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					     Viral Marketing
Marketing in the Digital Age

         Submitted By: Group 10

 Viral Marketing Overview

 Key Success Factors

 Examples

 Case Study

 Contemporary Issues

 Recommendations
               What is Viral?
Exponential Growth by Spreading the Word

Message | Carrier | Target | Environment

Active vs. Passive Transmission

Cost: None / Indirect / Direct

                        Cause               Effect
    Biology             Virus               Disease
   Marketing      Value Proposition          Sales
Forces Shaping the Internet Age
       Types of Viral Marketing
 Pass-along

 Buzz Marketing

 Incentive viral Marketing

 Undercover Marketing

 User-managed database
    Types of Viral Marketing
• A short note that will be sent on to other internet
  users and it is usually attached to the footer of the
  electronic message.

• Example – Hotmail

           “Get your free, Private email at”
         The message for free email is being
          spread out by all their email users
       Types of Viral Marketing
                       Buzz Marketing
• Involves Celebrities discussing about product and experiences

• Example – Oprah Winfrey
                 It is created to make noise and buzz
       Types of Viral Marketing
               Incentive Viral Marketing
• It calls the users to take action in order to be rewarded

• Example – Forever Living Barclay (Multi Level Business)
                Gives people an incentive for passing along viral
                             message or viral object
       Types of Viral Marketing
                   Undercover Marketing
• It occurs when people do not know they are being marketed to

• It appears trendy or curious, and do not seem to ask an individual
  to forward them, creating the impression that there is not
  something special promoted taking place

• Example – Canon, Inc (The Japanese Tourism Campaign)
                  It camouflages as piece of news, without obvious
                          incitements to link or pass along
       Types of Viral Marketing
             User Managed Database
• Refers to different database of prospects that clients generate
  themselves with the help of online service providers

• Example –
            users create a viral, self-propagating chain of contacts
            that naturally grows and encourages others to sign up
            as well.

 Advertising (Print, Magazines, AdWords)

 Public relations (PR Agencies, News Channels)

 Sales Promotion – Personal and Digital (e.g Gotomymeeting and
  Internet Banner Ads)
 Direct Marketing – B2C and C2C (e.g eBay, Amazon)
 Social Networking – Word of Mouth, Blogs, Forums,
  Networking Sites (e.g Twitter, Facebook)

 “m” Networking – Networking through
Satisfied customer      I’ve got this!

Wanna-be customer       I’m Gonna get this, …

Maven                   You should get this!

Journalist (reviewer)   I’ve tried this and …

Bootlegger              I stole this!
             Key Success Factors
   Creativity
   Authenticity
   Resonance
   Brands using applications to engage their audience
   Direct selling is recommended by Kotler as one of the strategies
    for “place” (say, thru e-commerce)
                     Why It Works
 Convenience of the Internet
    Affordable distribution
    Instant gratification
    Increased level of interactivity
    Opportunity for tracking and control

 Direct or implied incentive for distributing

 Marketers find well-defined demographics and shared interests
  useful when marketing

 Web communities allow members with special interests to
  exchange views:
    Social communities
    Work-related communities
 Good
   Blair Witch Project
 Not So Good
   Dancing Baby
    “3 for 1” campaign
   Intel chip error
 TV Spots
     Case Study: Trunk Monkey
 Objective
    Build brand awareness for Suburban Autogroup

 Strategy
    Create a campaign that illustrated innovative service and
     differentiated from competition

 Implementation
    Client encouraged pushing initial concept farther

 Results
    Instant buzz and increased sales
    31 dealers in the US and UK have syndicated the spot

 Next Steps
    New creative rolling out is posted on Web
    Bumper stickers and other merchandise
        Case Study:

                            The ISSUE
 BMW’s market research revealed that the brand was not appealing
  to younger luxury car buyers. Also, competition was increasing.

                          The TARGET
   25-44 year-old buyers new to the luxury-car market
   Capture qualified buyers and ultimately increase sales
   Doesn’t watch a lot of TV; tends to resent marketing
   Techno Savvy
      Case Study:
                      The SOLUTION
 launched five short Internet films in April 2001,
  featuring edgy stars, action-oriented plots, and famous directors.

 Web Promotion: Three months prior to the premiere, Internet-
  movie rumor sites, chat rooms, and fan sites were seeded with
  information, core of viral marketing campaign.

 Off-line PR Strategy: pitched the films as reviewable movies to
  Time, Entertainment Weekly, NY Times, and generated reviews in
  the film section.
 Off-line Ad Strategy: 15-second teasers resembling movie
  trailers on A&E, Bravo, & Independent Film Channel with tag, “Now
  playing at”
  Case Study:
                        The RESULT
 Over 11 million users visited BMWfilms web site as of March 2002

 85% perception increase among film viewers vs. nonviewers

 Planned dealer visits for target market film viewers rose 550%

 12.5% sales increase in 2001 despite no major product launches; 3-
  series increase of 37% in 4 months that films ran.
Disadvantages of Viral Marketing

                         Brand Dilution
 Viral marketing depends upon people not versed in brand to do the
 "selling". Its important to craft a message that is strong enough to
 endure misinterpretations or make your communication brandless.

            Association with unknown groups
 Viral Marketing spread exponentially from one to many users. In
 this process, Original message could wind up in the hands of someone
 company would rather not be associated with. The only way to
 partially counter this is to ahead of time define and limit what
 information you make available for your viral marketing.
Disadvantages of Viral Marketing
     Avoid making purely financial-based offer
The best viral campaigns work on the principle of valued. If company try to
use money as an incentive there are chances that:
• Offer will be spammed across the web resulting accountability issues
• Offer can be perceived as “ Too Good to be True”

Viral Marketing can lead to large scale spam. Consider a company that
pays individuals to email their friends for its products. In this case,
the individual who receives the email had only given the friend
permission to send email of a personal nature.

The one friend's receiving an unsolicited commercial email can
weaken his or her relationship with sender and ISP can mark that
communication as spam.
      Other Contemporary Issues
   Compatibility with brand
   Mapping to marketing objective
   Relevance to target audience
   Realistic timeline and budget
   Sustainability of campaign
   Online privacy and security concerns
   The digital divide
   Limited exposure, and skewed demographics
   Navigating the web is often problematic
   Tech Savvy exclusive.
   Large Demographical Differences
 Assess relevance to brand, objective and audience
 Start or finish on the Web
 Develop a resolution or measurable call to action
 Consider proactive “action plan” if idea goes viral
 Integrate with traditional/ongoing marketing efforts
 Create value driven news using your best customers
 Involve them in the process of making and delivering
  your products or services
 WIIFM Principle: "what's in it for me?“ - Offer an
  incentive to someone to tell others about you.
Thank You