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ATeam ForeRunners
Presentation
Presenters
Amber Hieb
Arjun Singh
David Wang
Peng Wang
Vidya Ramaswamy
Overview
• What is buzz marketing?• Some terms and definitions• Pros of buzz marketing• Cons of buzz marketing• The ethical debate• Success Stories• Why it works? (Video)• Future challenges • References
What is
??
??
Buzz marketing is…
• a.k.a Word-of-mouth marketing• Buzz - person-to-person communication about a
brand• Buzz marketing - a company's efforts to stimulate
positive buzz. • A marketer has successfully created buzz when the
interactions are so intense that the information moves in a matrix pattern rather than a linear one. The result is everyone is talking about the product or service.
So many terms?!?!?
Some Definitions
• Viral Marketing – Uses pre-existing social networks– Usually through the web and email
• Guerrila Marketing– Promotional activities
on very low budget• Stealth\Undercover Marketing
– Consumers unaware of being marketed to
• Product Placement Marketing – Commercial product used in media
Ex: movies, books etc.
Pros of Buzz Marketing
Advantages – To the Marketer
• More effective per $ spent
• Lower costs
• Researching and
listening to
consumer feedback
• A customer
is the greatest endorsement
Advantages – To the Consumer
• Giving customers a voice – People like fun information they can spread on
• Stronger message from someone you trust
• WOM won’t go far for bad quality products
• Creating communities and connecting people
Cons of Buzz Marketing
Disadvantages – To the Consumer
• Deceptive
• Intrusive – in your face
• Taking advantage of the kindness of strangers – ex: Sony
• Friends and family become corporate shills
Disadvantages – To the Marketer
• -ve Word of Mouth
• -ve publicity spread by competitor!
• Lack of control – Company cannot interfere\manage the marketing process
• Ethical dilemma surrounding buzz marketing – what consumers think about it
The ethical debate
Ethics Codes
• WOMMA Ethics Code – The Honesty ROI– Honesty of Relationship, Opinion, Identity
• BzzAgent Code of Conduct – A bzzagent is:
• Open, a natural communicator, honest, mindful, influential, not a salesperson, a listener, in touch and bzzes for fun
More on ethics
• There’s a difference between buzz marketing and stealth marketing
• BuzzMetrics believes brands have more than a moral incentive to be upfront
• Intelliseek (2005) – 29% unlikely to trust recommendation again from friend whom they later learned was compensated for it
• P&G never hires actors – use teens, don’t pay them, free to form own opinions
“The Soda with the Buzz” – Forbes.com
• An “energy” drink, $2 (8.3 oz.), 80 mg of caffeine• It doesn’t taste very good• Yet Red Bull has a 70 to 90 percent market share
in over 100 countries worldwide. • Its contents are not patented - all the ingredients
are listed on the outside of the slim silver can. • In 2004, 700 million cans were sold in the U.S. i.e.
47% share of the energy drink market• Red Bull sponsors some 500 athletes worldwide
Other Examples
• Nike has also used same strategy as Adidas
• Ford gave 120 people the Focus to drive around
• Piaggio hired models to drive Vespa’s in LA and chat up customers at cafes
• Sony Ericsson used “fake tourists” to promote their new camera phone
Looking Ahead
Challenges for the future
• Buzz Marketing only works on first time buyers• Dec 06 – Federal Trade Commission said
companies paying people to promote products must disclose those relationships
• Effectiveness of Buzz Marketing will wear off as it is diluted through overuse -The growing popularity of buzz marketing could well spell its downfall
More challenges
• For long term success Buzz Marketing must be used in conjunction with other marketing tactics to support a marketing strategy
• Buzz marketing has to cut through the clutter
References
• What is buzz marketing?– Source: http://en.wikipedia.org/wiki/Buzz_marketing– Source: www.marketingprofs.com/5/rosen1.asp
• Some terms and definitions– Source: http://en.wikipedia.org
• Pros of buzz marketing– Source: http://womma.org/wom101/– Source: http://buzzoodle.blogspot.com/2005/11/
advantages-of-buzz-marketing.html• Cons of buzz marketing
– Source: http://www.commercialalert.org/issues/culture/buzz-marketing
– Source: http://www.marketing-planet.com/articles/what-s-left-to-buzz-49.html
References (contd.)
• The ethical debate– Source: http://womma.org/ethics/code/– Source: http://www.bzzagent.com/pages/Page.do?
page=Code_of_Conduct– Source: http://www.commercialalert.org/issues/culture/buzz-
marketing/
• Success Stories– Source: http://www.forbes.com/free_forbes/2005/0328/126.html– Source: http://www.sellingpower.com/article/display.asp?
aid=SP2229597– Source: http://www.businessworld.in/AUG0105/coverstory02.asp– Source: http://www.cbsnews.com/stories/2003/10/23/
60minutes/main579657.shtml
References (contd.)
• Future challenges– Source:
http://www.businessweek.com/magazine/content/01_31/b3743001.htm
– Source: http://www.commercialalert.org/issues/culture/buzz-marketing/ftc-moves-to-unmask-word-of-mouth-marketing
Any Questions?
