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Salzman, Matathia and O' Reilly (2003), identify 3 major advantages of word-of-mouth marketing: -

1. It is Cheap
It requires only a fraction of the resources of traditional marketing plans. DuPont uses
partner ties and buzz building to increase customer appeal and awareness for its primary brands like Lycra^TM, Teflon^TM, and Dacron^TM, etc.

2. It is Immediate
Internet speed and reach over the years has risen considerably with online communities offering forums for consumers to share with and learn from an almost infinite number of people with similar interests. Johnnie Walker's Moorhuhn Game, Nike's Nike Run London Campaign has utilized the Internet in spreading buzz.

3. It is Direct
Almost all encounters can be designed to be highly personalized which is a characteristic that makes it extremely attractive to brands targeting a younger audience. Directness and Personalization fosters trust which is essential in brand building.

Globalization has also been a key factor in the emergence of stealth marketing as a preferred marketing tool. As consumers are finding themselves exposed to more, it is critical to have the right tools to understand and make sense of the marketplace. Messages need to be understood at both the global and local level. In 2002, a widely circulated e-mail showed a picture of a shark jumping out of the ocean to pounce on a man dangling from a rope ladder. Touted as the "Photo of the Year", credit was given to various sources including National Geographic and GEO. In actuality, the photograph was a composite of 2 pictures and a hoax. This example shows the tremendous potential of word-of-mouth marketing because it is essentially people-driven and that means its message can be massaged, as appropriate, as it passes from one group to another (Salzman et al, 2003).

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* Contributed by: -
Ramkishan Rajan has completed his Bachelor's (Mechanical Engineering) from College of Engineering, Trivandrum, and is a marketing enthusiast with specific areas of interest in Marketing of high technology products and consumer behaviour.
M. S. Diana has done her Bachelor's (Computer Science) from IIT Chennai, and has a strong analytical approach to marketing. Her specific areas of interest include marketing strategy and brand management. She is also majors in operations.
Both are currently students of the PGDM Programme (Batch 2006-08) at IIM Kozhikode.