Word of Mouth Works?

Last Monday, I did a market research assignment for my advertising class at Polo Park Shopping Centre. According to my teachers, this is still an important part of any ad campaign. In this case I wasn't working on a campaign, but just observing shoppers' habits and how stores advertise in the mall. As part of my market research, I spent about 45 minutes in David’s Tea observing the customers’ behaviour and watching how the store clerk sold products to consumers. I learned a lot about the company, David’s Tea, and the marketing they rely on.

The store clerk informed me that David’s Tea does absolutely no print, radio, or TV advertising. David’s Tea relies on word of mouth and the internet, which is definitely working for them. David Segal opened the first store in 2008 in Toronto and now there are over 35 stores across Canada.

From my personal experience, I know that word of mouth marketing is proving to be successful for their company. I heard about David’s Tea through a friend and also through Twitter. Many new companies starting up are taking this fresh approach and spending less money on paid advertising. David's Tea can be found on Facebook, Twitter, and also a site called Steepster.com where people can rate teas. David’s Tea also has a website that is consistently updated and interactive. They encourage people to buy tea online.

Since the company does no print or TV advertising, it is important that the salespeople are very helpful and leave a good impression in consumers' minds when they leave the store. It made me think that the company probably spends more time and consideration on the hiring process. I tested this theory out to see how good the salespeople were. I didn’t know anything about the brand so I asked many questions and sampled several teas. The woman working was very helpful and very persuasive. I had to try very hard to leave the store with no purchased tea in my hands. The store clerk’s knowledge of the products and her friendliness really made my shopping experience at that store.

This market research has led me to believe that this method of marketing can obviously work, but the company has to be confident in their store’s service. It also made me think about specialty stores versus franchise businesses. For example, Walmart does an ample amount of advertising on TV, print, and radio. But, they don’t offer the exceptional one-on-one service to consumers that David’s Tea does. Therefore, consumers won't feel compelled to refer others to the store.