Transcript Document
http://youtube.com/watch?v=H02z3TvdHo4 A Team 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 Mark Hughes – CEO of BuzzMarketing 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/buzzmarketing – Source: http://www.marketing-planet.com/articles/what-s-left-tobuzz-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/buzzmarketing/ • 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-ofmouth-marketing Any Questions?