Out of the Crisis.Org

[Louis Altazan]

Fallacy five: Word of mouth is all a good business needs to do well.

I think there is a lot of truth in this one, but still regard it as a fallacy, overall. For instance, word of mouth is likely still the best form of advertising. It also alludes to the important concept [a “good” business] that quality is very important to the mix. Unless a business does a very good job of meeting [exceeding] their client’s needs it is unlikely to generate positive word of mouth.

The reasons I regard it as a fallacy are the ending, “to do well,” and the term "all." There are vast differences of opinion on the terms “doing well.” I think most people go into business to obtain a standard of living better than they might obtain by working for others. If this is correct, doing well would mean meeting or exceeding that aim. I feel it is unlikely a business will easily meet that aim with word of mouth alone.

Most services are only a very small portion of the average person’s life. It might be all consuming at the time the business sees the client, but soon it drops back to its normal place. This can leave the business with an impression that their service is at the top of most people’s minds. Not true. Like many things, it is at the top of their mind, when they need it. Other times it may not be thought of at all.

Though a client is totally satisfied at their last visit, they may not think of a given business at the next emergency. Add to this the facts that people die, move away, form new alliances and simply forget. A business may stay in business with word of mouth, but “doing well” will normally require a marketing plan.

Word of mouth can greatly increases the impact of other marketing. I feel it is the natural outcome of a well run business, but insufficient as the sole input to success.

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Louis Altazan
Owner/Manager AGCO Automotive Corporation
Baton Rouge, LA

[Bud]

How true.

If we consider other 'trade businesses' besides auto repair, like plumbers and electricians, roofers, fencers, glazers, and painters to name a few, we see that they all depend heavily on advertising.

A person who graduates high school, apprentices in one of those trades, and starts a new business expects to spend considerable money on marketing and advertising every month throughout his career.

[Louis Altazan]

[Bud]

In all fairness those people know how to make advertising work.

On the other hand, a typical small business owner has to learn by trial and error, without even an awareness there is a professional body of knowledge out there.