MODERN MARKETING
Authentic Advocacy:
The Game-changer for
Brands in China
By Asit Gupta
Chinese consumers have long
trusted the informal word of mouth
within their social network more than
any other means of communication.
Over the last decade, the digital
revolution has massively boosted
the scale and speed of this social
exchange of information and
opinion. It is like Chinese whispers
on steroids.
Without massive media spend
brands cannot grow, and without
growth they cannot fund the media
spend.
Brand Advocacy can be unleashed
for even mundane and low
involvement products.
China is the most exciting growth
opportunity in the world for
companies and brands. However
consumer attitudes and the
media landscape present unique
challenges. In this huge market,
which can be a minefield to the
uninitiated, a more authentic
approach to Word of Mouth
marketing using Advocates can be a
game changer, delivering growth at a
fraction of traditional media spend.
Word of mouth (WOM)
recommendations of friends and
family (F&F) have been consistently
66 ModernBusiness
July 2016
rated as the number one driver
of purchase across countries.
According to Nielsen’s Global Trust
in Advertising study, 92% of people
trust WOM recommendations from
friends and family, while the same
figure for TV is almost half at 47%
and for online video it is 36%.
CHINESE CONSUMERS
TRUST WOM EVEN MORE
WOM of Friends and Family is far
more powerful in China and other
emerging markets, compared to
developed markets. A McKinsey
study on mobile phones purchase
showed that WOM was the leading
factor at all stages of the consumer
decision journey in developing
markets, while in mature markets it
was no. 3 (refer figure below).
In another McKinsey study, 68% of
Chinese consumers said they would
consider F&F recommendations
when choosing a moisturizer
compared with just 38% of
respondents in the US and UK.
There are 3 key reasons why
WOM is more powerful in
China, compared to other
markets.
History of information control
by government: Most people in
China under the age of 70 today, did
not see any commercial advertising
until the early 1980s. Even by the end
of that decade, there was only one
TV channel and very few magazines
and newspapers. Even when more
channels became available in the
90s, the content was controlled.
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Source : “ A new way to Measure Word of Mouth Marketing”, McKinsey Quarterly, April