"Word-of-Mouth" Advertising in Selling New Products

Abstract

The article discusses informal networks of interpersonal relations that contribute to the marketing of individual brands and products. The article presents the evidence of interpersonal networks and why and how groups react to "word of mouth" communication. The importance of opinion leaders within these groups, their particular sphere of influence, and the decision making power of these individuals is discussed. The article addresses internal dynamics of groups through the seeking and gaining of information and the impact of group norms. The types of groups where word of mouth marketing really has an impact are also explored. Specific advice for marketers as to how to influence these informal networks is provided.