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Marketing Strategies DSU Image & Marketing Committee 9-27-04
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Guerilla Marketing ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Guerilla Marketing: 10 Commandments ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
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Stealth Marketing ,[object Object],[object Object],[object Object],[object Object],[object Object]

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Guerilla Marketing

Notas do Editor

  1. Coined by Jay Conrad Levinson, guerilla marketing is more about matching wits than matching budgets. Guerilla marketing can be as different from traditional marketing as guerilla warfare is from traditional warfare. Rather than marching their marketing dollars forth like infantry divisions, guerilla marketers snipe away with their marketing resources for maximum impact. [1]http://www.marketingterms.com/dictionary/guerilla_marketing/ [1] http://www.isp-planet.com/marketing/2002/guerilla_takes_gorilla.html
  2. [1] The 10 Commandments of Guerilla Marketing In 2003, guerilla marketing tactics and an increased emphasis on public relations will be important strategies for cost-conscious marketers in the business markets. But before you begin, make sure you spend your time and dollars most effectively. Start with the 10 Commandments of Guerilla Marketing ... Know your market. Know who your customers are, how they think, and where they go. You can waste a lot of time and money going to the wrong events or advertising in the wrong publications. Understand whom you're selling to - industry, size of company, job function, related equipment, etc. Once you've defined your customer, focus your marketing efforts on reaching those prospects directly or through a related network of contacts. Keep your name in front of your in-house list. Before you stray too far in your marketing program, make sure you're in regular contact with your in-house list of prospects. Your highest conversion to sales will come from this list of people who've already expressed an interest in your product. Send a regular series of electronic or snail mails to the list to keep your name in the forefront of your prospects' minds and to keep the list fresh and up-to-date. Work with the press. Nothing is more credible than a mention in a respected industry publication. Work with editors to get what is essentially free space. Send newsworthy announcements about your company's new products or business deals at least once a month. Note the use of the word "newsworthy" - there's nothing editors hate more than irrelevant or recycled material. Educate the market. Place articles in industry magazines. Start with case histories about customers who have successfully applied new methods to their operations (and just happen to use your products or services!). Develop technology articles and white papers to educate potential customers about your segment of the industry and any special innovations you've created along the way. Put e-marketing to work for you. One of the most effective marketing devices these days is the e-newsletter. Mailed monthly, this marketing tool can generate response rates of up to 40%, if written with the customer in mind. Don't just pitch your products, though. Educate the customer on related technology and other industry issues. Push prospects to your Web site for further information and use special tracking URLs to measure the effectiveness of each issue. Do the Web right. Today's technical professional is under a great amount of stress to do more, faster. To make this happen, they are scouring the Internet for the products and services they need to do their jobs better. As a result, nothing's worse for a sales and marketing program than a Web site that looks like it was put together in your next door neighbor's garage. Start by analyzing the 4Cs of good Web site development - Creative, Content, Clarity, and Communications. Creative: Does your Web site reflect a professional look and feel? If not, your prospects won't take you seriously. Content: Have you filled the site with lots of technical content, both product information and tutorials? Have you created a complete set of pre- and post-sales FAQs? If not, your customers will not be able to get the info they need to make a purchase decision. Clarity: Is it easy for the prospect to find the information they need? Can they get to everything within three mouse clicks? If not, they'll go to your competitor. Communications - Have you taken advantage of the interactive nature of the Internet or are you just posting text? If not, you've lost an opportunity to more directly engage your prospects. Get a prime spot on the Web's search engines. Banners and text-based advertising on the top search engines can result in a large increase in traffic to your Web site. If you're selling to techies, look at Google, AltaVista, and Yahoo. If you're on a tight budget, employ a Search Engine Optimization service to fine-tune your Web site's ranking in the search results. Postcards supplement an existing marketing program and are stress-free. In the days of the post-anthrax scare, postcards are a safer and lower stress approach to direct mail. Mail postcards with special promotions or contests that will entice your prospect to further explore your Web site or call for additional information on a product. One of our clients had a 30% response to a postcard that featured a crossword puzzle geared specifically to design engineers. Give talks and presentations at industry association meetings and conferences. Virtually all professionals belong to at least one organization that helps them sharpen their technical skills. Attend annual conferences. Respond to Calls for Papers to get on the speaking circuit. Don't forget to work with local branches of large organizations, as well as at the national level. Network, network, network. Often the best way to reach prospects is through other people or organizations that work with them on a regular basis. If you're trying to reach CEOs, consider making friends with bankers, lawyers, and venture capitalists. If you're looking to reach IT managers, buddy up with networking and communications vendors.Sounds simple enough, right? Actually, the devil is in the details. To develop your knock-out Guerilla Marketing plan for 2003, call +91 40 55827718 or request a quote. [1] http://www.zezan.com/guerillamarketing.html
  3. Blair Witch Project [1] With the glut of advertising targeted at kids these days and the multiple media channels delivering messages to them, campaigns that come off as out of the ordinary, more honest or more relevant are a necessity. That's driving kid companies to look to fresh tactics. Enter the new trend toward guerilla marketing, or any marketing that uses aggressive, unusual tactics to reach consumers. Despite the trend, many kids companies still treat guerilla marketing as an ancillary strategy, designed to supplement more traditional tools like TV spots and print ads with aggressive, alternative campaigns. But there's no denying the concept, which first evolved decades ago, is blossoming. Why the sudden popularity? "It's a huge trend to be individualistic, to make it look like [kids] have found you. You can't do that too well with traditional advertising," says Baysie Wightman, VP at ad agency Mullen, and a pioneer in guerilla marketing with kids who has worked on brands like Reebok. Plus, new technologies like the Web enable companies to be in touch with kids in ways they never have before, says Sid Good, president of kids marketing firm Good Marketing. More agencies are incorporating guerilla techniques into their repertoires in order to position themselves as full-service firms, Good says. Talking to Kids, Through Kids Recruiting kids to conduct grassroots campaigns targeting their peers is becoming the guerilla technique of choice for many youth marketers. Peer-to- peer marketing offers companies an important advantage: kids are more likely to respond to a message from friends than to a TV ad. Kibu, a new Web site targeted at teen girls, put the strategy to use in its launch marketing this Spring. "Peer-to-peer marketing is key to Kibu," says Leigh Bakun, director of grassroots advertising. "Our girls went out and took the approach of a new friend sharing information. They were not just coating events with freebies. They were establishing a great two-way dialogue about the site." Kibu hired local teens in 10 cities since they were sure to know the cool teen spots. In addition to chatting with girls and sharing information, the teams handed out lip gloss, stickers, tea bags and incense. And when they were done at each hot spot, they left their mark - Kibu provided chalk for the girls to write Kibu words like "divasphere." The teams enjoyed it so much they engaged in friendly rivalry to see who could create the most chalk impressions - a bonus for Kibu, since the girls' competitive spirit resulted in more than 1,000 chalk masterpieces in the 10 markets. While Kibu won't disclose site traffic, the qualitative results from the grassroots campaign have been spectacular. One girl's reaction after meeting Kibu teens in Washington: "I think that was a really good way to try to get more personal with people when the Internet can be such a inpersonal [sic] thing. So keep up with the human interaction advertising! And I love your Web site!" Becoming a Grassroots Guru Grassroots advertising can be less expensive than buying TV time or other traditional marketing methods, but what marketers save in dollars, they make up for in manpower. "We looked at the street teams as ambassadors for the brand. The selection process is very important," says Bakun. Advice from the experts: Sell yourself to attract the best kids. "Any good marketing company needs to know how to market itself to attract people," says Ron Vos, president of Hi Frequency Marketing, a firm that Vos refers to as "the Howard Stern" of youth marketing. Vos specializes in edgy guerilla marketing tactics aimed at teens and young adults, and says campaigns that use kids as marketers require a lot of effort on the recruiting end. Develop a thorough screening process. Hi Frequency gets around 350 applicants a week, and of those it hires only three to five. "You have to be smart and selective," says Mullen's Wightman. "In junior high you knew the cool kids. You have to find the kids who continually get [the trends] first." "Profile them on their purchasing experiences," Vos agrees. "What venues do they go to, what sort of entertainment are they into? Are they really on the edge of pop culture or just following trends?" Train, train, train. "Realize it takes a lot of money, manpower and people who are knowledgeable in training others in marketing. We teach kids marketing from the ground up. The tone we set now will have an impact on their careers in years to come," Vos says. Kibu trained its teams for weeks before they hit the streets. Be sure kids understand your messages, how to handle sticky situations and what their responsibilities are. Keep your teams happy. These aren't full-time employees, and it's important to offer them incentives to keep doing what they're doing with enthusiasm. Vos, whose clients are largely members of the music community, offers free tickets and other high-value tchatchkis. Hit the hot spots. Building a fabulous team won't do much good if they're talking to the wrong audience. Asking team members to suggest popular local hangouts is an important tactic, and Wightman recommends networking with teen salespeople in shops selling popular items. (Good Marketing: Sid Good, 216/721-1440; Hi Frequency: Ron Vos, 919/942-9244; Kibu: Leigh Bakun, 650/556-7500; Mullen: Baysie Wightman, 978/468-5111) Guerilla Tactics Grassroots peer-to-peer marketing is gaining momentum, but it's not the only guerilla strategy catching on. Blair Witchcraft The "Blair Witch Project" is the quintessential example of high-tech guerilla marketing, according to Sid Good. Promoters of the film developed a Web site with a trumped-up tale of junior college filmmakers who disappeared in the Maryland woods while documenting a legendary witch. Teens spread the tale by word of mouth, and rumors about the film and the Web site circulated furiously, generating enough hype to propel the micro- budgeted film to cult status and more than $250 million in revenues. The modern legend persists, and Parachute Publishing and Bantam Books recently announced they will launch an original fiction series inspired by "Blair Witch" this Summer. Artisan will release a sequel in Fall 2000. (Artisan: Paul Pflug, 212/386-6879; Parachute: Susan Knopf, 212/337- 6741; Bantam: Judith Haut, 212/782-8626) Driving Sales Info Gram, a video game company, is launching "Driver 2" this November with a campaign designed for shock value. Hi Frequency Marketing is working with graffiti artists to create messages on wrecked vehicles which will be towed through urban areas. There will be 20 of the recycled wrecks in New York alone. In cases like these, guerilla marketing can be just as costly, if not more so, than a traditional campaign. But (pardon the crash symbolism - we couldn't resist), they promise plenty of bang for your buck. (Hi Frequency: Ron Vos, 919/942-9244) COPYRIGHT 2000 Phillips Publishing International, Inc. COPYRIGHT 2001 Gale Group [1] http://www.findarticles.com/p/articles/mi_m0FVE/is_12_5/ai_63061452 _________________________________-- [1] Times Square was awash in young adults adorned with temporary tattoos emblazoned on their foreheads advertising Toyota's Scion and its latest model, the tC coupe. Here's an excerpt from AdAge.com : The one-day effort is the brainchild of guerilla marketing firm Cunning, a London-based operation that opened in New York late last year. Cunning recruited approximately 40 young adults, mostly college students, to publicize the Scion message on behalf of client Toyota Motor Sales USA's Toyota division. The auto marketer is unveiling its tC sports coupe today at the New York Auto Show at the Jacob Javits Center. "This is the first time we've used foreheads," said Brian Bolain, national manager for Scion. The automaker has deployed nontraditional efforts only, developed by its ad agency, Attik of San Francisco, to launch the youth-oriented Scion's initial two models, the xA and the xB. Sales of the latter began last June in California and rolled out in the South, Southeast and East in February. Despite the fact I think the model above is ugly as sin, Scion expects to sell 60,000 vehicles this year and 100,000 in 2005. The guerilla marketing tattoos are a one-time only effort, for now. Said Scion: "We'll see how it works and take it from there."
  4. Information Viral marketing depends on a high pass-along rate from person to person. If a large percentage of recipients forward something to a large number of friends, the overall growth snowballs very quickly. If the pass-along numbers get too low, the overall growth quickly fizzles. At the height of B2C it seemed as if every startup had a viral component to its strategy, or at least claimed to have one. However, relatively few marketing viruses achieve success on a scale similar to Hotmail, widely cited as the first example of viral marketing.
  5. The Six Simple Principles of Viral Marketing by Dr. Ralph F. Wilson, E-Commerce Consultant Web Marketing Today , Issue 70, February 1, 2000 I admit it. The term "viral marketing" is offensive. Call yourself a Viral Marketer and people will take two steps back. I would. "Do they have a vaccine for that yet?" you wonder. A sinister thing, the simple virus is fraught with doom, not quite dead yet not fully alive, it exists in that nether genre somewhere between disaster movies and horror flicks. But you have to admire the virus. He has a way of living in secrecy until he is so numerous that he wins by sheer weight of numbers. He piggybacks on other hosts and uses their resources to increase his tribe. And in the right environment, he grows exponentially. A virus don't even have to mate -- he just replicates, again and again with geometrically increasing power, doubling with each iteration: 1 11 1111 11111111 1111111111111111 11111111111111111111111111111111 1111111111111111111111111111111111111111111111111111111111111111 In a few short generations, a virus population can explode. 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. 6. 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. An Elementary Exercise Let's put this into practice. I am seeking to promote my newest FREE e-mail marketing newsletter, Doctor Ebiz (http://doctorebiz.com), which discusses Web marketing and e-commerce trends and strategies. I'm using two viral marketing strategies and I'd appreciate your help in testing them, if you're up to an interesting challenge. I'll report results shortly to give you feedback on the effectiveness of these techniques. 1. First, I've placed a Recommend-It button on every page of the DoctorEbiz.com site to encourage visitors to tell a friend about the site. When you go to http://doctorebiz.com/ please try the Recommend-It button, and then report at http://www.wilsonweb.com/wmt5/ri-report.htm on how effective you think this strategy is. I'll share some of the results and your comments in a subsequent article: "Review: Recommend-It" (http://wilsonweb.com/reviews/recommend-it.htm). 2. Second, I grant permission for every reader to reproduce on your website the article you are now reading -- "The Six Simple Principles of Viral Marketing" (see http://www.wilsonweb.com/wmt5/viral-principles-clean.htm for an HTML version you can copy). But copy this article ONLY, without any alteration whatsoever. Include the copyright statement, too, please. If you have a marketing or small business website, it'll provide great content and help your visitors learn important strategies. When you've placed the article on your website, please tell me at http://wilsonweb.com/wmt5/viral-reprint.htm I'll tally the results and report them shortly, so to be included in the count, please do this quickly. (NOTE: I am giving permission to host on your website this article AND NO OTHERS. Reprinting or hosting my articles without express written permission is illegal, immoral, and a violation of my copyright.) Thank you for helping me carry out and then track this marketing exercise. To one degree or another, all successful viral marketing strategies use most of the six principles outlined above. In the next article in this series, "Viral Marketing Techniques the Typical Business Website Can Deploy Now" (http://www.wilsonweb.com/wmt5/viral-deploy.htm), we'll move from theory to practice. But first learn these six foundational principles of viral marketing. Master them and wealth will flow your direction. "Copyright © 2000, Ralph F. Wilson. All rights reserved. Permission granted to reprint this article on your website without alteration if you include this copyright statement." _______________________-- [1] Tips for Optimizing Viral Marketing Campaigns › › ›   E-Mail Marketing Optimization Sponsored by Silverpop Error! Unknown switch argument. BY Brady Brewer | February 22, 2001 Viral marketing, or "refer-a-friend," email campaigns have received a lot of attention in the media recently. These campaigns, which encourage recipients of promotional emails to forward the messages to their friends, have garnered both positive and negative reviews from consumers, privacy advocates, and industry pundits. At the heart of the issue are concerns over sending unsolicited email, but by using viral marketing tactics carefully, marketers may avoid negative reactions and gain an excellent return on investment (ROI) as they increase the reach of a marketing message to a targeted group far beyond their original audience. Listed below are five insights on how to execute a viral marketing campaign most effectively. Offer an incentive. Viral marketing works best when a valuable and tangible incentive is offered, encouraging individuals to forward an email message to their friends. However, marketers should cap the incentive to a specific quantity to avoid spam-like distribution of the message -- for example, offering an incentive of 20 percent off referrers' next purchase if they forward the message to five friends. Open-ended incentives, such as offering a $5 credit for every five friends referred, can end up causing a marketer customer service, financial, and privacy-related problems. A women's athletic clothing multichannel retailer recently offered a creative and socially aware incentive when it launched a viral marketing campaign that rewarded message recipients with a free T-shirt and a $1 donation to the Susan G. Komen Breast Cancer Foundation when an individual sent the special email message to five friends and three of those friends opted in to the retailer's catalog or email list. The campaign was tremendously successful, driving a click-through rate three times higher than normal, an email newsletter sign-up rate of over 30 percent, and a catalog subscription rate of nearly 70 percent. Meanwhile, cost per sale decreased by 89 percent. Don't consider the referral an opt-in. When a customer refers a friend, the referral should not be considered an opt-in. A name and email address volunteered by a person's friend does not constitute an opt-in by the individual, so the data should be deleted immediately after the referral email is sent. Verbiage should be included in the referral email asking if the individual would like to receive future mailings, allowing her to opt in if she wishes. Personalize the referral email. Response rates increase dramatically when users can see that a message is coming from a friend, so it is best to personalize the email message to show that it's coming from a recognizable source. The subject line is the key component in a viral marketing email, because it can immediately identify the email as friendly. A good subject line may read: "ADV: John Doe Thought You'd Like 20% Off at XYZ.com," thereby identifying that it is an advertisement, there's a special offer, and the message was sent from a friend. Track and analyze the results. As with any marketing campaign, tracking the results and optimizing performance over time is absolutely necessary. Thankfully, sophisticated email marketers can track insightful and actionable data that can be used to evaluate performance. Important metrics to analyze are pass-along, click-through, and conversion rates. Marketers should separate the click-through and conversion rates by original customers from referrals and evaluate their respective performances. These metrics will alert a marketer to which offers and customers drive the highest ROI. Continually promote friendly referrals. Marketers who want to have their messages frequently forwarded should place a viral marketing offer in every relevant outgoing email message. Viral marketing makes for a great one-time campaign, but it can also be a very effective tool for continuing to broaden the reach of your marketing messages over time. Though no sure-fire way exists to prevent negative customer reactions, by following these five concepts marketers should find their viral marketing campaigns to be most effective. [1] http://www.clickz.com/experts/em_mkt/opt/article.php/837511 __________________________________________________________
  6. [1] From a recent Time magazine article, Daniel Eisenberg says, “In an age of rising media saturation and sinking corporate credibility, the theory is that marketing is most effective when you don’t know that it’s marketing.”  That’s why many companies are engaging in alternative or guerrilla marketing that ranges from handing out free samples to sponsoring concerts or other events.  London’s Cake Creative Consultancy filled sidewalk trashcans and pub tables in Newcastle, England with empty cans of Red Bull a few years ago to spread the word to consumers that this is a hot drink.  It was most successful in introducing this new product and it was done without people even spreading the word. Another concept is virus marketing.  Seth Godin wrote a book about it.  The concept is easy – get your core listeners (P1s) to spread the word to their friends and acquaintances.  Reward them for bringing more people to your database marketing effort.  DMR did a P1 study and found that it takes six P2s and 22 P3s to equal one P1.  Certainly it makes more sense to bond with your P1s and use them to take your station to the potential listeners than chasing casual listeners with traditional marketing. [2]Operating in thirty cities across the United States and Canada, Big Phat Promotions has attracted a lot of media attention for leading this contested trend of marketing. The company defends their tactics as "spontaneous" and "virile" approaches to product promotion. Media critics however, argue that paying actors to engage unsuspecting targets in "friendly" encounters is unethical. According to a recent article, "Are You For Real" in the Montreal-based publication Massoneuve, the media isn't the only one who has a beef with Big Phat. The article reported that although Big Phat's lack of disclosure is raising issues with the Canadian Competition Bureau and the U.S. Federal Trade Commission, they haven't been able to charge Big Phat with anything other than bad taste. Meanwhile, company President, John Ressler, continues to guarantee his events to be "absolutely invisible". Aside from the potential legal issues, unethical stealth marketing can be bad for business in general. McCarron warns that if advertising becomes so sneaky that it is unrecognizable from the everyday experiences of defenseless consumers, it will damage corporate credibility and the resulting state of distrust could have an extremely negative effect on social interaction. __________________ [3] Sony-Ericsson is selling cellular telephones here with a large billboard and with herds of yellow cabs with rooftop signs. And they are selling the gadgets with Tom and Heather. Tom Sellwood, 24, is a handsome, clean-cut British actor who arrives with a backpack and his Sony-Ericsson cellular telephone. It's one of the new ones with a digital camera attachment, which takes pictures and stores them. Sellwood loves acting and the theater but he hates being called a salesman. Heather Lane, a pretty 19-year-old singer and actress who works as his partner agrees. "I wouldn't call it [being] a salesperson," she says. "We're not pushing anything on anybody." And then the pitch begins. Sellwood asks a Times Square passersby a favor: "Would you take a picture of me and my girlfriend?" Almost everyone does. On the new Sony-Ericsson cellular phone with the digital camera attachment. "Don't know how?" Sellwood asks, demonstrating how it works. "It's easy. Look. Just push this button. This is so sweet. I just got it." The recipients of the pitch become intrigued with the latest gadget in communications. Told later that Sellwood and Lane are actors and not actually tourists, some of the subjects are amused with the pitch. Word-of-Mouth Proves to Be Effective "It's a little deceiving. But I guess it's a good way to get your point across in a populated area like this," says Ryan Hill, from Windsor, Ontario. John Maron, Sony-Ericsson's director of marketing, couldn't agree more. "It's not just a typical phone that makes a phone call anymore," he says. "It does a whole lot more. And how do you explain that in a magazine ad?" The concept is called "viral marketing," or spreading the word about a product by word of mouth, like a virus. More and more companies are using viral marketing to try to get to hard to reach customers. And for the most part they say it works. "The feedback so far has been overwhelmingly positive," Maron says. But Maron hasn't been listening to Gary Ruskin, who is the executive director of Commercial Alert, an advertising monitoring agency created by consumer advocate Ralph Nader. "First, it's deceptive," Rushkin says. "People think these are tourists but really they are corporate shills. Second, it's intrusive. It's like telemarketing in your face." Ruskin is concerned that this form of marketing will become the norm as companies find it harder and harder to reach their markets. Is It Intrusive, Ethical? "It's absolutely unethical to deceive people like this," he says. "In addition, it's taking advantage of the kindness of strangers and that's pretty low." The pitch does not just happen on street corners. In the evening, it migrates to the nightclubs. Guastavino's, an upscale club on Manhattan's East Side, was where Sarah Baker, 23, and Lisa Dery, 28, are having a drink at the bar and starting conversations about Sony-Ericsson cellular phones. In just a minute, they are surrounded by men who are curious. And then the phones come out. Is this any way to sell a product? Sony-Ericsson's Maron says his actors will "identify themselves if actually asked if they work for the company." Back at Times Square, a young man from Connecticut named John Demaio was surprised when he learned the good-looking couple with the fancy phone were actors. "I feel violated," he says. "I mean I had a connection between the two people and then to find out that they're salesmen." For the most part, people interviewed laughed and thought the viral marketing approach was an innovative way to sell a product. Sony-Ericsson reports positive feedback since the campaign started. But the next time some nice couple wants you to take their picture, remember: The person with the camera may be a lot less than candid. [1] http://www.mcvaymedia.com/rock/03/stealthmarketing.htm [2] http://www.galtglobalreview.com/business/buyer_beware.html [3] http://abcnews.go.com/sections/wnt/DailyNews/stealth_marketing020822.html