PASSAGE-2
When
it came to promoting its new video-game console, the Wii, in America, Nintendo
recruited a handful of carefully chosen suburban mothers in the hope that they
would spread the word among their friends that the Wii was a gaming console the
whole family could enjoy together. Nintendo thus became the latest company to
use “word-of-mouth” marketing. Nestlé, Sony and Philips have all launched
similar campaigns in recent months to promote everything from bottled water to
electric toothbrushes. As the power of traditional advertising declines, what
was once an experimental marketing approach is becoming more popular.
After all, no form of advertising carries as much weight as an endorsement from a friend. “Amway and Tupperware know you can blend the social and economic to business advantage,” says Walter Carl, a marketing guru at Northeastern University. The difference now, he says, is that the internet can magnify the effect of such endorsements.
The difficulty for marketers is creating the right kind of buzz and learning to control it. Negative views spread just as quickly as positive ones, so if a product has flaws, people will soon find out. And Peter Kim of Forrester, a consultancy, points out that when Microsoft sent laptops loaded with its new Windows Vista software to influential bloggers in an effort to get them to write about it, the resulting online discussion ignored Vista and focused instead on the morality of accepting gifts and the ethics of word-of-mouth marketing. Bad buzz, in short.
After all, no form of advertising carries as much weight as an endorsement from a friend. “Amway and Tupperware know you can blend the social and economic to business advantage,” says Walter Carl, a marketing guru at Northeastern University. The difference now, he says, is that the internet can magnify the effect of such endorsements.
The difficulty for marketers is creating the right kind of buzz and learning to control it. Negative views spread just as quickly as positive ones, so if a product has flaws, people will soon find out. And Peter Kim of Forrester, a consultancy, points out that when Microsoft sent laptops loaded with its new Windows Vista software to influential bloggers in an effort to get them to write about it, the resulting online discussion ignored Vista and focused instead on the morality of accepting gifts and the ethics of word-of-mouth marketing. Bad buzz, in short.
BzzAgent, a controversial company based in Boston that is one of the leading exponents of word-of-mouth marketing, operates a network of volunteer “agents” who receive free samples of products in the post. They talk to their friends about them and send back their thoughts. In return, they receive rewards through a points program—an arrangement they are supposed to make clear. This allows a firm to create buzz around a product and to see what kind of word-of-mouth response it generates, which can be useful for subsequent product development and marketing. Last week BzzAgent launched its service in Britain. Dave Balter, BzzAgent's founder, thinks word-of-mouth marketing will become a multi-billion dollar industry. No doubt he tells that to everyone he meets.
Questions:-
1. What is the experimental approach being discussed in the first
paragraph?
a. Word of mouth
Marketing b. Selling of video-game consoles, bottled
water and electric
toothbrushes
c. Traditional
Advertising
d. None of these
2. What is the tone of the passage?
a. Neutral
b.
Biased
c. Celebratory
d. Critical
3. What can we infer from Walter Carl's statement?
a. Amway and Tupperware are products where
word of mouth marketing could be used.
b. Amway and Tupperware are consumers who
appreciated word of mouth marketing.
c. Amway and Tupperware are companies
who use word of mouth marketing.
d. None of these
4. What is the effect of internet on Word-of-mouth marketing?
a. It is impeded by the
internet.
B. It is encouraged by the internet.
c. Internet magnifies the moral issues of this
marketing technique.
D.Internet has made it obsolete.
5. According to the passage, in what order did different companies
use word of mouth marketing?
a. Nintendo before Sony, Nestle and
Philips. b. Nintendo after Sony,
Nestle and Philips.
c. Nintendo, Sony, Nestle and Philips: all at
the same time. d. None of these
6. According to Peter Kim, what happened to Microsoft's marketing
campaign for Vista?
a. It
succeeded b. It succeeded with some
hiccups
c.It failed d.None of these
7. Where does BzzAgent operate?
a. USA and
India
b.USA and UK c.USA
only d. None of these
8. What is the author most likely to agree to in the following?
a. There is not enough evidence to state
that word-of-mouth marketing is useful.
b. There is enough evidence to state
that word-of-mouth marketing is useful.
c. Evidence shows that word of mouth
marketing is a failed technique.
d. Word of mouth marketing is unethical.
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