Contemporary Issues_Viral Marketing

8/8/2019 Contemporary Issues_Viral Marketing

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Viral MarketingViral Marketing

Marketing in the Digital AgeMarketing in the Digital Age

Submitted By: Group 10


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Agenda

Viral Marketing Overview

Key Success Factors

Examples

Case Study

Contemporary Issues

Recommendations


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What is Viral?

Exponential Growth by Spreading the Word

Message | Carrier | Target | Environment

Active vs. Passive Transmission

Cost: None / Indirect / Direct

Cause EffectBiology Virus Disease

Marketing Value Proposition Sales


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Forces Shaping the Internet Age


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Types of Viral Marketing

Pass-along

Buzz Marketing

Incentive viral Marketing

Undercover Marketing

User-managed database


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(contd)Pass-Along

A short note that will be sent on to other internet

users and it is usually attached to the footer of theelectronic message.

Example Hotmail

Get your free, Private email at www.hotmail.com

The message for free email is beingspread out by all their email users


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(contd)Buzz Marketing Involves Celebrities discussing about product and experiences

Example Oprah Winfrey

It is created to make noise and buzz


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(contd)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 viralmessage or viral object


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(contd)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 individualto forward them, creating the impression that there is notsomething special promoted taking place

Example Canon, Inc (The Japanese Tourism Campaign)

It camouflages as piece of news, without obviousincitements to link or pass along


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(contd)User Managed Database

Refers to different database of prospects that clients generate

themselves with the help of online service providers

Example Friendster.com

users create a viral, self-propagating chain of contactsthat naturally grows and encourages others to sign up

as well.


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Platforms

Advertising (Print, Magazines, AdWords)

Public relations (PR Agencies, News Channels)

Sales Promotion Personal and Digital (e.g Gotomymeeting andInternet 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 throughMobile/Smartphone


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Carriers

Satisfied customer

Wanna-be customer

Maven

Journalist (reviewer)

Bootlegger

Ive got this!

Im Gonna get this,

You should get this!

Ive tried this and

I stole this!


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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)


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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 interestsuseful when marketing

Web communities allow members with special interests toexchange views: Social communities

Work-related communities


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Examples

Goodwow.exe

Blair Witch Project

bmwfilms.com

Wassup?

Not So Good

Dancing Baby

800.com 3 for 1 campaignIntel chip error

TV Spots


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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 StepsNew creative rolling out is posted on Web Bumper stickers and other merchandise


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Case Study: BMWfilms.com

The ISSUE

BMWs market research revealed that the brand was not appealingto 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

Doesnt watch a lot of TV; tends to resent marketing

Techno Savvy


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The SOLUTION BMWfilms.com 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 withinformation, core of viral marketing campaign.

Off-line PR Strategy: pitched the films as reviewable movies toTime, Entertainment Weekly, NY Times, and generated reviews in

the film section. OffOff--line Ad Strategyline Ad Strategy:: 15-second teasers resembling movie

trailers on A&E, Bravo, & Independent Film Channel with tag, Nowplaying at BMWfilms.com


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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.


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Disadvantages of Viral Marketing

Brand DilutionViral 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 someonecompany would rather not be associated with. The only way topartially counter this is to ahead of time define and limit whatinformation you make available for your viral marketing.


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Disadvantages of Viral Marketing(contd)

Avoid making purely financial-based offer

The best viral campaigns work on the principle of valued. If company try touse 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

Spamming

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

The one friend's receiving an unsolicited commercial email canweaken his or her relationship with sender and ISP can mark that

communication as spam.


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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


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Recommendations

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.


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Thank You

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