Presentation on theme: "A Team ForeRunners Presentation Presenters Amber Hieb Arjun Singh David Wang Peng Wang Vidya Ramaswamy."— Presentation transcript:
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 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
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: –Source: Some terms and definitions –Source: Pros of buzz marketing –Source: –Source: advantages-of-buzz-marketing.html Cons of buzz marketing –Source: marketing –Source: buzz-49.html