Word of Mouth: How to Turn Customers into Your Salespeople

Author: Qi Dingjiang
Publisher:
Publish Date: 2006-12-01
Features: What makes a product widely praised? How to make a product widely praised? A deep analysis of word-of-mouth marketing by domestic experts! A best-selling classic that sparked a revolution in marketing! This book addresses the trend of word-of-mouth marketing booming in the new economy era, starting from the new developments in marketing under the new economy reality, and presents readers with a complete picture of the past, present, and future of word-of-mouth marketing. Through clear and concise explanations and rich, detailed cases, it reveals the inherent necessity of word-of-mouth marketing thriving in the new economy, uncovers the secrets behind its immense power, and provides modern marketing decision-makers and practitioners with a perfect process for planning, executing, and managing word-of-mouth marketing through numerous vivid examples.
Establishing an Effective Information Collection Mechanism
After understanding the new changes in marketing in the information age, we inevitably ask: How should companies respond to these changes? From the previous analysis, we can see:
· The core elements in the product mix have changed, forcing companies to closely track consumer demand information to determine what products consumers truly need;
· To gain an advantage in pricing, companies need to establish corresponding information systems for support;
· Globalization in marketing has made it convenient and essential for companies to collect information about foreign markets and consumers;
· Personalization has led to further market segmentation, requiring companies to increase their collection of consumer demand information.
By now, you may have noticed that the common thread in the various new marketing changes under the new economy is the increased demand for companies to collect information about consumers, competitors, and other market participants. Scattered information collection in the past no longer meets the needs of the new generation of businesses. Therefore, to thrive in the information age, companies must establish a robust information collection mechanism.
However, establishing this mechanism is a long and complex process. Specifically, how can it be done? Technically speaking, establishing an information collection mechanism involves using computer network technology to transmit stored information across various platforms, enabling the collection, transmission, and sharing of information.
Yet, establishing an effective information collection mechanism is not only a technical process but also an internal personnel management process for the company—both aspects are equally essential.
☆ Step 1 in Technology: Establish an Internal Management Information System (MIS).
The term "Management Information System" (MIS) has been widely used since the 1960s. Different definitions exist depending on the perspective and scope. Broadly speaking, a management information system is an integrated human-computer system guided by people, utilizing computer hardware and software, network communication equipment, and other office equipment to collect, transmit, process, store, update, and maintain information, supporting high-level decision-making, middle-level control, and grassroots operations within an organization. An internal management information system refers to the use of MIS exclusively within the company, without interaction with consumers, suppliers, or others. Its primary purpose is to improve the efficiency of internal information communication.
In practice, companies typically start by applying information systems to a specific aspect of their business functions before expanding to other areas. Many companies that have achieved success in informatization often begin with financial automation as the first step in management informatization. This is based on the fact that financial management is the core of business management. Only by effectively mastering and controlling the flow of funds can companies control the flow of materials, and ultimately, the entire production and operation process.
Building on the foundation of a financial management information system, companies then extend to other management information systems, such as Enterprise Resource Planning (ERP), Supply Chain Management (SCM), and Customer Relationship Management (CRM), to integrate the flow of capital, materials, talent, and technical information throughout the entire internal management process.