BUZZ MARKETING

SUBMITTED BY:AKASH KATHURIA-114006

ASHISH KUMAR SAHOO-114030DIVAKAR-114052

Introduction

• What is Buzz Marketing?• What do people ‘talk’ or ‘buzz’ about?• Buzz or Rumor? What is the Difference?• Effectiveness of buzz marketing.• Positive vs Negetive of buzz market.• Advantages & disadvantages• Steps of launching WOM(word of mouth).

• Campaign keys of a well-done buzz.• SWOT of WOM.• How to stimulate WOM and make it work for

our organization.• Success stories• Future challenges

What is Buzz Marketing?• According to Billon and Tardieu (2002), buzz marketing is

based on word of mouth creating a buzz around a product, service or event.

• For example: You might recruit volunteers preferably proactive consumers who are center of influence among their peer to try products and then send them out of talk about their experience.

• It reaches more people, faster than advertising, direct mail or even the Internet.

What do People ‘talk’ or ‘buzz’ about?

• Exciting Products (like movies, destinations that offer exciting experiences.)

• Innovative Products ( like Web Browsers)• Personal Experience Products (hotels, airlines)• Complex Products (in order to reduce risk people talk about

products they do not understand like software, medical devices.• Expensive products ( a very expensive vacation package will

make potential buyers ask about what it offers and how good it is since it requires a big investment by the buyer.)

• Observable Products ( people discuss things they see in others like cloths, cars)

• Personal Activities ( like attending a cultural or sporting event)

‘Buzz’ or ‘Rumors’? Its difference.• Rumor : Information with an unknown or hidden origin which

propagate largely without being checked.• Buzz : Talking without an intermediary or advertising.

EFFECTIVENESS• Buzz works as a marketing tool because individuals in

social settings are easier to trust than organization personal promotion.

• Interpersonal communication has been shown to be more effective in influencing consumers’ purchasing decisions than advertising

• As consumers increasingly expect to have access to buzz about products as part of their purchasing decisions and to interact with the brand in social media, successful companies are being driven to adopt social media marketing strategies to stay competitive

Positive vs Negative buzz

• Positive buzz is often a goal of viral marketing, public relations, and advertising on Web . It occurs when high levels of individual engagement on social media drive the buzz volume up for positive associations with the product or brand.

• Examples of products with strong positive marketing buzz upon introduction are Harry Potter,Volkswagen's New Beetle.

• Negative buzz can result from events that generate bad associations with the product in the mind of the public, such as a product safety recall

• Examples of negative buzz include the 2014 General Motors recall of cars many years after a known issue with a faulty ignition switch which they admitted had caused 13 deaths.

Advantages – To the Marketer

More effective per rupee spent Lower costs Researching and

listening to consumer feedback

A happy 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

Disadvantages – To the Consumer

Deceptive Taking advantage of the kindness of

strangers . 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

Steps of launching WOM• Identify key persons (influencing ones in their

communities) to be the vectors of message: bees.

• Stimulate those persons through a personal experience with flatting their ego in a manner to make them impatient to unleash the message.

• Encourage broadcasting of this experience feeling the vectors with new information and tools which generate a buzz effect.

Campaign keys of a Well-done buzz• A product with high quality.• An innovating product with positive aspect.• A concept which arise impatience to know more or curiosity.• A concept flatting the ego of vectors.• Creative use of tools and technics.

SWOT of Word of MouthSTRENGTHS

• Low cost compared to other classic advertising campaigns

• Automatic sharpening of the rumour when it moves from one person to another…….it becomes strong and personalized.

WEAKNESSES

• We have to target and to reach the good vendors.

• Tools and technics of off-line buzz are difficult to control

Contd.OPPORTUNITIES

• New technologies developing increasingly.

• New dynamic and creative method.

• Raising number of virtual communities.

THREATS

• Bad uses of buzz marketing causes negative buzz.

• Unwanted stuff with other fast marketing technics with little cost.

Stimulate WOM and make it work for our Organization.

• Create a unique product or service.• Locate opinion leaders.• Identify the good vectors.• Stimulate knowledge about product or service.• Satisfy all inquiries.• Respond with positive comments as well as complaints to

maintain high level of customer satisfaction.• Use Internet to nurture WOM (Word of Mouth).

Buzz Concept

• Buzz Off- line• Buzz On-line(Viral marketing)

• Vectors• The Lunatic Fringe • Alphas• Bees• Large Public• Laggards

Off-line buzz marketing.

• Off-line Buzz: All the vectors has to do is , speaking about the product, the idea, the service. That’s buzz.

• The key elements in off-line buzz is the contact and reaction between vectors and product. So, the vector can observe, keep in touch with the target person.

Viral marketing

• We distinguish the buzz online marketing which is also known as "viral marketing“.

• Viral marketing is buzzwords referring to marketing techniques that use pre-existing social networking services and other technologies to try to produce increases in brand awareness or to achieve other marketing objectives (such as product sales) through self-replicating viral

Vectors• The Lunatic Fringe: called innovators, those persons are open-

minded and able to accept new ideas away from traditional aspects and fashion.

• Alphas: They are between innovators and early adopters. They are always searching for novelty and attracted by risks.

• Bees: They are core of buzz. They can talk about their experiences, discoveries and share them with others.

• Large Public: More than 150 persons. It has a snowball effect (less information fade naturally).

• Laggards: They are hanging to the traditional things and they are not interested to adopt novelty.

“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

Ford gave 120 people the Focus to drive around

Sony Ericsson used “fake tourists” to promote their new camera phone

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

References

• http://www.marketing-schools.org/types-of-marketing/buzz-marketing.html

• http://www.ibimapublishing.com/journals/JMRCS/2013/584547/584547.pdf

• Wikipedia• http://www.forbes.com/free_forbes/2005/03

28/126.html