Monday, September 29, 2008

Buzz marketing or Viral Marketing

DEFINITION - Buzz marketing is a viral marketing technique that attempts to make each encounter with a consumer appear to be a unique, spontaneous personal exchange of information instead of a calculated marketing pitch choreographed by a professional advertiser. Historically, buzz marketing campaigns have been designed to be very theatrical in nature. The advertiser reveals information about the product or service to only a few "knowing" people in the target audience. By purposely seeking out one-on-one conversations with those who heavily influence their peers, buzz marketers create a sophisticated word-of-mouth campaign where consumers are flattered to be included in the elite group of those "in the know" and willingly spread the word to their friends and colleagues.

Although buzz marketing is not new, Internet technology has changed the way it's being used. Buzz campaigns are now being initiated in chat rooms, where marketing representatives assume an identity appropriate to their target audience and pitch their product. Personal Web logs (blogs) are another popular media for electronic buzz marketing campaigns; advertisers seek out authors of the "right kind of blog" and trade product or currency for promotion. Instant messaging (IM) applications are also being looked at as a vehicle for carrying out buzz marketing campaigns with either humans orIM bots doing the pitching. As with all buzz campaigns, the power of the IM model relies on the influence an individual has in an established small network -- in this case, his buddy list. As technology continues to facilitate the delivery of a electronic buzz marketing message easier, and software applications make message deliveries easier to quantify, some advertising experts predict that electronic buzz marketing techniques will become a standard component in all cross-media advertising campaigns. Others warn that abuse of this potentially powerful electronic marketing technique will be its downfall

Successful examples

§  Affinitive's "American Skiing Company: MyA41.com Passholder Community" campaign, won a 2007 Wommie Award from The Word of Mouth Marketing Association (WOMMA). The American Skiing Company hosted an online social networking site, MyA41.com, for its "All for One" season pass holders. Nearly 4,000 users signed up to, and posted photos, stories, ski tips, and videos on the MyA41 site and spread the word about the "All for One" pass.

§  Converseon's "Second Chance Tree Project[6] Takes Reforestation from Virtual World to Physical Worlds" campaign, which won a 2007 Wommie Award from WOMMA, used virtual world Second Life to help generate donations for Plant It 2020. The program, which allowed Second Life users to purchase a virtual tree on Second Chance Trees Island for 300 Linden dollars as a way to trigger the planting of a real tree in areas affected by deforestation. The program garnered the attention of thousands of avatars and was elected as the only social media initiative among the 50 finalists in the $5 million American Express Members Project competition.

§  Fanscape's "Clear Channel NEW! Populating Site with Musicians Campaign" used music fans, grassroots tactics, and transparent outreach via sites like MySpace, Facebook, and Garage Band to spread the word about Clear Channel's music-focused website, NEW! In the first two weeks post-launch alone, the site received 1,500+ music submissions from independent bands and musicians. This program received a 2007 Wommie Award from WOMMA.

§  With Quicken Loans' "How Quicken Loans Became a Yahoo! Answers Knowledge Partner" program, the company was able to leverage Yahoo! Answers to field questions that users were asking about home loans. The only rule Quicken Loans implemented to guide their answers was: "Answer the question. Don't tell them how great Quicken Loans is. Don't tell them how they will benefit from our products. Don't tell them anything except what they ask," which provided potential customers with information, instead of a sales pitch. The program received a 2007 Wommie Award from WOMMA.

 

 

Unsuccessful examples

§  Burger King's Subservient Chicken - Burger King's marketing program called Subservient Chicken did indeed generate a lot of word of mouth, but the word of mouth was about the marketing campaign instead of the product that was being marketed. Also, those marketing efforts which rely on being edgy or on some kind of stunt often fade quickly when the novelty or edge wears off. Finally, this type of marketing is not reproducible or sustainable since it won't be edgy the second time around.

§  McDonald's LincolnFry - a fake blog was discovered, and it generated lots of negative word of mouth and little participation.

§  American Express' billboard - a fake blog poster who told readers to check out a great Amex billboard was found to be an Ogilvy employee; this violation of trust resulted in massive negative word of mouth which spread around the world.

 

 

 

Viral Marketing Defined

What does a virus have to do with marketing? Viral marketing describes any strategy that encourages individuals to pass on a marketing message to others, creating the potential for exponential growth in the message's exposure and influence. Like viruses, such strategies take advantage of rapid multiplication to explode the message to thousands, to millions.

Off the Internet, viral marketing has been referred to as "word-of-mouth," "creating a buzz," "leveraging the media," "network marketing." But on the Internet, for better or worse, it's called "viral marketing." While others smarter than I have attempted to rename it, to somehow domesticate and tame it, I won't try. The term "viral marketing" has stuck.

The Classic Hotmail.com Example

The classic example of viral marketing is Hotmail.com, one of the first free Web-based e-mail services. The strategy is simple:

1.        Give away free e-mail addresses and services,

2.        Attach a simple tag at the bottom of every free message sent out: "Get your private, free email at http://www.hotmail.com" and,

3.        Then stand back while people e-mail to their own network of friends and associates,

4.        Who see the message,

5.        Sign up for their own free e-mail service, and then

6.        Propel the message still wider to their own ever-increasing circles of friends and associates.

Like tiny waves spreading ever farther from a single pebble dropped into a pond, a carefully designed viral marketing strategy ripples outward extremely rapidly.

Elements of a Viral Marketing Strategy

Accept this fact. Some viral marketing strategies work better than others, and few work as well as the simple Hotmail.com strategy. But below are the six basic elements you hope to include in your strategy. A viral marketing strategy need not contain ALL these elements, but the more elements it embraces, the more powerful the results are likely to be. An effective viral marketing strategy:

1.        Gives away products or services

2.        Provides for effortless transfer to others

3.        Scales easily from small to very large

4.        Exploits common motivations and behaviors

5.        Utilizes existing communication networks

6.        Takes advantage of others' resources

Let's examine at each of these elements briefly.

1. Gives away valuable products or services

"Free" is the most powerful word in a marketer's vocabulary. Most viral marketing programs give away valuable products or services to attract attention. Free e-mail services, free information, free "cool" buttons, free software programs that perform powerful functions but not as much as you get in the "pro" version. Wilson's Second Law of Web Marketing is "The Law of Giving and Selling"(http://www.wilsonweb.com/wmta/basic-principles.htm). "Cheap" or "inexpensive" may generate a wave of interest, but "free" will usually do it much faster. Viral marketers practice delayed gratification. They may not profit today, or tomorrow, but if they can generate a groundswell of interest from something free, they know they will profit "soon and for the rest of their lives" (with apologies to "Casablanca"). Patience, my friends. Free attracts eyeballs. Eyeballs then see other desirable things that you are selling, and, presto! you earn money. Eyeballs bring valuable e-mail addresses, advertising revenue, and e-commerce sales opportunities. Give away something, sell something.

2. Provides for effortless transfer to others

Public health nurses offer sage advice at flu season: stay away from people who cough, wash your hands often, and don't touch your eyes, nose, or mouth. Viruses only spread when they're easy to transmit. The medium that carries your marketing message must be easy to transfer and replicate: e-mail, website, graphic, software download. Viral marketing works famously on the Internet because instant communication has become so easy and inexpensive. Digital format make copying simple. From a marketing standpoint, you must simplify your marketing message so it can be transmitted easily and without degradation. Short is better. The classic is: "Get your private, free email at http://www.hotmail.com." The message is compelling, compressed, and copied at the bottom of every free e-mail message.

3. Scales easily from small to very large

To spread like wildfire the transmission method must be rapidly scalable from small to very large. The weakness of the Hotmail model is that a free e-mail service requires its own mailservers to transmit the message. If the strategy is wildly successful, mailservers must be added very quickly or the rapid growth will bog down and die. If the virus multiplies only to kill the host before spreading, nothing is accomplished. So long as you have planned ahead of time how you can add mailservers rapidly you're okay. You must build in scalability to your viral model.

4. Exploits common motivations and behaviors

Clever viral marketing plans take advantage of common human motivations. What proliferated "Netscape Now" buttons in the early days of the Web? The desire to be cool. Greed drives people. So does the hunger to be popular, loved, and understood. The resulting urge to communicate produces millions of websites and billions of e-mail messages. Design a marketing strategy that builds on common motivations and behaviors for its transmission, and you have a winner.

5. Utilizes existing communication networks

Most people are social. Nerdy, basement-dwelling computer science grad students are the exception. Social scientists tell us that each person has a network of 8 to 12 people in their close network of friends, family, and associates. A person's broader network may consist of scores, hundreds, or thousands of people, depending upon her position in society. A waitress, for example, may communicate regularly with hundreds of customers in a given week. Network marketers have long understood the power of these human networks, both the strong, close networks as well as the weaker networked relationships. People on the Internet develop networks of relationships, too. They collect e-mail addresses and favorite website URLs. Affiliate programs exploit such networks, as do permission e-mail lists. Learn to place your message into existing communications between people, and you rapidly multiply its dispersion.

Viral Marketing by Russell Goldsmith6. Takes advantage of others' resources:The most creative viral marketing plans use others' resources to get the word out. Affiliate programs, for example, place text or graphic links on others' websites. Authors who give away free articles, seek to position their articles on others' webpages. A news release can be picked up by hundreds of periodicals and form the basis of articles seen by hundreds of thousands of readers. Now someone else's newsprint or webpage is relaying your marketing message. Someone else's resources are depleted rather than your own.


Viral Marketing
by Russell Goldsmith


The Secrets of Word-of-Mouth Marketing by George Silverman

http://www.wilsonweb.com/bookpix/0814470726wordofmouth.jpg