http://youtube.com/watch?v=H02z3TvdHo4

ATeam ForeRunners

Presentation

PresentersAmber HiebArjun SinghDavid WangPeng 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

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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/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?