youtube/watch?v=H02z3TvdHo4

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

2. ATeam ForeRunnersPresentation Presenters Amber Hieb Arjun Singh David Wang Peng Wang Vidya Ramaswamy

3. 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

4. What is ?? ??

5. 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.

6. So many terms?!?!?

7. 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.

8. Pros of Buzz Marketing

9. Advantages – To the Marketer • More effective per $ spent • Lower costs • Researching and listening to consumer feedback • A  customer is the greatest endorsement

10. 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

11. Cons of Buzz Marketing

12. Disadvantages – To the Consumer • Deceptive • Intrusive – in your face • Taking advantage of the kindness of strangers – ex: Sony • Friends and family become corporate shills

13. 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

14. The ethical debate

15. 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

16. 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

19. “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

22. 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

23. Mark Hughes – CEO of BuzzMarketing

24. Looking Ahead

25. 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

26. 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

27. 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

28. 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

29. 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

30. Any Questions?