When MD Moms was introduced to market baby skin-care products a year ago, it had plenty going for it. The founders are pediatricians who are also mothers. The company has a strong distribution strategy and the baby products are cleverly packaged. But there was one thing lacking, a marketing budget. Dr. Diane Truong and Dr. J J Levenstein, who came up with the idea after fielding requests for such products from their patients, decided their marketing strategy should take its inspiration from the same source. That is why Dr. Levenstein tapped into her personal and professional relationships.

“For us, it started unintentionally.The doctors got a few of their patients and friends involved in the creation. Knowing that they were part of it, they couldn’t wait to spread the word,” said Daina Nadler, the company’s director for marketing and sales. “By the time we launched we had a built-in client base. We hit our Year 1 distribution goal by the end of the first month.”

Soon after, the founders took their word-of-mouth marketing one step further, giving out products to mothers with the hope that they would mention them on Internet message boards and parenting Web sites. The strategy worked. MD Moms’ products were popping up in online discussions. Word-of-mouth advertising — sharing information with friends, relatives and colleagues to propagate interest in a company or product — has been around for decades, but with the advent of the Internet, it has taken on new life. Companies like MD Moms are using online message boards and chats to get the word out for little or no cash investment. Web logs, e-mail newsletters and chat rooms have also become vehicles for promotion. These strategies work because people are increasingly turning to those they trust for product advice and suggestions, said Ed Keller, the chief executive of the Keller Fay Group, a word-of-mouth market research and consulting firm based in New Brunswick, N.J. Consumers value the opinions of those they know more than any prepared marketing message on television or in a print publication, he said.
“Word-of-mouth marketing is more important today than it's ever been,” Mr. Keller said. “It's not so much about traditional media anymore: print, radio or TV. The word of friends and family is valued 1.5 times more than it was in the 1970s. Consumers are more confident in taking decision in their own hands.”