process of marketing. In the second method, the company uses influential customers to create a positive impact on other customers. In the third method, the company creates awareness among the customers through direct interaction (Sweeney, Soutar and Mazzarol 2014). The word of mouth marketing depends on various factors. The most important factor is the consumer satisfaction. It is a tendency of the people to try a product by relying on the comments given by the friends relatives rather than by any other people (Keller and Fay 2016). A survey conducted by Nielsen suggests that 84% of the people like to buy products by relying on the comments made by friends and relatives. The word of mouth marketing has a great impact on online shopping. In the online shopping sites like Amazon, Alibaba reviews are given by the customers about the products. The sales of the products depend on these reviews. The Nielsen survey states that 64% of the customers like to buy products based on the comments made by the other consumers. The B2B companies have improved their business through words of mouth marketing. The companies like Airbnb, Uber has improved their business mainly by this marketing process. The consumers of IT products are also influenced by word of mouth marketing (King, Racherla and Bush 2014). A study suggests that more than 90% of the B2B customers get information from word of mouth marketing. The social media sites like Facebook have an impact on words of mouth marketing. There are facebook pages of the products of the company where the customers can comment about the products. The feedback given by the customers attracts more people to buy the product (Pfeffer, Zorbach and Carley 2014). The word of mouth marketing also has some bad effects. The word of mouth marketing totally depends on the views of the customers. The customer dissatisfaction can affect the marketing of the products. Therefore, it is always advisable for the company to maintain a good quality of the product (Yeoh, Othman and Ahmad 2013). Methodology: The methodology involved in this research work involves three steps: data collection, data analysis and interpretation results of data analysis. Data collection: The data collected for this research work is mainly of primary type. The data is collected with the help of research questionnaire. The questionnaire contains questions about the different methods of words of mouth marketing, popularity of words of marketing, consumers attitude towards the different methods of the marketing and others. In order to know about the popularity of words of mouth marketing, the survey has to be conducted by taking into consideration the whole country. The entire country is divided into some clusters according to region and data has been collected from the people of those regions. The secondary data about the expenditure of different companies on the marketing process are obtainable from the company websites and other sites. Data analysis: The analysis of the data is carried out with the help of different statistical tools. Various methods of central tendency like mean, median, mode can be calculated. A time series analysis between the previous and past year values of expenditure of the company in word of mouth marketing can be done to understand the growth of this particular marketing form. A regression analysis study can also be done to understand the dependence of the variables like use of internet, social media and reviews on online sites for word of mouth marketing. Conclusion: The assignment aims to study the importance of words of mouth marketing in the present days. The use of internet and social media for this marketing is studied in this assignment. The data collected from different people is analyzed by various statistical techniques to understand the present trend of words of mouth marketing. A regression study is also conducted in this assignment to know about the usage of internet for word of mouth marketing. This assignment will help the companies and other concerned authorities to take a deeper look into the growing trends of word of mouth marketing and adopt this process for their promotional events. Reference: Abendroth, L.J. and Heyman, J.E., 2013. Honesty is the best policy: The effects of disclosure in word-of-mouth marketing.Journal of Marketing Communications,19(4), pp.245-257. Groeger, L. and Buttle, F., 2014. Word-of-mouth marketing influence on offline and online communications: Evidence from case study research.Journal of Marketing Communications,20(1-2), pp.21-41. Groeger, L. and Buttle, F., 2014. Word-of-mouth marketing: Towards an improved understanding of multi-generational campaign reach.European Journal of Marketing,48(7/8), pp.1186-1208. Keller, E. and Fay, B., 2016. How to use influencers to drive a word-of-mouth strategy. King, R.A., Racherla, P. and Bush, V.D., 2014. What we know and don't know about online word-of-mouth: A review and synthesis of the literature.Journal of Interactive Marketing,28(3), pp.167-183. Pfeffer, J., Zorbach, T. and Carley, K.M., 2014. Understanding online firestorms: Negative word-of-mouth dynamics in social media networks.Journal of Marketing Communications,20(1-2), pp.117-128. Samu-Visser, S., 2015. Word of Mouth.Word Hoard Issue 4 Complete, p.119. Sweeney, J., Soutar, G. and Mazzarol, T., 2014. Factors enhancing word-of-mouth influence: positive and negative service-related messages.European Journal of Marketing,48(1/2), pp.336-359. Yeoh, E., Othman, K. and Ahmad, H., 2013. Understanding medical tourists: Word-of-mouth and viral marketing as potent marketing tools.Tourism Management,34, pp.196-201. Yeoh, E., Othman, K. and Ahmad, H., 2013. Understanding medical tourists: Word-of-mouth and viral marketing as potent marketing tools.Tourism Management,34, pp.196-201.